Portugal faces an extra challenge. The PSD, CDS-PP and the Socialists have all signed up to the bail-out programme. But the constitution, drawn up following the left-wing coup that toppled the dictatorship in 1974, could prove a hurdle. Unlike the bail-out packages for Greece and Ireland, the EU-IMF agreement with Portugal includes plans for extensive structural reforms in areas like justice, healthcare, education and even the armed forces. Mr Passos Coelho believes a constitutional revision is essential to ensure that legislation in these areas does not run foul of the constitutional court. Changing the constitution requires a two-thirds majority in parliament—which means support from the Socialists would be essential.
In a climate of deep recession, with unemployment at record levels and trade unions adamantly opposed to proposed changes in labour laws, the key to economic reform in Portugal and the success of the bail-out programme could still lie with the defeated Socialists.
Tuesday, June 07, 2011
Um pesadelo que nunca acaba
Depois das eleições, é agora necessário lidar com a questão das reformas estruturais e da (futura) reestruturação da dívida. No entanto, a Economist chama a atenção para outro dos problemas que não tem passado muito pelos radares da imprensa local:
dos ∫antos às 18:51