PORTUGAL TO ASK FOR EU MONETARY HELP

Apparently Portugal is the latest Country to ask for help, I suspect that with the Japanese Earthquake Tragedy there will be others. It seems the
current Government in Portugal is unpopular and a General Election as happened in Ireland will soon be held.

Now that Socrates has resigned instead of waiting to be pushed out of Office, it has been mooted that Portugal will reqiure a E30BILLION bail-out
by the EU and IMF.


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day, March 25, 2011
Decisive days......Friday 25
Portugal's continued stubbornness in resisting a bailout is frustrating EU leaders who have reached agreement in Brussels on a comprehensive financial bailout fund that they hope will resolve Europe's debt crisis.

After months of negotiation, only details remain to be tidied up for a permanent new version of the European Stability Mechanism to help troubled eurozone countries.

Meanwhile, caretaker Prime Minister José Sócrates is sticking by his insistence that Portugal will not follow Greece and Ireland in seeking a rescue package.

It is generally accepted in Brussels, however, that it is only a matter of time before Portugal will have to bow to pressure and request outside financial help.

The political as well as economic mess Portugal finds itself in has overshadowed what was to have been an upbeat summit in Brussels.

In Lisbon, the outcome is awaited of discussions between President Aníbal Cavaco Silva and the six political parties represented in parliament on whether they would prefer to form a coalition government or go for an early election. The latter seems more likely, probably in May or early June.

An opinion poll published today showed that the lSocial Democrats would win an absolute majority if elections were held now.
Posted by Len Port at 9:13 AM 0 comments
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Thursday, March 24, 2011
Decisive days....Thursday 24


Much more but too long to copy and paste and not really relevant. Question: Where is all this money coming from to bail out all these Countries? It
is very unlikely the ED and IMF would have all this money in the Bank.!!!

Portugal is to receive 80 Billion Euros bail out and it is rumoured Britain will be asked to pay 4 Billion.

who will be next to ask for financial assistance?

Badboy wrote:who will be next to ask for financial assistance?

Belgium? Apparently, Germany, Finland and Norway are the most solvent and are helping with these bailouts. The .25% interest increase announced
today will help Germany and other exporting Companies but is bad for inflation. I think the Euro will be abandoned it is obvious a one size fits all
currency doesn"t work with such diverse Economies.

I hope Portugal doesnt get screwed over like Ireland. We are never ever going to be able to stand back up at the rate we are going.

Antoinette wrote:I hope Portugal doesnt get screwed over like Ireland. We are never ever going to be able to stand back up at the rate we are going.

Spain is in trouble too... but we are treading water at the moment! Phew!

Antoinette wrote:I hope Portugal doesnt get screwed over like Ireland. We are never ever going to be able to stand back up at the rate we are going.

Oh, we will get crewed over, no doubt about that. And now that the markets are done with us, there will be a next victim.

I hate that George Osbourne is using this as an example of why we must make cuts. I think that is really low.

Whether we like it or not , the only way out of this mess is to pay our way out and to do that , cuts in Government Expenditure and Higher Tax
rates is the only answer. BUT, the greedy Banks should also pay for getting us in this mess in the first place. Bonuses should be cancelled until
the money they owe the Government is paid off and instead of moving Business offshore, the banks must pay the Tax in the U.K.. The Government
is terrified the Banks will move to the Middle East, let them, let"s get back to manufacturing and exporting again, the only way to earn money.

The Banks have been all powerful for too long and this crisis has proved if nothing else that a one size Euro does not fit all and Governments should
be allowed to manage their own Currency.

Spot on, Panda!

Panda wrote:

Whether we like it or not , the only way out of this mess is to pay our way out and to do that , cuts in Government Expenditure and Higher Tax
rates is the only answer. BUT, the greedy Banks should also pay for getting us in this mess in the first place. Bonuses should be cancelled until
the money they owe the Government is paid off and instead of moving Business offshore, the banks must pay the Tax in the U.K.. The Government
is terrified the Banks will move to the Middle East, let them, let"s get back to manufacturing and exporting again, the only way to earn money.

The Banks have been all powerful for too long and this crisis has proved if nothing else that a one size Euro does not fit all and Governments should
be allowed to manage their own Currency.

i agree, cuts must be made. it's just the way this government are going about it that bothers me. They're stifling any real chance of growth. Small business' are the backbone of this country, but they can no longer afford to employ staff. The banks will remain powerful. Nothing will change that now.

Sadly I think our manufacturing days are but a distant memory thanks to Maggie Thatcher.

I'd go on strike - only I work for myself

Dionne wrote:

Panda wrote:

Whether we like it or not , the only way out of this mess is to pay our way out and to do that , cuts in Government Expenditure and Higher Tax
rates is the only answer. BUT, the greedy Banks should also pay for getting us in this mess in the first place. Bonuses should be cancelled until
the money they owe the Government is paid off and instead of moving Business offshore, the banks must pay the Tax in the U.K.. The Government
is terrified the Banks will move to the Middle East, let them, let"s get back to manufacturing and exporting again, the only way to earn money.

The Banks have been all powerful for too long and this crisis has proved if nothing else that a one size Euro does not fit all and Governments should
be allowed to manage their own Currency.

i agree, cuts must be made. it's just the way this government are going about it that bothers me. They're stifling any real chance of growth. Small business' are the backbone of this country, but they can no longer afford to employ staff. The banks will remain powerful. Nothing will change that now.

Sadly I think our manufacturing days are but a distant memory thanks to Maggie Thatcher.

I'd go on strike - only I work for myself

Refuse to pay your Income Tax.

Seriously, I have absolutely no faith in David Cameron or the rest of his Cabinet. One thing I will say for the Americans, they are trying to clean up
Business fraud etc and apply more stringent rules.They are offering rewards for any information given by employees regarding tax evasion by their
Employer. One Guy has just earned $2 million for snitching on his Employer for deliberately not paying $20 million tax . I think China and Japan put
paid to our manufacturing days, plus one out all out strikes by the Unions. However, Banks are not lending to small Businesses which would help them expand.

The International Monetary Fund has confirmed Portugal has asked it for cash to help prop up its stricken economy.

Portuguese finance minister Fernando Teixeira dos Santos



European finance bosses, including Britain's Chancellor, George Osborne, have been meeting in Hungary to thrash out the terms of a bailout.

They estimate Lisbon will need around 80 billion euros (£70bn) in loans - of which the UK may have to contribute £4bn.

While a rescue of Portugal had long been anticipated and its needs can easily be met by Europe, the country's political situation makes reaching a final deal difficult.

Prime Minister Jose Socrates resigned late last month after opposition parties rejected spending cuts and tax hikes the government said were vital to stop the economy's slide.

He is continuing to serve in a caretaker government until new elections on June 5.

However, EU finance ministers at the meeting near Budapest are warning the economic adjustment programme that accompanies the rescue loans will cut deeper than the measures rejected by the opposition.

A fully-fledged adjustment program should be in place by mid-May, allowing the debt-ridden country to meet huge bond repayments in June, the EU's Monetary Affairs Commissioner Olli Rehn said.



The Government's cuts plans sparked a general strike



He added that the program would have to be agreed by all major political parties to ensure that it will be implemented after the elections, which the opposition is expected to win.

Portugal's acting finance minister, Fernando Teixeira dos Santos, said the caretaker government would not talk directly to the opposition and that any talks would have to be led by the European authorities and the IMF instead.

Portugal has become the third country in the eurozone to request international help, after last year's multi-billion-euro rescue packages for Greece and Ireland from the EU and IMF.

European officials hope the latest bailout will be the last and contagion will not spread to the likes of Spain and Italy.

But Portugal's government was not the first in the eurozone to collapse amid anger over austerity measures.

And doubts are growing over how much longer citizens in debt-ridden countries will accept painful cuts and radical overhauls of traditional privileges, such as early retirement ages and protected professions.

Panda wrote:

Dionne wrote:

Panda wrote:

Whether we like it or not , the only way out of this mess is to pay our way out and to do that , cuts in Government Expenditure and Higher Tax
rates is the only answer. BUT, the greedy Banks should also pay for getting us in this mess in the first place. Bonuses should be cancelled until
the money they owe the Government is paid off and instead of moving Business offshore, the banks must pay the Tax in the U.K.. The Government
is terrified the Banks will move to the Middle East, let them, let"s get back to manufacturing and exporting again, the only way to earn money.

The Banks have been all powerful for too long and this crisis has proved if nothing else that a one size Euro does not fit all and Governments should
be allowed to manage their own Currency.

i agree, cuts must be made. it's just the way this government are going about it that bothers me. They're stifling any real chance of growth. Small business' are the backbone of this country, but they can no longer afford to employ staff. The banks will remain powerful. Nothing will change that now.

Sadly I think our manufacturing days are but a distant memory thanks to Maggie Thatcher.

I'd go on strike - only I work for myself

Refuse to pay your Income Tax.

Seriously, I have absolutely no faith in David Cameron or the rest of his Cabinet. One thing I will say for the Americans, they are trying to clean up
Business fraud etc and apply more stringent rules.They are offering rewards for any information given by employees regarding tax evasion by their
Employer. One Guy has just earned $2 million for snitching on his Employer for deliberately not paying $20 million tax . I think China and Japan put
paid to our manufacturing days, plus one out all out strikes by the Unions. However, Banks are not lending to small Businesses which would help them expand.

I have no time for a government that wasn't elected. I don't see 37% of the vote as being sufficient to direct the country.

Mrs T made sure our industry was no more. She closed down the mines and left whole communities in tatters. We have a shortfall in plumbers, electricians and people who work with their hands and a glut of would be media and pr stars.

Jeez if I had my time again, I would train to be a plumber and retire at 45.

But now we have cheap imports from China to feed the greed we have embraced as our right. Pile it up sell it cheap then throw it on the landfill and buy some more.

I can't see a way back from that

When You think about it, about 45-50 years ago, Britain had a Commonwealth in which Trade was beneficial to all Countries. Then Japan dominated
with cheap goods as has China. There was still a niche for Britain in design and technology as well as machinery, but the one out all out strike culture of the 70"s gave Britain a bad reputation and we lost our lead.

With so many qualified Tradesmen out of Work, young people leaving school without qualifications and many empty buildings, why isn"t there
any attempt to train these youngsters instead of importing Labour . Also, I"m not a racist, but an immediate stop should be put on immigration,
Britain is a small Country and already bursting at the seams with the need for Housing, our welfare System abused ,and the immigrants have no
desire to learn English and integrate into the community.

At a time like this Britain needs strong Leadership and a fairer system , maybe then there would be public support.

Panda wrote:
When You think about it, about 45-50 years ago, Britain had a Commonwealth in which Trade was beneficial to all Countries. Then Japan dominated
with cheap goods as has China. There was still a niche for Britain in design and technology as well as machinery, but the one out all out strike culture of the 70"s gave Britain a bad reputation and we lost our lead.

With so many qualified Tradesmen out of Work, young people leaving school without qualifications and many empty buildings, why isn"t there
any attempt to train these youngsters instead of importing Labour . Also, I"m not a racist, but an immediate stop should be put on immigration,
Britain is a small Country and already bursting at the seams with the need for Housing, our welfare System abused ,and the immigrants have no
desire to learn English and integrate into the community.

At a time like this Britain needs strong Leadership and a fairer system , maybe then there would be public support.

-------
Many immigrants do the jobs that many don't want to do. Others offer skills that we don't have.

If this recession has any positives, it will teach youngsters the value of the pound. Young people have endless opportunities these days. I know there are issues with the university fees - but there is still plenty of room to develop and improve.

When I was sixteen, uni was out of the question unless you had money to support you and there was nothing like the course on offer now.

This country needs leadership with a majority vote. Someone with bottle who till tackle the banks head on - not some namby pamby half baked coalition farce who apportion blame for everything on the previous government while sharpening their scissors for further extreme cuts.

You and I didn't create the mess. Greed did. But we're paying and we'll pay heavily by the time Cameron and his mottily mob are finished.

Morning Dionne,

Now, after Gordon Brown practically forced the merger, the latest Report says Lloyds TSB should never have merged with HBOS. I know the NHS would collapse without Immigrant Staff and I have exery respecrt for them. I"m talking about the immigrants who come into the Country and claim
all the Benefits, yet make no attempt to integrate or learn the Language, beg on the Streests , I see from first hand.

We should do like Australia, have a points system. I don"t know if you remember the famous Enoch Powell speech about rivers of blood, he was
villified at the time, not far off was he.!!!! Your"e right, we need strong but fair Government, no more involvements in Wars that do not concern
us , set up a Government Dept to offer loans at reasonable rates of interest to young Businesses with potential instead of lending to banks, give those
on umemployment benefits unpaid jobs in the Community, sweeping up rubbish, helping Dustmen, Park Gardeners, anything to keep the youths off the streets. and out of trouble.

Just noticed, we have gone off topic, this thread is about Portugal any more rants probably under Politics .

Portugal reached a deal with the European Union and the IMF over a 78bn euro
(£70bn) bailout.





Portugal's bailout agreed with the IMF and EU will be over
three years

Caretaker Prime Minister Jose Socrates confirmed the three-year deal, making
his nation the third euro zone member to do so after Greece and Ireland.
The deal will need broad cross-party support because the collapse of
Socrates' government last month - pushing up borrowing rates and forcing Lisbon
to seek a bailout - means the winner of a June 5 snap general election will
implement it.
Opposition Social Democrat leader Pedro Passos Coelho said he was ready to
meet the lenders.



Portugal's caretaker Prime Minister Jose Socrates


Any of the bailout terms that need parliamentary approval will have to be
passed after the election.
"The government has obtained a good deal. This is a deal that defends
Portugal," said Mr Socrates, who had resisted asking for a bailout for
months.
Mr Socrates said the terms would be less onerous than those set for Greece
and Ireland.
He said the deadline for meeting budget deficit goals will be extended, with
this year's target raised to 5.9% of GDP from 4.6% previously.



Portuguese workers and students have protested at
austerity measures


The deficit must now be cut to 4.5% of GDP in 2012 and 3% in 2013.
In a reminder of the challenges Portugal faces in selling debt, it will hold
a treasury bill auction today to issue up to 1bn euros of three-month bills.
"We don't expect a buyers' strike at this T-bill auction, which should target
the same risk-tolerant investors who bought T-bills last month, already after
the bailout request," Commerzbank debt strategist David Schnautz said.
The interest rate on Portugal's bailout loan is expected to be set at a
meeting of eurozone finance ministers in mid-May.



Euro contagion started in Greece and then spread to
Ireland


Portuguese agreement to the loan terms is needed by June 15, when Lisbon
needs to redeem 4.9bn euros (£4.4bn) of bonds.
"We have said from the beginning that it is important that any programme
should have broad cross-party support and will continue our engagement with the
opposition parties to establish that this is the case," European Commission
spokesman Amadeu Altafaj said in a statement.