Portugal’s collapse averted
The eurozone is far from monetary stability. Portugal, too, has jumped on the bandwagon and humbly stands in the queue of nations who have sought a bailout on the brink.
The financial package worth 78 billion euros ($116 billion) is its new lifeline. The EU-IMF largesse deal, penned by Portugal’s caretaker Prime Minister Jose Socrates, is unlikely to be the last one as Spain is all set to expose its fist. Lisbon is the third one to seek gigantic external loaning facility after Greece and the Irish Republic. All the three had thrown in the towel in less than a period of one year, and it hints at the crisis of fiscal autonomy prevalent in the 27-member eurozone. But that is not the end of the tale, as Portugal’s bailout has come at a time when the much-talked-about Greece rescue doctrine, which is being emulated by other member countries, is unraveling.
While Portugal walks the tight rope of fulfilling the necessary conditionalities, such as measures to increase tax revenue and reduce spending, it will also be testing the waters of political opposition, instantly. Moreover, its economy is all set to contract as a result of inevitable austerity measures without which it cannot remain afloat. This is a serious moment of retrospection for not only Lisbon, but all the member countries, as the euro currency and their respective fiscal policies are showing nervousness. They are jittery as they recollect themselves from the aftershocks of the Wall Street fiasco and, at the same time, try to get along with a plummeting greenback and an irresistible pound sterling. A host of trade and investment upheavals in the wake of Japan’s tsunami have further upped the ante, as the equation of geopolitical interdependence is getting quite toiling.
Something serious is in need of being done to save the embattled euro, which is gradually losing its glitter. The concept of common currency and that too in times of adversity is becoming a tricky issue to handle. It was evident as Athens raised the possibility of leaving the single currency — resultantly making the dollar dip by more than one per cent. Similarly, the cushion fund established by the European Union will be under tremendous pressure to keep all the ailing economies on board, and to coordinate their policies in a consensual manner. The ugly proposition of the continent’s debt-deficit crisis cannot be dealt with piecemeal gestures. A coordinated approach is indispensable.
Justice hour in Cairo
The sentencing of former Egyptian interior minister Habib Al Adly is likely to prove a milestone. So far, Al Adly has been sentenced to 12 years imprisonment on corruption and money-laundering charges and has been ordered to pay back more than two million dollars embezzled illegally.
A far more serious charge of ordering police to open fire at protesters for which he could get the death penalty is yet to be decided.
The conviction of Al Adly is also likely to boost the Egyptians’ confidence in the interim military government for meting out justice by punishing the key stakeholders of the Mubarak regime. The trial of former Egyptian leader Hosni Mubarak and his sons is also on the cards. Mubarak has been in the hospital for some time but is likely to be sent to prison. In all likelihood the people are going to press Cairo to put the former president on trial. Mubarak had allegedly amassed billions of dollars. His ill-gotten private wealth is Egyptian property according to the masses, who are demanding that the wealth be returned to the state and the culprit be given exemplary punishment. In addition, the blood of hundreds of protesters is to be accounted for who died at the hands of Mubarak’s forces.
Today, Egyptian politics is at a crossroads. The faith of the people in entrusting the interim government will only be strengthened if the power players of the former regime are brought to justice and the money made from corruption returned to the country. Fed up with years of empty promises and a government that was more interested in oppressing people’s rights and lining its own pockets, thanks to a top-down corrupt administration, the Egyptians chose to bring about a change. The sacrifices made are not likely to be forgotten so soon. In addition, the Egyptian politicians are likely to determine the course of their actions by the mood on the street. So far, the Egyptians want accountability from their past rulers. Their expectations from the future leadership stem from past grievances and they do hope for more honest and effective governance where the common man’s aspirations are met and not throttled. The economic hardships faced by the man on the street are also a major challenge that any new leadership will have to contend with.
It may be a good idea that the prosecutors speed up efforts and have the former regime return the money made at the expense of the state and
the people.
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