Skip to main content

Constitucional Court Rejects Austerity Measures

Constitutional court rejected austerity measures included in Lisbon's 2014 budget as part of the centre-right government's ongoing cutbacks after exiting an international bailout two weeks ago.
The country's highest court rejected three out of four measures, which have been opposed by the leftist opposition party, including wage cuts for public employees.
The judges also rejected a five per cent levy on unemployment benefits and a six percent levy on health payouts, along with controversial cuts to widows' pensions.
The court did, however, approve a measure to reduce supplementary pensions payouts in the public enterprise sector.

The secretary general of the main opposition Socialist party, welcomed the ruling and said called for the intervention of President.

The decision comes two weeks after Portugal exited a three-year international bailout programme. But the economy remains fragile, contracting a 0.7 per cent in the first quarter, sending alarm bells ringing. While public deficit has been halved to 4.9 per cent since the bailout began, Portugal's overall debt continues to balloon, reaching 129 per cent of output. Prime Minister whose government recently survived a no confidence motion presented by the Communist Party, said earlier Friday that he "cannot commit to not raising taxes to the extent that I do not know if this is necessary." Portuguese media predicted the government may increase sales tax (VAT) from 23 to 25 per cent to compensate for the shortfall created by the court's decision.

POPULAR

PORTUGAL, A PEACEFUL COUNTRY

In the recent Global Peace Index 2016, Portugal is ranked as the fifth most peaceful country in the world, in a table that organises 163 countries.

The index is based on 23 quantitative and qualitative indicators that measure the level of peace in each country. The indicators can be grouped into three general themes: level of security and protection of society; the number of international conflicts and; the degree of militarization.

Among these factors, Portugal scored in militarization (1.4 points out of 5), society and security (1.6 out of 5) and internal conflicts (1.1 out of 5). Portugal also scored in other factors such as the perception of crime, the level of violent demonstrations and crimes, the impact of terrorism or the number of displaced persons.

PORTUGAL MAKES TOP TEN OF RETIREMENT DESTINATIONS

The Annual Global Retirement Index places Portugal as the seventh best destination in the world to retire. The top three destinations listed by International Living are Costa Rica, Mexico and Panama. Spain has listed two positions below Portugal in ninth and is the only other European nation on the list.

According to International Living’s report, “the third-safest country in the world in the 2017 Global Peace Index, Portugal is not only secure but beautiful.” It adds that “if Portugal’s attributes have convinced you to give it a try, here’s a tip: Begin your test drive in the capital. Lisbon is easy to reach, with direct flights from major cities around the world.”

DEBTS TO BE RECOVERED IN THE COURTS REACH THE EUR 7.2 BILION

The enforcement proceeding (debt recovery through the courts) has been considered one of the major problems in Portuguese justice and also one of the barriers to the development of the Portuguese economy. In 2013 the cases for legal collection amounted EUR 5.6 billion, regarding 201,000 enforcement proceedings lodged in the courts. Between January and April 9 this year, 38,924 cases were filed, valued at EUR. 1.6 billion. Portuguese courts have pending something like EUR 7.2 billion to collect, which corresponds to 4.3% of GDP.

I AM AN E.U. CITIZEN, HOW CAN I REGISTRATE IN PORTUGAL?

To make your registration in Portugal, you only have to apply for a Certificate of Registration of Citizen.

The Certificate of Registration of Citizen of the European Union must be requested by any citizen of the European Union, Iceland, Liechtenstein, Norway, Andorra and Switzerland, wishing to remain in Portugal for a period exceeding three months.

The request can be made to the City Hall, in person by completing a statement and delivering the necessary documents.

The application can also be made by a lawyer, as long as he has the necessary powers to act on your behalf.

I FOUND THAT THE PROPERTY I PURCHASED HAS DEFECTS, WHAT CAN I DO NOW?

Every consumer purchase is covered by a mandatory legal guarantee. As long as you are a consumer, no seller can claim otherwise.

Legally, the property must not suffer from any defect which has a negative impact on its value or which renders its regular use impossible. If these warranties are breached, the consumer can choose between repair, replacement, refund or a price reduction. However, the buyer must notify the seller of defects within one year of their discovery.

If the property is newly built, the purchaser will also benefit from a five-year warranty period. According to Art. 1225 of the Civil Code, the seller is liable for damages in respect of certain defects during five years, if he has also constructed, repaired or modified the building.