News / Europe

    Portugal Ousts Ruling Socialists, Moves Toward Austerity

    Pedro Passos Coelho (L) leader of the center-right Social Democrat Party, PSD, is received by Portugal's President Anibal Cavaco Silva, June 6, 2011, at Belem presidential palace in Lisbon
    Pedro Passos Coelho (L) leader of the center-right Social Democrat Party, PSD, is received by Portugal's President Anibal Cavaco Silva, June 6, 2011, at Belem presidential palace in Lisbon
    Lauren Frayer

    The new conservative prime minister is expected to slash public spending and privatize state industries, in an effort to try to tamp down Portugal's spiraling debt crisis and prevent it from being a further drain on Europe.

    Supporters of the center-right Social Democrats are celebrating in the streets of Lisbon. The Social Democrats ousted Portugal's ruling Socialist Party and are expected to form a new coalition government.

    That new government will be tasked with implementing austerity measures tied to a more than $114 billion bailout from the European Union and International Monetary Fund.

    The man tasked with leading Portugal into this new age of austerity is the leader of the Social Democrats, Pedro Passos Coelho. He is a former businessman who has never held public office. But he says he wants to try to help Portugal earn back the trust of investors.

    "I hope that the new step we are beginning now, could be the first step to a new hope for Portugal, to have a new credibility outside Portugal, and to restore confidence in the markets," said Coelho.

    The incumbent prime minister, Jose Socrates, admitted defeat and said he would also resign as his party's leader.

    Portugal's Socialists are the latest ruling party to suffer at the polls, as high unemployment and public debt sweep southern Europe. Three weeks ago, the ruling Socialist Party in neighboring Spain lost control of many municipalities it long considered strongholds, and is forecast to lose control of Spain's parliament in elections next year.

    Portugal is one of three eurozone economies to seek EU bailouts. Greece and Ireland also have suffered political backlash from their constituents.

    Iain Begg, a Europe economist at London's Chatham House, says Portugal's election results are in line with what has happened across Europe. Governments in power during the economic crisis have been blamed for it.

    "The government that's getting the blame for it is the one that's being kicked out, and the government that's now doing the difficult task, it's hoping that it will be re-elected because it's confronted the problem," said Begg. "So we see volatile politics across much of Europe."

    There is some optimism in Portugal, at least among Mr. Coelho's supporters, that a new government might improve conditions for citizens struggling with rising costs and stagnant wages. This voter says she is happy about electoral change.

    "I'm so happy," said a Coelho supporter. "I'm so proud for Portugal and for this voting. It's everything we needed right now. I'm so, so happy."

    But Begg says Portugal's new Social Democratic-led government can expect huge challenges ahead.

    "A long slog. They have to collect the balance of payments deficit, they have to correct the public sector accounts deficit, and they have to make sure that the structural reforms, the long-term supply -side reforms, are on track," said Begg. "All of that simultaneously - which is never easy when the economy is not growing."

    Begg says Mr. Coelho would do well to try to implement austerity measures as quickly as possible.

    "A government coming into power has the mandate to make the hard decisions quickly," Begg added. "They say, 'Let's get all the bad news out of the way so that when it comes around to our re-election period, it will be forgotten. We will have already made the hard choices.'"

    Mr. Coelho has promised to privatize some Portuguese state industries and scale back infrastructure projects, such as plans for a new high-speed railway.

    You May Like

    Hope Remains for Rio Olympic Games, Despite Woes

    Facing a host of problems, Rio prepares for holding the games but experts say some risks, like Zika, may not be as grave as initially thought

    IS Use of Social Media to Recruit, Radicalize Still a Top Threat to US

    Despite military gains against IS in Iraq and Syria, their internet propaganda still commands an audience; US officials see 'the most complex challenge that the federal government and industry face'

    ‘Time Is Now’ to Save Africa’s Animals From Poachers, Activist Says

    During Zimbabwe visit, African Wildlife Foundation President Kaddu Sebunya says poaching hurts Africa as slave trade once did

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Ivorian Chocolate Makers Promote Locally-made Chocolatei
    X
    July 29, 2016 4:02 PM
    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Ivorian Chocolate Makers Promote Locally-made Chocolate

    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Tesla Opens Battery-Producing Gigafactory

    Two years after starting to produce electric cars, U.S. car maker Tesla Motors has opened the first part of its huge battery manufacturing plant, which will eventually cover more than a square kilometer. Situated close to Reno, Nevada, the so-called Gigafactory will eventually produce more lithium-ion batteries than were made worldwide in 2013. VOA's George Putic reports.
    Video

    Video Polio-affected Afghan Student Fulfilling Her Dreams in America

    Afghanistan is one of only two countries in the world where children still get infected by polio. The other is Pakistan. Mahbooba Akhtarzada who is from Afghanistan, was disabled by polio, but has managed to overcome the obstacles caused by this crippling disease. VOA's Zheela Nasari caught up with Akhtarzada and brings us this report narrated by Bronwyn Benito.
    Video

    Video Hillary Clinton Promises to Build a 'Better Tomorrow'

    Democratic presidential candidate Hillary Clinton urged voters Thursday not to give in to the politics of fear. She vowed to unite the country and move it forward if elected in November. Clinton formally accepted the Democratic Party's nomination at its national convention in Philadelphia. VOA national correspondent Jim Malone has more.
    Video

    Video Trump Tones Down Praise for Russia

    Republican presidential candidate Donald Trump is toning down his compliments for Russia and Vladimir Putin as such rhetoric got him in trouble recently. After calling on Russia to find 30.000 missing emails from rival Hillary Clinton, Trump told reporters he doesn't know Putin and never called him a great leader, just one who's better than President Barack Obama. Putin has welcomed Trump's overtures, but, as Zlatica Hoke reports, ordinary Russians say they are not putting much faith in Trump.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.

    Special Report

    Adrift The Invisible African Diaspora