Portugal's crisis

Press, 14 December 1977, Page 26

Portugal's crisis

The economic crisis in Portugal is more significant that the political crisis it is undergoing. The Prime Minister (Dr Soares) has been defeated in a vote of confidence, which is the sort of hazard someone who tries to run a minority government faces all the time. Dr Soares does not want to form a coalition and he has come up against one of the hard facts of democratic life: a Prime Minister who has a vote of 159 against him and a vote of only 100 for him has to make concessions, or resign. But it was a Prime Minister defeated, not democracy. Dr Soares is the caretaker Prime Minister until it appears clear whether he or someone else can form a Government. In the meantime the President of Portugal, Genera! Eanes, has gone to West Germany where he is being well received: he has been promised aid, and been promised support for Portugal’s attempt to join the European Economic Community That might do more to resolve any political crisis than anything the parties arrange among themselves. Portugal’s problems are immense.

Inflation has been running about 27 per cent per annum and unemployment has reached an alarming 16 per cent of the labour force. Of the average weekly budget a family is spending about 40 per cent on food. The problems have been aggravated by the large numbers of refugees coming from the former colonies of Angola and Mozambique. Land is slowly being returned to former owners after some collectivisation and this has caused some riots. Portugal’s balance-of-payments position is in a sorry state and shows no signs of improvement—a condition not unknown to wealthier societies. In those circumstances, and considering the long period in w’hich Portugal was under a Rightwing authoritarian Government, it is not surprising that some fears are felt that Portugal will revert to a dictatorship of the Right or of the Left. But Europe means well by Portugal, its poorest country, and although the consideration being given to Portugal’s joining the E.E.C. is mainly political—people turn aside from the economic considerations as being too difficult—such good will bodes well for Portugal’s future.