Comment du Jour

Portuguese Election--

Jose’s No Socrates

Portugal’s ruling Socialist Party (PS) has been defeated in parliamentary elections by a consertative coalition. Despite his auspicious surname, Prime Minister Jose Socrates presided over a moribund economy ironically distinguished only by growth rates in unemployment at 12.6%, and high emigration.

Though Portugal is one of the European Union’s most indebted countries (though not nearly as bad as Greece), the $116 billion debt bailout has been backed by all political parties. Reforms, austerity measures, and belt-tightening will now largely be the responsibility of the conservatives who inherit an albatross minus 2 percent growth rate.

They may also inherit the blame for what will become deeply unpopular measures.
First it’s the task of the center-right Social Democrats and Pedro Passos Coelho, the PSD leader, to build a coalition government with its traditional ally, the conservative People’s party (CDS-PP) to enter the Sao Bento Palace. Then comes the really tough part, governing. Bringing Portugal back to prosperity in a lackluster global economy, and re-starting the export oriented commerce which characterized the country in the 1990’s when the conservatives were in power, will not be easy, but it is certainly essential.
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