quinta-feira, 1 de outubro de 2015

Portugal’s election goes down to the wire


Portugal’s election goes down to the wire
Deadlock looms as polls point to minority center-right government

By PAUL AMES 10/2/15, 5:30 AM CET

LISBON — Portugal’s center-right government heads into Sunday’s elections with a widening lead over the opposition Socialists in the latest opinion polls, but the country risks political gridlock with neither side winning an outright majority.

The governing Forward Portugal (PàF) coalition is forecast to win 39.7 percent, ahead of the Socialist Party (PS) with 31.6 percent, according to an average of four polls published Wednesday.

That would mark a stinging defeat for Socialist leader António Costa who appears unable to harness widespread discontent with the past four years of austerity.

Yet, without a majority of the 230 seats in the Assembleia da República, Prime Minister Pedro Passos Coelho could find himself leading a weakened administration unable to push through reforms needed to consolidate the country’s fragile economic recovery.

“If the polls are right, we’re headed for a political crisis,” says Nuno Garoupa, president of the Francisco Manuel dos Santos Foundation, a Lisbon think tank.

“It’s going to be very difficult to form a government and to approve a budget for 2016,” he said. “The coming months are going to be extremely complicated.”

Passos Coelho has spent his final days on the campaign trail seeking to whip up support by warning of the risks of instability should the center-right fail to secure a majority.

“Let’s not have any illusions. Without stability for the future … it won’t be possible to achieve our objectives,” he told a rally this week in the central city of Pombal.

However, any kind of win represents a remarkable turnaround for Passos Coelho — a year ago one poll showed his popularity rating trailing Costa’s by 20 points.

His recovery could offer lessons for upcoming elections in Spain and Ireland where center-right governments are also defending a record of post-bailout, austerity and reform.

After coming to power in 2011, the government was vilified for imposing tax hikes, cuts in salaries, pensions and public services. The opposition claimed austerity measures went beyond the terms of €78 billion bailout deal that the previous — Socialist — government negotiated with the European Union and International Monetary Fund.

Unemployment reached a record 17 percent in 2013. Almost 4 percent of the population emigrated over the past four years. Strikes and mass demonstrations paralyzed Lisbon.

Lately though, Passos Coelho, 51, has been able to point to signs his unpopular reforms are starting to pay off.

In June, the economy recorded five quarters of unbroken growth for the first time since the 1990s. Exports and tourism have boomed. Unemployment has fallen 5 percentage points.

Socialist leader Costa, 54, has struggled to straddle seemingly contradictory policy positions.

He’s downplayed the scale of the recovery, but also sought to reassure middle-of-the road voters with talk of economic responsibility and moderate reform. At the same time, he’s spouted more radical rhetoric to woo supporters of the hardline Portuguese Communist Party (PCP) and the Syriza-allied Left Bloc (BE).

Unlike the Greeks and Spanish, cautious Portuguese voters declined to flock en masse to the far left as the euro crisis bit. The PCP is on course to capture around 9 percent of the vote, while the Left Bloc is polling just over 8 percent.

A dozen smaller parties — ranging from Maoists to monarchists — are also competing and one or two might capture a seat.

Voter turnout is likely to hit record lows, as voters register their dissatisfaction by staying home, although rain forecast for the weekend should discourage those tempted to ditch ballot boxes for the beach.

As his ratings slip, Costa has been trying to rally the disaffected to the PS cause.

“There is an overwhelming majority among the Portuguese who are firmly determined to put an end to this government and these policies,” he told supporters in the northern town of Vila Nova de Gaia. “Every vote is going to be absolutely essential.”

Yet many voters remain unconvinced he’d do a better job than the center-right in nurturing more growth. A lackluster campaign by both parties has done little to mobilize the undecided.

During the only live TV debate between the leading candidates, viewers dozed as Costa and Passos Coelho embarked on a lengthy discussion over the pros and cons of “vertical” versus “horizontal” restructuring of social security.

On many policy issues, the two sides are not a million miles apart.

The center-right argues the improving economy will allow it to gradually cut taxes and ease austerity by raising pensions for the most needy and reversing public sector wage cuts.

Costa says a Socialist government will roll back austerity faster.

Passos Coelho argues that would risk breaking EU budget deficit rules.

Both are committed to keeping Portugal in the eurozone. They are equally Atlanticist, backing a strong NATO and the ongoing EU-U.S. free trade zone negotiations.

Yet a German-style “grand coalition” is unlikely.

With the likelihood of a minority center-right administration, the Socialists will face a difficult choice.

They could team up with the far-left to vote down the government and force repeat elections or let the minority administration limp on, dependent on PS support to get any measures through parliament.

Either way, unless the polls have got things very wrong, Portugal looks to be facing choppy political waters in the months ahead.

If the vote really comes down to the wire, the country may have to wait for days before it’s even clear who’s won.

There are four seats in parliament allocated to Portuguese emigrants spread around the world. They could be crucial, but the count of their votes is not expected to be complete until Oct. 14.

Authors:


Paul Ames  

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