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Portugal to get €26 billion from the EC - PM calls for an end to cronyism

barrosoThe latest partnership agreement between the European Commission and Portugal will see €26 billion in funds arriving in Lisbon between now and 2020 - “a barrel-load of money,” according to the president of the European Commission, José Manuel Barroso.

The agreement was signed today in São Bento, Lisbon with Barroso and Portugal's Prime Minister, Pedro Passos Coelho, beaming at the opportunity for Portugal to access investment funds of such a massive amount.

Before the signing, Barroso said that this agreement will silence those who say that the EC is not sympathetic to Portugal, adding "the task now is to apply these funds well. Through this agreement we have the tools to do so and I'm confident about a future with Portugal relying on European solidarity."

Barroso said that European funds had been the "main source of financing" for the Portuguese economy over the last three years, adding that he is confident about the post-Troika period, agreeing with the Prime MInsiter that the economy no longer will be beholden to a half a dozen powerful “economic and social groups."

Lisbon and Brussels are said to be aligned on the priorities for the €26 billion in structural funds for 'Portugal 2020' destined to be spent on 'business growth and job creation' schemes with development in agriculture and fisheries a priority.

The Algarve is considered one of the less poor regions of the country and qualifies for just 7% of the €26 billion funding package.

The prime minister stressed that the strategy already is set and now that the money from the Troika has run out, said that Portugal has to consolidate the structural changes in the economy so that it is not in the hands of un-appointed economic groups.

"The next few years will be crucial to consolidate these changes in an economy that is not in the hands of half a dozen economic or social groups, but will in fact be for the development of Portugal for the Portuguese," said the PM, insisting that we must change the "incentive system" from the past and "move the needle on the guidelines of priorities" for the new Structural Funds 2020 programme.

Barroso said he hoped the money would be managed well now that Portugal 2020 is finalised, stressing that aid to Small and Medium Enterprises, research, technology , employment, combating youth unemployment, advanced research with direct connection to businesses, and the combatting of poverty "are the right priorities."

Passos Coelho said that the Troika period had served up many reforms to make Portugal a better, more efficient place, "to meet the Troika demands on us, we had to correct the serious imbalances that had accumulated and lay the groundwork for a fairer economy with more competition which can open up more opportunities for everyone and not just for certain protected sectors of the economy, which as we now know does not offer true prosperity."

Passos Coelho's opposition would claim that he has failed to make the structural changes in an economy that still supports an unwarranted number of civil servants paid for by a monstrous taxation regime that has stifled the entrepreneurial spirit, seen thousands leave the country and had metered out punishment to those owing the state money which they do not have.

The PM's comments on the economic cabals that are rumoured to run the country from behind the scenes is a direct warning to the likes of the Espirito Santo family whose power base has been eaten away by poor fiscal management, and those other families whose fingers normally would be in the pie of such EC largesse.

It remains to be seen whether the PM's words today translate into a fairer society and more efficient economy or whether contracts paid for by EC funds will go to the same old companies and individuals.

 

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Comments  

+2 #6 Charles Small 2014-08-03 19:05
Many Portuguese receive less than Euro 400 per month for over 60 hour working week (as opposed to the 35 hours working week of the public sector).If funds from the EU can help to secure jobs and reduce the plight of the Portuguese working man and woman then let it happen .Let us hope the money is well directed and not siphoned off as before.
+2 #5 Agnes Jones 2014-07-31 17:54
It sends entirely the wrong impression to the British here - for Portugal to get this money too easily or too soon.
Brussels should arrange for the cheques to be paid from one of several indistinguishable offices in hard to find back streets. Varied without any notice and without further directions.
The staff should be instructed – against their instincts - to be bovine and unhelpful. The languages that must be used that day will be anything but Portuguese and will change randomly. Only depending on not being a language known to the interpreter that the Portuguese bring. The applicants constantly being reminded to learn that days language.

The first form handed over will be out of date so unusable. Portugal only finding out several months later when the cheque has not arrived. The second form will likewise be delayed by several months – the delay this time because another department was needed to verify Portugal's signature. :-?
+5 #4 Mildred 2014-07-31 10:37
Barroso will be safely retired when the chickens come home to roost.....

Hopefully the submarines case will still be on the surface and refusing to 'take a Portuguese dive'.

And - OK dream on - fast forward a few months and Portugal is in such a bad state that it is clawing back those billions hijacked by their elite.

Talking of previous PM's with pasts - Curious that 'Teflon' Ze Socrates is described today in a magazine as being involved in the Monte Branco enquiry. (Isn't this a Portuguese re-badged Lagarde List?)

Socrates on TV last night denying everything and now the PGR herself says he is not involved in Monte Branco.

But what if the question is widened to ask her 'is Socrates 'helping' any investigation ?

No-one ever satisfactorily explained why Socrates relatives were named as intermediaries in the Freeport Scam. So did this money get laundered through Switzerland ...? :sad:
+8 #3 Peter Booker 2014-07-31 09:29
Like you, Editor, I see no evidence that "the serious imbalances that had accumulated and lay the groundwork for a fairer economy" have been addressed by this government. If I were lending (is this €26bn a loan or a grant?) this amount of money to a clapped out and badly run economy like Portugal´s, then I should not be saying, as you report Barroso, "Barroso said he hoped the money would be managed well". Rigorous oversight, or what? This money will follow the rest of it down the drain, and Barroso will be safely retired when the chickens come home to roost.
+6 #2 Jacob.T 2014-07-31 08:39
G.Tony left out compensation for lawyers expenses ! But once again this illustrates well that Portugal was never a suitable candidate to join the EU.

This is a horrendous problem for so many – the inconceivable gulf between government departments with no attempt to resolve differences – if any actually exist (!) Us foreigners seem to be particularly affected.

In a developed country public administration having service level agreements that govern their dealings. Such as acknowledging correspondence within say 24 hours. Giving an answer or reasoned comment in 3 to 5 days. So allowing the public servant to help the citizen forward.

It may take more than several millions to pay off those caught up in it through no fault of their own … but it would be the honourable thing to do.

Therefore Portugal will not only look the other way – but more likely, start fining householders in illegal property !!! :oops:
+7 #1 G.Tony 2014-07-30 22:13
Several millions should be set aside as compensation for stress and worry to deal with all the irregularities and illegalities that have so bedevilled foreigners in building or re-building their property and their small firm start-up difficulties.

Much of it caused by local and regional government not talking to each other - perhaps the latter being upset that the rich bungs for development were not reaching them.

Or are the regional bungs waiting ... to be paid ?

Check out this thread and ask yourself ... is my house, particularly if in a 'reserve' ... actually totally legal ?

http://www.expatfocus.com/Forums/viewtopic/t=40063/

Note our esteemed Editors troubles amongst so many others. :-x

These cases should not waste time and further stress grindiing through the tribunals - just be fast tracked to a 'prima facie' conclusion that p*ssing about was going on by the local and regional administration.

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