austerity
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The end of the Portuguese exception
Commentators have hailed Portugal’s politics as an “exception” in Europe. In Lisbon, a socialist party presides over a healthy economy while far-right and populist-right parties lack significant support. The pandemic, however, is challenging that status quo – increasingly statist solutions from the government are holding back growth, while right-wing parties are gaining influence.
Portugal: The economy is Costa’s next big test
Portuguese Prime Minister Antonio Costa has helped keep populism in check by “taming” radical leftist parties and including them in his governing “contraption” coalition. He has avoided austerity, making him popular and likely to win October’s elections. After that, he will need to solidify Portugal’s recovery with deeper economic reforms. ...
Argentina: President Macri’s reelection will hinge on economic rebound
Argentina’s President Mauricio Macri is in a tight spot at the start of the election year. His government presides over cuts to public spending, including politically sensitive social protection programs, under the conditions of a lifeline deal with the IMF. Mr. Macri’s hopes for inducing growth by restoring Argentina to ...
Russia breaks its social contract
In two decades of rule, Russian President Vladimir Putin has ensured stability by offering Russians an implicit social contract – a modest but secure social safety net in exchange for carte blanche in politics. Now, the country’s deepening financial and demographic crisis has put an end to this, forcing the ...
As sanctions take their toll, Russia turns to import substitution
As the Russian economy’s difficulties deepen, the Kremlin is putting a brave face on things. It maintains that Western sanctions have been beneficial and that its own anti-crisis program is working. Moreover, the government is talking up a new “Strategy 2030” to boost domestic self-sufficiency based on import substitution. The ...
