A very well written to-the-point text that adds to knowledge on Portugal-centered ongoing troubles in the Eurozone.
It does justice to the Portuguese case, specific as it is like every other.
But I vehemently disagree with the subtitle while grasping the intent fully.
It does justice to the Portuguese case, specific as it is like every other.
But I vehemently disagree with the subtitle while grasping the intent fully.
Problems in the Eurozone built up over many years of laxed oversight at EU-wide level. While the going was good - market finance seemed to flow easily - apparently no-one at Central Banks, crucially at the ECB and the European Commission, realized imbalances were growing by leaps and bounds to eventually become unsustainable. As they did!
National governments failed to act responsibly just as EU cross-country institutions comfortably looked the other way.
Arguably it seemed the win-win could last forever.
The rest of the story is unfortunately too painfully well-known to all.
Arguably it seemed the win-win could last forever.
The rest of the story is unfortunately too painfully well-known to all.
How to break free from the current stalemate that has produced millions of unemployed, declining or sluggish economies and a deep divide between the 'haves' few and the 'have-nots' many within the European Union?
Portugal's Constitutional Court is as relevant to the country as Germany's equivalent.
Or any other like-for-like entity in each of the remaining EU25.
In fact its ruling on the 2013 budget is to my mind the sole display of remaining sovereignty from this debtor country since the onset of the bailout.
The government has meanwhile stuck to its guns saying cuts to State spending will be made elsewhere to achieve the now relaxed deficit target of 5.5%. I do not doubt their resolve and ability to deliver.
Or any other like-for-like entity in each of the remaining EU25.
In fact its ruling on the 2013 budget is to my mind the sole display of remaining sovereignty from this debtor country since the onset of the bailout.
The government has meanwhile stuck to its guns saying cuts to State spending will be made elsewhere to achieve the now relaxed deficit target of 5.5%. I do not doubt their resolve and ability to deliver.
For their part, creditors must show flexibility where and when it falls due. Portugal has made remarkable strides in a very short timespan at a huge cost to the economy and employment.
A look at each Eurozone-member country as a stand-alone is required for individual analysis and assessment.
A review of the 17-member Eurozone bloc then becomes mandatory if the Euro - our cherished common currency - is to survive and thrive into the future.
A look at each Eurozone-member country as a stand-alone is required for individual analysis and assessment.
A review of the 17-member Eurozone bloc then becomes mandatory if the Euro - our cherished common currency - is to survive and thrive into the future.
Upmost on policymakers' minds should be kickstarting growth as soon as possible.
Even if most clearly remain in the dark on how to achieve this.
At the very least focus has got to be seen to be shared between restoring budget balances, macro balances and domestic economic growth.
Failure to achieve the latter threatens creditors as well.
Even if most clearly remain in the dark on how to achieve this.
At the very least focus has got to be seen to be shared between restoring budget balances, macro balances and domestic economic growth.
Failure to achieve the latter threatens creditors as well.
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