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European Commission 'Threatens' Portugal - Get Your Constitutional Court In Line

Tyler Durden's picture


It seems, despite the constant "it's all fixed" banter, that Portugal's Constitutional Court decision that the Troika-imposed austerity is unconstitutional (as we discussed in detail here and here) has a few of the 'elites' nervous. And so, late on a Sunday night European time, they launch a press release that is about as passively aggressive as they come, "any departure from the program's objectives, or their re-negotiation, would in fact neutralize the efforts already made and achieved by the Portuguese citizens, namely the growing investor confidence in Portugal, and prolong the difficulties from the adjustment... it is a precondition for a decision on the lengthening of the maturities of the financial assistance to Portugal." In other words, get your constitutional court in line or the OMT 'promise' get's it! Perhaps that explains why, unlike Spain and Italy who rallied in the last few days, Portugal's bond spreads are at the widest of 2013 (70bps off the tights of the year).



Statement by the European Commission on Portugal

The European Commission welcomes that, following the decision of the Portuguese Constitutional Court on the 2013 state budget, the Portuguese Government has confirmed its commitment to the adjustment programme, including its fiscal targets and timeline. Any departure from the programme's objectives, or their re-negotiation, would in fact neutralise the efforts already made and achieved by the Portuguese citizens, namely the growing investor confidence in Portugal, and prolong the difficulties from the adjustment.


The Commission therefore trusts that the Portuguese Government will swiftly identify the measures necessary to adapt the 2013 budget in a way that respects the revised fiscal target as requested by the Portuguese Government and supported by the Troika in the 7th review of the programme.


Continued and determined implementation of the programme offers the best way to restore sustainable economic growth and to improve employment opportunities in Portugal. At the same time, it is a precondition for a decision on the lengthening of the maturities of the financial assistance to Portugal, which would facilitate Portugal's return to the financial markets and the attainment of the programme's objectives. The Commission supports that such a decision be taken soon.


The Commission will continue to work constructively with the Portuguese authorities within the parameters agreed to alleviate the social consequences of the crisis.


The Commission reiterates that a strong consensus around the programme will contribute to its successful implementation. In this respect, it is essential that Portugal's key political institutions are united in their support.


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Sun, 04/07/2013 - 19:51 | Link to Comment ThunderingTurd
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Do it. Do it.

Sun, 04/07/2013 - 20:08 | Link to Comment Banksters
Banksters's picture

Portugal's knob gobbling PM responded

Portugal's prime minister plans more cuts to health and education ...


Fucking wimp.   When will someone tell brussels to fuck off.  Waiting...

Sun, 04/07/2013 - 21:25 | Link to Comment Manthong
Manthong's picture

Oh yeah, like the Portuguese are going to boldly sail into uncharted waters now.

When have they ever done anything like that?

Sun, 04/07/2013 - 21:34 | Link to Comment CuriousPasserby
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Okay, I'll take the bait. 1542?

Mon, 04/08/2013 - 00:02 | Link to Comment ThirdWorldDude
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Tsk, even in 1542 they hired an Italian to do the job.

Mon, 04/08/2013 - 05:47 | Link to Comment Acet
Acet's picture

I don't know whose more ignorant, you or the two people that gave you an arrow up.


1542 was the first contact of between Japan and the West. That was an all Portuguese crew.

1492 was the official discovery of the Americas by Christopher Collumbus, an Italian working for the Spanish.

There were some findings in the 20th century that indicated that the Portuguese discovered the Americas before Collumbus (and kept it secret) - certainly when the Portuguese negotiated a treaty with the Spanish in 1490 which would divide the world in half, the Portuguese demanded that the separation line was placed further to the west than the Spanish wanted, with the end result that Brasil was on the Portuguese half, which is why all Latin America except for Brasil is Spanish-speaking but Brasil is Portuguese speaking.

Other findings show that the Vikings got to Newfoundland long before that (and some point in the 8th century, if I remember it correctly).

The Portuguese did discover the sea route to India and did the first sea journey around the globe. As far as I know, none of the Portuguese discoveries was in a ship captained by anybody other than a Portuguese captain.


Sun, 04/07/2013 - 19:51 | Link to Comment cherry picker
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Iran isn't our enemy.  Looks like .gov in Euroland is the biggest threat against democracy and liberty.  When democracy and liberty are crushed, justice vanishes.

If I were Portugese, I would ignore those Eurozone beaurocrats and prevent them or the Troika from entering my space.

I hope the Portugese are up to the task.

Sun, 04/07/2013 - 22:34 | Link to Comment boogerbently
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How can so many Mericans think "It can't happen here?"

All the failed countrys are saying, we accept NO austerity, just give us some money.

Sounds PAINFULLY familiar, to me. (The liberal mantra)

Mon, 04/08/2013 - 10:10 | Link to Comment franzpick
franzpick's picture

A**hole Mr Biden asserts that 'a new world order' is what is needed; what he and GoBombEm and the Eurocrat 'bankers' are trying to explain is that what they really need is a new world money order.

Sun, 04/07/2013 - 19:55 | Link to Comment ekm
ekm's picture

So euro leadears after using ECB to force Berlusconi to resign in Italy, what can they do, now, to force the portuguese constitutional court to resign?

Sun, 04/07/2013 - 19:58 | Link to Comment knukles
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After all they appointed Monti the Chief Unelected Mucketymuck of Italy for a start.

Oh joyous peasantry, know well your masters look well upon your broken backs.

Sun, 04/07/2013 - 20:04 | Link to Comment fonzannoon
fonzannoon's picture

so Monti said he could not wait until he was able to leave, and now has no problem being left in there indefinitely. He is the Italian Bloomberg.

Sun, 04/07/2013 - 20:55 | Link to Comment ekm
ekm's picture

Did you know that Grillo has UN's Agenda 21 on his program?


Sun, 04/07/2013 - 21:23 | Link to Comment fonzannoon
fonzannoon's picture

I did not. He is not what a lot of people on here think he is. I'd say I'd take him over a technocrat, but in the end it just all seems like the same shit.

Sun, 04/07/2013 - 21:41 | Link to Comment NoDebt
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Fonz, I agree completely.  I think the debt bubble is blowing up AS WE SPEAK.  It's just a matter of what form it takes from place to place (and when).  Cyprus was perhaps the WORST way to do it because there was no adjustment time (even those in-the-know were scrambling the get their money out in a few short days, using every connection and point of leverage they could muster to avoid being haircut themselves).  The other way is what pretty much every developed nation with it's own printing press is doing- it's slower but just as sure.  However, there is time for people to adjust and you don't instantly crush every business in the country by blowing away it's operating account and instantly bankrupting them.  Japan is in the middle because having a printing press may not be enough to pull them out of their mess.

There are no good choices left, there are only choices.

Sun, 04/07/2013 - 21:51 | Link to Comment ekm
ekm's picture


Letter to the municipality of salsomaggiore. Asking to impose agenda 21 energy austerity measures.


He's a caveman, literally a caveman

Sun, 04/07/2013 - 20:19 | Link to Comment McMolotov
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"The Portuguese Constitutional Court vastly underestimates what the Euro means for the Europeans, for the Euro area. It vastly underestimates the amount of political capital that has been invested in the Euro."

Sun, 04/07/2013 - 20:20 | Link to Comment fonzannoon
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That one is going to get a lot of play, and deservedly so.

Mon, 04/08/2013 - 02:17 | Link to Comment Harlequin001
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Why would anyone want to undermine such significant political capital with a silly thing such as the law?

Sun, 04/07/2013 - 21:22 | Link to Comment NoDebt
NoDebt's picture

Keep posting it, Molotov.  They're going to eat those words (mark my words!).  They've built the "Titanic" of currency unions and that was their declaration of unsinkability.

Sun, 04/07/2013 - 21:53 | Link to Comment DollarMenu
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Political Capital is nothing more than gasbags filling one another.


Mon, 04/08/2013 - 02:19 | Link to Comment Lore
Lore's picture

The Eurozone seems designed to DESTROY capital.

Sun, 04/07/2013 - 22:00 | Link to Comment ekm
ekm's picture

Again, same as what Draghi responded to Zerohedge, POLITICAL CAPITAL.


What I'm trying to figure out is how to run my car fueling it with political capital, or cook a meal with potatoes, beef and political capital.

Also, factories would have to find a way to convert political capital into finished goods.

Sun, 04/07/2013 - 20:36 | Link to Comment thisandthat
thisandthat's picture

They can always bitch and whine, but the judges are not removable:

Mon, 04/08/2013 - 10:33 | Link to Comment JimBowie1958
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That is what the law might say, but what is the split on the court in favor of the EMU?

Say it is three judges that make the diff. Do any of them have tax problems? Have mistresses that might be embarrassing to them if the public found out (like with a 13 y.o.) or do any of them like to party a little too hard for prudence minded shrews?

What is legal is different from what is plausible.

Mon, 04/08/2013 - 18:46 | Link to Comment thisandthat
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Court has no say on laws unless specifically asked (prior or after final presidential approval), and, that I know, so far no one (parties, government, presidency, etc.) has ever questioned it about anything EU related...

If anything significant enough was found, he/she would probably just resigned/be lead to, and elections would be held to replace him/her (2/3 of votes + majority of seats in parliament for 10 of the judges; by those 10, for the other 3, also by 2/3 of votes + majority of seats in court).

Btw, the split on the ruling was actually precisely 8/5... remember this is the second year in a row articles of budget were judged unconstitutional..

De juris vs. de facto... force of the law vs. the law of force - lots to be said about it...

Tue, 04/09/2013 - 15:16 | Link to Comment JimBowie1958
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But in this case the 'force' of law amounts to a two vote swing.

Never trust a judge to do things that are against his own personal best interests. They dont get paid that much.

BTW, thanks for the rational, calm reply. You sound like an educated gentleman and there are precious few of us left.

Tue, 04/09/2013 - 20:05 | Link to Comment thisandthat
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Laws are always prone to interpretation - written content or spirit - so there's always that variable, and obviously judges have their own opinions and base their decisions on them, but that's precisely why/what they're appointed for... and that's why court's composition and election process is as it is - to balance individual sensibilities... but money is not at all the issue, here; ideology is - and not just intrinsically political: Masonry is a (the...) major key to everything public affairs, in this country - proper religion being the other.

My pleasure - the feeling is mutual, btw. Cheers.

Sun, 04/07/2013 - 19:55 | Link to Comment Dewey Cheatum Howe
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Can you say bitcoin price spike coming in the next couple of days/weeks as Portugal becomes increasingly volatile.

Sun, 04/07/2013 - 20:15 | Link to Comment Croesus
Croesus's picture

I hate to "Burst your Bitcoin"....I mean, "burst your BUBBLE", but you bitcoiners are overdoing the propaganda, just a bit.

Mon, 04/08/2013 - 02:56 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

I got no position in either gold or bitcoin, but it is pretty obvious now that the gold folks know that money is flowing from one to the other and they are getting angry.

Sun, 04/07/2013 - 19:59 | Link to Comment Curtis LeMay
Curtis LeMay's picture

 "...growing investor confidence in Portugal" says the Brussels Politburo


What PLANET do these unelected "elite" inhabit? It's certainly not earth..


Sun, 04/07/2013 - 20:05 | Link to Comment Uber Vandal
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Probably the same place where Kirk's oppenent came from in the episode titled "The Arena"



Sun, 04/07/2013 - 20:21 | Link to Comment HardwoodAg
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And that little bit of trouble was taken care of quite handily with a bit of black powder. Extruded gun powder pellets sealed in brass with a primer and lead jacketed bullet at each end would serve the same purpose more efficiently. 

Sun, 04/07/2013 - 20:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Why not just replace them all with Goldman Sachs alums? That's what they do everywhere else to ensure they're 'in line' properly.

Sun, 04/07/2013 - 20:09 | Link to Comment Petrus Romanus
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Rules, we don't need no stinkin' rules! The tag line for this site says it all, " On a long enough timeline the survival rate for everyone drops to zero."

We appear to be nearing the end of the line.

Sun, 04/07/2013 - 20:11 | Link to Comment Hughing
Hughing's picture

Law is semantic bullshit. The 'geezers will get in line.

Sun, 04/07/2013 - 20:20 | Link to Comment eddiebe
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Those that don't learn from others or from history are forced to live through it themselves. But: The sheep look up!   Baaahhh. I hear them bleating all over the place from sea to shining sea.

Sun, 04/07/2013 - 20:25 | Link to Comment Peter Pan
Peter Pan's picture

Three basic propositions:

1. Portugal must make a decision whether it is a sovereign nation. If it is, then it's court's decision stands under current law, which means that it bears the consequences of not towing the EU line. This may even include departing from the Euro.

2. At some point the Portugese need to understand that the practicalities of numbers dictate that they pay for their own way in this world whether they are part of the Euro or not.

3. The predicament of Portugal is just one of the many predicaments that EU states are facing.

The EU is up itself if it thinks that it can build a solid basis for its existence on a bunch of loose marbles.

The best way forward for the EU is to actually break up and in the future I am sure they will figure out how to put together a more workable and sustainable EU model which does not burden member states with the failings of other states and which at the same time respects the sovereignty of each nation.

Break and re-assemble is my message.

Sun, 04/07/2013 - 21:26 | Link to Comment NoDebt
NoDebt's picture

So far they've all assumed the position and said "Thank you, sir.  May I have another bailout?"

I don't know if a total break up is in the cards in the forseeable future but SOMEBODY is going to be first to leave EVENTUALLY (and markets will not care).


Mon, 04/08/2013 - 05:46 | Link to Comment Acet
Acet's picture

Nah, it's more complicated than that.

The debt is internally treated as a question of Honor. People say - we got into debt so we should pay that debt because it's the honorable thing to do. People blame the local corrupt politicians and their chronies, not the foreigners.

(I know that honor is a hard to grasp concept in modern Anglo-Saxon countries. It is, however, part of the Portuguese cultural makeup.)

The thing with honor is, that if the other side behaves in a dishonorable way, then one is not bound anymore by one's honor. If the Troika pushes too far against something like the constitution, it risks being seen as dishonorable,

Tue, 04/09/2013 - 03:10 | Link to Comment MeelionDollerBogus
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I think Mr Panos here explains this concept of honor a bit better:

Sun, 04/07/2013 - 21:27 | Link to Comment andrewp111
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If the EU breaks up there will be a full blown civil war. It is very hard to see that now, but History tells us that secession produces very bloody wars. Ever hear of Fort Sumter?

Mon, 04/08/2013 - 10:38 | Link to Comment JimBowie1958
JimBowie1958's picture

The people of Europe rejectedan EU constitution, so they are not quite so solidly bound together as was the US in 1860.

But yes, the occasion and historical pattern of civil unrest and war would seem to be applicable.

Sun, 04/07/2013 - 20:28 | Link to Comment jim249
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I keep waiting for one of these piigs countries to finally tell the troika to f off. They are all losing their sovereign rights.

Sun, 04/07/2013 - 21:15 | Link to Comment kito
kito's picture

ha ha!!! keep waiting....because the spirit of revolution died out a lonnnnnggggggg time citizenry from any country dare lash out against the overlords...................remember..........the people NEED the overlords..........they beg for membership in the euro.....................the overlords are strong.....and bring stability..........without the overlords...without the eu....without the euro........gasp..........the world ends....................the people descend into a fiery hell............

Mon, 04/08/2013 - 12:57 | Link to Comment Urban Redneck
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I was doing perfectly fine without the dose of reality today, thank you very much.

Sun, 04/07/2013 - 20:31 | Link to Comment buzzsaw99
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How do you say: The EC kin suck it bitchez. in Portugese?

Sun, 04/07/2013 - 20:55 | Link to Comment thisandthat
Mon, 04/08/2013 - 02:34 | Link to Comment morning
morning's picture


Sun, 04/07/2013 - 20:40 | Link to Comment jkruffin
jkruffin's picture

As of two hours ago, here is the status of the long forgotten Cyprus bank problem.  It's not fixed, and people are about to make their run on the banks for sure now, and those who got ripped off are angry.


"Cypriot savers are furious with their banks, but staff at the now-defunct Laiki Bank have been affected worse than most. Many borrowed money to buy shares in the bank - now worthless - and fear losing both their jobs and their pensions."


I guess Cyprus needs a new magician named Bernanke, and they can fool those dang foreigners.

Sun, 04/07/2013 - 21:21 | Link to Comment kliguy38
kliguy38's picture

NONE of its over......its only the beginning......and it WILL wash again to our shores, since we are the source

Sun, 04/07/2013 - 21:46 | Link to Comment thisandthat
thisandthat's picture

If ZeroHedge ever needs a pic of the Portuguese prime-minister (author unknown)...

Sun, 04/07/2013 - 21:51 | Link to Comment FIAT
FIAT's picture

the iron curtain descends upon europa

Sun, 04/07/2013 - 21:56 | Link to Comment Monedas
Monedas's picture

"My silver is in a Comex futures contract .... I can't take delivery .... because my Euros are in a Cyprus bank !" .... Monedas 1929 Comedy Jihad World Tour

Mon, 04/08/2013 - 00:37 | Link to Comment Tunga
Tunga's picture

We don't need no stinkin' laws!

Mon, 04/08/2013 - 03:17 | Link to Comment waterdude
waterdude's picture

we're talking about €900mio net in addl savings to come from other expenditures.  That's 50bps on deficit.  Nothing done: just journos having to find something to write about. 

Mon, 04/08/2013 - 05:18 | Link to Comment Joe A
Joe A's picture

EU Austerity = IMF Structural Adjustment Programmes - the abilty to float your currency - ability to adjust your interest rates. So the only thing left is cutting on pension, healthcare, teachers' salaries, etc. And then the whole thing will be privatized because then of course everything becomes soooooooo much better and cheaper. NOT.

Mon, 04/08/2013 - 06:13 | Link to Comment Debugas
Debugas's picture

Let's be honest - Europe was living on credit for a long time and now cuts are inevitable. It will come either through austerity or inflation or both. People throughout europe have to learn to live within their means. So at least 50% cut in purchasing power is coming

Mon, 04/08/2013 - 06:55 | Link to Comment Joe A
Joe A's picture

As is true for the rest of the Western World. People have been living above their means indeed. People did not think, trusted the banks, borrowed too much, spent it all. If people had known beforehand what risks they were taking then perhaps they would not have taken that loan or extra mortgage on the house. If you can't pay the mortgage, the bank will take possession of your house and often the lender is left with a debt to pay off. But if the bank goes bankrupt do you keep the house debtfree? Think not.

And why should people who made bad investments go bankrupt and banks not? Stronger still, people need to put up with austerity measures in order to bail out the failed banks. That is not capitalism.

Tue, 04/09/2013 - 03:03 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

EVERYONE who took risk should be permitted to legally default what they can as was already law. Failed banks, failed credit histories for persons (not corporate persons but HUMANS), and voila - credit problem is solved. It's contracted as it ought to be & some will gain tangibles for debt that is absolved from full payment (people, banks, whoever).

Then maybe people would smarten up & use less credit, perhaps none, even if only for a while.

And yes, if the bank goes bankrupt you should get a debt reduction, perhaps be debt free, based on your own status of bankruptcy, local laws & ability to manoeuvre.

That's how the game is played & in many conditions it is in fact legal. You can't owe a debt to a party that doesn't even exist & a bankrupt bank may completely be dissolved. Period. No one owns the debt. End of story. IF I owe Larry and Curly knocks him dead by accident I won't give collection to Moe on Larry's behalf. They're all stooges with empty hands & I don't pay dead people nuthin'.

Mon, 04/08/2013 - 06:47 | Link to Comment dunce
dunce's picture

The elected officials that have the responsibility to come up with a budget might tell the judges to take their law and run the country, but the judicial tyrants might just say thank you, we will. We order this, we decree that, thus the budget will balance by order of the court. Laws of economics are henceforth suspended. Chaos ensues.

Mon, 04/08/2013 - 08:24 | Link to Comment thisandthat
thisandthat's picture

dunce. heh.

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