Did we live beyond our means?

Beyond common sense: true causes of the economic crisis in Portugal.

EU in Crisis CEO Conference 2012

Mariana Mortágua

Common Sense

• Public debt exists because we lived beyond our means

• Troika intervention was inevitable

• Sacrifices pay-off«People are completely available to sacrifice and work harder for

the country to be successful in the adjustment programme»Minister of Finance

Did we live beyond our means?

Did we live beyond our means?

Did we live beyond our means?

Private debt and structural failures :•Incompetent bourgeoisie•European Integration

Public debt as a consequence of:•Public-private partnerships•Crisis

The wrong question: was Troika intervention inevitable?

Instead,

What will be the inevitable consequences?

Can we pay it?

Loan Interests

Aug 2011 Oct 2011 Apr 2012

Do sacrifices pay off?

• Public debt is growing

• Recession and unemployment

• There will be no return to the

“markets” in 2013

Beyond common sense…

• We can´t and we should not pay part of this debt

• Growth and employment policies instead of austerity

• Alternative ways to finance the governments

“If we all leave, who is staying to pay the debt?”