Portugal Socialists Call For Early Elections

Tyler Durden's picture


If Portugal had hoped that as a result of this weekend's political manoeuvering, which preserved the tenuous majority of the Coelho coalition cabinet by granting the previously resigned CDS-PP leader Paulo Portas the vice-premiership, thus "forcing" him to rescind his resignation and prevent a government collapse, it would project a vision of political stability, it may need to reevaluate as moments ago the leader of the Socialist Party (the biggest opposition party) Antonio Jose Seguro reaffirmed a call for Portugal to have early elections. Quote Seguro: "Our country is faced with the need to negotiate a new program, which may be called a precautionary program or anything else. Only a new government would have the democratic legitimacy to negotiate a new aid program for our country." Seguro spoke to reporters in Lisbon after meeting Portuguese President Anibal Cavaco Silva.

Whether the austerity-burned country whose political leadership credibility already lies in tatters following the resignation of finance minister Vitor Gaspar succeed in delaying an early day of reckoning which will bring back the bond fireworks, is unknown but as Deutsche comments, it doesn't look good.

From Deutsche: "In the European rates market, Portuguese 10yr bonds rallied 20bp to close below 7% for the first time in almost a week. This followed the weekend’s news that PM Coelho had managed to salvage the coalition, but as DB’s Gilles Moec highlights, it came at a high political price. Indeed, CDS-PP leader Paulo Portas accepted to rescind his resignation from government to become officially vice- Prime Minister (a function last used 30 years ago) and more crucially will be overseeing economics and government reform as well as the relationship with the troika. Gilles believes that while the market may welcome this as a first step to lesser political uncertainty, it does create problems both externally (the government’s relationship with the Troika) and internally (coordination with the “harder line” Finance Minister). Gilles continues to think that the Europeans need to find a solution to fund Portugal after 2013 to allow it to continue the adjustment away from immediate market pressure."

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Tue, 07/09/2013 - 07:25 | 3733516 GetZeeGold
GetZeeGold's picture



Pretty sure Portugal Socialists are the problem.


Sure it's never worked....but we'll get it right this time....for sure.

Tue, 07/09/2013 - 07:32 | 3733529 nightshiftsucks
nightshiftsucks's picture

Thats exactly what Bernanke is thinking.

Tue, 07/09/2013 - 07:41 | 3733537 Singelguy
Singelguy's picture

Socialists are the problem across the EU. Actually cutting social programs, cutting spending and standing up to the unions is blasphemy. They are about to run out of other people's money and then they will start stealing the savings and pension funds from the people.

Tue, 07/09/2013 - 07:51 | 3733546 new game
new game's picture

think cy(de)pressed you will clearly see the outcome

dieselboom to the rescue!

Tue, 07/09/2013 - 08:27 | 3733581 Monedas
Monedas's picture

Is there a place where socialism .... isn't the problem ?

Tue, 07/09/2013 - 10:33 | 3733878 smacker
smacker's picture


Tue, 07/09/2013 - 08:59 | 3733653 Accounting101
Accounting101's picture

Socialism is the problem, but not in the context you economic illiterates portray. Since the Savings&Loan debacle taxpayers have been bailing out PRIVATE financial interests. According to SIGTARP in a congressional report, the US taxpayer has bailed out these same malignant entities in the amount of $23 trillion since 2008. When the inevitable next crash happens, there will be even bigger taxpayer bailouts. Don't bitch and complain. This is what you fools voted for.

Tue, 07/09/2013 - 09:05 | 3733664 Accounting101
Accounting101's picture

Or it could be the Germans forcing the taxpayers of Portugal to bailout private, corrupt, inefficient and bankrupt German banks.

Tue, 07/09/2013 - 07:41 | 3733536 kridkrid
kridkrid's picture

Its only after we’ve lost everything that we’re free to do anything.

Tue, 07/09/2013 - 08:29 | 3733585 Peter Pan
Peter Pan's picture

It is only after you have lost everything that reality truly sinks in.

Tue, 07/09/2013 - 07:42 | 3733539 smacker
smacker's picture

My advice to Portugal is to declare insolvency, call in the receivers, break it up and sell of the lumps that have a market value. Brazil would probably buy a few. But this would not include the national airline TAP (Take Another Plane) which is run by spivs and crooks (and unions) and is clearly way beyond insolvency.

Tue, 07/09/2013 - 08:25 | 3733578 Peter Pan
Peter Pan's picture

Why sell anything? 

Give it to the workers and their pension funds and tell them that from now on they either run it profitably or else die of hunger because the government is not going to play fairy godmother anymore.

Watch the workers become the best capitalists around.

Tue, 07/09/2013 - 08:39 | 3733608 smacker
smacker's picture

Maybe, but The State rarely "gives" anything away ...except endless grief.

Recall the UK utility companies (gas, elec, water etc) which were owned by The State on behalf of THE PEOPLE) which were then privatised and the shares SOLD Back To The People.

So we paid twice for these companies. Many of them could have become grannies & orphans investments but have been sold to them there forriners and assorted Frogs and Germans.

"Watch the workers become the best "crony" capitalists around."

There, I've corrected your last sentence ;-)

Tue, 07/09/2013 - 08:50 | 3733625 skistroni
skistroni's picture

We are years ahead of those amateurs. Three restructuring programs and counting... 

Tue, 07/09/2013 - 07:54 | 3733548 new game
new game's picture

democracy will work this time. keep trying, maybe the majority will get it right...

Tue, 07/09/2013 - 08:00 | 3733551 disabledvet
disabledvet's picture

doesn't sound euro positive that's fer sure. interesting that Draghi went for a .25% decline in the ECB fund rate but was denied. with the Pound getting pounded right now and a totally new look on US foreign policy given the events in Egypt (Congress has axed aid to Syrian rebels) still waiting for a good time to go negative on the dollar and still don't see it. wouldn't short this market...not that i don't think it's not going sell off at some point. markets can't go up forever and the crushing of the bond market and debt markets in general strikes me as a rather bearish indicator. not for everyone of course...

Tue, 07/09/2013 - 09:49 | 3733767 CrashisOptimistic
CrashisOptimistic's picture


There are no markets.  There is only HFT.

There are no sayings "markets can't go up forever" if it's not a market.

Tue, 07/09/2013 - 08:17 | 3733562 Monedas
Monedas's picture

Beheading and quartering referees a la Brazillion Style .... works to stimulate the economy .... like Keynesian broken window panes ?

Tue, 07/09/2013 - 10:26 | 3733865 smacker
smacker's picture

Yeahbut...the ref knifed and killed one of the players.

Tue, 07/09/2013 - 08:35 | 3733599 bugs_
bugs_'s picture

Hey Seguro you may call it a "precautionary program" - we'll just continue to refer to this crap as a BAILOUT.

Tue, 07/09/2013 - 10:41 | 3733890 GoldenDonuts
GoldenDonuts's picture

The solution is staring these people in the face.  Drop the Euro, leave the EU, finally tell the world that they are not paying their debts and begin again.  Horrible pain now or continuing torture.  Take your pick.

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