Did we live beyond our means? - Corporate Europe Observatory

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Transcript Did we live beyond our means? - Corporate Europe Observatory

Did we live beyond our means?
Beyond common sense: true causes of the
economic crisis in Portugal.
Mariana Mortágua
EU in Crisis
CEO Conference 2012
Common Sense
• Public debt exists because we lived
beyond our means
• Troika intervention was inevitable
• Sacrifices pay-off
«People are completely available to sacrifice and work harder for
the country to be successful in the adjustment programme»
Minister of Finance
Did we live beyond our means?
Public Debt (% GDP)
180
160
140
120
Alemanha
100
Grécia
Irlanda
80
Itália
60
Portugal
40
20
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
Did we live beyond our means?
Did we live beyond our means?
Private debt and structural failures :
• Incompetent bourgeoisie
• European Integration
Public debt as a consequence of:
• Public-private partnerships
• Crisis
The wrong question: was Troika
intervention inevitable?
Instead,
What will be the inevitable consequences?
Can we pay it?
Loan
Interests
GDP 2012
Aug 2011
Oct 2011
Apr 2012
-1.8
-2.8
-3.3
PUBLIC DEBT 2012
112.5
110.5
106.1
Aug 2011
Oct 2011
Apr 2012
Do sacrifices pay off?
• Public debt is growing
• Recession and unemployment
• There will be no return to the
“markets” in 2013
Beyond common sense…
• We can´t and we should not pay part of
this debt
• Growth and employment policies instead
of austerity
• Alternative ways to finance the
governments
“If we all leave, who is staying to pay the debt?”