Growth and budget discipline are 2 big parts of the solution to the present European crisis - why is it that most of the people try to put them in different parts of the table? Why is it that we are straightforward in not considering well-planned, positive return investment? Because, that is what investment should be - capable of generating sustainable positive return. And why is it that we are seeking macro-solutions to micro-economic problems? We should be discussing business competitiveness throughout the eurozone - not if Greece should have its independence curtailed!
Monday, 30 January 2012
Wednesday, 25 January 2012
Think positive V
- 5 young Portuguese researchers have won Howard Hughes Medical Institute awards for their research in several medical fields. Portugal was actually the second country with most awards, just after China - and considering the size of the country that is quite an achievement. So, kudos to them and also to the foundations and institutions they work for - and the former Portuguese Science Minister, Mariano Gago. http://www.publico.pt/Ci%C3%AAncias/cinco-cientistas-portugueses-premiados-com-bolsa-norteamericana-1530398
- This week, Richard Branson (Virgin CEO and business superstar) praised again Portugal's campaign against drugs and the bold movement of considering its consumption a health and not a police problem. In Portugal, too many times, we forget how amazing the results were, strongly decreasing drug addiction problems. See Richard's December remarks on the subject on his blog http://www.virgin.com/richard-branson/blog/time-to-end-the-war-on-drugs .
- And last but not least, even Public Deficit was better last week than what was previously expected. Of course, maybe some means for this success might be debatable, but still, let's not forget how positive and important that figure still is (when compared to our 2010 deficit).
A quick glance on the Eurozone
CNN put together an interactive map that, if it doesn't tell all the story, is still quite good to have a glimpse at some of the major figures per country. But it fails to have a look at the Eurozone as a whole, which, in itself, is a bad sign...
Tuesday, 24 January 2012
Second help package?
Today's Wall Street Journal article saying that Portugal will need a second help package in 2013 seems... likely. The point is though Portugal is in better shape than Greece, it will still need it. The economy is contracting (not a surprise, given the severe adjustment in Spending), the necessary cuts in Public Administration were not done (thus, savings are still to be done, and further economy contraction should actually be expected in 2013) and the constant downgrades are escalating interest rates for the Portuguese debt, making it unfeasable to expect market financing. So, Portugal should be ready for a much needed help package being announced towards the end of the year - and, hoping everything goes ok, we will then be in a much better position and fitter than we are today (but, let's act and see...).
Monday, 23 January 2012
I want to see all State owned companies doing this
EPUL, the city owned company that is responsible for House Holding in Lisbon, has reverted its economical situation. From a €-3.8 million EBITDA to a €10.5million in 2 years. From a bankruptcy situation to a positive one. Reducing its bank Debt in 6%. And it has done so by doubling its Turnover (now at €66 millions), changing offices (from rented to already owned ones), reducing Board members compensations in 5% and shrinking its car park from 31 to 14 vehicles. A great achievement!
Now, we need to demand that all State owned companies do exactly this! Reduce its non-productive spending, cutting higher level compensations (a good example: only pay bonus when really owned - it doesn't make much sense if bonus are paid to a Board that didn't improve Cash Flow and Balance situation), increase revenues (but still looking on company social mission). We, as tax payers that are paying for these companies, demand it!
Sunday, 22 January 2012
A good picture off the streets of Portugal
This CNN article is 1 month old and I don't know how it elluded me. But it is a very nice, unbiased picture of the Portuguese situation. And, don't doubt it - Portugal will come through!
Saturday, 21 January 2012
Good news! But...
The news that the Portuguese deficit was cut by 50% in 2011 is very good news! It really is! But when we look at the figures, we see that a large part of that cut comes from an one-off Pensions Fund transfer and not enough was cut on Public Spending. That needs to be corrected in 2012!
http://economia.publico.pt/Noticia/defice-do-estado-caiu-quase-50-no-ano-passado-1530033
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