Portugal PM resigns following austerity vote loss

Somewhat surprisingly, the euro has been holding fairly strong against the dollar during this brewing crisis. Maybe it has something to do with the increased price of oil and the latest war which the US can’t afford. What happens next in Portugal is anyone’s guess but the choices are limited. The PM had proposed a mix of austerity cuts and increased taxes though it was rejected.

The longer the economic crisis drags out (and it’s hard to see it ending any time soon) the more angry many are with their respective governments for giving such easy rides to those responsible for the crisis. It won’t come as a surprise if the US dips again thanks to the irresponsible Republicans who refuse to increase taxes due to some strange connection to Reagan that doesn’t actually exist. When the economy does dip again, will voters finally demand responsibility? One can hope. The Guardian:

Sócrates is said he tendered his resignation to President Aníbal Cavaco Silva tonight, leaving the country in a political limbo that would place further pressure on Portugal’s record-level bond yields.

Sócrates had said before the vote that he would resign if the measures to cut spending and increase taxes – designed to see off a bailout similar to those taken by Greece and Ireland – were rejected.

The measures had aroused the fury of trade unions, and railway engineers walked off the job in the morning, causing widespread travel disruption.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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