Latest news and stories about austerity in Portugal for expats and residents.
The International Monetary Fund (Fundo Monetário Internacional) expressed skepticism over Portugal's ability to maintain its run of annual budgetary surpluses. The fund suggested that rising spending pressures could eventually force the country to reintroduce fiscal austerity measures. The assessment comes during preparations for the next state budget, raising questions about long-term public spending plans.
Financial markets are less tolerant; budgetary security has “practically disappeared”; and the public debt at actual risk is higher than the global GDP. These warnings come from the IMF, which does not anticipate further budget surpluses in Portugal. Moving forward, deficits will return.
Passos was questioned by journalists again and asked for more boldness from Montenegro's government to follow the PSD's reformist tradition. He rejected creating a new party and expressed concern about the future of his own. In Esposende, this Saturday morning, Montenegro gave a guarantee: he would not be the “father of austerity”. That epithet is already taken.
Economist Eugénio Rosa accuses the Government of preparing to “blackmail” Parliament by asking deputies to sign a “blank cheque” in a hurried manner.
An interview discussing the historical context of austerity measures in Portugal in relation to the troika's demands.
