THIRTEEN DAYS before the presidential elections in Portugal and the contenders have been taking increasingly loud stands on the ever-growing debate over whether Portugal should seek a bailout for its debt crisis from the EU and the IMF.
Incumbent president Anibal Cavaco Silva, considered to be a certainty to win the first round of the elections though not an ally of the Socialist government of prime minister José Sócrates, has repeatedly called for the government to be allowed to carry out the measures called for in its budget – salary cuts, less government spending and more taxes – as it has been attempting to do rather than appeal to the IMF.
At the same time Mr Socrates has been issuing optimistic statements regarding Portugal’s economy and debt.
He reported that internal revenues from his fiscal policies were better than expected, and that in 2011 the government expected to bring the per cent of the GNP for debt down from 7.3 per cent to 4.6 per cent.
Opponents claim this would take a miracle from Fatima.
The Socialist candidate for president, poet Manuel Alegre, has called for all political forces to work together to prevent the intervention of the IMF.
The leading opposition parties, the right-of-centre Social Democrats and the Christian Democrats, claim that if it does become necessary to call in the IMF it means that the government has failed and, therefore, it would be necessary to call parliamentary elections.
Said Social Democrat leader Passos Coelho: “Only a new government chosen by the Portuguese people would have the force to lead the country in its recuperation if it must take up offers by the IMF.”
According to sources, the bailout would amount to between €60 billion and €80 billion.
Reports have continued that France and Germany are pressuring Portugal to accept. Both countries have denied this.
Tomorrow will be an important day in deciding the question. Portugal will put up for auction €750 million to €1.25 billion in four to 10-year treasury bonds. Everyone is waiting to see how this will go.
A delegation from the European Parliament also arrives this week to assess the country’s situation.
Meanwhile, the Portuguese parliament begins a debate on a proposal to raise prices on essentials and bring VAT up to 23 per cent. Such measures have not gone down well in other countries.
