terça-feira, 6 de outubro de 2015

Four political scenarios for Portugal / Why the Conservatives have a right to be satisfied.


LETTER FROM LISBON
Four political scenarios for Portugal
Why the Conservatives have a right to be satisfied.

By VÍTOR MATOS 10/6/15, 2:57 PM CET Updated 10/6/15, 3:56 PM CET

LISBON — Portuguese politicians are playing in a new chess game these days: Right-wing pro-austerity parties won the election, but the left has the arithmetical majority in Parliament. Here are some moves we can anticipate, without fearing a stalemate.

1. Harmonious right, divided left.

This is not Greece. Or Spain. Portugal is instead a strange place where pro-austerity ruling parties won the parliamentary elections, against all odds.


A few weeks ago, most people from the two center-right parties thought that only a miracle could give them victory. But the tables turned and they ended the campaign fighting for a majority, even if the Portuguese don’t take particular pleasure in self-mutilation through austerity and loss of income. But all this is even more complex than you might think.

To get it straight, you have to understand the oddities of the Portuguese political parties. The leading Social Democratic Party (PSD) is a member of the European People’s Party and not a center-left organization as its name might suggest. Ever since Pedro Passos Coelho — the prime minister and party leader — came to power, the PSD has become increasingly liberal, above all else. The junior coalition party — the Democratic and Social Center (CDS) — is, in fact, not a club for moderate centrists but a right-wing conservative group, led since 1999 by the former muckraking journalist Paulo Portas. He started Euroskeptic, became anti-eurozone, progressed to “eurocalm” and has now come round to euro-enthusiasm. Together, this coalition took 36.8 percent of the vote.

The Socialist Party, in reality, is the true social-democratic party. António Costa, the PS leader since September 2014, overthrew his predecessor because he had won the European elections by only a slim margin. But in Sunday’s vote, Costa suffered a bigger defeat than his predecessor’s victory. The man who was said to be a sure thing as the next prime minister took just 32.3 percent of the vote. And now the awkwardness begins. The Syriza-inspired Left Bloc and the Communist Party (yes, there are still real Communists in Portugal) together won almost 20 percent of the vote. But in 41 years of democracy, the left has never sat in a circle to join hands and sing Kumbaya. They surely won’t do it now.

2. Stability rules… for now.

Portugal’s got nothing like the Syriza phenomena in Greece or Podemos in Spain, but the center-left and left parties hold a majority in the Parliament. The Left Bloc and the Communists say they will vote against the right-wing government on pretty much every issue, but certainly on the budget and anything with a whiff of austerity. Which leaves the Europe-friendly PS like the filling in a sandwich between the right and the more radical left. It’s not a very appetizing filling, either: António Costa is now such a weak leader that he will have to support the government’s budget, and then wait to see how the ball breaks. So the most likely near-term scenario is that of the right-wing minority ruling with the grudging support of the Socialists.

In this scenario, European partners can relax, because the drama in the next few days may not end in a meltdown. For now, Portugal won’t be a focus of instability. At least, for some months…

3. Presidential elections in January are key.

If there is a political crisis, President Cavaco Silva can’t dissolve Parliament because he is in the last six months of his term. Simultaneously, the Assembly can’t be dismissed in the first six months after the general elections, because the constitution forbids it. The key player will be the new president elected in January. The candidate in the best position to win, the polls say, is Marcelo Rebelo de Sousa, a law professor and political pundit turned TV celebrity, who led the PSD in the late 1990s. He is such a political gambler that Passos Coelho called him a “media weathervane.”

He will recover use of the presidential “atomic bomb” in April: the right to dissolve Parliament and call for general elections. This is so likely that Passos Coelho said in the campaign that without a majority, Portugal could have new elections before next summer.

What can we expect? A rising drama level in March and April, when the government has to approve the stability program to send to Brussels. If the polls are positive, the government will do everything it can to be overthrown by the president. That’s the next scenario…

4. Should markets fear new elections and instability next summer?

Let’s face it: The markets appreciate pro-austerity right-wing governments. If the next Socialist leader is a moderate, the government will do all it can to help him survive, and grasp his support for one more budget. If, instead, he turns out to be be a Portuguese Jeremy Corbyn, the “austerity coalition” may get a new lease of life. The Portuguese usually punish those who bring down a government and trigger new elections, and that scenario may be attractive for Passos Coelho.

If there is a radicalization of the PS, the government will almost certainly wish for fresh elections, the better to consolidate itself in Parliament. The markets and Portugal’s European partners won’t have much to fear from Lisbon until then … unless the government doesn’t accomplish its deficit goals.

If Portugal reaches a deficit under 3 percent this year it would be unprecedented in the country’s modern democratic era. The government goal is 2.7 percent, and they say they will deliver.

Vítor Matos is a political journalist at the Portuguese weekly news magazine Sábado.

Authors:


Vítor Matos  

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