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| Lessons on austerity from all over Europe | Lessons on austerity from all over Europe |
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| Many of the anti-austerity policies that have led to a revival of Portugal’s economy (The lie is nailed – there is an alternative to austerity, 24 August) did not actually originate from the Socialist government, but from conditions set by radical leftwing and green parties to enable the Socialists to govern after they failed to win a majority in the 2015 national elections. | Many of the anti-austerity policies that have led to a revival of Portugal’s economy (The lie is nailed – there is an alternative to austerity, 24 August) did not actually originate from the Socialist government, but from conditions set by radical leftwing and green parties to enable the Socialists to govern after they failed to win a majority in the 2015 national elections. |
| Among demands by the Communists, Left Bloc and Greens were the reversal of privatisation, a swift elimination of salary and pension cuts, and a substantial increase in the national minimum wage. These were mostly accepted by the Socialists, who went on to form a minority administration that relies on support from the radical left in parliament. | Among demands by the Communists, Left Bloc and Greens were the reversal of privatisation, a swift elimination of salary and pension cuts, and a substantial increase in the national minimum wage. These were mostly accepted by the Socialists, who went on to form a minority administration that relies on support from the radical left in parliament. |
| Portugal’s proportional electoral system is a key reason this anti-austerity grouping was able to happen, because it gives smaller parties seats in parliament. If Portugal used Britain’s first-past-the-post system, it would instead be governed by the rightwing Portugal Ahead party, which won the most seats in parliament and would almost certainly be continuing the stringent cuts it had previously been implementing. | Portugal’s proportional electoral system is a key reason this anti-austerity grouping was able to happen, because it gives smaller parties seats in parliament. If Portugal used Britain’s first-past-the-post system, it would instead be governed by the rightwing Portugal Ahead party, which won the most seats in parliament and would almost certainly be continuing the stringent cuts it had previously been implementing. |
| The lesson from Portugal is not just that breaking with austerity is good for the economy, but that a more democratic electoral system provides the basis for challenging the mantra of “there is no alternative” by giving a stronger voice to a wider range of political views. | The lesson from Portugal is not just that breaking with austerity is good for the economy, but that a more democratic electoral system provides the basis for challenging the mantra of “there is no alternative” by giving a stronger voice to a wider range of political views. |
| If Britain used proportional representation, we would not simply be relieved that Labour did better than expected in June’s general election but would be potentially experiencing our own anti-austerity economic revival from a Labour-led minority government in partnership with smaller progressive parties. Dee SearleLondon | If Britain used proportional representation, we would not simply be relieved that Labour did better than expected in June’s general election but would be potentially experiencing our own anti-austerity economic revival from a Labour-led minority government in partnership with smaller progressive parties. Dee SearleLondon |
| • Owen Jones praises António Costa’s Socialist government in Portugal for reversing two years of EU- and IMF-enforced austerity. Rightly so. Before Costa took power a year ago, most of the important austerity measures had been enacted. Portugal was ready for a change of direction. This made good economic sense and it seems to be working. The example of Greece, however, shows that political perspectives alone don’t cut it. Alexis Tsipras’s leftwing party took over a country that had struggled for four years to reform, against an intransigent body of cartels, unions and government employees. The light was beginning to shine when Syriza took over. Against their promise to relax austerity, they carried on passing austerity measures in parliament, but in practice ignored their own laws. In fact many were reversed. None of the key measures needed were respected. The same group of unions, cartels, politicians and government officers has made sure of that. Has employing more civil servants, or refusing to privatise or reform key industries, helped the Greek crisis? Clearly not, as we face further borrowings. | • Owen Jones praises António Costa’s Socialist government in Portugal for reversing two years of EU- and IMF-enforced austerity. Rightly so. Before Costa took power a year ago, most of the important austerity measures had been enacted. Portugal was ready for a change of direction. This made good economic sense and it seems to be working. The example of Greece, however, shows that political perspectives alone don’t cut it. Alexis Tsipras’s leftwing party took over a country that had struggled for four years to reform, against an intransigent body of cartels, unions and government employees. The light was beginning to shine when Syriza took over. Against their promise to relax austerity, they carried on passing austerity measures in parliament, but in practice ignored their own laws. In fact many were reversed. None of the key measures needed were respected. The same group of unions, cartels, politicians and government officers has made sure of that. Has employing more civil servants, or refusing to privatise or reform key industries, helped the Greek crisis? Clearly not, as we face further borrowings. |
| Economists deal with theories. Politicians ditto. If only life were that simple. The problems of longstanding mismanagement defy an austerity versus social spending solution. Left versus right political thinking doesn’t help. Someone has to have the courage to face the tangled knots of corruption and entitlement that are strangling Greece. Simple answers from Portugal are simply no answer.Elspeth GeronimosAthens, Greece | Economists deal with theories. Politicians ditto. If only life were that simple. The problems of longstanding mismanagement defy an austerity versus social spending solution. Left versus right political thinking doesn’t help. Someone has to have the courage to face the tangled knots of corruption and entitlement that are strangling Greece. Simple answers from Portugal are simply no answer.Elspeth GeronimosAthens, Greece |
| • Owen Jones is right to cite the example of Portugal to demonstrate that austerity is a political choice rather than an economic necessity. But there are other relevant instances. Britain’s economy shrank during the traumatic first and second quarters of 2009. But under the guidance of Gordon Brown and Alistair Darling there followed no fewer than five quarters of economic growth from Q3 of 2009 to Q3 of 2010. The UK economy was recovering swiftly from the crisis. Then Cameron and Osborne slammed on the brakes and growth ground to a halt. | • Owen Jones is right to cite the example of Portugal to demonstrate that austerity is a political choice rather than an economic necessity. But there are other relevant instances. Britain’s economy shrank during the traumatic first and second quarters of 2009. But under the guidance of Gordon Brown and Alistair Darling there followed no fewer than five quarters of economic growth from Q3 of 2009 to Q3 of 2010. The UK economy was recovering swiftly from the crisis. Then Cameron and Osborne slammed on the brakes and growth ground to a halt. |
| In January 2009 the German government under Angela Merkel approved a €50bn economic stimulus plan. Germany exited the recession in the second and third quarters of 2009. The most successful economy in Europe turned its back firmly on austerity.David ButlerLondon | In January 2009 the German government under Angela Merkel approved a €50bn economic stimulus plan. Germany exited the recession in the second and third quarters of 2009. The most successful economy in Europe turned its back firmly on austerity.David ButlerLondon |
| • Owen Jones could have included Iceland in his roundup of successful post-austerity economies (austerity: never anything other than the ruthless tactic of the Chicago School shock doctrine and the 1% it enriches). Don’t suppose Owen’s evidence might convince Labour’s reluctant wing that the party can now not only be trusted with the economy but is even electable, and so worthy of their wholehearted support?John AirsLiverpool | • Owen Jones could have included Iceland in his roundup of successful post-austerity economies (austerity: never anything other than the ruthless tactic of the Chicago School shock doctrine and the 1% it enriches). Don’t suppose Owen’s evidence might convince Labour’s reluctant wing that the party can now not only be trusted with the economy but is even electable, and so worthy of their wholehearted support?John AirsLiverpool |
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| • Read more Guardian letters – click here to visit gu.com/letters | • Read more Guardian letters – click here to visit gu.com/letters |
| Austerity | Austerity |
| Economic growth (GDP) | Economic growth (GDP) |
| Portugal | Portugal |
| Greece | Greece |
| Germany | Germany |
| Syriza | Syriza |
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