Portugal Brain Drain: Young Professionals Flee Stagnating Economy

Nov 17, 2024 | A stagnant economy and spiraling cost of living in Portugal are forcing a generation of young people to seek opportunities elsewhere - a brain drain that costs the economy billions of dollars in lost revenue.

The government's planning generous tax breaks for young people to encourage them to stay. But even that might not be enough.

Al Jazeera’s Jonah Hull reports from Lisbon, Portugal.

Portugal's Recipe for Economic Recovery

Inside Story: Has Austerity Worked?

As Spain shakes free from its bailout, we ask if Europe is on the road to economic recovery.

'It's Not Life, It's Survival': Crisis-hit Portuguese Forced to Live in Communes

The decision to resort to austerity has returned to bite the coalition government of Portugal, who've suffered defeat in local elections. The country is likely to see a third consecutive year of recession. And tax hikes and job cuts are forcing people to find new ways to survive, as Sara Firth reports.

Jackpot de l’Euromillions : Un très chanceux portugais

La cagnotte de l’euromillions a été gagné par un portugais qui rentrer chez lui avec plus de 65 million d’euros. »

Generalstreik in Portugal

On the Run: No Jobs, Slave Wages Drive Portuguese Abroad
Portugal's unemployment level has hit a painful 18 per cent, with close to half of young people now out of work. And while the figure threatens to grow even further, scores of people are jumping ship for jobs and a decent living outside a home country battered by debt. RT's Peter Oliver has met some of them.

Eurozone Faces New Challenge as Portugal Blocks Cuts
THE SUNDAY TELEGRAPH: The eurozone crisis threatens to flare up again this week after Portugal's constitutional court blocked the country's planned austerity programme.

The single currency bloc has already been destabilised by Cyprus and now faces fresh uncertainty if Lisbon cannot find new savings to meet the conditions of its €78bn (£66bn) bail-out.

Pedro Passos Coelho, Portugal’s prime minister, said last night that the rejection posed “serious obstacles and risks” to Portugal’s progress in meeting its bail-out commitments, but that it would “do everything to avoid a second rescue”.

“The government is committed to all the objectives of the programme,” he said. Luis Marques Guedes, secretary of state for cabinet matters, said at the weekend: "The constitutional court's decision places serious difficulties on the country to comply with the goals and budget targets it has to meet. The government doesn't agree with the interpretation of the constitution."

The court ruled that planned cuts in salaries to state workers and payments to pensioners were in breach of the constitution. The measures were expected to save as much as €1.3bn annually, a large slice of the €5bn of fiscal consolidation planned for this year. Mr Passos Coelho said that he had asked ministries to slash spending in order to avoid further tax rises. » | Philip Aldrick, Economics editor | Sunday, April 07, 2013

Austerity Protests in Spain and Portugal on Europe-wide Day of Action
Union members and activists in Madrid and Lisbon gather to join a European day of action against austerity measures. Workers in Spain, Greece, Italy and Portugal were all due to hold protests on Wednesday. A 24-hour strike causes transport disruptions, including many cancelled flights

'Devastating Impact': Euro Exit by Southern Nations Could Cost 17 Trillion Euros
SPIEGEL ONLINE INTERNATIONAL: A new study by a German think tank warns that a euro exit by Greece, Spain, Portugal and Italy would cut global GDP by 17 trillion euros and plunge the world into recession, with France suffering the biggest loss. A Greek exit alone would be manageable, but must be avoided to forestall a domino effect, it says.

A Greek euro exit on its own would have a relatively minor impact on the world economy, but if it causes a chain reaction leading to the departure of other southern European nations from the single currency, the economic impact on the world would be devastating, a German study warned on Wednesday.

Economic research group Prognos, in a study commissioned by the Bertelsmann Stiftung, estimated that euro exits by Greece, Portugal, Spain and Italy would wipe a total of €17.2 trillion ($22.3 trillion) off worldwide growth by 2020.

The researchers arrived at a particularly bleak assessment because they didn't just calculate the losses of creditors who had lent money to the crisis-hit nations. They also analyzed the possible impact of a euro collapse on economic growth in the 42 most important industrial and emerging economies that make up more than 90 percent of the world economy.

Using an econometric model, Prognos first calculated the effect of a Greek euro exit, and then simulated the step-by-step fallout from Portugal, Spain and Italy abandoning the currency as well. » | cro | Wednesday, October 17, 2012

Portuguese to Strike over Austerity Measures
Portugal is preparing for a general strike, as trade unions try to rally opposition to the government's austerity measures. The Portuguese economy is mired deep in recession, as many economists predict it will follow Greece and have to ask European partners for a second emergency bailout. A group of activists have made a protest video, in which they say the government's austerity measures are threatening the social gains of the past 35 years. Al Jazeera's Barnaby Phillips reports from Lisbon.

Moody's Issues Credit Warnings on Nine European Countries Including the UK
THE GUARDIAN: Negative outlook for Austria, France and the UK. Italy, Malta, Portugal, Spain, Slovakia and Slovenia have ratings cut

Britain's AAA credit rating was thrown into doubt after the ratings agency Moody's said the ongoing euro crisis and a credit squeeze on the banking sector put the country at a higher risk of defaulting on its debts.

Moody's said that countries including the UK, France and Italy would be put on negative watch after citing "uncertainty" over Europe's handling of its ongoing debt crisis.

The possible loss of the UK's much coveted triple-A status will be a bitter blow for the chancellor George Osborne who has staked his reputation on distancing Britain from the ailing eurozone.

Riots and looting on the streets of Athens highlighted the confusion at the highest levels of the European political establishment over how to deal with the mounting debts faced by Greece. Brussels rejected handing over €130bn without further commitments from the Athens parliament and proposals for further cuts to be implemented this year.

Osborne was expected to stick to his aim of reducing Britain's "structural deficit" by 2017 when he stands up in parliament next month to deliver his third budget since the coalition took power in 2010.

But the verdict of Moody's will add to the pressure from opposition MPs and many economists on him to change course. Moody's said it was concerned that he would miss previous targets to cut the deficit by 2015.

The AAA rating is the highest awarded to a country and allows it to borrow at the lowest interest rates. » | Dominic Rushe and Phillip Inman | Monday, February 13, 2012

THE GUARDIAN: UK austerity v US stimulus: divide deepens as eurozone cuts continue: The emphasis in Europe is on fiscal rigour and slashed budgets, but there is a growing awareness such policies are not working » | Phillip Inman, Ian Traynor in Brussels and Dominic Rushe in New York | Tuesday, February 14, 2012

Ratingriese Fitch setzt Portugal auf Ramschniveau
WELT ONLINE: Nach der Herabstufung ist Portugal kein Land mehr, in dem es sich zu Investieren lohnt. Die Portugiesen antworten mit einem Generalstreik.

Die Ratingagentur Fitch hat die Kreditwürdigkeit Portugals herabgestuft. Die Agentur bewertet das Land nun mit der Note „BB+“ nach bislang „BBB-“, wie die Experten von Fitch mitteilten. Damit rutscht das Land in den Bewertungskategorien auf "Spekulations- oder Ramschniveau".


Der Ausblick sei negativ, Portugal habe keinen Status als Investment-Land mehr. Die Ratingagentur begründete ihren Schritt mit den großen Ungleichgewichten im Haushalt, der hohen Verschuldung über alle Sektoren hinweg sowie einem ungünstigen konjunkturellen Ausblick. Fitch rechnet damit, dass die portugiesische Wirtschaft nächstes Jahr um drei Prozent schrumpft. » | Reuters/dapd/woz | Donnerstag 24. November 2011

Euro-Krise: Portugal zittert vor Griechenland

FRANKFURTER ALLGEMEINE: In Lissabon nimmt die Nervosität zu: Die Insel Madeira hat ein neues finanzielles „schwarzes Loch“ aufgetan, die Gewerkschaften lassen gegen das „Spardiktat“ demonstrieren, und Portugals Haushaltsdefizit ist höher als mit EU, EZB und IWF verabredet.

Hundert Tage nach dem Machtwechsel in Portugal erhält die bürgerlich-konservative Regierung unter Ministerpräsident Pedro Passos Coelho von der Bevölkerung noch akzeptable Noten.

Zwischen ersten Streiks, immer neuen Sparmaßnahmen und Steuererhöhungen sowie der Entdeckung eines beträchtlichen „schwarzen Lochs“ in den Finanzen der vor einigen Monaten von schweren Sturmfluten heimgesuchten Insel Madeira nimmt in Lissabon nach der „ersten Rettung“ die Nervosität wieder zu.

Am vorigen Freitag teilte das nationale Statistikinstitut mit, dass das Haushaltsdefizit im ersten Halbjahr bei 8,3 Prozent des Bruttoinlandsproduktes gelegen habe. Das ist beträchtlich höher als die für 2011 angestrebten 5,9 Prozent, welche die Troika aus Europäischer Union, Europäischer Zentralbank (EZB) und dem Internationalen Währungsfonds (IWF) als Gegenleistung für einen Hilfskredit von 78 Milliarden Euro zur Richtschnur gemacht hat. » | Von LEO WIELAND, LISSABON | Montag 03. Oktober 2011

Inside Story - Turning Around the EU's Poorest Country
Portugal is a country with massive debts, an unemployment rate of 12 per cent and a contracting economy. So for the new government, led by the victorious Social Democrats, the challenges are huge. Having formed a coaliton with the smaller conservative Popular Party, they now have to push through tough austerity measures in order to repay a huge bailout. But can the new government turn around what is considered to be the European Union's poorest country? And will the tough spending cuts and higher taxes lead to unrest on the streets? Inside Story discusses.

Portugal Set for $114 Billion EU-IMF Bailout
In return for a $114 billion EU-IMF rescue package Portugal will have to implement austerity measures -- already a key issue of its current election.

The country which is experiencing its highest unemployment rate in 30 years - 12.6 per cent -- must implement tax hikes, a freeze on pensions and wages, as well as introduce a big reduction in welfare benefits.

Al Jazeera's Sonia Gallegos reports from Lisbon.

Rettungspaket zwingt Portugal zu radikalem Kurswechsel
REUTERS DEUTSCHLAND: Lissabon/Berlin (Reuters) - Portugal muss unter der Obhut von Europäischer Union und IWF das Ruder radikal herumreißen.

Die Kreditgeber verlangen im Gegenzug für das 78 Milliarden Euro schwere Hilfspaket ein Anpassungsprogramm, das unter anderem lange verzögerte Reformen am Arbeitsmarkt vorsieht. "Portugal muss viel offener werden gegenüber dem Wettbewerb", sagte IWF-Verhandlungsführer Poul Thomsen am Donnerstag in Lissabon nach Abschluss der Verhandlungen über das Hilfspaket, die von EU, IWF und Europäische Zentralbank geführt wurden.

Bundeskanzlerin Angela Merkel drängt auf realistische Wachstumsannahmen für das Programm. Bundeswirtschaftsminister Rainer Brüderle forderte das Land auf, seine Probleme mit der Wettbewerbsfähigkeit anzupacken. "Entscheidend ist, dass Solidarität keine Einbahnstraße ist", sagte er. EZB-Präsident Jean-Claude Trichet hob hervor, eine breite politische Unterstützung für das Hilfsprogramm sei wichtig.

Mit der Einigung erhält der Euro-Staat nach Griechenland und Irland als drittes Mitgliedsland der Währungsunion Finanzhilfen seiner Partnerländer sowie von EU und IWF. Der Internationale Währungsfonds übernimmt mit 26 Milliarden Euro ein Drittel der Portugal-Hilfen. Wenn sich die Aufteilung der Kredite und Garantien an den bisherigen Schlüsseln orientiert, kommt auf Deutschland insgesamt ein Anteil von ungefähr 15 Milliarden Euro zu. » | Donnerstag, 05. Mai 2011

Portugal Asks for Bail-out Which Could Cost Britain £4.4 Billion
THE DAILY TELEGRAPH: Portugal last night became the third European Union country after Greece and Ireland to formally request an emergency bail–out which could cost Britain £4.4 billion.


The country's caretaker prime minister José Sócrates said the measure had been taken after the stricken nation had run out of options.
Economists last night put the UK's involvement in a Portuguese bail–out at up to a potential £4.4billion.

After months of resisting having to apply for a bail–out from the EU and the International Monetary Fund, Portugal's cost of borrowing has reached unsustainable levels.

Addressing the nation last night Mr Sócrates, said: "I have always said that asking for aid would be the final way to go, but we have reached the moment."

It is understood that the rescue fund could be as high as £70 billion, or €80 billion.

Sources close to the Treasury said last night that Britain would take part in any Portugal–related discussions involving the EU's 27 member states. However, the type of bail–out is yet to be discussed and therefore the extent of the UK's exposure was impossible to gauge, the sources said. » | James Hall | Thursday, April 07, 2011

THE DAILY TELEGRAPH: Spain 'won't follow Portugal' with bail-out: Spain said it will not follow ailing neighbour Portugal in seeking a European bail-out. » | James Hall | Thursday, April 07, 2011

Le Portugal demande l’aide financière de la Commission européenne
TRIBUNE DE GENÈVE: Le Portugal a demandé mercredi à bénéficier d’une assistance financière de l’Union européenne, a annoncé le président de la Commission européenne José Manuel Barroso dans un communiqué.

"Le Premier ministre du Portugal José Socrates a informé ce jour (mercredi) le président de la Commission européenne José Manuel Barroso de son intention de demander l’activation des mécanismes de soutien financier" de l’UE, a précisé la Commission.

"Le président de la Commission a assuré que cette demande serait examinée le plus rapidement possible (...) et s’est dit confiant dans les capacités du Portugal de surmonter ses difficultés actuelles avec la solidarité de ses partenaires", a ajouté la commission. Peu auparavant, le Premier ministre portugais José Socrates avait annoncé lors d’une allocution télévisée que le gouvernement portugais avait "décidé aujourd’hui même d’adresser une demande d’assistance financière à la Commission européenne". » | AFP | Mercredi 06 Avril 2011

Portugal and Greece Downgraded on Debt Worries
BBC: Ratings agency Standard & Poor's has downgraded struggling Greece and Portugal on further debt worries.

S&P says investors in their bonds could lose out under the terms of a new eurozone bail-out package.

The move pushed up the countries' borrowing costs as lenders demanded a higher rate of return for buying government bonds.

The downgrades left Portugal one notch above junk rating and Greece's creditworthiness below that of Egypt. » | Tuesday, March 29, 2011