Austerity Today -Economic recovery ‘will take 20 years’

Economic recovery ‘will take 20 years’, warns Britain’s top civil servant Daily Mail Cabinet Secretary Sir Jeremy Heywood said the austerity drive has not gone far enough and stressed it will continue for decades. He said there was a ‘very long way to go’ before the economy returns to the same level as before the 2007 recession. ‘This … See all stories on this topic » Portugal’s Coalition Splinters on Austerity Fatigue: Euro Credit Bloomberg Portuguese borrowing costs topped 7 percent for the first time this year after two ministers quit, signaling the government will struggle to implement further budget cuts as its bailout program enters its final 12 months. Secretary of State for … See all stories on this topic » NEWS ANALYSIS: Doubts as Portugal’s austerity plan changes hands BDlive THE resignation of the main architect of Portugal’s austerity policies has sparked concern over the country’s ability to complete its European Union (EU)–International Monetary Fund (IMF) bail-out programme. Analysts say the departure on Monday of … See all stories on this topic » Andrew Palmer: Austerity opens the door to new kind of regeneration Yorkshire Post WHEN most of us think of “regeneration”, we picture large, government-backed programmes to revitalise rundown areas – the waterfront in Hull, for example, or the Leeds riverfront. What we face now, though, is a new economic reality which means these … See all stories on this topic » Redesigning for austerity – but politics get in the way Public Service And the director who saw the storm coming and had a plan jumped ship and now heads health commissioning – from which position he could be better placed to redesign for austerity. Blair McPherson is author of ‘Equipping managers for an uncertain future … See all stories on this topic » Feeling the pinch in austerity-hit Portugal BBC News The resignation of two key ministers has left many questioning whether Portugal’s right-of-centre government, which has enthusiastically embraced austerity measures, can survive much longer. But in a statement to the nation on Tuesday night, Prime … See all stories on this topic » Portuguese government at risk of collapse over austerity EUobserver.com Gaspar, whose replacement, Maria Luis Albuquerque starts work on Wednesday (3 July), identified increasing public disaffection with the government’s austerity drive as the reason for his resignation. But Albuquerque, who has been promoted from treasury … See all stories on this topic » EU to ease deficit rules to allow some investments: Barroso Hindu Business Line The decision comes amid a wider debate over the austerity-driven policies used to tackle the EU’s economic crisis, as the worst-affected countries and left-wing parties argue that austerity is throttling growth and failing to tackle soaring unemployment. See all stories on this topic » London midday: Stocks hit by political uncertainty, economic data ShareCast Resignations of both the Portuguese Finance Minister and Foreign Minister over the last few days have sparked concerns all over the Eurozone, as anti-austerity rallies gather support. Portugal’s 10-year bond yields have now surged above 8.0% for the … See all stories on this topic » The Socialist 3 July 2013 Tories – cuts, Lib Dems – cuts, Labour – cuts Socialist Party And when Tory Chancellor George Osborne announced another £11.5 billion in cuts and extendingausterity past the next general election, rather than saying ‘we will tear up this spending review if we win power’, Labour promised to abide by it. These … See all stories on this topic » European Stocks Tumble; Portugal’s Political Woes Weigh Wall Street Journal European stocks opened sharply lower Wednesday as a mounting political crisis in Portugal sparked worries over whether the country would be able to continue the austerity measures dictated by its acceptance of an international bailout two years ago. See all stories on this topic » Portuguese Uncertainty Knocks The Euro Wall Street Journal Portugal’s government was thrown into turmoil Tuesday when Foreign Minister Paulo Portas followed Finance Minister Vitor Gaspar’s lead and resigned in protest over the country’s austerity policies, increasing the uncertainty over the future of the … See all stories on this topic » New warehouses hit Ocado profits Belfast Telegraph Slashing Eurozone austerity could boost growth: report new. Cutting back on austerity across the eurozone would boost growth by 1% next year, consultants Ernst & Young has forecast. Smith brothers sell e-tee website BRS Golf new. Two brothers from … See all stories on this topic » Portuguese markets in turmoil on gov’t confusion Montana Standard Portugal’s financial markets are in turmoil amid growing concerns over the future of the country’s coalition government and its ability to pursue the austerity measures demanded by creditors. While the country’s main PSI 20 stock index tumbled 5.4 … See all stories on this topic » Portuguese stocks, bonds slide amid confusion over future of government Washington Post Prime Minister Pedro Passos Coelho defied calls to resign late Tuesday but he was running out of options to keep his center-right coalition government together following the resignations of key ministers in a spat over austerity. A protester holds an … See all stories on this topic » Heywood: 20-Year Battle To Fix UK Economy Orange UK News Britain is in a “20-year generational battle” to rescue the economy, according to the country’s most senior civil servant. Cabinet Secretary Sir Jeremy Heywood has suggested drastic austeritymeasures implemented by the coalition may have to go further. See all stories on this topic » Portugal, oil in focus as stock futures retreat USA TODAY In Europe, markets moved sharply lower as Portugal’s foreign minister resigned amid a dispute over the nation’s austerity program, the Wall Street Journal reported. That follows a surprise departure for the country’s finance minister on Tuesday … See all stories on this topic »

Lenders Pressuring Greece Over Austerity Pledges Voice of America The lenders – Greece’s European neighbors, the European Central Bank and the International Monetary Fund – have been meeting with government officials in Athens. They are demanding that the government make progress on its austerity pledges ahead of … See all stories on this topic »

New Study Dispels Myths of European Austerity OpenMarket.org Cries throughout the media of “savage austerity” notwithstanding, only a handful of European countries have actually implemented austerity in the true sense of the term: reducing both public spending and taxation. On the other hand, most countries in … See all stories on this topic »

Portugal gov’t in peril as another minister quits TheNewsTribune.com Portugal’s government was in danger of collapse Tuesday after Foreign Minister Paulo Portas, the leader of the junior party in the center-right coalition government, resigned over the bailed-out country’s austerity policies. By BARRY HATTON; Associated … See all stories on this topic »

Rug buyers look for round rugs in austere times PRWire (press release) Rug buyers across Australia are looking to make their homes cosier as they hunker down for a period of relative economic austerity. That’s the view of the team at The Bespoke Rug Company (www.bespokerugs.com.au) Australia’s leading retailer of … See all stories on this topic »

Bailed-out Portugal’s finance minister resigns Fresno Bee Workers’ unions called a 24-hour general strike to protest the government’s austerity measures with public transport and government offices expected to be the worst-hit services. The banner reads in Portuguese: “The street is our. Nothing to lose”. See all stories on this topic »

The Tories must beware these feelings of irrational exuberance Telegraph.co.uk (blog) We have had enough of five years of austerity and doubt. All around there are signs that the economy is stirring, that the combination of low interest rates and high employment is beginning to encourage consumer activity. Even beyond the powerhouse of … See all stories on this topic »

There are few bright spots for them in last week’s spending review by George … Third Sector There are one or two other bright spots for the sector in the sixth year of austerity announced by George Osborne in last week’s spending review, which was in effect the opening salvo of the next general election campaign. The continuing expansion of … See all stories on this topic »

Portuguese Finance Minister’s Exit Elicits Few Gasps Wall Street Journal (blog) Yields on Portuguese government bonds ticked up a bit to 6.42% after the unexpected resignation of Mr. Gaspar–the architect of Portugal’s austerity plan–but volumes were low, and the news didn’t prompt predictions of outright default. Instead … See all stories on this topic »

Democratic Deficit Scolds Get Desperate and Weird New York Magazine Liberals may complain about austerity, but, they argue, “we haven’t had an austerity budget.” Cowan and Kessler’s evidence for this — that the federal government spent more, on average, during Obama’s first term than during George W. Bush’s second … See all stories on this topic »

Lapid: Deficit could cause collapse Globes Finance Minister: The austerity measures will stop Israel reaching the conditions in Europe with high unemployment. 2 July 13 12:42, Moshe Golan. Tweet. “The idea that we have people here whose lives are at risk because they are doing their jobs is … See all stories on this topic »

EU Rehn: New Portugal Finance Minister Must Maintain Tempo of Reform Wall Street Journal The former treasury secretary took the post after Vitor Gaspar, chief enforcer of austerity demands under Portugal’s EUR78 billion international bailout program, said Monday he was stepping down after two years in the job. Mr. Rehn praised Mr. Gaspar … See all stories on this topic »

The Strain in Spain Could Help Firefox OS Take Root TechNewsWorld Due to the extreme austerity measures in certain South American and European countries, “low-cost smartphones will be very appealing,” said Joshua Flood, a senior analyst at ABI Research. The ZTE Open — the first commercially available smartphone … See all stories on this topic »

Merkel opponent derides jobless summit as cynical ploy Reuters BERLIN (Reuters) – Angela Merkel’s summit on youth unemployment in Europe is an attempt to paper over the economic consequences of the austerity policies she championed in the region, a leading member of Germany’s opposition Social Democrats … See all stories on this topic »

Portugal’s austerity government feels the pinch BBC News The resignation in quick succession of two of Portugal’s biggest political beasts has left many questioning whether the right-of-centre government which has enthusiastically embraced austeritymeasures can survive more than a few weeks, let alone months. See all stories on this topic »

Twenty years of austerity ahead, says Sir Jeremy Heywood Telegraph.co.uk Sir Jeremy Heywood also suggested that the cuts made to public services to date were not sufficient and that austerity measures would have to continue for “at least” another four years. The comments from the Cabinet Secretary will have a sobering … See all stories on this topic »

Austerity Blitz: Eurozone Notes From Beyond the Grave Truth-Out The criminal effects of the austerity blitz strategy that the European Union (EU) conceived of on Germany’s insistence as the answer to the global financial crisis when it hit Europe’s shores with the triggering of the Greek sovereign debt crisis have … See all stories on this topic »

Portugal’s Budget Austerity May Do More Harm Than Good KTEP LAUREN FRAYER, BYLINE: Of all the bailed-out countries in Europe, Portugal has been the good student – taking the austerity medicine its lenders prescribe. Portuguese Finance Minister Vitor Gaspar took it even further – doubling budget cuts and tax hikes. See all stories on this topic »

Public sector austerity drive ‘hitting women the hardest’ Gulf Times George Osborne’s revelation in his spending review that a further 144,000 jobs are to be slashed from the public sector means there is more pain to come for women, critics say. Data collated by the Guardian highlights the disproportionate blow to … See all stories on this topic »

Lapid: Without Austerity Measures, Deficit Could ‘Bury’ Israel Algemeiner Most Popular. Recent Posts. The BioHug vest. Photo: BioHug.com. Israeli-Developed Vest Hugs People to Health · Yair Lapid, leader of the Yesh Atid party. Lapid: Without Austerity Measures, Deficit Could ‘Bury’ Israel · Amy Winehouse. Photo: wiki commons. See all stories on this topic »

Portugal’s PM says he won’t quit despite resignations over austerity measures Fox News But the government’s future is hanging in the balance after the resignation earlier Tuesday of Foreign Minister Paulo Portas, the leader of the junior party in the governing center-right coalition, in protest against austerity measures. Passos Coelho … See all stories on this topic »

Trade unions call for social investment Morning Star Online And he said the people of Northern Ireland were suffering the same fate at the hands of the austerity-mad Westminster government. “Austerity is now no more than a mantra without meaning. The intellectual underpinning for it has been discredited,” he … See all stories on this topic »

Portugal’s finance minister resigns amid pressure for government to soften … Malaysia Sun Portugal’s finance minister resigns amid pressure for government to soften austerity | Malaysia Sun. Malaysia Sun. Issue 11/0183. Malaysia Sun · http://www.malaysiasun.com · Malaysia News · Southeast Asia News · Breaking International News · Asia … See all stories on this topic »

Activists climb County Hall, Westminster in anti war, anti austerity protest Indymedia UK The newly formed Black Katz Kollektive has within the last hour occupied County Hall on the south side of Westminster Bridge facing the Houses of Parliament, with banners unfurled down the side of the building. Their message is simple: stop the war … See all stories on this topic »

Portuguese government in peril as foreign minister, head of junior party in … The Republic Austerity is widely blamed for driving the jobless rate in Portugal to 17.6 percent and for what is forecast to be a third straight year of recession in 2013. Portugal needed a 78 billion euros ($102 billion) bailout two years ago after a decade of … See all stories on this topic »

Portugal PM defiant despite another resignation Boston.com Gaspar, a non-political economist specially selected by Passos Coelho to push the austerity drive, said he lacked the political and public support for his ongoing program of cutting public sector pay and pensions and raising taxes. Portas, the leader … See all stories on this topic »

Portuguese Finance Minister Gaspar resigns Channel News Asia Portuguese Finance Minister Vitor Gaspar, the architect of the country’s reforms under its EU-IMF bailout, resigned on Monday as the economy reels and social discontent mounts under the impact ofausterity measures. PHOTOS. File photo of Portuguese … See all stories on this topic »

Miss. tax receipts approach $5 billion in FY2013 WJTV Top budget writers say they expect pressure from schools, universities and state agencies that saw budgets slashed during four years of austerity. Tax receipts have surged more strongly than jobs or Mississippi’s overall economy, leading to notes of … See all stories on this topic »

Portuguese PM adamant he will not stand down Radio New Zealand Austerity measures are blamed for causing Portugal’s worst economic crisis since the 1970s. Portugal has been in recession for two years and the economy is expected to contract by 2.3% this year. Unemployment is over 17.5%. A general strike was held … See all stories on this topic »

Portuguese Finance Minister Resigns New York Times MADRID — Portugal’s finance minister, Vítor Gaspar, unexpectedly resigned Monday amid a prolonged recession that citizens have attributed largely to austerity measures that he helped enforce in accordance with the demands of the country’s … See all stories on this topic »

Concern over Portugal bailout Independent Online Lisbon – The resignation of the main architect of Portugal’s austerity policies has sparked concern over the country’s ability to complete its EU-IMF bailout programme. Analysts say the departure Monday of finance minister Vitor Gaspar has weakened a … See all stories on this topic »

Portugal foreign minister steps down in second major ministerial resignation Deutsche Welle Former Treasury Secretary, Albuquerque was appointed on Monday following the shock resignation of Finance Minister Vitor Gaspar, the main architect of the austerity measures. ccp/kms (AFP, AP, dpa). Date 02.07.2013; Share Send Facebook Twitter … See all stories on this topic »

Austerity news from Around the Globe

Austerity is a Four-Letter French Word FXstreet.com Austerity is a four-letter Anglo-Saxon – or even worse, Teutonic – word in socialist France, yet the market at some point is going to want to see a move toward sustainable budgets. Government bond investors are not philanthropists. They look for the … See all stories on this topic »   Austerity drains economic life Yorkshire Post THE latest statistics confirm that wages are increasing by well under the inflation rate, at the same time as benefits for those of working age are rising at just one per cent a year. So I’m not surprised that the economy is still struggling, as people … See all stories on this topic »   Scottish independence: ‘No’ vote austerity warning Scotsman But Labour leader Johann Lamont insisted that an independent Scotland would face even harsherausterity than the UK amid concerns that SNP “big business” tax breaks will see major job cuts. The leaders clashed today during the final First Ministers … See all stories on this topic »   Portugal: 5 million participated in general strike, say unions   Patience with the government’s austerity plan is running thin in Portugal with banners reading ‘Enough’ and ‘Government Out’. In their fourth general strike in two… read full article  Austerity: ‘unprecedented erosion’ in living standards The Guardian If you thought you were feeling the pinch, here’s probably why. Rising prices, stagnant wages and benefit cuts are creating an “unprecedented erosion” in living standards, especially for low and middle income families, according to new research from … See all stories on this topic »   Stuff your austerity! We want something different New Internationalist (blog) The idea of the Peoples Assemblies is to create a mass national and local movement against austerity. Saturday’s event brought together people of all ages and walks of life – trade unionists, direct activists, students, pensioners, hackers, disabled … See all stories on this topic » Social Justice Ireland says austerity not working RTE.ie “Austerity is not working for Ireland. Government has cut spending, raised taxes, increased unemployment, lowered wages, decimated services and allowed infrastructure to deteriorate on the understanding that austerity would lead to recovery … See all stories on this topic » Austerity leaves bitter taste as Leinster House sweet shop shuts Irish Times It was the Taj Mahjal of the mint humbug, the Southfork of the chocolate snowball, the Buckingham Palace of the fruit pastille. The notorious Leinster House sweetie shop – that glass walled monument to the Celtic Tiger notions of a discredited … See all stories on this topic »

Miliband’s offer of austerity in a red rosette is failing voters New Statesman If austerity is wrong and counter-productive when the Tories do it, it will be wrong and counter-productive whoever does it. Austerity in a red rosette is no less brutal and damaging than in a blue one. In failing to articulate a clear economic … See all stories on this topic »

Portuguese businesses attack austerity, urge U turn GlobalPost Portuguese business leaders launched on Monday a strong attack on austerity conditions tied to the EU-IMF bailout of the economy, saying that they had failed and the government should change direction to save the country from “recession”. See all stories on this topic »

Union warns austerity will spur growth of ‘zero hours’ contracts Financial Times Austerity will spur the use of zero hours contracts, as more public sector work is outsourced to providers who rely on the ultimate flexible employment option, a think tank and union have said. The contracts, which offer no guaranteed work, are being … See all stories on this topic »

Discredited Pro-Austerity Research Gets New Love From World’s Central Bank Huffington Post Our world’s troubling austerity deficit is actually not the main message of the BIS’ 76-page opus, but an entire chapter, “Fiscal sustainability: Where do we stand?” is dedicated to the topic. And this chapter sounds a rallying cry for more austerity … See all stories on this topic » Austerity Loses in Massachusetts The Nation. Gomez ran as a classic proponent of austerity. He proposed to balance budgets on the backs of working families and retirees. The Republican nominee supported raising the retirement age for Social Security benefits for future retirees and he wanted to … See all stories on this topic »   France’s Austerity Drive Pushes Country into Recession IBTimes.co.uk France’s drive to slash spending and debt by implementing strict austerity measures has pushed the country into recession, confirmed the government’s statistics office. In the first quarter of 2013, French gross domestic product (GDP) in volume … See all stories on this topic »   Lying about austerity serves “special interests” People’s World A few weeks ago, the most prestigious apologists for austerity in the economics profession, Ken Rogoff and Carmen Reinhart of Harvard University – now known as R & R – were brought up short when a blatant spreadsheet error in their published work … See all stories on this topic »   ‘Greece to avoid more austerity’ Independent Online Athens – Greece’s Prime Minister Antonis Samaras said on Tuesday avoiding new austeritymeasures to fulfill targets in the country’s international bailout was a priority of his two-party coalition government. “Our immediate priority is to return to … See all stories on this topic »   Greece: Austerity Doesn’t Involve Public-Sector Layoffs Heritage.org (blog) Slate’s Matthew Yglesias might be attacked as an “austerity denier” now that he has joined Heritage’s Salim Furth in pointing out that there is a lot of policy diversity under the broad label of “austerity.” Yglesias explained last week why a small but … See all stories on this topic »  Austerity support frays at edges among EU smaller fiscal hawks Financial Times Since the financial crisis swept through Europe four years ago, the bloc’s triple-A rated economies have been vociferous backers of controversial austerity measures as the solution to the continent’s woes. Yet as the crisis drags on, unemployment rises … See all stories on this topic »   Austerity Remains Key to Britain’s Economic Plan New York Times (blog) LONDON — Extended spending cuts, including a fresh squeeze on welfare payments, were announced by the British government on Wednesday, ensuring that the politics of austerity remain firmly center stage in the run-up to the country’s next elections. See all stories on this topic »   UK austerity: ‘Diverting money from poor to rich under guise of economic crisis’ RT (blog) The UK’s austerity policy is ideologically driven and is aimed at diverting finance from the poor to the rich under the pretext of the economic crisis, writer John Wight told RT. Britain’s Chancellor of the Exchequer George Osborne is announcing … See all stories on this topic »   Portuguese Workers Strike to Say Austerity Has Gone Too Far Wall Street Journal LISBON—A nationwide strike froze public-transport services and shrank hospital staffs across Portugal on Thursday amid a growing consensus among workers and businesses that austerity has reached its limit. Protests and strikes have become common … See all stories on this topic »   Austerity Britain rolls on Morning Star Online In the run-up to George Osborne’s spending review, the Sunday TV discussion programmes ran with their usual carefully selected commentators. All of them accepted that there have to be cuts in public expenditure. There was not an alternative policy on … See all stories on this topic »   Britain sugars austerity pill with infrastructure boost euronews LONDON (Reuters) – Chancellor George Osborne unveiled a new round of spending cuts on Wednesday, but promised to pump some of the savings straight back into the economy to counter charges of excessive austerity. In a speech to parliament … See all stories on this topic »  More spending cuts for Britain, but austerity pill is sugared Reuters UK LONDON (Reuters) – Chancellor George Osborne unveiled spending cuts on Wednesday to try to tame the country’s big public deficit, but promised to reinvest some of the money saved to counter criticism of excessive austerity. In a speech to parliament, … See all stories on this topic »     Austerity? It’s hardly begun! Chancellor Osborne tightens the purse strings … This is Money But for all the talk of austerity, government spending is set to rise from £720billion this year to £745billion in 2015/16 – the year the latest cuts take place. Over the same period, tax receipts are expected to rise from £612billion to £658billion … See all stories on this topic »