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Portuguese President Re-Ignites "Time-Bomb"; Threatens Early Elections

Tyler Durden's picture




 

Despite being told last week of the successful solution that the politicians of Portugal had procured - and thusly seeing Portuguese bonds and stocks surge in a renewed bluster of hope and faith that all is well again; it seems that, shocker, nothing is fixed. As Reuters reports, Portugal's political crisis re-deepened today after the President rejected a plan to heal a government rift and critics accused him of igniting a "time-bomb' by calling for early elections. Anibal Cavaco Silva rejected a cabinet re-shuffle, and proposed a coalition to guarantee support for the Troika-imposed austerity measures (which theoretically means Portugal will exit its bailout next year) to be followed by elections - implicitly showing little faith that any party can rule effectively through the middle of next year. "The announcement... comes as a surprise, ... adding anothe problem to the one that already existed," noted one analyst.

 

Via Reuters,

Portugal's political crisis deepened on Thursday after the president rejected a plan to heal a government rift and critics accused him of igniting a "time bomb" by calling for early elections next year.

 

President Anibal Cavaco Silva proposed a cross-party agreement between the ruling coalition and opposition Socialists to guarantee wide support for the austerity measures needed for Portugal to exit its bailout next year, followed by elections.

 

The decision was a warning shot to all the leading parties and it indicates that the president does not think any of them is capable of ruling effectively until the bailout is due to finish in June 2014.

 

...

 

"The president of the republic decided to overcome the political stalemate between the parties in the ruling coalition by adding another problem to the one that already existed," wrote daily Publico in an editorial. "He decided to take power."

 

Such accusations are not made lightly in the country that had western Europe's longest dictatorship under Antonio Salazar.

 

Under Portugal's constitution, the president has the power to dissolve parliament and call elections.

 

Cavaco Silva said the coalition government remained in office but he rejected a proposed cabinet reshuffle by the ruling Social Democrats and their junior coalition partner, the rightist CDS-PP party.

 

...

 

A senior cabinet minister in the former Socialist government, Pedro Silva Pereira, said the president's intervention had thrown the future into doubt.

 

...

 

"After the turmoil of last week when it seemed a solution had been found, the announcement of the president comes as a surprise," said analysts at Espirito Santo Research in a note.

 

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Thu, 07/11/2013 - 08:45 | 3740951 GetZeeGold
GetZeeGold's picture

 

 

No time for Portugal.......still working on Greece.

 

Just tell them to hold it.

Thu, 07/11/2013 - 08:39 | 3740958 Dr. Engali
Dr. Engali's picture

Yeah yeah blah blah. We know the drill, threaten elections and demand more money. Wash, rinse, and repeat.

Thu, 07/11/2013 - 09:22 | 3741117 francis_sawyer
francis_sawyer's picture

I wouldn't exactly describe a Portugese President story a 'time bomb'... More like a Chinese popper...

Thu, 07/11/2013 - 08:39 | 3740962 Element
Element's picture

threaten elections will yee!! terris!!!

Thu, 07/11/2013 - 08:46 | 3740973 Acet
Acet's picture

Two things:

 

  1. The party currently in government is the same party as the president comes from. All indications are that his actions are heavilly slanted by the interests of his own party, hence dissolving parliament or not will depend on what he thinks is best for his party.
  2. If the top party in opposition every joined the top party in government with the objective of supporting austerity, they would risk political suicide as a mainstream party.

Austerity in Portugal has become highly unpopular, more so because it has been unevenly spread and because Government has tried to use "the crisis" as leverage for passing wideranging ideological measures that would benefit some in detriment of the majority. Additionally, the current government is seen as spectacularly incompetent and is now criticised by all segments of society, including their traditional constituency.

The way I see things, the president might be acting this way because he is terrified that one or two more years of this will result in his own party falling back behind to the second line of parties, behind the only other significant rightwing party in Portugal (which, as it just happens, is their cohalition partner).

 

Thu, 07/11/2013 - 16:03 | 3742624 thisandthat
thisandthat's picture

This.

Thu, 07/11/2013 - 08:44 | 3740983 I am Jobe
I am Jobe's picture

Amerika must demand overseeing this. WTF, how dare they do this without US Consent.

Now for something to waste time and money on

 

More like WTF Bill

 

Moon Bill Would Create National Park to Protect Apollo Landing Sites

 

http://news.yahoo.com/moon-bill-create-national-park-protect-apollo-land...

Thu, 07/11/2013 - 08:48 | 3740994 GetZeeGold
GetZeeGold's picture

 

 

Moon Bill Would Create National Park to Protect Apollo Landing Sites

 

If we could just couple that with the Amnesty Bill......I'm sensing some real opportunity here.

Thu, 07/11/2013 - 08:53 | 3741008 krispkritter
krispkritter's picture

I'm proposing a Moon Bat Bill which will have Nancy Pelosi's head removed for scientific study on how sound is produced out of a complete vacuum...  

Thu, 07/11/2013 - 08:45 | 3740986 new game
new game's picture

folding up deck chairs and moving them changes no ting...

Thu, 07/11/2013 - 08:46 | 3740987 Whoa Dammit
Whoa Dammit's picture

And the clown show of "curing" debt with more debt while increasing the hardships upon productive people continues. 

Thu, 07/11/2013 - 09:25 | 3741121 CH1
CH1's picture

And the clown show of "curing" debt with more debt while increasing the hardships upon productive people continues.

Yup!

And it will continue as long as the producers accept the abuse and continue obey their overlords.

Thu, 07/11/2013 - 09:24 | 3741122 FilthyPhil37
FilthyPhil37's picture

When the threat of calling new elections is the single most frightening and destabilising potentiality to the status-quo, you really can start to realize how prophetic Nicos Poulantzas was. 

 

Poulantzas's PIIGS should be the new moniker for these shit shows of Western European "Democracy"

Thu, 07/11/2013 - 09:45 | 3741180 zuuuueri
zuuuueri's picture

Nicos Poulantzas? are you kidding? one more bullshit-spouting ideologue dreaming of boundless state power?
fuck him and all like him.

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