British Expats - IMF Bailout

British Expats (https://britishexpats.com/forum/)

- Portugal (https://britishexpats.com/forum/portugal-89/)

- - IMF Bailout (https://britishexpats.com/forum/portugal-89/imf-bailout-714428/)

Quote:

Originally Posted by Evelyn72 (Post 9331308)

What do you think is the one major point that led Portugal to requiring the bailout in the first place?

Socrates is a big spender. The guy really belongs in prison (just like Gordon Brown) for single-handedly bankrupting the country. The really scary thing though is that I wouldn't be surprised to see him winning the upcoming election.

There is some talk that a deal has been cobbled up by the men in grey suits but it unlikely to be good deal for Portugal! This is a good deal for its politicians and the Euro zone, but not Portugal. It gets the politicians off the hook for the time being, it will come back to haunt them in the future. Portugal in my opinion will need at least 6 years to turn things round, probably longer.

Unemployment in Portugal is already at a high level and the new deal will not be welcome in Portugal. Portugal needs investment and it has had its chance already: money in future will be harder to get for Portugal.

Portugal has failed to move with the times. For example, its once thriving textile industry is no more and they cannot survive on tourism alone.

Portugal needs some way to get out of the Euro. The Euro is for Germany and France, but not Portugal. Portugal needs control of its own currency and economic policy. At a time like this, it should be lowering its interest rates, not increasing them, but it can't because Germany and the European Central bank makes all of the decisions for it.

So what can they do to attract industry and regenerate their economy? Nothing! They can only impoverish their people further, forcing them to accept lower wages, reduced benefits, increased taxes and having holidays cut or having unpaid holidays.

Unlike Britain, Portugal will not even try to be fair when they make cuts, they will target those on the lowest incomes and benefits, just as they have done already. They will target government employees because they are easy targets, just as they have started to do with their teachers.

This has already started. Last Sunday, 1st of May, the workers of one of Portugal's top supermarkets, had to work on the 1st May, traditionally a holiday for them and only one of two holidays that they get, the other being Christmas Day.

To support the scrapping of the holiday, the company produced a handout for customers to justify in some bizarre way, why they were denying their staff their traditional holiday and proclaiming how staff should make a sacrifice for Portugal. This nasty little diatribe was actually headed up "Portugal needs to work and have a sense of Responsibility".

From an Expats perspective we really should be thankful with our lot and do everything we can to support the economy no matter how small it may seem instead of moaning about motorway tolls and the like.

What Portugal needs to do is be Portugal

I don't want it to be like the rest of Northern Europe, every city looks the same Gap, H&M, McDonalds etc.

Two thirds of the UK market is made up from consuming, no one in Portugal has the money to consume like this as they are lucky to get 600â‚¬ a month. The big firms in PT don't pay good wages but they make good profits.

Personal I don't want my kids to grow up thinking they are a better person if they drive a certain car, wear certain clothes or your TV is 10ft long.

PT will get the bail out and default on it in years to come, just like Greece, Ireland and Spain next.

I like getting my food from local shops not soulless places, I like having a drink in a small local bar not a Brewers Fayre

If you want PT to be like the UK, Germany etc then please go back to them and work every hour in the day and hardly see the family apart from the quality family time in front of the 10ft flat screen.

Portugal does not need a sense of responsibility, its the mighty giants of industry, politicians and banks that need the sense of responsibility.....they messed it up!

Its all about money and greed, nothing else.

Yes,
I was just talking to somebody the other day who said the British had become 'I spend therefore I am.'

Must admit it's very interesting reading the last couple of posts in particular.

Portugal is no different to the UK in that we don't have any industry left. Money here is basically driven by the service sector or IT, yet what people forget is that ultimately you need a product sector to serve in the first place. That and the fact that people fail to accept basic economics in that money does not multiple unless there is a product/industry producing a profit behind it.
How many people got hurt here when the banks stopped paying the big dividends? Lots of people I know.

Nandnjudge2 - Britain isn't being in the least bit fair when making cuts - it's cutting benefits, raising taxes, and doing all the things they do to make things look better than they actually are.

Supermarket workers here have had to work Bank Holidays for a long time. Sometimes they close but not often. I know because my ex worked in a supermarket. Mind you that was known as being loyal to the company and not being workshy not down to a sense of national responsibility!

Thing is, if people expect many material goods, then they have to work to pay for them and the lifestyle ethic changes - as Redflag states Portugal isn't really set up for mass consumerism (as little as I know about it, of course) and that makes the argument that it shouldn't be in the euro to begin with look a little clearer.