It appears that the brave Portugal defied the recipe of austerity and sado-monetarism imposed by the Troika of destruction (IMF, ECB, European Commission) that ruined the Greek economy after seven years of savage implementation.
As the Economist reported on April:
In 2016, according to figures released on March 24th, his government cut the budget deficit by more than half to just under 2.1% of GDP (see chart), the lowest since Portugal’s transition to democracy in 1974. His administration restored state pensions, wages and working hours to pre-bail-out levels, and also brought the deficit well under the 2.5% target set for it by the European Union. It is the first time that Portugal has complied with the euro zone’s fiscal rules.
Furthermore, the Portuguese government has just decided even to increase slightly the low pensions. As The Portugal News reports:
An extraordinary increase in payments to retired people in Portugal with monthly pensions of less than €631.98 began to be implemented on Thursday, with those pensioners who saw no increase at all in their pensions between 2011 and 2015 to receive as much as €10 more from now on.
Antonio Costa and his government formed by the forces of the Left, have chosen to fight against Brussels/Berlin pressure to implement the neoliberal recipe that destroyed Greece.
But it seems that he managed also to put the Brussels bureaufascists and the German sado-monetarists in difficult position, as his administration managed to achieve the deficit target imposed by the European Financial Dictatorship, while restoring pensions and wages.
On the contrary, under Troika's pressure, the Leftist government in Greece has chosen to retreat further against absurd demands that include further cuts in pensions during the next two years, which Tsipras and his administration have committed to implement in advance. Implementing such measures for seven years, Greece has seen its economy ruined by the brutality of the neoliberal priesthood.
It is certain that the neoliberal sadists will be very upset right now, as Portugal can become an example inside the eurozone and, therefore, ruin their plans to expand the Greek experiment throughout the member-states.
Currently, Portugal is able to borrow money at low interest rate from money markets and, therefore, it is quite independent from the ECB liquidity, unlike Greece. We should not be surprised if we see a sudden crisis storming against the country, say the next few months. Portugal will be excluded from the markets. The ECB will come to provide liquidity under cruel conditions. Portugal will be forced to walk the hellish Greek path or face a sudden death through a financial coup by the ECB as happened in previous years with Ireland, Italy and Cyprus.
Recall that, the ECB finally forced to expose its real role through an open financial coup this time, against Greece, when the current PM, Alexis Tsipras, decided to conduct a referendum on the catastrophic measures imposed by the ECB, IMF and the European Commission, through which the Greek people clearly rejected these measures, despite the propaganda of terror inside and outside Greece. Due to the direct threat from Mario Draghi and the ECB, who actually threatened to cut liquidity sinking Greece into a financial chaos, Tsipras finally forced to retreat, signing another catastrophic memorandum.
So, will Portugal continue to resist bravely in case we see a similar scenario? It would be difficult to do it alone. Someone has to coordinate the efforts of the European south towards the resistance against the Brussels-Berlin axis. Then, Europe could change course, away from the neoliberal policies of destruction.