Maybe one could think that Spain should be the example to Portugal because Portugal has needed a bailout but Spain has not needed it yet (although the ECB is in some way rescuing Italy and Spain by just buying their bonds)
But today I have read news from Portugal that make me realise that maybe it is Spain the one to look at Portugal.
Today Portugal has announced that it won’t pay to its public sector the 14th and 14th monthly pay. As far as I know these won’t happen in Spain, among other things becasue we have elections in November 20th. But I wonder if it would not be better to be austere now than next year.
One can agree or note with the cuts in Portugal but the message it sends outside is that Portugal is being a serious country. Now the rest of the planet know that the Portuguese population are in a critical moment but that they are doing something. And that makes now Portugal look a better place to trust.
Who knows, maybe Portugal fell before Spain into this economic chaos but it is also possible that Portugal leaves the crisis before Spain.
For one moment the example is not comng from Germany or the north of Europe. It is coming from the west of the peninsula where I am writing this. I wish the best to the Portuguese.
Maybe people in Spain should take care of their 13th and 14th pay because maybe next year we are doing the same as Portugal. We are not in a position to be less autere than Portugal I am afraid.
- Spain downgraded, the UK is next to suffer [Simon Dixon] (ecademy.com)
- Spain and Portugal: ‘the worst will be next year. Then it will really hit’ (guardian.co.uk)
- Portugal: Greek déjà-vu? (rt.com)
- Portugal’s debt crisis: ‘Younger people can’t live within their means’ (guardian.co.uk)
- ‘Portugal is just a couple of steps behind Greece’ (guardian.co.uk)
- Portuguese are ‘working more for less money’ (guardian.co.uk)
- ‘Portugal’s market has died. Banks aren’t lending. Everything is blocked’ (jhaines6.wordpress.com)
- Portugal gov’t warns of severe cuts, tax hikes (seattletimes.nwsource.com)