Backing away from the abyss - Portugal
Europe is backing away while we rush headlong. From the
Beeb:
Portugal election: Socialists admit defeat
Portugal's governing Socialist Party has admitted defeat in the general election.
Socialist leader Jose Socrates said he accepted responsibility for the defeat and resigned as head of his party.
The victorious centre-right Social Democrats (PSD) led by Pedro Passos Coelho are expected to form a majority with the conservative CDS.
The new government must implement a demanding austerity programme as a condition for an EU bail-out.
A bit more:
Before the vote, Mr Socrates accused the Social Democrats of pursuing a "radical right-wing agenda" and criticised Mr Passos Coelho for lacking experience in government.
The new government will have to enact urgent and far-reaching social and fiscal reforms, including more austerity measures, to restore national fiscal health and encourage growth.
The terms of the bail-out call for tax increases, a freeze on state pensions and salaries, and cuts in unemployment benefits.
"The road with this package is long and filled with reforms which may be politically difficult to pass," Diego Iscaro, an economist at IHS Global Insight, told Reuters news agency.
Drastically lowering taxes to stimulate business growth seems to escape them but they will learn -- they are taking the baby steps now while the USA is still plunging headlong into more and more debt.
Posted by DaveH at June 5, 2011 7:57 PM