Thursday, November 17, 2011

Diverse news

The Troika has visited and examined.  Portugal has passed and will be allowed to borrow more money, 8 billion euros, at fairly high interest, but lower interest than on the free market.  The most interesting was their message: "It looks good" (concerning the austerity measures and the goals) and "the conditions of the agreements with the Troika may be negotiated".  I am not sure they should have said the last bit...
On the other hand some of the other messages need to heard again due to general disbelief from some parts of the population. I liked this one:  "The number of public servants is too high and they earn to much".  The latter was not said directly - but if you are able to read between the lines...
They also gave a message of "lowering the salaries of the private employees".  I am not sure I agree.  The salaries are already very low in Portugal.  The argument is that salaries in Portugal can not compete with much lower salaries elsewhere.  Outside Europe of course.   "The only alternative", the message continues, "is more efficiency and more productivity".  I like the latter option.  No country in Europe can hope to compete with the low salaries in Asia for now.  Our future is services, high tech, design etc.  We need highly educated effective productive workers working for companies exporting services and goods.

The police is being allowed to expand with 1100 new police.  Portugal is going for the world record in number of police officers in relation to population size.  A typical political response.  The fact is, Portugal needs to save money and become more efficient.  Instead we spend more on a measure of no real effect except for the psychological one.  On the other hand, maybe the politicians are running scared of uprisings?  Unlikely as they are, they would not be undeserved due to the failure of politicians to seek national unity.

More fines:  The government will spend 4 million euros on more road radars.  Already the number of fines and the size of them is astonishing in Portugal.  It must be a real good income.   Very few of the many existing radars have been placed in so called black spots to reduce accidents.  They are mostly used on big avenues where a speed a little above 50 kms per hour is no risk.  As I said, it generates good income.  In spite of a fourth of the fines never being paid as the authorities can not issue them sufficiently fast before the infraction expires.
General speaking, the fines in Portugal have reached enormous heights.  Considering the income level of most people they are grotesque.  My son, the other day, lost his ticket on the coastal train.  150 euros fine.  He is 17 and a student.  What if you earn minimum salary of ~480?  It would be more fair with fines according to income.
Companies are also severely punished.  The previous year my IT company (I) paid the monthly employee income tax 8 days late a few times.  I was simply overwhelmed with work and also hate administrative tasks - a small fine and a late fee was deserved.  The resulting robbery fines were a minimum 50% of the amount paid late.  I wonder what that does to companies in financial trouble?
Good income though for the tax man.  Against all odds I hope the money went to a children's home and not into the pockets of a dirty politician.

Common sense seems to prevail with the public TV and Radio.  It will stay public but will cut the number of employees (currently 4000). In the future probably based on a commercial free budget.  Perhaps this will permit more quality instead of quantity.  More facts instead of opinion.  Maybe some of the people from BBC can come here and show how to make documentaries instead of contests, quality TV series instead of soap operas.
This brings me to an interesting tendency all over the world.  The experts are called in to be interviewed and asked about their opinions - instead of what they know.  Also, the majority of "experts" are now journalists?  So we have journalists interviewing journalists?   I can see the advantages.  No real news or knowledge are necessary any more.  They are all auto generated in the studio.

The Portuguese state is notoriously late on all payments and hardly ever will pay interests on late payments.  It concerns tax returns, payments of invoices etc.  Economists have calculated the cost to 14000 lost jobs in the private sector per year and a cost of 2% of GDP for the last five years.  When a company issues an invoice to the state - the VAT becomes due the next month.  But the payment may only arrive in two years.  The companies and the liberal professions thus pay instead of receive.  Economists, and other good folk, can tell you that leads to liquidity problems...

All the PIIGS have qualified for the European Football Championships 2012.  I hope it is not another indicator of strange priorities.  Here in Portugal, football is always the number one news and the presidents of football clubs and associations are among the most powerful.  It is common, come election times, that political prime minister candidates confer with football club presidents - a little better than doing so with the mafia, I suppose.  On the other hand the Portuguese 6-2 football victory the other day giving access to the championship were good news.  As the only such, I hope it can be a much needed help for the Portuguese psyche.

Spain nearly reached 7% interests on a 10 year bonds sale.  That is above what made other PIIGS seek bailouts.  Combined with the surreal unemployment in Spain - a near to no difference 50% for youths - it is very worrying indeed.

Our minister of economy was a bit fast and stated in parliament that we will start recuperating in 2012.  I.e. the economy would start to grow.  The day after he retracted: 2012 will be the beginning of better times.  He knows of course the economy will retract in 2012 - much worse than this year.  I am glad he did not state the more likely result, the beginning of the end, as we have enough bad news as it is.

And now to the lacking news this week from the government:  Where are the promised structural reforms?  What will be done to promote growth?  We see a little talk but absolutely no actions.  So far nearly all austerity measures will just hinder growth.  Combined with the systemic financial international crisis - I fail to see how we can create and sell more products.  The government is a promoter of the the evil circle dance...  We are not amused.

No comments:

Post a Comment