Monday, April 24, 2017

PORTUGAL: THE MAKE-BELIEVE COUNTRY STILL LOCKED INTO A LOGIC OF AUSTERITY

Portugal is facing a period of some optimism and tranquility and the current socialist government, supported by the traditional and modern left, claim several successes, see the latest economic and social statistics. The economic recovery, the fall in unemployment ratings or the slightly more optimistic rating agencies "statements", culminating in the news of a 2% deficit for Portugal, are supporting this apparent tranquility.
The forthcoming stability program promises Portugal to take on its financial commitments as well as a reduction in the size of the state. Some heralds of the Socratic rave are back, constantly criticizing the previous right wing government led by Passos Coelho and defending again “Babylonian” constructions - ex: the TGV or the construction of a new airport.
The Prime Minister António Costa is fueling this optimistic propaganda that everything is going well, fostered by a fantastic marketing network that the Socialist Party has always owned.
Despite all this "good vibe", the policy of austerity remains, although it is relatively masked, and is administered in lighter doses. Tourism, the most powerful activity in Portugal, has helped the economic recovery, but effectively this austerity is no longer so disguised, it is materialized either by increasing indirect taxes or by reducing investment.
Portugal needs to stop pretending there is no austerity and the whole matter passes off splendidly. Increasing productivity and competitiveness should be the top priorities. The State is suffocating the portuguese with miserable wages and taxes. Unfortunately,there is still the illusion the State is serving us in order to improve our well-being. In reality, Portugal has a State increasingly pushing the middle class citizens on the road to serfdom.


Miguel Verde - Senior Consultant, Professor of International Relations

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