I am spending two and a half weeks in Portugal. Since I have been here, in a space of one week, the government headed by prime minister Pedro Passos Coelho, has announced three different austere measures, raising taxes, raising Vat to 23% from an already high 21% and massive cuts in the public sector.
Most workers, with the rise of the Irs tax, will loose up to 7% of their annual income, in a country, that even to breathe may soon become taxable too. There is talk that in the long term, the portuguese people might have to yield a loss of up to 25% of their toatal annual revenue in the near future.
Austerity, unfortunately in capitalist societies, is a disease of collosal force, that can not be avoided, when lack of liquidity or near bankruptcy of a state, occurs.
What I do not subscribe to as a human being, is that it must take place, as fast as Tgv train unleashed on the direction of millions of people, within, a fairly short period of time. In Portugal it's been a question of about 8 months. Cuts, after cuts, tax increases, after tax increase.
And the future is looking grimmer and grimmer......
