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Portuguese Democracy Under Austerity: Politics in Exceptional Times

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Crisis in the Eurozone Periphery

Abstract

This chapter addresses the changes produced in the Portuguese political system in the wake of the sovereign debt crisis. While in many European countries traditional political parties have lost a large share of the votes to anti-systemic parties, Portugal has bucked the trend. However, the crisis has produced a major political change, otherwise impossible, given past antagonisms. A Socialist minority government is now supported in Parliament by the other two left-wing political parties (the Portuguese Communist Party and the Left Bloc). The alliance, in its second year at the time of writing, has been gradually reversing austerity measures, offering an interesting example of anti-austerity politics in (governmental) practice.

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Notes

  1. 1.

    The neoliberal turn has not been immune to internal criticism (see TSF 2012; Rádio Renascença 2013; Sol 2014).

  2. 2.

    The first bailout , a one-year agreement with the International Monetary Fund (IMF) , was motivated by the imbalance in the balance of payments, as a result of expansionary monetary policy and the loss of competitiveness in internal and external markets. The 1983 bailout, a two-year plan, took place due to similar reasons but was aggravated by rampant foreign debt (two-thirds of GDP ) and a very high current account deficit (13.5 per cent of GDP ).

  3. 3.

    Available from http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3Al33501. [accessed: 23 October 2016].

  4. 4.

    This relationship is particularly evident in the cases of PCP and BE. While the Communists are strongly tied to the trade unions , BE has, from the outset, been intimately connected with social movements.

  5. 5.

    The manifesto is available at https://geracaoenrascada.wordpress.com/manifesto/.

  6. 6.

    https://geracaoenrascada.wordpress.com/2011/04/21/apresentacao-do-m12m-movimento-12-de-marco-2/.

  7. 7.

    http://auditoriacidada.info/.

  8. 8.

    http://www.congressoalternativas.org/.

  9. 9.

    http://queselixeatroika15setembro.blogspot.pt/.

  10. 10.

    The full list of measures agreed by the three parties is available at: http://www.esquerda.net/dossier/medidas-acordadas-entre-ps-bloco-pcp-e-pev/39520.

  11. 11.

    The agreement is available at: http://www.osverdes.pt/media/Parlamento/PosicaoConjuntaPS_PEV.pdf.

  12. 12.

    The Canadian DBRS (originally Dominion Bond Rating Service) is the only major rating agency that maintains Portugal’s debt above the ‘trash’ level. It is, therefore, fundamental in securing Portugal’s financing by the European Central Bank .

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David, I. (2018). Portuguese Democracy Under Austerity: Politics in Exceptional Times. In: Parker, O., Tsarouhas, D. (eds) Crisis in the Eurozone Periphery. Building a Sustainable Political Economy: SPERI Research & Policy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-69721-5_8

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