Golden Visa scheme looks set to soar

Portugal’s burgeoning ‘Golden Visa’ programme could see a huge upsurge in applications, particularly from wealthy Chinese, as a result of the recent scrapping of a controversial investor scheme in Canada.

News of this comes as new measures are about to be introduced to stop alleged abuse of the programme from within immigration services as well as among estate agents and illegal intermediaries.

.The Canadian scheme allowed foreigners with a net worth of more than a million euros (C$1.6 million) to gain residency and perhaps citizenship by lending the government €526,000 (C$800,000) that would be paid back in about five years without interest.

Many Canadians criticised the scheme as a way for rich foreigners to buy citizenship and live abroad without creating jobs or economic growth in Canada.

The scheme was brought to a close in Canada’s budget this month because it was viewed as "a flawed, inefficient way to lure wealthy entrepreneurs who could benefit the economy," according to the Toronto-based Globe and Mail.  It meant that “tens of thousands of those who have applied to the program and are currently on the waiting list will have their fees refunded – but will not have their applications processed,”  reported the newspaper.

The number of would-be investors is believed to be as many as 65,000, with 70% of them Chinese.

“Disappointed would-be Canadian investor migrants would do well to look to Europe, and more precisely to Portugal,” says Rosemary de Rougemont, senior partner with the Lisbon-based legal firm NDR.

“It is an opportunity for Portugal to solidify its Golden Visa programme, which was launched last year and which we have been involved with from the outset.”

Less than 1,000 residence visas have been issued in this country so far. While other countries within the EU have competing schemes, “the Portuguese programme is fast establishing itself as the European migration scheme of choice,” says Rosemary de Rougemont.

“This is because it has achieved a sensible balance between formality and attracting investment,” she adds.

A minimum investment of €500,000 in property can secure a Golden Visa residence permit to citizens of non-EU countries. It may lead to the granting of a permanent residence permit and Portuguese nationality. It also opens the door to unrestricted movement within the 26 countries of the Schengen area and quashes any need to pay tax on foreign earnings for five years.

Portugal is seen as an attractive proposition for rich foreigners seeking more convenience and security than they feel is available in their own countries. 

The potential benefit for Portugal is that significant help in turning around the country’s deeply depressed property market could give a critical lift to the economy as a whole, say advocates of the scheme.

The other ways foreign investors can become eligible is to transfer capital of at least a million euros or create at least 10 jobs in Portugal. Whatever the type of investment chosen, applicants must maintain it for a minimum of five years. There are other conditions, including precautions against money laundering, but for honest applicants these are not onerous.

Many of the Chinese investors have been attracted to the scheme because of concerns about their children’s education and health in their much polluted homeland, or because of speculation that China may be following in Europe’s footsteps and heading for an economic collapse of its own.

Applications have also been coming in from countries as diverse as Russia, Angola, Brazil and South Africa. A growing number are emerging from Arab countries. A Portuguese trade delegation has been visiting Oman this week to familiarise investors there with the programme.

The Association of Professionals and Real Estate Enterprises of Portugal (APEMIP) will soon sign agreements in China aimed at curbing abuses related to the Golden Visa scheme, such as phoney property price inflations and greedy ‘introducers’ cashing in. 
      The agreements, drawn up in collaboration with Portugal’s Ministry of Justice, will be signed during the Portugal-China Property and Investment Road Show  in Shanghai between March 14 and 17.

Yet more Madeleine misinformation

Churning out the news without a care

The recent flurry of fictitious reports about the Madeleine McCann case is another example of how far quality journalism has been replaced by the latest form of ‘churnalism.’

A story is concocted by a reporter and published on the website of a major newspaper or TV network. Within hours, it has been copied, rewritten or translated without anyone bothering to check for accuracy. If it is sensational enough, the story is then regurgitated around the world.

The media have long been able to share important information from established news agencies and other reliable sources. The rot set in with the upsurge some years ago of propaganda and slanted press releases put out by PR people. The Internet has dramatically speeded and simplified shoddy, second-hand reporting.

Churnalism has now reached unprecedented levels with media organisations shamelessly copying one another online. As a result, a profusion of misinformation is spewed out daily.

Last week’s excitement over the Madeleine McCann case was based on the fact that four Scotland Yard detectives flew to the Algarve to meet with Polícia Judiciária counterparts. The visit followed a letter of request sent by the British Crown Prosecution Service to the Portuguese equivalent.

Officials in both countries refused to comment on the contents of the letter or the reason for the visit. This did not stop the British tabloids from improvising. They spoke of “a dramatic breakthrough” and claimed that the arrest of three burglars was “imminent.”

Kate and Gerry McCann were said to be “on tenderhooks” and being "kept fully informed" about the latest developments.

These “exclusive” assertions in the Daily Mirror were picked up and used not only by competing tabloids, but by ‘quality’ papers such as the Guardian and the Daily Telegraph.

Portuguese papers did not jump on the bandwagon, but the revelation of a ‘breakthrough’ spun around the world and found its way into the Sydney Morning Herald, the Times of India, the Huffington Post and the Daily Beast to name but a few online services.

The Epoch Times, which prides itself on being published in 21 languages in 35 countries across five continents, was running the same “imminent arrest” yarn on the same day ITV mercifully set the record straight with the headline: “No imminent plans to make any arrests in Madeleine McCann case.”

ITV described the meeting between British and Portuguese detectives as “a routine part of the investigation to establish what happened to Madeleine McCann.”

USA Today quoted the British investigative reporter and former detective Mark Williams-Thomas as saying, “this isn’t a major breakthrough” and “burglars don’t abduct children.”

By then the media damage had been done. As the Sunday Mirror columnist Carole Malone put it: “How devastating this must all be for Kate and Gerry McCann – another flurry of headlines, more promises of suspects and arrests... and then nothing. Again!”

The copy and paste style of churnalism practised nowadays is akin to plagiarism, but who cares? For example, a retired British police superintendent with a keen interest in the McCann case spotted that several paragraphs in a Daily Mirror story on 28 December had been copied almost word-for-word, without quoting or crediting the source, from a story that had appeared in the Daily Mail on 15 October. He brought this to the attention of both papers and the Press Complaints Commission. They expressed little interest.

Journalistic analysts put the growth in churnalism down to a combination of things, including increased competition, reduced revenues and inadequate staff with insufficient time to verify and properly develop stories.

It is likely to get ever more frantic. We have already moved on from last week’s “imminent arrests” to this week’s tabloid revelation that “detectives are probing a Portuguese gypsy site just 15 minutes away from where Madeleine was snatched.”

Well, maybe, but for starters the place the foreign media are talking about is not a gypsy site at all. 

One thing is certain though: the media will continue to churn out this sort of rubbish as long as there are people who want to read it.

Let the battle of the books begin!

Authorities in Britain are being tight-lipped at the outset of what could become a prolonged historical wrangle involving the world’s two oldest allies.

A unique collection of books plundered during the darkest days of the centuries-old treaty between Portugal and Britain has been cosseted in the Bodleian Library at the University of Oxford for more than 400 years. The Portuguese now want the books back.

The British Foreign Office and the University of Oxford have received a formal request to return the collection, which was looted by Robert Devereux, the second Earl of Essex, when his troops sacked the city of Faro in 1596.

The Faro organisation that made the request early this month believes it has a reasonable case. A response from the British authorities is awaited.

The seizure took place while Portugal was under Spanish rule during the 16^th century Anglo-Spanish War. A combined British-Dutch fleet under the Lord High Admiral Charles Howard was returning to England after destroying Cádiz when a flotilla pulled into Faro.

Troops led by Essex found the city virtually deserted. He occupied the bishop’s palace for a couple of nights and then loaded up the book collection, comprising at least 91 volumes, before leaving the city ablaze.

Essex presented the collection to his friend Sir Thomas Bodley and it became part of the library Bodley founded in 1602. The Bodleian is still one of the most acclaimed libraries in the world. 

The ownership of the pillaged books is clear because nearly all are uniformly bound and have on their covers the armorial stamp of Ferdinand Mascarenhas, appointed the 5th Bishop of Faro two years before the raid. He died in 1628 as Grand Inquisitor of Portugal.

The request for the books’ return is contained in a motion passed unanimously at the general assembly of a 250-member organisation called Faro 1540, which is devoted to protecting and promoting the cultural heritage of the Algarve capital.

Copies of the motion have been sent to Buckingham Palace and the British Embassy in Lisbon, as well as Portugal’s secretary of state for culture and senior officials in the Algarve. A number of left and centre-right politicians have already vowed to pursue the matter with the secretary of state. Not surprisingly, Faro town hall also supports the initiative.

The president of Faro 1540, Bruno Lage, said yesterday he had heard nothing from the authorities in Britain. In reply to a range of questions about the books from Portugal Newswatch,  a Bodleian spokesperson said: “We are not making any comment at the moment.”

Hopefully, the arguments for and against a repatriation will soon be debated openly. Meanwhile, we are left with fascinating fragments of history and centuries of silence on the issue.

The original culprit in this saga was a derring-do warrior of “irresistible

charm.” Essex, a cohort of Sir Francis Drake, was a favourite of Queen Elizabeth I. But Her Majesty’s affection at times turned to loathing. She once referred to him as “an unruly beast.” The year after Essex donated the Faro books to Bodley he led a rebellion against the English government and was duly beheaded for treason.

Apparently the bishop never discovered what had become of his treasured books. A Bodleian source told me a few years ago that many of them still occupied the same place on the shelves assigned by Bodley’s first librarian, Dr Thomas James.

They are mostly 16th century treatises on theology, scholastic philosophy and canon law. Some had been published in Germany, France, Belgium and Italy just a few years prior to their theft.

Some historians think the dastardly Devereux may have done everyone a favour by his act of literary looting. Considering their age, the works are still mostly in good condition, according to my original source. Had the books remained in Faro, they almost certainly would have suffered from the ravages of time.

The Inquisition censors had already blotted out what they regarded as heretical sentences and pasted ‘offensive’ pages together. Dr James wrote that the books had been “tormented in a pitiful manner, that it would grieve a man’s heart to see them.”

The question now is will they ever be seen again in Faro? 

There are faint echoes here of the on-going controversy between Britain and Greece over the Elgin Marbles. Among other things, the Earl of Elgin is said to have been concerned about the safety and worsening deterioration of the marbles had he left them in Athens.

When considering whether the Faro books should be returned to their place of origin it must be wondered what state they would be in today had they not been filched in the first place.

On Portugal succeeding where Greece has so far failed, Bruno Lage says, “Our degree of confidence is realistic.” The Faro 1540 request is just the beginning of what he expects to be a lengthy process.

The passing of José Pearce de Azevedo

José Pearce de Azevedo, OBE, former British Honorary Consul in the Algarve, who died on Monday aged 83, has been laid to rest in the cemetery in his hometown of Portimão.

Four days after his admission to the Barlavento Hospital and having been diagnosed with a lung infection, Azevedo died peacefully with his wife Zefita by his bedside.

A great many people from all walks of life attended the funeral service in the Igreja do Colégio, Portimão, on Wednesday. The principal mourners were his wife, their three children, Patricia, Pedro and Marta, and four grandchildren.

A charismatic and colourful personality, Azevedo contributed greatly to the Algarve region, and in particular to the British community here. The British Ambassador, Jill Gallard, paid warm tribute.

His family’s close association with the British began with his grandfather, Manuel Teixeira Gomes, who spent 11 years as Portugal’s ambassador to London before becoming the seventh President of the Republic of Portugal in 1923.

Manuel Teixeira Gomes’ father had been a consul in the Algarve, representing Belgium. Both Azevedo’s father and paternal grandfather served as British vice consuls here.

Having graduated from the University of Lisbon in economics and finance, he was appointed British vice consul in 1965 at the age of 35. In 1974 he became full honorary consul and was of outstanding help to British expatriates during the turbulent period following the 25th April revolution. For this he was awarded an OBE.

Azevedo’s dynamic wife, Zefita, joined him professionally as pro-consul in 1983. He lovingly referred to her as “my field marshal.” They served together with a small but dedicated team in the Portimão Consulate until their retirement in 2000.

In addition to his consular role, he served as the first president of the Algarve Tourist Board and as head of the Portimão port authority.

For many years he played a leading role in the British-Portuguese Chamber of Commerce based in Lisbon and the Anglo-Portuguese Society in London. As a long-time member of the Royal British Club in Lisbon, he was also an honorary president of the 41 Club in the Algarve and a founder member of the Association of Foreign Property Owners in Portugal.

The British Ambassador, Jill Gallard, said: ‘I am deeply saddened by José Azevedo’s death. He was a dear and loyal friend of the UK and he will be warmly remembered by me and by many of his former colleagues at the British Consulates in Portimão and Lisbon, and at the Embassy.

“Joe, as he was fondly known, was our Honorary Consul in Portimão for over 30 years and we are extremely grateful for his long and devoted years of service to the British Foreign Office.

“He helped British citizens in distress, supported the wider British community in the Algarve and made a key contribution towards increasing British tourism to the region. Joe fulfilled his role with pride and commitment, but he also had a great sense of humour and was a devoted family man.

“His OBE was a well-deserved award and he will be forever remembered by the many thousands of British citizens who came into contact with him during his vast career as Honorary British Consul in Portimão.

       “Our thoughts are with his wife and family at this difficult time.”

With a photograph of his grandfather in Portimão Museum

Read also: 

algarvenewswatch.blogspot.pt/2011/04/for-35-years-british-foreign.html

Odd weather adds to climate confusion

The storms that battered Portugal’s entire coastline recently, plus extensive flooding in England, prolonged drought in California, extreme cold in northeastern America and extreme heat in Australia, have created further confusion over climate change.

In the aftermath of the most violent waves in 20 years, the cash-strapped Portuguese government is committed to finding €300 million for reconstruction projects, and to reassessing the national strategy for coastal protection.

This is being done amid the backdrop of the National Strategy for Adaptation to Climate Change (ENAAC), part of an initiative set in motion by the European Commission to help EU members access and share information on the subject.

The EC’s view is that the climate is certainly changing and that it will continue to do so with far-reaching consequences. ‘Adaptation’ means anticipating the adverse effects and taking appropriate action to prevent or minimise the damage they can cause.

“Early action will save damage costs later on, so adaptation strategies are needed at all levels of administration, from local to international,” according to the EC.

So Portugal and the EC seem to be in accord, but there is still considerable public confusion internationally about the way in which the climate is changing and whether or not humans are making things worse.

Opinions differ among the global ‘experts’ and it is hard to know who to believe because the science is all so iffy.

Prime Minister David Cameron told the British  parliament that climate change could be behind the relentless rains and flooding that wreaked havoc on Britain recently, but according to the British Met office “it is too early” to make that kind of judgement.  

With the same sort of diffidence, the Intergovernmental Panel on Climate Change (IPCC) - the world leader on research into climate change – last year published a report claiming there was some evidence linking some types of extreme weather with man-made climate change.

Extreme weather events have been occurring sporadically throughout history (at least since Noah’s time, according to Genesis). But the chances of them occurring nowadays seem to be increasing. Global warming is increasingly getting the blame.

But is the globe really warming? Many people sitting around their firesides in the northern hemisphere this winter find it hard to believe. Some think it feels more like another ice age on the way.

Part of the bewilderment lies in a misunderstanding of the words ‘weather’ and ‘climate.’ The difference is that ‘weather’ is defined as atmospheric conditions over a short period of time, whereas ‘climate’ refers to conditions over relatively long stretches – months, years, decades or more.

Presenters on Fox News, famous for denying the existence of global warming, predictably used the recent deep freeze in the US to mock the scientific evidence on climate change.

Donald Trump went further and used the stranding of a Russian research ship in ice in Antarctia as another reason to demand in a tweet: “this very expensive global warming bullshit has got to stop.”

The great majority of climatologists believe that weather patterns and trends (rather than individual events) suggest the planet is indeed getting warmer, that carbon dioxide emissions are compounding the situation and that to deny this could have dire repercussions.

Portugal is currently among the world leaders in the annual Climate Change Performance Index. Along with Denmark it relies for its electricity on renewable sources more than other countries in the EU. While little Portugal is doing its bit, China and the other big offenders need to do much more if CO2 emissions are to be reduced from the 2012 record level of 34.5 billion tionnes.   

Within Europe, Portugal and the Mediterranean countries are thought to be the most vulnerable to climate change. With or without stringent controls on CO2 emissions, the long-range forecast is for less rainfall, more heat-waves and droughts. Sea levels are expected to rise significantly, placing much of the coastline at risk before the end of the century.

All this could severely affect such things as food production and the tourist industry.  Desertification could make the landscapes in southern Portugal more like those in northern Africa.

More clarity about what is going on could be just around the corner. Researchers and policy-makers will be attending a three-day international conference in Lisbon 10-12 March. The objective, say the organisers, Circle-2: “To share the results of 10 years of co-operation in climate change impacts, vulnerability and adaptation research and pave the way for the development of new research in support of climate change adaptation in Europe in the next decade.”

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Drilling for gas will be ‘clean and safe’

 The multinational Repsol-Partex oil and gas consortium says it will commence “clean and safe” exploratory drilling off the south coast of Portugal late this year or early next, but it may be another four or five years before it can accurately gauge if hydrocarbon deposits are sufficient to make it worthwhile to proceed to commercial extraction.

The consortium has already carried out seismic surveys and other preparatory studies since acquiring the offshore concession for blocks 13 and 14 in Algarve waters in October 2011. As the exploration is still in the preliminary stages, no firm date can yet be set for the start of drilling.

Repsol, with its headquarters in Madrid and 90% of the shares in the partnership with Lisbon-based Partex, is the main operator in the Algarve project.

In September 2012, Repsol in partnership with Petrobras, Galp and Partex acquired the rights to prospect in Peniche Bay north of Lisbon. The Brazilian corporation Petrobras withdrew from the consortium last May leaving Repsol as the project operator with 65% of the shares. Galp has 30% participation and Partex the remaining 5%. Drilling off Peniche is not expected to start until at least 2016.

While much more sophisticated exploratory techniques exist these days, onshore and offshore searches have been carried out in Portuguese waters for many decades. Several major companies, including Shell, Chevron and Esso, have drilled scores of wells in various demarcated blocks, especially since the 1970s. No commercial production has ever been achieved.

The Poseidon gas fields in the Cadiz basin suggest that deposits in the neighbouring Algarve basin are more likely to contain commercial quantities of natural gas rather than oil. 

A Repsol spokesman told Portugal Newswatch this week that environmental and safety studies are being carried out before any drilling takes place. This comes amid public concerns about the possible impact of drilling on regional tourism and the economy, as well as the fishing industry, marine ecosystems and coastal landscapes.

“Environmental and safety studies are being conducted to guarantee a clean and safe drilling operation,” the spokesman said. “Repsol does environmental and safety studies prior to any operation, taking into account the social, economic and environmental issues and following legislation and the highest international standards in the industry. The company takes into consideration such studies in the planning of the operations and works closely with national and local authorities.”

On the subject of pollution, the spokesman added: “One basic difference between gas and oil is that gas evaporates and oil needs containment on water surfaces. In the event of a well failure, gas spills are easier to control than oil spills, as the gas is not retained in the seawater. No water pollution is generated and the hydrocarbon bubbles into the atmosphere until well control is achieved. In the Algarve, as no hazardous gas is expected, a gas pollution case is an extremely improbable situation.”

It is still too early in the exploration process to know exactly where the Algarve or Peniche drilling rigs will be located, “but they will always be some tens of kilometres off the coast and will not be visible from the shore,” said the spokesman.  

 * Photo of oil and gas operation in the Gulf of Mexico

Golden visas offer the keys to Europe

At a time when Britain is worrying about an influx of workers from poor European Union countries, Portugal is enthusiastically encouraging rich entrepreneurs from outside the EU.

Romanian and Bulgarians, especially those likely to seek welfare benefits, are causing panic in Britain because immigration restrictions are to be lifted on January 1.

Meanwhile, Chinese, Russian and other foreign nationals are being wholeheartedly welcomed here in return for investments under the so-called Golden Visa scheme. 

In return for buying property for upwards of half a million euros ($700,000), or capital transfers of more than a million, a golden visa allows non-EU citizens to reside in Portugal for five years without having to pay tax on foreign-earnings. It also gives the right to move around in the Schengen area, which includes nearly all the countries across Europe, but not the UK.

After the initial five years, visa holders may become Portuguese passport holders and thus full citizens of the European Union.

A recent YouGov poll for The Sun newspaper in the UK showed that 72% of Britons wanted their government to limit immigration from other EU countries, fearing that immigrants might take their jobs or strain public services.

The European Commission rebuked Prime Minister David Cameron for saying he  aims to restrict the relocation of migrants from poorer to richer EU states, saying EU membership confers only a qualified right to freedom of movement.

Portugal being one of the poorer states does not have an immigration problem. On the contrary, the mass exodus of Portuguese job seekers to richer countries, including Britain, continued this year at about the same rate as last. Official estimates put the figure at between 100,000 and 120,000 annually leaving their homeland.

High unemployment and severe austerity make Portugal an unattractive country to many outsiders too. Recent reports say even refugees arriving from Syria and other Muslim conflict zones don’t want to stay here. Portugal is merely a stepping-stone.

It seems to be merely a stepping-stone for many of those applying for golden vistas too. Unlike the Romanians and Bulgarians who are hoping to stay in Britain, many of the Chinese and other foreign investors are using their golden visas to set up yield-bearing arrangements in this country that will allow them to live or do business elsewhere in Europe.

For example, they are looking for easily rentable properties in prime Lisbon locations or condominium resorts in the Algarve. Estate agents are scrambling to make sales. Many highly attractive properties are on offer at prices that have dropped by nearly a third since the country was forced to apply for a bailout in 2011.

Agents say plush apartments are available in Lisbon at the same price buyers would have to pay for properties half the size in Beijing or Shanghai. With this in mind, delegations from Portugal attended China’s largest international real estate fair in Shanghai this month.

The golden visa scheme attracted little interest when it was introduced over a year ago. It now seems to be taking off, with applications rolling in mainly from China, but also Russia, Brazil, Angola and India.

According to an official tally released early this month, the scheme had brought in a total of €222 million from 256 visa holders. More than 300 applications were said to be in the pipeline. Nearly all were expected to be approved, which would bring the total investment since the scheme was set up to around €600,000 million.

Introduced by the centre-right coalition government, the golden visa programme has the tacit support of the Socialist opposition party. The only severe critics are the far-right National Renovator party whose leader, José Pinto-Coelho, claims the country is “prostituting itself.”

If so, it is not the only one. Other EU countries in serious financial straits - Spain, Greece and Cyprus - have their own golden visa programmes. So too do some of Europe’s wealthier nations, including Germany and the Netherlands.

As the year ends, the poor are as problematic as ever, while the competition to attract the rich is fierce and rewarding.