A painful austerity drive under Portugal’s 78 billion euro EU-IMF bailout has pushed the country into its worst recession since the 1970s, where unemployment has risen to 18 percent of the total working population. Several analysts have suggested that the country is headed for a second bailout in 2014, but how much more will the Portuguese tolerate before they demand a euro exit?
Portugal’s President Aníbal Cavaco Silva has appealed to the nation’s highest court to rule on the legality of the country’s 2013 budget, after he expressed doubt over the budget’s fairness just a day after he personally signed the budget bill into law together with Prime Minister Pedro Passos Coelho.
The Portuguese government on Monday revealed the final version of its austerity package, which will see “enormous” tax increases across-the-board and a reduction in pensions and social benefits.
“The proposed budget is the only one possible … we don’t have any room for manoeuvre,” told Finance Minister Vitor Gaspar to journalists after submitting the budget bill in parliament.
As many as 400,000 medical appointments and 4,500 operations could be cancelled in Portugal over the next two days, warned the Portuguese health ministry on Wednesday, after thousands of doctors and nurses went on strike yesterday to protest against cuts in the health budget.
The strike, which will last for 48 hours, came after the government had announced 800 million euros ($985 million) in cuts from the health budget earlier this year – as part of a multi-billion-euro bailout deal with the European Union and the IMF.
Portugal is on track to receive a fourth round of foreign bailout money, after a review showed that Lisbon has managed to abide by the tough austerity terms agreed under its 78 billion euros ($98 billion) EU – IMF led bailout package.
In a statement released yesterday, the troika – the European Commission, the European Central Bank and the International Monetary Fund – said that despite the challenges, Portugal’s reform policies have been implemented according to plan with external adjustment proceeding faster than expected.
The Portuguese government has decided to eliminate four public holidays from its national calendar so as to increase the national productivity, claimed a report by the BBC on Wednesday.
Hundreds of protestors gathered outside Portugal’s presidential palace on Tuesday to leave a collection of food and loose change at its gates for the country’s “poor” president, after Anibal Cavaco Silva complained to reporters last week about a drop in his pension due to the government’s austerity measures.
Protesters outside the 18th century palace in Lisbon held out hats and collected coins, milk, rice and bread for Cavaco Silva, mocking the president with the slogan: “A penny for Cavaco.”
FOREIGN TRADE
The country has suffered from both the trade deficit as well as the balance of deficit over the years.
The major exportable commodities of the country are clothing and footwear, chemicals, machinery, paper products and hides. The exports partners of the country are Germany, Spain, France, UK, Italy and US.
STRUCTURE OF THE ECONOMY
Half of the continental area of Portugal is being dedicated for the agriculture sector.
Use of the modern types of technology in the country has given birth to a better output.
In horticulture and floriculture the country has achieved tremendous success. The important agriculture products of the country are grain, potatoes, grapes, olives, dairy products, sheep, cattle, goats, and poultry.
Portugal Economy grow during the 1990 – 2000. In 1986, Portugal was admitted to the EU (European Union).Portugal is a high income OECD country. It has its own capitalist form of economic system.
The country had qualified for the Economic and the Monetary Union of the European Union in the year 1998.
The country has a total surface area of 91,980.0 square kilometer as in the year 2004, with a forest area of 35,830.0 square kilometer in 2000.
