November 3, 2010
Happily, after some presumably hardcore politicking, Portugal has passed their austerity measures package. One can only imagine the bargaining and dealmaking that it took to get that through behind the scenes. Having threatened to quit if the measures were not passed, Prime Minister Socrates was been penned into a corner for a few days.
Opposition parties eh? Who needs ’em???
It may also be possible that the topics of discussion at the Brussels summit last week shook some of the opposition members a little. After all, the EU could have fined us, but never did, and now we don’t have the money to pay, so why worry about financial penalties? But a loss of voting rights? That must hurt politicians a lot. For the political class it must be like losing blood or access to air.
Perhaps this deal can be the start of the long road to better finances for Portugal. Who can say? But they are at least getting started now. This won’t make ratings agencies suddenly start to upgrade them and make their borrowing costs cheaper, but it is a great first step.financialguy