A damning IMF report has highlighted the real financial situation in Portugal.
With the highest combined debt levels in the eurozone at over 360pc of GDP, Portugal has “strangulating debt levels, falling job creation and bad loans.”
Today’s report in The Telegraph online states that the IMF is urging more taxes and less public spending to enable the treasury to pay off the country’s debts but does not recognise that the high tax levels are part of the problem, dampening investment and eradicating consumer spending.
With the argument currently raging over fiddled unemployment figures and with an election set for the autumn, party political rhetoric from the ruling coalition is playing down the massive indebtedness of the economy and is focussing on export performance and tourism as centres of excellence despite seemingly healthy percentage improvements being based on low year-on-year figures.
“High government debt coupled with eye-watering corporate sector liabilities should be tackled by mass private sector debt restructuring and the liquidation of "zombie" companies, recommended the International Monetary Fund.”
For the full report, see:
Comments
But full marks to the IMF for having the balls to say what needs to be said. That this country, Portugal, is still deep in the sh*t and has a hopeless record over the last 30 years of contributing to the growth and effectiveness of the European Union. Indeed, as so many thousands of north Europeans will agree - has actually worked against EU progress. Which the grandees in Brussels are so loath to say as it confirms to the world the EU has at least 2 basket cases - possibly more.
One EU state, Portugal, intentionally handicapping itself by spending at least 10 years schooling each of its youngsters in anti-European rhetoric ! "Boo hiss. Big bad Europe took our Empire off us."
If the IMF reports included some social history to explain the situation today rather than just faff about with numbers it would say that 'Until Portugal re-writes and balances its history books - it has no hope of ever properly joining in the 'Union'.