What The Government Cant Do For You: Portugal

Showing posts with label Portugal. Show all posts

Sunday, April 14, 2013

Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

It’s rare to hear any bit of common sense from political leaders, but today I have a sterling example. Mário Soares, Prime Minister of Portugal from 1976-1978 and 1983-1985, and the 17th President of Portugal from 1986 to 1996 speaks the truth.

Soares says “Portugal Cannot Pay Its Debts“. He calls for an “Argentine-Style Default”, and states “The desire please chancellor Merkel is ruining the country.”

“Portugal can not pay what you owe and however much they impoverish people, however much they steal the money to people who have it, not be able to pay what you owe. And when you cannot, the only solution is not pay. ” The president of Portugal, Mario Soares socialist argues that it is impossible for Portugal to return all of its foreign debt. So has asked to make a Argentine-style default to avoid economic collapse.
“Look at Argentina, was in crisis when he said we do not pay. ‘And something happened?” Asks Soares. “No, nothing happened,” he says in an interview with Antena 1, which airs tonight and that includes the Business Journal.

Soares, who was also prime minister, has called for the overthrow of the government, has criticized the European Commission president, José Manuel Barroso and launched a series of warnings to the President of the Republic, Cavaco Silva. The former head of state also defended as imperative the change in government and an end to austerity.

“This desire to be useful to Mrs Merkel, are ruining the country and forcing him to sell everything. In two years, this government has destroyed almost everything in Portugal,” he says.

For Soares, “any politician with an ounce of common sense when booed-as are the government every day, calling them thieves, should have the dignity to leave. But they cling to power,” he concludes.

Sooner or Later

Sooner or later some politician is going to run on that exact platform and be elected. Alternatively, a politician will decide the same thing while in office.

Eurozone math practically guarantees that outcome. For further discussion, please see Eurozone Math; One Size Fits Germany; Door Number Two.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

Soares says “Portugal Cannot Pay Its Debts“. He calls for an “Argentine-Style Default”, and states “The desire please chancellor Merkel is ruining the country.”

“Portugal can not pay what you owe and however much they impoverish people, however much they steal the money to people who have it, not be able to pay what you owe. And when you cannot, the only solution is not pay. ” The president of Portugal, Mario Soares socialist argues that it is impossible for Portugal to return all of its foreign debt. So has asked to make a Argentine-style default to avoid economic collapse.
“Look at Argentina, was in crisis when he said we do not pay. ‘And something happened?” Asks Soares. “No, nothing happened,” he says in an interview with Antena 1, which airs tonight and that includes the Business Journal.

Soares, who was also prime minister, has called for the overthrow of the government, has criticized the European Commission president, José Manuel Barroso and launched a series of warnings to the President of the Republic, Cavaco Silva. The former head of state also defended as imperative the change in government and an end to austerity.

“This desire to be useful to Mrs Merkel, are ruining the country and forcing him to sell everything. In two years, this government has destroyed almost everything in Portugal,” he says.

For Soares, “any politician with an ounce of common sense when booed-as are the government every day, calling them thieves, should have the dignity to leave. But they cling to power,” he concludes.

Sooner or Later

Sooner or later some politician is going to run on that exact platform and be elected. Alternatively, a politician will decide the same thing while in office.

Eurozone math practically guarantees that outcome. For further discussion, please see Eurozone Math; One Size Fits Germany; Door Number Two.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

Saturday, April 13, 2013

Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

Soares says “Portugal Cannot Pay Its Debts“. He calls for an “Argentine-Style Default”, and states “The desire please chancellor Merkel is ruining the country.”

“Portugal can not pay what you owe and however much they impoverish people, however much they steal the money to people who have it, not be able to pay what you owe. And when you cannot, the only solution is not pay. ” The president of Portugal, Mario Soares socialist argues that it is impossible for Portugal to return all of its foreign debt. So has asked to make a Argentine-style default to avoid economic collapse.
“Look at Argentina, was in crisis when he said we do not pay. ‘And something happened?” Asks Soares. “No, nothing happened,” he says in an interview with Antena 1, which airs tonight and that includes the Business Journal.

Soares, who was also prime minister, has called for the overthrow of the government, has criticized the European Commission president, José Manuel Barroso and launched a series of warnings to the President of the Republic, Cavaco Silva. The former head of state also defended as imperative the change in government and an end to austerity.

“This desire to be useful to Mrs Merkel, are ruining the country and forcing him to sell everything. In two years, this government has destroyed almost everything in Portugal,” he says.

For Soares, “any politician with an ounce of common sense when booed-as are the government every day, calling them thieves, should have the dignity to leave. But they cling to power,” he concludes.

Sooner or Later

Sooner or later some politician is going to run on that exact platform and be elected. Alternatively, a politician will decide the same thing while in office.

Eurozone math practically guarantees that outcome. For further discussion, please see Eurozone Math; One Size Fits Germany; Door Number Two.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

Soares says “Portugal Cannot Pay Its Debts“. He calls for an “Argentine-Style Default”, and states “The desire please chancellor Merkel is ruining the country.”

“Portugal can not pay what you owe and however much they impoverish people, however much they steal the money to people who have it, not be able to pay what you owe. And when you cannot, the only solution is not pay. ” The president of Portugal, Mario Soares socialist argues that it is impossible for Portugal to return all of its foreign debt. So has asked to make a Argentine-style default to avoid economic collapse.
“Look at Argentina, was in crisis when he said we do not pay. ‘And something happened?” Asks Soares. “No, nothing happened,” he says in an interview with Antena 1, which airs tonight and that includes the Business Journal.

Soares, who was also prime minister, has called for the overthrow of the government, has criticized the European Commission president, José Manuel Barroso and launched a series of warnings to the President of the Republic, Cavaco Silva. The former head of state also defended as imperative the change in government and an end to austerity.

“This desire to be useful to Mrs Merkel, are ruining the country and forcing him to sell everything. In two years, this government has destroyed almost everything in Portugal,” he says.

For Soares, “any politician with an ounce of common sense when booed-as are the government every day, calling them thieves, should have the dignity to leave. But they cling to power,” he concludes.

Sooner or Later

Sooner or later some politician is going to run on that exact platform and be elected. Alternatively, a politician will decide the same thing while in office.

Eurozone math practically guarantees that outcome. For further discussion, please see Eurozone Math; One Size Fits Germany; Door Number Two.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

Soares says “Portugal Cannot Pay Its Debts“. He calls for an “Argentine-Style Default”, and states “The desire please chancellor Merkel is ruining the country.”

“Portugal can not pay what you owe and however much they impoverish people, however much they steal the money to people who have it, not be able to pay what you owe. And when you cannot, the only solution is not pay. ” The president of Portugal, Mario Soares socialist argues that it is impossible for Portugal to return all of its foreign debt. So has asked to make a Argentine-style default to avoid economic collapse.
“Look at Argentina, was in crisis when he said we do not pay. ‘And something happened?” Asks Soares. “No, nothing happened,” he says in an interview with Antena 1, which airs tonight and that includes the Business Journal.

Soares, who was also prime minister, has called for the overthrow of the government, has criticized the European Commission president, José Manuel Barroso and launched a series of warnings to the President of the Republic, Cavaco Silva. The former head of state also defended as imperative the change in government and an end to austerity.

“This desire to be useful to Mrs Merkel, are ruining the country and forcing him to sell everything. In two years, this government has destroyed almost everything in Portugal,” he says.

For Soares, “any politician with an ounce of common sense when booed-as are the government every day, calling them thieves, should have the dignity to leave. But they cling to power,” he concludes.

Sooner or Later

Sooner or later some politician is going to run on that exact platform and be elected. Alternatively, a politician will decide the same thing while in office.

Eurozone math practically guarantees that outcome. For further discussion, please see Eurozone Math; One Size Fits Germany; Door Number Two.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

Former Portuguese Prime Minister Says "Portugal Cannot Pay Its Debts", Calls for "Argentine-Style Default"

Sunday, April 7, 2013

EU Warns Portugal on Austerity Measures; Portugal Faces Fresh Spending Cuts; Second Bailout Coming Up

As expected, Brussels rejected the Inane Plan “B” Measure to Pay Workers in T-Bills following a Portuguese court ruling that certain austerity measures are unconstitutional.

Reuters reports Portugal must stick to agreed budget targets to get loan extension.

And so Portugal faces fresh cuts to spending.

Portugal’s prime minister says the government will have to cut spending on health, education and social security to keep the country’s €78bn bailout programme on track.
Mr Passos Coelho said he had no alternative after the court decision but to make extra spending cuts that would have a significant impact on the welfare state. The budgets of state-owned companies would also be cut, he said but the premier ruled out more tax rises on top of record increases introduced in January.

“I have ordered ministries to cut expenditure to compensate for the effects of the court decision,” he said.

Mr Passos Coelho also faces a difficult task to convince international lenders that new spending cuts will keep deficit-reduction plans on target.

The decision by Mr Passos to cut spending on the welfare state is likely to intensify opposition pressure on the government to resign, potentially opening the way to an early general election.

“We have to do everything possible to avoid a second bailout,” the prime minister said.

Read that last line carefully. It is an admission Portugal is in need of a second bailout. One is coming up.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

EU Warns Portugal on Austerity Measures; Portugal Faces Fresh Spending Cuts; Second Bailout Coming Up

As expected, Brussels rejected the Inane Plan “B” Measure to Pay Workers in T-Bills following a Portuguese court ruling that certain austerity measures are unconstitutional.

Reuters reports Portugal must stick to agreed budget targets to get loan extension.

And so Portugal faces fresh cuts to spending.

Portugal’s prime minister says the government will have to cut spending on health, education and social security to keep the country’s €78bn bailout programme on track.
Mr Passos Coelho said he had no alternative after the court decision but to make extra spending cuts that would have a significant impact on the welfare state. The budgets of state-owned companies would also be cut, he said but the premier ruled out more tax rises on top of record increases introduced in January.

“I have ordered ministries to cut expenditure to compensate for the effects of the court decision,” he said.

Mr Passos Coelho also faces a difficult task to convince international lenders that new spending cuts will keep deficit-reduction plans on target.

The decision by Mr Passos to cut spending on the welfare state is likely to intensify opposition pressure on the government to resign, potentially opening the way to an early general election.

“We have to do everything possible to avoid a second bailout,” the prime minister said.

Read that last line carefully. It is an admission Portugal is in need of a second bailout. One is coming up.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

EU Warns Portugal on Austerity Measures; Portugal Faces Fresh Spending Cuts; Second Bailout Coming Up

Portugal Considers Paying Workers in T-Bills to Circumvent Court Ruling that Austerity Measure are Unconstitutional

Last week, ahead of a ruling by the Portuguese Constitutional Court on whether or not the austerity measures it approved were legal, Portugal’s PSI stock market took a dive.

PSI Stock Index

On March 25 the index was at 6023. It closed at 5637 on April 5 a decline of 6.4%

Court Rejects Budget

On April 5, Portugal constitutional court rejects budget articles

Portugal’s Constitutional Court has ruled several key articles of the 2013 state budget unconstitutional.
It rejected four out of nine contested austerity measures from the budget.

It will deprive the state of some 1.5bn euros (£1.3bn) in savings the government had said were necessary to meet the terms of a eurozone bailout.

The court rejected a measure to scrap summer holiday bonuses for public sector workers and pensioners, as well as cuts to unemployment and sickness benefits.

Prime Minister Pedro Passos Coelho did not react to the decision immediately but called an extraordinary cabinet meeting for Saturday.

For most Portuguese workers, the annual tax rises are equivalent to more than a month’s wages. The standard income tax rate is rising from 24.5% to 28.5%.

The savings are Portugal’s toughest in living memory, aimed at meeting the terms of a 78bn-euro (£64bn) bailout.

Portugal Considers Paying Workers in T-Bills

One might think the Portuguese government would have gotten the message or at least the spirit of the message but one would be wrong.

The Wall Street Journal reports Portugal Mulls Paying Workers in T-Bills as a means to circumvent the court ruling.

The Portuguese government is considering a plan to pay public workers and pensioners one month of their salary in treasury bills rather than cash after a high court ruled out wage cuts, a person familiar with the situation said Sunday.
The Portuguese government warned Saturday that the court’s decision will put into question the country’s ability to fulfill its €78 billion ($ 101 billion) international bailout program.

Specifically, the court rejected plans to cut one of the 14 paychecks that public workers usually get each year and to slash 6.4% from pensions for retirees.

By paying one month of salary in T-bills to public workers and pensioners, the government would save an estimated €1.1 billion in expenses, narrowing the budget gap significantly

Plan “C” Coming Up

The idea that paying workers in T-Bills (debt) can fulfill austerity agreements is of course preposterous. I highly doubt Brussels will go along with this scheme, and if so Portugal will soon be back at the drawing board. Plan “C” is coming up.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com

Mish’s Global Economic Trend Analysis

Portugal Considers Paying Workers in T-Bills to Circumvent Court Ruling that Austerity Measure are Unconstitutional

Sunday, April 14, 2013

Saturday, April 13, 2013

Sunday, April 7, 2013

Monday, March 18, 2013