The Portuguese sacrifice. Keys to the recovery of a country facing problems similar to those in Argentina

CORDOBA. For a little more than a year and seven years after the bankruptcy and rescue of the European troika (composed of the European Commission, the European Central Bank and the European

International Monetary Fund

) which imposed a significant adjustment,
We are talking about the "miracle" of Portugal. Not only has it increased again, but it has also reduced unemployment and the budget deficit it has been living with for decades. The agreement with the troika was signed by a right-wing administration and respected by his successor, a socialist government allied to the radical left.

"I would not define this as a miracle, but as an important recovery resulting from the sacrifice and remarkable ability of the people to adapt," said Antonio Monteiro, former representative of Portugal to the United Nations. Former Minister of Foreign Affairs; private banking executive and current holder of the Millennium Bank Foundation, the largest in the country.

In dialogue with
THE NATION He claims that the end of the crisis was the result of the fulfillment of the supposed commitment to access the Troika rescue plan. "Across the country, from the public and private sectors, we were forced to strictly adhere to the program.It was a sacrifice for all, with the exception of the agreement." He insists that "it is not a miracle, the result is the product of work together".

-We are talking about the Portuguese economic "miracle". Do you share this definition?

-I would not say it's a miracle; there has been a strong recovery due to many sacrifices and a remarkable ability of the Portuguese to adapt.

-What were the "sacrifices" and what were the "adaptations"?

– The crisis we reached in 2011 forced us to resort to a loan conditioned by a very difficult adjustment program defined by the European troika. The conditions were very difficult and were essentially aimed at reducing the fiscal deficit that had led to the rise in debt and left the country unable to move its economy. Necessity forced us to strictly adhere to the program, even to overvalue it. All the Portuguese had to join the sacrifice, there was no exempt sector, although the measures were unpopular, even.

-How was it possible for people to agree that there was no other way?

-I is what I consider an extraordinary response, the most remarkable effect. It is very complex for people to understand that it was the right thing to do, that they had to earn less, that they had lost some of their gains, that the country had to pay the price for their mistakes. It was understood that it was the sacrifice that would provide relief. I give you a concrete example of the private bank in which I find myself and who should also do its part to carry out the program required to receive help; We asked the workers to accept a pay cut to keep their jobs and we did so with the promise that as soon as the bank could find its way back we would find it. Today, we do it and the minimum was significant, between 6% and 11% and above for the highest positions.

-Where was the key to this acceptance and that there was no social mobilization against it?

There were criticisms and questions, but the country in general accepted the sacrifice and the years in which it only spoke of "austerity, austerity". It took years before we got rid of the most difficult situation and we had a no-fault exit. wherever wages were reduced, bonuses suspended. And, in the middle, the government that made the adjustment won the elections although without a majority. It was also a new experience. Whoever adjusted has not verified a significant loss of support. In 2015, the Socialist Government joined the Parliament with the Esquerda Bloc and the Communist Party and, although it was described as "begotten", it advanced and gave stability . It was very important. Tourism has also contributed to the recovery. a boom in the sector has begun. And, sleepy Portuguese companies have begun to innovate and exports have increased enormously. Portugal has become very fashionable, it has been perceived as a silent country that can accommodate people, external relations have been restored, everything has become more dynamic. Internationalization is due to employers and workers, not just to the government. It was not a miracle, it was a job together.

-The Portuguese do not have the history of recurring crises of Argentines, it will have helped the support?

-It is true, we do not have this story. Yes, since 2000, we have been in a difficult situation with a public deficit at a level that has put us in many difficulties.

– Since the beginning of the European Union, they were, along with Greece, poor members.

-C is true. Portugal has now become a good student because he has respected what he has accepted. Do not think that there was not a lot of criticism because you had to accept the measures imposed by the troika and also because you had to respect the conditions. Finally, integration in the European Union is very positive and citizens have understood that it was very important to respect international commitments. The other important aspect, in my opinion, is that there was trust in the leaders.

-How long did it take you to start feeling the results in your pocket?

– Nearly four years, defined term in 2011 in the agreement. An important element and a difference with Argentina is that Portugal does not have inflation when it belongs to the euro. The center-left government has honored the commitments made and could start easing austerity to ensure improvement. The deficit was explained because it was spent not only for infrastructure but also for very questionable projects; there was an inability to balance recipes and a very light conversation style. For years, it was said that it had to change, but it was not accepted, we always thought about the next elections. The key was to create a chain of trust between governments and citizens. We are all maturing; private initiative was decisive. Companies have modernized, they are competing, it is a conquest.

– Can Argentina learn something from this experience?

– Personally, I am impressed by the lack of confidence in me. People do not believe in politics, they see it as if it came from others. Argentina is a wonderful country with enormous possibilities. Years ago, it was a power and I might see the benefit of fighting more for the national interest than for the partisan. This has helped Portugal understand that we are not isolated. Today we have a positive relationship with Spain, the best we have ever had. Trust, credit in the possibilities of the country. In our crisis, many young people left and, over the years, began to return.