PORTUGAL TODAY

Shutdown expected in nationwide protest

The two biggest unions promoting tomorrow's general strike predict it will be massive.

The protest by public and private sector workers has been sparked by an unemployment rate of about 11%, increased taxation, cuts in social benefits and increased job insecurity.

Hundreds of flights have been cancelled. Public transport, schools, hospitals, government officees and local authority services are all expected to be affected.

The police are not allowed to strike but are said to be sympathetic to the walkout.

“Crazies” moving in on the debt crisis

It's much stuffier, but the Great Debt Crisis is a bit like Strictly Come Dancing, with all eyes on who's most likely to go down next.

“This country does not need any help,” declared Prime Minister José Sócrates yesterday. He was referring of course to speculation about a financial bailout in the wake of Ireland's acceptance of emergency funding from the EU and the IMF.

“What the country needs is to do what is necessary, to approve the budget, and to continue in its efforts." In other words, keep dancing.

Sócrates hoped Ireland's U-turn in asking for international help would end the uncertainty and contagion in financial markets.

"I think what was happening recently, was that Portugal was being hit by the lack of confidence over Ireland," Sócrates said. "I hope that the Irish government's decision will end this uncertainty and restore confidence to markets. There is no reason to have a lack of confidence over Portugal."

The Daily Telegraph quoted Claude Juncker, Luxembourg’s prime minister and chairman of the eurozone finance ministers’ group, as saying that “crazy” financial markets could now turn on Portugal and Spain.

Writing in the same paper, Ambrose Evans-Prichard noted that according to the OECD, Portugal will have a current account deficit of 10.3pc of GDP this year, 8.8pc in 2011, and 8.0pc in 2012. “That is to say, Portugal will be unable to pay its way in the world by a huge margin even after draconian austerity. This is the worst profile in Europe.”

Reuters news agency reported yesterday that Portugal had only a few months to pursuade markets it can avoid becoming the next domino to fall by folowing Ireland in seeking a bailout. "Its growth and fiscal outlook suggests it faces an uphill battle," said Reuters.

Le Monde thinks it is inevitable that Portugal will have to ask for outside help as has happened with Greece and Ireland.

INSIDE ALGARVE

Watch out for wobbly Wednesday

The nationwide general strike planned for Wednesday in protest against the Government's austerity measures is expected to cause a fair amount of chaos across the country. Among other things, Faro airport is likely to be brought to a standstill.

The strike has been called by the country's leading trade unions and could bring out tens if not hundreds of thousands of disgruntled employees.

A Faro airport spokesperson told me she would be unable to comment until tomorrow. Others seem to have a pretty good idea of what we can expect: total paralysis.

The announced intention of air traffic controllers to join the strike has forced the cancellation of many if not all of Wednesday's flights in and out of Faro.

Ryanair have cancelled 14 flights between Faro and Gatwick, Stansted, Liverpool, Dublin, Cork, Glasgow Prestwick, Frankfurt Hahn and Oporto.

Easyjet say they anticipate “some significant disruption” on flights to and from Portugal. “While the circumstances are outside of our control and are affecting all airlines, we do apologise in advance for any inconvenience caused and reassure you that we are doing everything possible to minimise the disruption,” say Easyjet.

If you booked through easyJet.com you will be able to rebook your flight free of charge. Normally this online service only takes a few minutes, but at very busy times it can take up to three hours.

Lisbon and Oporto are sure to be be affected too. Portugal's national airline, TAP, have advised passengers with reservations on any of their flights on Wednesday to re-book. British Airways of couse are all too familiar with cancelled flights.

The strike is likely to be felt right across the whole spectrum of public services.

What are the ethics of all this disruption and what is it likely to achieve? Your comments are welcome.

PORTUGAL TODAY

From Afghanistan to value-added tax

Portugal can today afford to pause for a moment of self-satisfaction having successfully hosted such a mighty gathering of world leaders and their momentous agreements on war and peace. Next week is going to be rather less glitzy and agreeable.

The NATO summit ended with all-round accord on an exit strategy in Afghanistan. NATO combat operations are to cease and the vast majority of the 138,000 international troops will have left Afghanistan by the end of 2014.

The other good news is that Russia has agreed in writing that it and the NATO nations pose no threat to each other. The old Cold War enemy has promised to co-operate on defence matters, particularly on the setting up of a ballistic missile shield.

Tomorrow is another day, of course, and fears have been expressed that a bailout in Ireland “may unleash market vigilantes on Portugal.” Unfortunately, even NATO could not cope with such an attack. In describing the dilemma on whether to seek an EU rescue plan, The Ecomomist quoted a Lisbon-based economist as saying: “Portugal does not want to ask for help, but it may have to.”

Tuesday will be a good day for us ordinary folk to get out and about and deal with normal daily chores because Wednesday could be problematic. Tens of thousands of public and private sector workers plan to stage a general strike in Lisbon and cities througout the country.

Organised by the biggest trade unions, the strike is in protest against the Government's austerity measures, which are designed to help solve the nation's economic woes. Many people doubt that cutting public sector wages by 5 percent, freezing pensions and raising value-added tax from 21 percent to 23 percent is the right way of going about it.

Key Lisbon summit on debt and defence

It was domestic matters first when President Barack Obama flew into Lisbon for what is proving to be one of the most crucial NATO summits in the alliance's entire 61-year history.

Obama's first private meeting yesterday was with Portugal's president, Anibal Cavaco Silva, who told a press conference afterwards that the level of US investment in this country was "far from what you would expect." Obama was standing right next to Cavaco Silva at the time, but he didn't flinch at the apparent dig.

“We've come to Lisbon again to revitalize the NATO alliance for the 21st century and to strengthen the partnership between the United States and the European Union," was the main thrust of Obama's reply.

His next private meeting was with Prime Minister José Sócrates. Again the focused was on finance. The US president said America would work with Portugal and Europe to address the current crisis.

"Portugal is working through challenges created by some of the financial markets and I think that it's important to note that the prime minister has committed himself to a very, very vigorous package of economic steps," Obama told reporters.

He said Portugal and the United States had common economic problems. Jobs and economic benefits were the "highest priority for both our countries.”

During the main business of the day, the 28 NATO leaders approved a new alliance strategy for the next 10 years. Hopefully that has sorted out such matters as the prospect of ballistic missile attacks from rogue states and the onset of all-out cyber warfare.

And so to dinner consisting of Spinach Crepes, Medallions of Veal with Serra Cheese, and Priscos Abbot Pudding, helped along with Burmester red and white, and perhaps even a little vintage Port or two.

That just leaves discussion today with a keynote address by Afghan President Hamid Karzai on ending NATO's involvement in the war in Afghanistan by the an end of 2014.

Hopefully, clinking glasses of Portugese bubbly all-round at dinner tonight.


ALGARVE HOTWIRE
Strike expected to disrupt flights

The general strike called for next Wednesday to protest against austerity measures is expected to seriously disrupt many services, including activities at Faro and the other international airports in Portugal. Ryanair says the strike will cause flight delays and some cancellations for flights operating to and from Portuguese airports, as well as those that overfly Portugal. The national airline TAP has strongly recommended that passengers who were planning to fly next Wednesday rebook alternative dates.

Obama in Lisbon for crucial NATO meeting

President Barack Obama and other world leaders are gathering in Lisbon today for a 48-hour NATO meeting which has been billed as one of the most important in the history of the alliance.

Top of the agenda for the 28 member states are the war in Afghanistan and plans for a missile defence network in Europe.

Iran yesterday launched a war of words on NATO and tested a new air-defence system of its own. NATO has no future, declared President Mahmoud Ahmadinejad.

“We regard NATO decision-makers as politically backward, and their decisions are of no significance to us, because they are incapable of playing a role in future developments,” said the Iranian leader. He added: “Experience shows that NATO leaders have had a wrong interpretation of international events and all their decisions are based on false information.”

All is not well within the alliance itself. Germany and France are at odds over nuclear disarmament and the proposed European ballistic missile shield.

On the other hand Russia's more relaxed relationship with the West is evident by the presence in Lisbon of the Russian President, Dmitry Medvedev. President Obama is keen to ratify a new nuclear arms treaty with Russia.

President Hamid Karzai of Afghanistan will address the meeting tomorrow and is expected to say he wants NATO forces out of his country by the end of 2014.


INSIDE ALGARVE


José Mourinho's new goal: the Ryder Cup

The announcement that José Mourinho is to be an ambassador for Portugal's bid to host the Ryder Cup in 2018 will evoke a mixed reaction in the Algarve.

There will be delight that such a respected and well-known personality in the sports world is to throw his weight behind Portugal's Ryder Cup campaign, which already has the full backing of the Portuguese Government.

There will be wry smiles because Mourinho does not play golf. His formidable expertise on how to play football does not extend to how to control little white balls being knocked around the manicured countryside.

Most of all in some quarters will be the painful reminder that the chosen venue for Portugal's Ryder Cup bid is in the Alentejo, not the Algarve.

The plan is to bring the world's number one golf event to Herdade da Comporta,which is near Mourinho's home town of Setúbal. This could be interpreted as a backhander to the Algarve, famous for some of the finest golf courses in Europe, let alone Portugal.

The Algarve has hosted many major international golf tournaments including three World Championships.

There will also be mixed reaction in Spain, which is competing for the 2018 Ryder Cup along with France, Germany and Holland. Mourinho, former boss at Chelsea, is now the coach at Real Madrid.

"I always play to win and I know everyone connected to the 2018 Portuguese Ryder Cup bid is exactly the same," said Mourinho yesterday.

A decision will be announced next spring.

PORTUGAL TODAY

Portugal's revenge over old rivals Spain

Forget the debt crisis engulfing Portugal and the rest of Euope. Forget preparations for the arrival in Lisbon tomorrow of President Obama for bilateral discussions and a meeting of NATO. The number one topic of conversation in the nation today is football and Portugal's 4-0 thrashing of world champions Spain last night.

Victory was all the sweeter for Portugal because they inflicted Spain's biggest defeat in 47 years. Spain had not suffered such humiliation since they were beaten 6-2 by Scotland back in 1963.

The game in Lisbon's Estadio da Luz provided Portugal with an element of revenge because it was Spain who put them out of last year's world cup.

For all the long-standing rivalry between the Iberian neighbours on and off the pitch, one of the aims of last night's friendly was to promote their joint bid to host the World Cup in 2018.

ALGARVE HOTLINE

Highway robbery

Several people have recently reported falling victim to thieves posing as travelling visitors in need of help to find their way.

The modus operandi has variations but it goes something like this. The thieves spot a woman placing her handbag in her car parked outside a supermarket.

A couple approach the woman and distract her before she gets into the car, or entice her out of it, by asking for directions to the A2 motorway, Spain or some other destination.

The couple produce a map and fully engage the woman's attention on details. Thus distracted, the women does not notice another member of the gang nicking her handbag.

By the time the woman gets into her car to drive off, the thieves have disappeared.

One woman recently fell into the trap outside the Aldi supermarket at Armação de Pera. She lost her passport, credit cards, mobile phone and all her remaining holiday cash the day before her flight home to London.

After she had her mobile blocked, the itemised bill from the phone company in England showed that the last six calls made were to Romania, four of them to the same number. She informed the Armação police.

PORTUGAL TODAY

The debt bailout dilemma: is Portugal next?

Analysts seem agreed that Portugal is at risk from the 'contagious' or 'domino' effects of Ireland's continued refusal to even discuss a bailout agreement with the EU.

An EU rescue plan for Ireland and Portugal would end current market tension and avert contagion, some economists have been saying for more than a week now. But Ireland has dug its heels in.

Suffering from chronically low growth and a high deficit, Portugal is regarded as Europe's third most vulnerable economy after Greece and Ireland.

Coming austerity measures contained in the 2011 budget include a 5% cut in civil servants' wages and a rise in value-added tax from 21% to 23%. But the tough new austerity meaures may push Portugal back into recession next year.

Many economists say that the Government's prediction of 0.2% growth in 2011 is overly optimistic. This leads to another question: if the Government can't get the economy growing, how is it going to tackle its debt, which is currently running at 82% of gross domestic product?

ALGARVE GRAPEVINE

William whooping it up on the west coast

Prince William's engagement to his long-time girlfriend raises the spectre of
a royal stag party in the Algarve next year.

The second-in-line to the British throne last visited these shores in 2005. He quietly slipped in incognito and without his girlfriend to whoop it up prior to the marriage of one of his chums.

The all-male group stayed in a nicely tucked-away B&B in the countryside next to the west coast. They spent much time surfing on a popular beach. Even a night out in the bars of Lagos went almost unnoticed.

Will he choose the same venue for his own stag party? A repeat laid-back visit prior to what is already being heralded as the wedding of the century? No way, unless the Portuguese Government is willing to mount the kind of massive security operation that will be in place when President Obama and the rest of the NATO leaders meet in Lisbon this weekend.