American Coast Chopper Bicycle

Portuguese and Irish face severe austerity cure

General strike in Portugal on Wednesday.
Reuters

Economy Thursday, November 25, 2010

General Strike history in Portugal.

Ports paralyzed river connections between the two shores of the Tagus interrupted bus dropper, trains suspended at 75%, schools and museums closed, canceled concerts ... The Portuguese have responded overwhelmingly yesterday to call a general strike launched jointly by the two main trade union confederations, UGT and CGTP. A first for twenty-two years. For

Joao Proenca, secretary of the UGT trade union confederation, it was even "the greatest strike ever undertaken" in the country's history. Policemen, firemen, railway workers, teachers, bankers, all protesting against the policy Government austerity. This ambitious 2011 budget, which must be voted on Friday by Parliament, aims to reduce the public deficit from 7.3% in 2010 to 4.6% in 2011.

consequences on the daily lives of the Portuguese will be painful in a country where unemployment has already reached 10.9%. But the Socialist government has warned that he would not bend. All the more that investors refer to Portugal as the next country in the euro area which, after Greece and Ireland, will be forced to call for help the International Monetary Fund (IMF) and the European Union.

New austerity plan in Ireland.

The Irish government introduced yesterday, the lines of a new austerity plan (the fourth since the start of the recession) which intends to divide by ten the abysmal deficit (32% of GDP) by 2014. A challenge. But especially a pre-bailout Island International. Specifically: Ireland wants to make 15 billion euros in savings, including six by next year.

This will require a VAT increase from 2013, a reduction in social welfare from 2014, a decrease of retirement pensions, higher tuition fees at university (25%) and thousands of staff posts deleted. This will also lower the minimum wage of 8.65 € to 7.65 €. Besides the introduction of a tax on water. Remains intact only the corporate tax. It remains to get this plan (vote scheduled for December 7), in a political chaos. Another challenge.

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