OLIGOPÓLIO E TRIGA (TROIKA) - OLIGOPOLIUM ET TRIGA - OLIGOPOLY AND TRIGA

Teresa Ter-Minassian (IMF) in Portugal (leader in the IMF intervention between 1983 and 1985, when in February was rejected the last transfer of money): «Portugal e o FMI: comparando o programa de 1983-1984 com o actual» intervenção de Teresa Ter-Minassian no Seminário da Ordem dos Economistas em Setembro de 2011 (http://www.google.pt/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCsQFjAA&url=http%3A%2F%2Fwww.ordemeconomistas.pt%2Fxeo%2Fattachfileu.jsp%3Flook_parentBoui%3D10196692%26att_display%3Dn%26att_download%3Dy&ei=I0O6UdDTD9KQ7Aac24CgDg&usg=AFQjCNEgV_08wFtPpJTh6Cu-s9bODGimVA)

The incredible and opportunistic Aníbal Cavaco Silva, actual President of Portuguese Republic said in 2013 June, 12:
«It is time for the re-adjustment of programs. The monitoring should be done by the members of European institutions.»
«The objective of the IMF is very focused on the stabilization of the financial sector, the objective of the European Union on the other hand, has always been harmonious development, cohesion and economic growth.»
«After the experience of the IMF, my opinion is that it better to rely on the representation of European institutions. I would like to see a European Monetary Fund, that would create and manage the adjustment policies of the member states that are having difficulties, taking into account the values, principles and objectives of the Union to which we belong (...)»

After him contribute in 1980 as Minister of Finances for the Portuguese financial colapse in 1983, he appeared with an apportunist position in 1985 prepared to assault the power and win the favourable winds of formal European Integration in 1986 after the «bad job» by IMF and Portuguese Government was finished! And betwwen 1985 and 1995 we have seen the application of financial means in wrong ways like over enphasys in «hardware», badly management of «software» (Government put money in bank accounts of companies to launch profissional formation without control, for example), in a great environment of opportunities to games of negative or nul sum, for increase oligopolies and cartels power that strongly prejudices Portugal. Today is very clear but in that time some leaders of protected powers are venerated by media biased point of view. With a very bad negotiation and execution Portugal lost positions in Agriculture and Fishing production with caricate measures to destroy capacities. The very bad political is a strong supporter of State point of view and increase it sctructure and it expenses (revenues and pensions) with implications in actual situation that try to defend.
The problem is only the IMF? And the ECB and EC are only victims? Incredible!  

Christian Lagarde said to the German, Sueddeutsche Zeitung (SZ) in 2013 June, 12:
«The OMT programme has prevented a catastrophe and has helped to make monetary policy more effective again (...) the turning point (...) there would be today in the whole Eurozone economic stagnation, higher unemployment and even more social tension (...) the courage of monetary policy which is opening the road to recovery (...)
A premature exit could destroy confidence again and the countries with high debt would again have to fight the risk of having to leave the currency union.»
German forces that try to protect Germany from the threats of «European Union» can realize the threats themself: the psicological support to Eurozone works without money, the affraid of the threats implicate at the moment, much more problems to Germany and to Europe.

The IMF publicate in 2013 June, 13:
«Portugal: Seventh Review Under the Extended Arrangement and Request for Modification of End-June Performance Criteria—Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Portugal» (http://www.imf.org/external/pubs/ft/scr/2013/cr13160.pdf)


In these IMF graphics we can clear see how oligopolies of communication and energy used it power to support prices favourable for it games of negative sum with companies anf families. The imparities losses is a visible face of the game with elevated rents.

IMF saliencies of Government problems with that kind of problems are not enough to stop these games at the moment. Government have cumplicity with an ambigous approach of these dominant positions in the hand s of thhe State in the past.

«IMF Completes Seventh Review Under an EFF Arrangement with Portugal, Approves €657.47 Million Disbursement» (http://www.imf.org/external/np/sec/pr/2013/pr13209.htm)

Press Release No.13/209
June 12, 2013
The Executive Board of the International Monetary Fund (IMF) today completed the seventh review of Portugal’s performance under an economic program supported by a 3-year, SDR 23.742 billion (about €27.19 billion) Extended Fund Facility (EFF) arrangement. The completion of the review enables the immediate disbursement of an amount equivalent to SDR 574 million (about €657.47 million), bringing total disbursements under the EFF arrangement to SDR 19.700 billion (about €22.56 billion).
The Executive Board also approved the authorities’ request for modification of the end-June 2013 performance criteria.
The EFF arrangement, which was approved on May 20, 2011 (see Press Release No. 11/90) is part of a cooperative package of financing with the European Union amounting to €78 billion over three years. It entails exceptional access to IMF resources, amounting to 2,306 percent of Portugal’s IMF quota.
After the Executive Board discussion, Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, said:
“Considerable progress has already been made on fiscal and external adjustment and the structural reform agenda, despite strong headwinds. Market conditions have improved significantly and Portugal has been able to return to capital markets at long maturities. Nonetheless, given the still sizable risks to the outlook, the authorities need to sustain the reform effort to improve competitiveness, boost long-term growth, and further advance fiscal consolidation.
“The fiscal targets have been recalibrated to preserve the right balance between consolidation and support for economic growth and employment. However, scope for deviating further from the revised deficit path is limited in view of the elevated medium-term financing needs and debt ratios. Early implementation of the measures identified in the public expenditure review and continued strong implementation of the fiscal structural reform agenda remain imperative to bring public finances back to a sustainable path. The planned corporate income tax reform can also help foster investment and competitiveness, while rebalancing the adjustment mix.
“The authorities have a strong track record in preserving financial stability. Progress has been made in strengthening banks’ liquidity and capital buffers, despite a difficult operating environment. Channeling credit to viable firms to support employment and facilitate economic recovery remains an important goal. The Eurosystem has a pivotal role to play in containing credit segmentation and restoring monetary policy transmission.
“Further advances with the structural reform agenda are critical to address remaining nominal rigidities in the economy and boost competitiveness and growth. These include further actions to remove bottlenecks to growth, reduce production costs, and minimize rents in network industries.

“In addition to strong program implementation, Portugal’s success continues to depend on external support and effective crisis management policies at the euro area level. The envisaged lengthening of the maturities of the EFSF and EFSM loans to support the authorities’ market re-access strategy is a welcome development in this regard.»

«Portugal: Letter of Intent, Memorandum of Economic and Financial

Policies, and Technical Memorandum of Understanding» (http://www.imf.org/external/np/loi/2013/prt/061213.pdf)

Lisbon, June 12, 2013

Ms. Christine Lagarde

Managing Director

International Monetary Fund

Washington, DC 20431

Dear Ms. Lagarde:

1.

The attached Memorandum of Economic and Financial Policies (MEFP) describes the

progress made in recent months towards the objectives laid out in our program supported by the Extended Arrangement. It also updates previous MEFPs and highlights the policy steps to be taken in the months ahead.

2.

We continue to advance the policies necessary to eliminate the macroeconomic imbalances that engendered the economic crisis:

· Despite weak economic conditions, the end-December and end-March deficit and debt

performance criteria were met. The two end-December 2012 structural benchmarks on the

regional and local finance laws and the implementation of the Large Taxpayer Unit were

completed on time. We also timely submitted to Parliament amendments to the law governing banks’ access to public capital, a structural benchmark for end-January 2013.

· As a condition for completion of this review, we have identified measures

to close the fiscal gap created as a result of an unfavorable Constitutional Court ruling regarding a number of provisions in the 2013 budget.

3.

Steady program implementation and important policy actions at Euro area level have

successfully strengthened market prospects, setting the path for Portugal’s gradual return to the international bond markets. Nevertheless, the economic outlook remains fragile, with weaker external and domestic conditions posing sizable challenges to fiscal performance, despite our corrective actions. As a result, we are recalibrating the fiscal targets under the program in a delicate balancing act between the output and social costs of adjustment and the need to secure fiscal consolidation and debt sustainability.

4.

To support the still sizable fiscal efforts ahead, we have identified measures to strengthen

the sustainability, effectiveness, and social equity of the expenditure programs and functions of the government. These measures underpin the medium-term fiscal framework—including fully-specified measures to meet the 2014 deficit target—which

was adopted and published by the Council of Ministers as a prior action for completion of this review. By the end of the legislative session (July 15, 2013), we will finalize all the key legislative changes required to implement the public expenditure review (PER), through approval by the Council of Ministers or submission to Parliament if needed, as specified in the attached MEFP. In parallel, we are conducting a comprehensive reform of the

corporate income tax, to simplify and rationalize existing schemes in support of investment and employment. Moreover, we are making important progress in strengthening our budget controls, streamlining the public administration, and curbing tax evasion to ensure an equitable distribution of the fiscal adjustment.

5.

We are committed to preserving financial sector stability and supporting a balanced and

orderly deleveraging in the economy. The capital and liquidity conditions of the banking system have significantly strengthened, under the vigil ant supervision of Banco de Portugal (BdP).

Nevertheless, the challenges posed by the ongoing balance sheet adjustment call for renewed work to promote adequate funding conditions for the most productive and innovative segments of the economy, while ensuring prompt restructuring of

viable firms in financial difficulties. We are exploring the setting-up of a mechanism to securitize high-quality mortgage credit with a supranational guarantee. Moreover, we are promoting new initiatives in support of viable SMEs, focused on developing their access to financial markets, retargeting existing government-sponsored initiatives, and facilitating information sharing.

6.

We strive to push further ahead our ambitious structural agenda to bolster price and cost

competitiveness and set the basis for a strong and durable recovery. Significant steps are underway to improve the dynamism and efficiency of the labor market, reduce costs for exporters, addressing the excessive rents in the energy sector and port costs, and further improve our business environment.

7.

On the basis of the strength of the policies defined in this letter, and in light of our

performance under the program, we request the completion of the seventh review under the Extended Arrangement and the eighth purchase under the arrangement in the amount of SDR 574 million.

8.

The eight review mission by the IMF, the European Commission, and the ECB staff is

expected to take place by mid-July 2013.

9.

We remain confident that the policies described in the current and previous MEFPs are

adequate to achieve the objectives under the program. We stand ready to take additional measures should they be needed to meet the objectives of the economic program and will consult with the IMF, the European Commission, and the ECB, in advance of any necessary revisions to the policies contained in this letter and attached Memorandum.

10.

This letter is copied to Messrs. Dijsselbloem, Rehn, and Draghi.

Sincerely yours,

Vítor Gaspar

Minister of State and Finance

Carlos da Silva Costa

Governor of the Banco de Portugal

Attachments:

1. Memorandum of Economic and Financial Policies (MEFP)

2. Technical Memorandum of Understanding (TMU)