Brussels, le 22/03/2012 (Agence Europe) - On Thursday 22 March, Portugal experienced its first general strike this year, called by the country's biggest trade union, the CGTP, in protest at the austerity measures introduced by the government since the approval of the country's international aid package by the troika (European Commission, ECB and IMF) in May 2011. The trade unions are particularly disgusted at the government's plan to reform the labour code to extend the working week, and to make it easier to sack people. The reforms will remove bank holidays and other holidays.
Recent progress reports by the troika have been positive about Portugal's ability to meet all its budget targets, particularly reduction of the public deficit to 4.5% of GDP this year and being able to roll over its debt unaided on the financial markets from September 2013 onwards, but the worse-than-expected growth forecasts for 2012 (the economy is forecast to shrink by more than 3.2% of GDP) make some commentators doubt whether this will be possible. German newspaper Der Spiegel reports that the head of the US asset management group Pimco, Mohamed El-Erian, says that like Greece, Portugal will need a second bailout.
Lisbon is pulling out the stops to avoid this and reassure investors that Portugal will not follow Greece's lead. According to Portuguese newspaper Diario Economico, the country is likely to be the first member state (of the 25 signatories) to ratify the budget pact by introducing a golden rule. The Portuguese parliament is expected to ratify it on Friday 13 April 2012. The paper says that the government is planning to keep in close contact with its European partners. The other EU country in receipt of international aid, Ireland, will be holding a referendum on the budget pact. (SP/transl.fl)