Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Portugal to enforce stricter unemployment benefits

Marcia Rodrigues
Thursday 29 April 2010 19:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Big cutbacks in the benefit entitlements of Portugal's army of unemployed are among austerity measures that Prime Minister Jose Socrates vowed yesterday to accelerate as a signal to financial markets that his government is serious about tackling the nation's debt.

Reactions in Lisbon were divided. The state's generosity to the unemployed has long been a target for callers to radio phone-ins. But others blamed it on political mismanagement. "First the politicians should cut out the expense accounts and top-of-the-line cars for themselves before they start cutting the dole," said Antonio Mendes. Mendes is one of the country's 700,000 civil servants and does not believe Portugal will go insolvent, or indeed that his job should be jeopardised by the worsening crisis.

Yet the excessive number of civil servants is blamed for the parlous situation of the economy. The public sector pay bill plus health, education and social security spending are considered high set against Portugal's productivity. Last year alone, Portugal's budget deficit rose to 9.4 per cent of GDP. Under EU rules, it should not exceed 3 per cent.

Carla Oliveira, the owner of a small restaurant in Lisbon, agrees with the government's decision to get tough on the unemployed, or the subsidy-addicted, as she calls them. Ms Oliveira needed staff last year, but, she said, benefits are so high nobody wants to work. "I was looking to hire employees for three months and could only get Brazilians. The unemployed would rather spend their day sitting on the esplanade. The government did well to crack down and they should go further." But Ana Moreira, who works for a private insurance company, disagreed. "They are attacking weak people who live on less than 500 euros a month. The cuts shouldn't affect them, it is unfair."

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in