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Press review: “Snap elections would be the worst possible scenario” warns PSD economist

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Expresso

«Passos puts pressure on Cavaco», writes the weekend broadsheet Expresso as the PSD and CDS-PP parties negotiate, but use market fears as a threat against the president. Cavaco Silva is said to be ‘optimistic’ that an agreement between the three main political parties can be reached within a week and continues to support the idea of an ‘independent broker’ to facilitate negotiations between the PSD, PS and CDS-PP parties. The leader of the PS Socialist party does not rule out early elections in June 2014. The Government still holds out hope that its reshuffle announced the weekend before last and brokered on Thursday and Friday that week will still be accepted by the President.

Público

«BIC demands repayment of €1bn from the State because of BPN scandal», reports Público, which states that the bank paid 40 million for BPN in 2012. The State already owes BIC more than double than it received because of contingencies related with its privatisation which could top 600 million.

«Yellow flags fly on Lisbon beaches over water contamination fears» as tests reveal that a toxic algae bloom that causes irritation and allergy on up to 80% of the body and was provoked by the unusually hot weather last week, has affected top tourist beaches on the Costa do Estoril near Lisbon, between Carcavelos and Cascais, and on the other side of the estuary at Costa de Caparica. The Portuguese Environment Agency has advised against swimming in the sea at Santo Amaro de Oeiras, Carcavelos, Torre and São João da Caparica, particularly children.

«PSD, PS and CDS have until Sunday to negotiate an agreement, the PS to support the vote of no-confidence put forward by the Green party» says Público which reports that the PSD, CDS, and PS have set themselves a week to come up with an agreement to run the country in a ‘national salvation compromise’.

Correio da Manhã

«Tax man seizes luxury sports cars to pay off debts», writes Correio da Manhã, reporting that Ferraris, Porsches, and Maseratis are being confiscated from people owing outstanding taxes.

«PS says it has no confidence in the Government but negotiates with the PSD and CDS parties», as the leader of the PS party, António José Seguro said he was prepared for his party to negotiate with the PSD and CDS-PP for a ‘national salvation compromise’ proposed by the President of the Republic, Aníbal Cavaco Silva.

Diário de Notícias

«Justice investigated 260 magistrates but only tried five» reports Diário de Notícias, which claims that the majority of cases brought to court are shelved: many cases are minor, but there are situations involving violence, death by misadventure and even the kidnapping of children which went unpunished. Today the court system shuts down for the summer recess leaving two million cases at a standstill. «Parties promise reply to Cavaco within eight days for “national salvation” as PSD negotiators (Moreira da Silva), PS (Alberto Martins) and CDS (Mota Soares) met on Sunday to hammer out the broad guidelines of a ‘national salvation’ government.

Jornal de Notícias

«Tax debts balloon €4bn because of the troika» reveals Jornal de Notícias as it reports that the amount owing to the State in unpaid taxes has been estimated at €28bn. Companies in economic difficulties explains the main reason why the tax receipts have plummeted.

«PSD, PP and PS meet but only to discuss the way they are going to cooperate in a Government of ‘national salvation’ while Socialists vote in favour of a no-confidence in the Government,» says JN after the first formal meeting between the main parties took place over the weekend and only defined the broad outlines for the ‘National Salvation Compromise’ government.

i

«Parties have seven days to ‘Save the Country», reports i, as the PSD, CDS and PS met yesterday for the first time and set a date for an agreement to be reached: if an agreement for a ‘national salvation compromise’ is possible, as demanded by the President of the Republic, it must be on the table within a week from now. Showing however that they are not happy with the way the PSD-CDS coalition Government has been running the country, the PS is still going to support a vote of no confidence in the Government in Parliament which has been proposed by the Green party.

Diário Económico

«Passos will only form a Monti-style government in an extreme situation», reports Diário Económico, quoting the PSD economist Eduardo Catroga who had been one-time Finance Minister during the Aníbal Cavaco Silva government and was referring to the style of technical government that was put in place in Italy under Mario Monti to avoid a national catastrophe after the fall of the Berlusconi government. Catroga, who is president of the supervisory board of electricity giant EDP, believes that early elections would be the “worst possible scenario” and it would be difficult for Prime Minister Pedro Passos Coelho to accept being part of a caretaker government. Eduardo Catroga was Pedro Passos Coelho’s advisor and representative in negotiating with the José Sócrates Government over the State Budget 2011 and in the discussions with the ‘troika’ in May 2011. The newspaper reports that Catroga supports the President of the Republic’s initiative, believing that the Government “made mistakes”, particularly in its predictions and the way it managed expectations in a nod to ex-finance minister Vítor Gaspar’s wide of the mark economic forecasts for the Portuguese economy. However the economist has confirmed that the Prime Minister will have full legitimacy to fulfil the agreement with the ‘troika’ and negotiate any new programme should the PS choose not to get into the ‘national salvation’ lifeboat.

Jornal de Negócios

«Parties have a week to reach an agreement», reports Jornal de Negócios, but that the Government has delayed the timetable for reforming the State, referring to the first cross-party meeting over the weekend between the PSD, CDS-PP and PS which hammered out a broad consensus for cooperation for the ‘national salvation compromise’ government, details of which have to be presented to the President, Aníbal Cavaco Silva, within a week.

A Bola

«Light at the end of the tunnel», as Sporting and Bruma begin negotiations for an agreement after last week’s fallout in which the crack player failed to turn up for training. The football daily reports meetings between Bruno de Carvalho and Pini Zahavi who could prevent the “divorce” between the player and the club.

O Record

«Lisandro has style», reports Record, over its opinion that Benfica’s Argentinean player Lisandro is going to be a success as a defender after he scored a goal at the weekend’s 3:3 match between Benfica and Bordeaux.

O Jogo

«Salvio is the best defender», says O Jogo, on the Benfica match over the weekend against Bordeaux which resulted in a 3:3 draw. Lisandro Lópes made his début and got off to a good start by scoring a goal but the Eagles were too slack to pursue the advantage.


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