20 abril 2008

turmoil



Joaquim refers to a Forbes article below which predicts the demise of the euro, courtesy of Latin countries. Although Portugal is not mentioned in the article, it is obviously one of the group - actually the country where the net benefits of abandoning the euro might be most significant.

Let me say first that, since its inception in 1999, the euro has been very well managed under a German-style philosophy which in less than a decade made it one of the strongest currencies in the World. The point is that the strict, German-style discipline of managing the euro is foreign to the much more flexible, some would say undisciplined culture of Latin (read: Catholic) countries, such as Italy, Spain, Portugal and, to some extent, France.

The euro has been too much of a good thing for Portugal, a sort of luxury the country cannot afford much longer. For a number of years now the euro has been destroying Portuguese jobs and economic growth. It has been one among several Northern European (read: Protestant) values and institutions which invaded Portuguese society over the last ten to fifteen years and which are now causing much disruption.

A few months ago I wrote that PSD seems to me the most representative political party of Portuguese society. I see the present turmoil in PSD as a mirror image of the turmoil presently going on in Portuguese society. This is a conservative society shocked by too many innovations imported from Northern Europe in too short a period of time. Among these I include the euro, the idea of global market competition, ASAE , such issues as abortion and euthanasia, the change in family and divorce laws and an adversarial stance against the Catholic Church.

I am persuaded that out of the present state of affairs in PSD will emerge, sooner or later, a truly conservative party, more nationalistic and less European in character, protecting Portuguese institutions and traditions, favourable to abandoning the euro and returning to a national currency, defending some sort of protectionist economic policies and much more Church-friendly than PS.

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