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The following article was published in our article directory on December 7, 2010.
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Portugal 15 Years to the Most Demanding Finance Budget

Article Category: Business Management

Author Name: xia zihui

The whole of Europe began to panic. The first is the Greek bankruptcy, and then Ireland in the move, and now Portugal has an emergency, is not European debt crisis began a domino effect?

The largest in 22 years to strike

The evening of November 23 local time, 300 million Portuguese workers in Portugal and the two most important UGT union CGTP organized, began to gather outside the international airport in Lisbon on strike, this is Portugal, since 1988 the first two major unions joint action.

This is known Portugal for 22 years to the largest strike in a serious impact on the Portuguese national life: November 23, 24, Airport canceled more flights; the country more than 3 / 4 of 24 trains were canceled, 60% of buses Can not start; hospital overcrowding due to lack of medical personnel, can only provide initial emergency ambulance patients; also severely affected the education sector, many schools have closed.

The fuse of the strike to protest the Government of Portugal on November 26 issued fiscal austerity, because according to this policy, for the realization of fiscal year 2011 budget deficit from 7.3% to 4.6% of the target, the existing salaries of public officers will be reduced by 5-10%; while the VAT rate increase from the current 21% to 23%; freeze pension growth; monthly wage of 600 euros will be no more family allowance supplement; have to re-examine the housing, education, health tax relief situation, reduction of social benefits and increase taxes to businesses and individuals, etc.; In addition, the Portuguese government also plans to cut public sector full of investment and spending.

Angry striking workers, said: "This is simply to allow workers in the suicide, why should the workers pay for the economic crisis, not the bankers and big business shareholders?!"

15 years to the most demanding budget

Challenge facing workers, the Government of Portugal is also very helpless, caught in the debt crisis and other European countries, Portugal, apart from the unpleasant task of implementing austerity, it seems there is no other way optional. Therefore, the Portuguese Prime Minister Jose Socrates stressed: "turn the page now must focus on the implementation of the budget."

November 26, the main opposition Social Democratic Party abstained in the case of the Portuguese Parliament, led by Prime Minister Jose Socrates minority government's 2011 budget. Socrates said after the adoption of the budget, the Government proposed in the budget policies and measures are "difficult and rigorous," but also "inevitable sacrifice."

The Government of Portugal is known for 15 years in the most demanding budget the intention behind the scheme is very clear that they hope that those who think that Greece, Portugal and Ireland has followed the steps investors can restore the confidence of Portugal, temporarily "shut up." With a series of strict austerity measures and savings, the Government of Portugal in 2014 when the deficit-GDP ratio from 9.3% last year to 3% or less.

Portugal dos Santos Minister of Finance, said: "No matter the size or the financial system from the budget deficit risks of view, the situation in Portugal than in Ireland is good, now the key is to prove it to the market. We target (budget) can be achieved words, Portugal will become a member of the EU's financial position. "

However, suspicions on the market is not fully dispersed, people still worry about the ominous black swan bird appears again. Portugal's largest listed bank Millennium Bank's chief economist Pascal said: "We are facing great difficulties, because the world market, new entrants and Portugal produce the same goods, but have to lower prices, which the Portuguese constitute a competition. However, the low cost of financing the euro, until recently, these difficulties have not affected our way of life. "

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