PORTUGAL AND EUROPE
Portugal, the European
Union and the crisis
*1
Teresa de Sousa and Carlos Gaspar
E
uropean integration is of vital importance to Portugal.
From the outset, Portuguese democracy and European integration have been inseparable: the democratic
path taken during the post-authoritarian transition was
indispensable to assure Portugal’s return to Europe after
the empire cycle came to an end and it was able to rely
on the support of European and Western democracies at
critical moments of the revolutionary process. It is this
solidarity that explains the Socialist Party’s (PS) famous
slogan – «Europe is with us» in anticipation of its victory
in the first election of the Assembly of the Republic.
On the other hand, the crucial orientation of the new
democracy’s foreign policy was defined by accession to
the European Communities, which Portugal’s two leading
political parties, the Socialist Party (PS) and the Social
Democratic Party (PSD) as well as the Centrist Democrats
(CDS) proclaimed as the «priority of all priorities». Similarly, the common economic and social modernisation
programme of the democratic forces was focused on a
poor and backward country with average development
levels of Western Europe.
Lastly, Portugal’s new international position was set by
the political and strategic congruence between democratisation and Europeanisation, the best guarantee against
the dangers of isolation and marginalisation that had been
so marked during both the colonial war and also the
revolutionary transition. Portugal’s stable insertion in the
western community, which was consolidated by its entry
RELAÇÕES INTERNACIONAIS SPECIAL ISSUE : 2018 [ pp. 077-092 ]
ABSTRACT
T
he two crises – the national and
the European crisis – changed
the terms of reference of the strategic
debate in Portugal and, for the first
time since the Maastricht Treaty, there
was again a domestic debate on Portuguese foreign policies. The Portuguese elites’ trust in the future of
Europe (and in their own European
future) was called into question. European integration had been seen as an
irreversible project, the Euro was supposed to be immune to crisis and the
European Union was represented as
one of the crucial poles of the international system; however, the last years
have shown a more complex reality.
Keywords: Portugal, European Union,
Portuguese foreign policy, financial
and economic crisis.
RESUMO
Portugal,
a União Europeia
e a crise
A
s duas crises – a crise nacional e
a crise europeia – mudaram os
termos de referência do debate estratégico em Portugal e, pela primeira vez
desde o Tratado de Maastricht, voltou
a haver um debate interno sobre as
https://doi.org/10.23906/ri2018.sia06
políticas externas portuguesas. A confiança das elites portuguesas no futuro
da Europa (e no seu próprio futuro
europeu) foi posta em causa. A integração europeia era vista como um
processo irreversível, a moeda única
era suposta ser imune às crises e a
União Europeia era representada como
um dos pólos fundamentais do sistema internacional, mas os últimos
anos revelaram uma realidade mais
complexa.
in the European Community, underpinned the national
legitimacy of the Portuguese democracy2.
THE PAST: INTEGRATION
Portugal’s first decade of European integration, between
1985 and 1995, took place under the banner of change.
At the national level, the end of the constitutional transition, with the presidential election of Mário Soares,
opened a long period of political stability and assured
Palavras-chave: Portugal, União Euroconditions for rapid economic growth; this was sustained
peia, política externa portuguesa, crise
by access to the community structural funds, which gave
económica e financeira.
credibility to the strategy of convergence with European
standards3. At the international level, the end of the Cold
War and of European division following the peaceful reunification of Germany gave
rise to profound changes in the international balances that constrained Portuguese
foreign policies.
The stabilisation of Portugal’s international status as a member of the European Union
and of the North Atlantic Treaty Organisation led to a new cycle of bilateral relations
with Spain, Brazil and also the former African colonies. Post-Franco Spain was no
longer seen as a threat to national independence and became the main economic partner of the smaller of the two Iberian States4. Portugal became one of the main foreign
investors in Brazil and endeavoured to institutionalise relations between the largest
power in South America and the European Union. The intervention of Portuguese
diplomacy proved indispensable in bringing an end to the civil wars in Angola and
Mozambique, and the normalisation of the relations of the former metropolis with the
new African States made it possible to form the Community of Portuguese Speaking
Countries (CPLP).
In this initial phase, Portugal’s European policy was much closer to that of Great Britain, as part of an «Atlanticist party» in the European Union, which resisted both a
federal definition of the European Union in the Maastricht Treaty and the institutionalisation of a European defence policy that integrated the Western European Union
(WEU) and questioned NATO’s role as its continuity was no longer guaranteed after
the end of the Soviet Union5.
In the second decade of integration and following a change in government to PS, led
by António Guterres, Portuguese governors acknowledged the need to join the «frontrunners» of European construction alongside Germany and France; they wanted Portugal to become «as pro-European as Spain»6. The new strategy sought to obtain
Portugal’s recognition as a «medium power» in the European Union, committed to
defending the principles of solidarity and equality in relations between Member States,
against the threat of a «directorate» formed by the strongest powers. Portugal was
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078
committed to deepening community relations, as demonstrated by its membership of
the «Schengen Space» and its determination to be one of the founders of the European
single currency, after Spain’s entry was decided upon7. Similarly, it not only took a
position in favour of the enlargement of the European Union (and of NATO) and supported the accession of the new post-Communist democracies of Central and Eastern
Europe even though it could be more negatively affected by their entry than any other
of the «EU 15» countries, but it also took part in the NATO missions in Bosnia-Herzegovina and Kosovo with significant military deployments.
Parallel to this, the evolution of Portugal’s position in the European Union revealed
new challenges. The recognised virtues of enlargement and the democratisation of
Central and Eastern Europe forced the regional «centre of gravity» to change from
Brussels and Paris to Vienna and Berlin, thus shifting the balance of the «EU-12». The
advantages of the «joint accession» of Portugal and Spain to the European Community8
did not prevent the undermining of the international position of the smaller Iberian
State, nor did the benefits of intensifying the Iberian convergence prevent the Portuguese
economy’s excessive dependence on Spain: the volume of bilateral trade was to outstrip
trade with Germany and France together, Portugal’s main trading partners prior to
community accession9.
The most western State of the European Union ran the risk of becoming a periphery
within a periphery; recognition of this danger is in large part the explanation for the
Portuguese strategy of accepting the alternative risk of adhering to the European single
currency despite the differences in productivity and competitiveness between the Portuguese economy and those of the more advanced Eurozone countries. In this context, it
was unthinkable to remain isolated at the margins of the economic and monetary union;
however, Portugal’s first decade of the Euro was a period of stagnation that accentuated
not only its internal economic crisis but also its external financial vulnerability.
THE PRESENT: THE CRISIS
The request for financial assistance from the European Union and the International
Monetary Fund (IMF) had serious consequences for Portugal. The conditions of the
Adjustment Programme, negotiated with the troika formed by the European Commission, the European Central Bank (ECB) and the IMF, were very harsh from the start.
These measures were imposed not only because of the seriousness of the national
crisis manifest in the unsustainable levels of Portuguese debt accumulated over the
previous ten years10, but also due to the extension of the European crisis; they were to
put the response capacity of democratic institutions to the test as well as the autonomy
of the Portuguese economy. On the other hand, the very foundations of the European
convergence strategy, which assured political consensus among the largest national
parties and defined the social contract of Portuguese democracy, was called into question
both because of the austerity policies and due to the growing inequalities within the
Portugal, the European Union and the crisis Teresa de Sousa and Carlos Gaspar
079
European Union, a situation that had been worsened by the crisis. Lastly, Portugal’s
image as a «medium power» of the European Union was tarnished by its external representation as a pariah, expressed in the formula that described the «cohesion countries»
as the «PIGS» – Portugal, Ireland, Greece and Spain – and quantified in the classifications
of the international rating agencies which downgraded Portugal’s debt rating to junk.
Following the bailouts of Greece and Ireland, which defined the framework of the
European response to the sovereign debt crisis from May 2010, Portugal was unable to
avoid the external intervention of the European Commission, ECB and IMF11. The Socialist
Government in Madrid, which was equally vulnerable, wanted to set itself apart from
the Socialist Government of Lisbon – «Spain
is not Portugal»12 – which was isolated by
FOLLOWING THE BAILOUTS OF GREECE
AND IRELAND, WHICH DEFINED THE FRAMEWORK Germany and France in their determination
OF THE EUROPEAN RESPONSE TO THE SOVEREIGN to rein in the crisis of the single currency
in the peripheries of the Eurozone, putting
DEBT CRISIS FROM MAY 2010, PORTUGAL
the resilience of the democracies of SouthWAS UNABLE TO AVOID THE EXTERNAL
ern Europe to the test13.
INTERVENTION OF THE EUROPEAN COMMISSION,
Up against exceptional circumstances, the
ECB AND IMF. THE SOCIALIST GOVERNMENT
Portuguese democracy demonstrated its
IN MADRID, WHICH WAS EQUALLY VULNERABLE,
ability to respond to the national crisis and
WANTED TO SET ITSELF APART FROM THE
external intervention14: the alternative would
SOCIALIST GOVERNMENT OF LISBON WHICH
have been to leave the Eurozone which eveWAS ISOLATED BY GERMANY AND FRANCE.
ryone realised would be disasterous at a
time of crisis. In March 2011, the Stability and Growth Programme for 2012-2014 (PEC
IV), negotiated between the Socialist Government and the European Commission, was
rejected by the Portuguese Parliament, which was promptly dissolved by the President
of the Republic, Aníbal Cavaco Silva, who had just been re-elected for a second term.
The parliamentary vote made the request for external financial assistance inevitable15;
this was presented by Prime Minister José Sócrates and in May, on the eve of early elections, the Memorandum of Understanding (MoU) negotiated with the European Commission, ECB and IMF was signed by the outgoing Socialist Government and formally
accepted by the Social Democratic Party (PSD) and CDS-People’s Party (CDS-PP) 16.
The MoU defined a scheduled economic and financial Adjustment Programme in return
for a loan of €78bn.
The following month, the PSD won the parliamentary elections but had to form a coalition government led by its President, Pedro Passos Coelho, to guarantee a majority in
Parliament. The new centre-right Government assumed the responsibility of complying
with the financial stabilisation programme, which it saw as an opportunity for budgetary consolidation and the liberalisation of the Portuguese economy; this was indispensable for a reformist strategy and to recover external competitiveness even though it
came at the cost of unprecedented levels of unemployment17.
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080
The presidential decision saved Portugal from the trend towards «technocratic governments», which had marked the cases of Greece and Italy with Lucas Papademos and
Mario Monti respectively; both former senior European officials, their appointment as
heads of government accelerated the political turn in the two countries. In contrast, the
results of the Portuguese election maintained the dominance of the two main parties in
a framework of essential continuity18 which guaranteed the minimum consensus between
the new Government and the PS necessary for the execution of the Memorandum. In
an original exercise of political arithmetic, the Minister of Finance, Vitor Gaspar, declared
that the signatories of the Adjustment Programme had enjoyed a «great electoral success
with popular support of nearly 80% and the election of around 90% of MPs». In 2011,
thanks to alternation between PS and PSD, the necessary stability was assured for the
execution of the assistance programme and to contain the rise of populist and antiEuropean movements that characterised the crises in Greece, Spain and Italy19.
Counter to the most pessimistic forecasts, over the next three years the Government
was able to meet the targets fixed in the Memorandum and «pass» the series of «exams»
set by the troika. These came to an end in May 2014 when Portugal made a «clean» exit
from the external assistance programme, just as Ireland had done some months earlier.
During that time, the Government had recovered reasonably well from two general
strikes, in November 2011 and June 2013, called by the General Confederation of Portuguese Workers (CGTP) and the General Union of Workers (UGT). The two main trade
unions proved they were able to sustain a formal framework of social dialogue, contextualising labour conflicts and containing the risks of escalating violence at a time
of recession and an exponential rise in unemployment20.
On the other hand, the Government benefited from a context of political and institutional stability, which separated the Portuguese case from that of Greece and Italy. In
July 2013, the Prime Minister, Passos Coelho, was able to avoid the collapse of the
coalition when Paulo Portas, Minister of State and of Foreign Affairs, precipitated a
government crisis following the resignation of Vítor Gaspar, citing incompatibility with
the President of CDS-PP, who wanted to return to the orthodox line of financial discipline considered necessary for the «good Portuguese student» to regain the trust of
Germany and the external creditors21. This was the last crisis of the kind in the coalition,
which in addition to completing its parliamentary mandate, took the unprecedented
decision to form the Portugal Ahead platform to present a joint PSD and CDS-PP list
in the general elections of October 2015. Not only was the Government able to rely on
the responsible opposition of PS during this period, but also on the support of President Cavaco Silva and the President of the European Commission, José Manuel Durão
Barroso. Notwithstanding conjunctural tensions, the limits imposed by the President
of the Republic and the Constitutional Court in response to the government’s excessive
zeal in the execution of the Adjustment Programme were equally important to guaranteeing political and institutional stability during the crisis.
Portugal, the European Union and the crisis Teresa de Sousa and Carlos Gaspar
081
Lastly, it was possible to contain the worst internal consequences of the escalation of
the European crisis – an «existential crisis» according to Chancellor Angela Merkel22
– and avoid its most dangerous effects. The Portuguese strategy made it an absolute
priority to neutralise any attempts to change the composition of the Eurozone that
threatened to exclude Portugal, and also to avoid the external demand for new bailouts
that Greece had experienced23. With the troika already out of Portugal and during the
negotiation of the third bailout, the centre-right Government aligned with those advocating Greece’s exit from the Eurozone24. Moreover, it was important to constrain the
projects to create a European currency with a variable geometry in which there was a
«Euro of the North» and a «Euro of the South»25 which would lead to a permanent
cleavage between rich and poor, or between creditors and debtors, within the Eurozone.
The political and institutional stability of the Portuguese democracy, the fiscal discipline
of the «good student», the strategy of rigorous alignment with Germany and the political radicalisation of Greece were vital to Portugal’s reaching the end of the execution
of the Adjustment Programme without further problems.
It seems the Portuguese decided to confront the crisis with a mixture of public indifference and private stoicism, which may be interpreted as a form of apathy or as a social
anomaly. In the worst years, there were no violent conflicts despite the tough measures
with far-reaching economic and social impacts, notably in the middle classes who were
hit not only by the increased tax burden, but also by unemployment and the wave of
emigration of the younger and better educated generations.
Even though the Portuguese were among the most pessimistic of all Europeans in their
evaluation of the crisis and among those that had least trust in representative institutions, the polls showed no change in the traditional concentration of votes in the two
main pro-European parties: the results of the October 2015 general election confirmed
this forecast and the sum of PSD plus PS members of parliament continues to guarantee them a two thirds majority26. Along the same lines, the minority parties, including
the CDS-PP, the Communist Party (PCP) and the Left Bloc (BE) also managed to maintain their share of the electoral preferences and prevent the emergence of new populist
movements27. Finally, the «euro-sceptic» trend in the smallest parties – which is constant
in PCP, fluctuates in BE, sporadic in CDS-PP – might also have helped neutralise the
emergence of new anti-European formations. Nevertheless, the stability of these political choices has been accompanied by a growing polarisation between the political
forces that reflects the crisis of the main parties28, as well as by a loss of trust in democratic institutions, which reveals the extent of the effects of austerity policies on the
erosion of the constitutional regime29.
Since May 2014, the conclusion of the Adjustment Programme has allowed the governing parties to highlight the virtues of the «Portuguese model», insist on their ability to
implement the necessary reforms and to recognise the importance of the unique conditions of political and social stability. In 2015, with the debacle in the Greek elections,
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082
the government’s catch phrase – «Portugal is not Greece» – gained credibility and the
authorities set out to restore the State’s image abroad. This said, compliance with the
Adjustment Programme allowed Portugal to contain the risks of expulsion from the
Eurozone, avoid new bailouts and gain enough time for the European Union to have
the necessary political conditions for a joint response to the crisis, despite the economic
and social costs that it brought to the country and the still mediocre growth of the
Portuguese economy.
The crises in Greece, Ireland, Portugal and Spain, as well as in Italy and France, are all
an integral part of a European crisis, and the effective response to the Portuguese crisis,
just as in the other cases, should be a European response. The adoption of the Treaty
on Stability, Coordination and Governance in the Economic and Monetary Union («Budgetary Treaty»), the creation of the European Stability Mechanism and the Growth and
Employment Pact, as well as Greece’s successive bailouts are evidence of the political
commitment of Germany and the European Union to resolving the common crisis
without disrupting the composition of the Eurozone30.
In light of this, it is possible to justify the strategy for the national response to the
crisis, but the next phase calls for a Portuguese vision for the future: the European
integration of Portugal, including participation in the single currency, should not be
considered an end in itself, but an integral part of a strategy of international integration31.
THE EUROPEAN FUTURE
The two crises – the national crisis and the European crisis – have changed the terms
of reference of the strategic debate in Portugal and, for the first time since the Treaty
of Maastricht, there is again an internal debate on Portugal’s foreign policies.
The confidence of the Portuguese elites in
THE TWO CRISES – THE NATIONAL CRISIS
the future of Europe (and in their own
AND THE EUROPEAN CRISIS – HAVE CHANGED
European future) has been called into quesTHE TERMS OF REFERENCE OF THE STRATEGIC
tion32. European integration was seen as an
DEBATE IN PORTUGAL AND, FOR THE FIRST TIME
irreversible process, the single currency
SINCE THE TREATY OF MAASTRICHT,
was supposed to be immune to crises33 and
THERE IS AGAIN AN INTERNAL DEBATE
the European Union was represented as one
ON PORTUGAL’S FOREIGN POLICIES.
of the key poles of the international system;
however, the last few years have revealed a more complex picture. The main European
leaders admit that the end of the Euro and of the actual European Union is a possibility;
the dangers of fragmentation with the inversion of the regional integration process are
now included when devising national strategies and there is general recognition of the
relative decline of Western Europe in the balance of international regions34.
In this context of growing uncertainty, the dominant position of the pro-European
line in the formulation of Portuguese strategies has been confronted by a resurgence
of a nationalist line. The President of CDS-PP signalled this before the 2011 elections,
Portugal, the European Union and the crisis Teresa de Sousa and Carlos Gaspar
083
when Paulo Portas protested about the way in which Portugal was being treated by
its European peers saying that «Portugal is not a protectorate»35; later, after assuming
the post of Minister of Foreign Affairs, he felt it necessary to repeat that the external
intervention had turned Portugal into a «protectorate». This would be a banal statement if it had come from a populist or anti-European faction36, but it marked the
public debate precisely because it came from the leader of a party that was a member
of the European People’s Party (EPP). Although the Social Democrat Prime Minister
did not repeat the formula of the Christian Democrat Minister, the latter did not stop
using it, calling the fundamental congruence between democracy and Europeanisation
into question.
The resurgence of the nationalist line has opened up the possibility to counter the
European ideology with a new idealist vision built around the «strategic potential» of
the CPLP, which should be able to support a «Portuguese speaking option» as an alternative to the «European option»37. However, the European consensus among the national
elites remains38 and even the most substantiated positions in favour of Portugal’s exit
from the single currency are still isolated and marginal39. Contrary to what happened
at the end of the authoritarian regime, when the strategy of accession to the European
Communities represented an alternative to the Estado Novo’s stubborn imperial position,
no credible alternative has emerged in the last national crisis to Portugal’s European
and Western integration.
President Cavaco Silva underlined this position when the parliamentary elections of
October 2015 resulted in a stalemate; he explicitly stated that respect for the continuity
of Portuguese foreign policy, including Portugal’s position in NATO, the European
Union and CPLP was a condition for the formation of a new Government40. Similarly,
the Secretary General of PS, António Costa, pushed through a Government Programme
in which the pro-European line of his party is recognised41, limiting bilateral agreements
with the Left Bloc and PCP and the Ecologist Green Party (PEV) to economic and social
policies that are compatible with the fiscal and budgetary discipline required under the
institutional rules of the European Union and the Eurozone42. Notwithstanding, the
new bipolarisation between the left and right wing parties in the national parliament
will put the historic consensus between the PS and PSD on European and Western
integration to the test. Meanwhile, the evident strength of the Left Bloc and the PCP,
two political forces with a marked critical stance on the European status quo43, in the
new parliamentary coalition will not be sufficient to turn the Socialist Government away
from its Euro-Atlantic option, confirmed over the last 40 years.
Between the two crises, national and European, divided between the «good student»
syndrome and the spectrum of the «protectorate», the last seven years has been the
most difficult period for Portuguese foreign policy since Portugal’s entry in the European
Communities. From the outset, it was impossible to maintain the indispensable balance
between the European and the Atlantic dimensions in the definition of foreign priorities.
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084
The extreme conditions of financial dependence and the need to recover minimum
credibility in the relations with external creditors expressed itself in an excessive alignment with Germany, notably in the framework of the European Union. Parallel to this,
the relations with the United States were subordinated at a critical moment in which
Madrid was actively engaged in normalising their relations with Washington and managed to have the Route44 reassessed, after which was Lages was put on reserve status
in the North American military base system45.
In the same vein, since the foreign intervention in Libya in 2011, which was the first time
after the end of the Cold War that the Portuguese Armed Forces did not participate in a
military mission of Western allies, Portugal’s presence in NATO’s international operations
has been reduced to historic lows. The change, which cannot be explained merely by
financial constraints, has not only damaged relations with the United States, Great Britain and France, but also Portugal’s reputation as a «producer of international security».
On the other hand, bilateral and multilateral relations beyond the European and transatlantic community have gained greater importance. Portugal sought to form a «strategic triangle» with Brazil and Angola, which ultimately forced Lisbon to accept the
decision of Brasilia and Luanda to extend membership of the CPLP to Equatorial Guinea in the CPLP. The foreign policy strived to identify new «strategic partners», like
China – Portugal has become the main destination of Chinese investments in Europe
after Germany, Great Britain and France – while «economic diplomacy» explored opportunities in Asia, Latin America and North Africa.
An economic internationalisation strategy was tried out as part of this process, with
the explicit aim of reducing the excessive dependence on Spanish and European
partners; the European Union states together represented over 80% of Portugal’s total
trade. But the attempt to «de-Europeanise», evident in the privatisation policy, resulted
in growing de-nationalisation and a strong penetration of strategic sectors – including energy, the financial sector and the media – by foreign partners with whom it is
not possible to establish a framework of co-sovereignty in the management of key
companies46.
Lastly, the Portuguese authorities have reassessed the importance given to the Portuguese
language in international relations; the relevance of the «Portuguese Diaspora» is highlighted for Portugal’s projection abroad and a new policy is being developed for a broad
maritime platform; this will entail consolidating relations with the Western allies in
the transatlantic community including the United States and Germany. These new
orientations, which have become consensual47, confirm a trend towards the «re-nationalisation» of foreign policies, otherwise shared by a large number of the Member States
of the European Union.
Although the crisis did not damage the framework of necessary continuity, it shifted
the balance between the two vectors of the foreign policy of the Portuguese democracy
– Europe and the Atlantic48: while the primacy of the European dimension is not in
Portugal, the European Union and the crisis Teresa de Sousa and Carlos Gaspar
085
question, it no longer dominates the hierarchy of internal priorities. A new distancing
from European integration is signalled by criticisms of «German hegemony»49 – according
to the former Socialist Minister, João Cravinho, «Germany has united the left»50 – and
the defence of a «re-balancing» of the EuroALTHOUGH THE CRISIS DID NOT DAMAGE
pean Union51, as well as a re-assessment of
THE FRAMEWORK OF NECESSARY CONTINUITY,
both the Atlantic and Portuguese speaking
IT SHIFTED THE BALANCE BETWEEN THE TWO
dimensions. The relevance given to the
VECTORS OF THE FOREIGN POLICY OF THE
Atlantic is not simply due to a recognition
PORTUGUESE DEMOCRACY - EUROPE
of the importance of relations with the
AND THE ATLANTIC: WHILE THE PRIMACY
United States and with NATO on security,
OF THE EUROPEAN DIMENSION IS NOT
dictated by the escalation of conflicts in the
IN QUESTION, IT NO LONGER DOMINATES
periphery of Europe, but above all by a new
THE HIERARCHY OF INTERNAL PRIORITIES.
vision of the unity of the Atlantic which
seeks to recover a strategic articulation
between the North and South Atlantic52, despite the usual resistance from Brazil and
the predictable disinterest shown by the dominant power in the Western hemisphere53.
The inclusion of the South Atlantic may, in turn, integrate much of the Portuguese
speaking dimension given that all the members of the CPLP, except Mozambique and
East Timor, are Atlantic States.
At the end of a critical phase of the national crisis, it is the defence of European and
Western insertion that has prevailed and defines the international position of Portuguese
democracy54. Nevertheless, everyone recognises that it is impossible to return to the
status quo ante: the European Union is transforming itself in response to its internal
crisis and the changes in the international system.
While it is difficult to foresee a clear direction for the evolution of the European crisis,
which will be decisive to the future of Portugal, a set of positions can be identified in which
the affinities between the Portuguese interests and those of Europe can be combined.
Firstly, the scenarios of a «Great Leap Ahead» on the path of political integration seem
highly unlikely given the trend towards a great affirmation of sovereignty, both for
historical and international reasons, notably in the case of Germany55, but also in France
and Great Britain. In this context, it is important to consolidate the Community acquis,
complete the European single market, and make the harmonisation of monetary, fiscal
and budgetary policies a new priority with a view to seeking a virtuous relationship
between the discipline of the monetary union and economic growth; this is vital to
overcoming a crisis that has highlighted the risks of division between the North and
South of Europe so dangerously56. The Budgetary Treaty seems a step in that direction,
as does the creation of the European Stability Mechanism, the approval of the Growth
and Employment Pact and the evolution towards a banking, budgetary and fiscal union.
In Portuguese politics, there are two distinct positions on the institutional balances,
with the traditional defenders of the European Commission who want to limit the
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086
Eurogroup’s intervention in European governance on one side57 and, on the other, new
supporters of the strengthening of the Eurozone institutions, including the formation
of a European Monetary Fund58. Similarly, distinct evaluations are made of prioritising
the German proposals to create specific plans to respond to the problems entailed in
the modernisation of individual Member States59 or of the search for arrangements for
the partial mutualisation of «sovereign debts».
On the other hand, it is important to separate certain European policies in order to
ensure their autonomous development, without revising the existing treaties. Portugal
is committed to guaranteeing the stability of the rules in the «Schengen Space» and
contributing to the gradual convergence of immigration policies and the integration of
emigrant communities, one of the few areas in which Portugal’s performance has been
exemplary. In the refugee crisis, Portugal showed it could recognise the importance of
defending the Schengen rules and open its doors to a significant number of refugees
in response to appeals initially made by Germany.
Parallel to this, the national position advocating the setting up of Permanent Structured
Cooperation (PSC) in the framework of the Common Security and Defence Policy
(CSDP), as well as the development of the European Union’s effective military capacity to intervene in priority areas of strategic interest has been hampered by the European Union’s paralysis, in which the crisis has led to a dangerous reduction in the
resources available for military defence. But the revision of the European Security
Strategy (ESS) is of continued importance to Portuguese interests60, as is the consolidation of the European Union’s collective security capacities, notably to re-establish
control on its external borders and to guarantee the protection of refugees in the
Mediterranean and the Middle East.
In the same vein, it is worth putting aside the post-sovereignist orthodoxy and recognising the existence of alliances between the States in the European Union61. The hegemonic regional trends can only be contained through stable conciliation between Germany,
France and the United Kingdom, and all European powers need allies: Germany wants
liberal partners to balance Southern Europe’s resistance to reforms to the European
social model and Northern Europe’s opposition to the financing of cohesion programmes; on the other hand, France and the United Kingdom, the two nuclear powers
responsible for European defence and security policies, not only need to assure the
European democracies’ capacity for external military intervention but also to define the
much needed consensus that guarantees common defence in the framework of a continuing transatlantic alliance.
Portugal can be present in each of these groupings of States, contributing to the European
response to the crisis and showing its determination to return to the centre stage of
European integration. At the same time, Portuguese foreign policy cannot remain the
hostage of just one narrow alliance; it should be aligned with Germany, with France or
with the United Kingdom in the different fields in which their interests converge most.
Portugal, the European Union and the crisis Teresa de Sousa and Carlos Gaspar
087
Finally, the European Union must stop being so self-absorbed and find ways to intervene
in the crisis resulting from the strategic diffidence of the United States, from Russia’s
revisionist turn and from the emergence of the Asian powers. It is too soon to talk of
the inevitability of Europe’s decline, and it is reasonable to argue that a «world without
Europe» would become more dangerous,
more unbalanced and less civilised. The
THE EUROPEAN UNION MUST STOP BEING
recovery of the European Union’s global
SO SELF-ABSORBED AND FIND WAYS
economic and financial competitiveness is
TO INTERVENE IN THE CRISIS RESULTING
only possible if it is based on a true capacFROM THE STRATEGIC DIFFIDENCE
ity for autonomous political and military
OF THE UNITED STATES, FROM RUSSIA’S
intervention in the critical domains of interREVISIONIST TURN AND FROM THE EMERGENCE
national politics, starting with the conflicts
OF THE ASIAN POWERS.
threatening European and Western security
in the new range of crises that extend from Ukraine to Syria and to Mali. In this context,
it is essential to consolidate the Atlantic Alliance and at the same time draw up a realistic international strategy for the European Union that can articulate the positions of
the leading European powers62.
Yet again, Portugal, whose geographic centrality in the Atlantic should be able to counter-balance its relatively marginal position in the European space, has a vital interest not
only in the continuity of the Atlantic Alliance, but also in ensuring complementarity
between NATO and the European Union in consolidating relations between the United
States and the European Union, notably in the framework of the future Transatlantic
Trade and Investment Treaty (TTIP) and strengthening Europe’s strategic autonomy.
The end of the European Union is possible, but Europe does not need to be reinvented
to prevent this happening. On the contrary, holding on to the memory of a century of
total wars and totalitarian revolutions, which runs the risk of getting lost in the «fog of
the crisis», is the best way to stop going back to the past and uniting Europe once again.
TRANSLATION BY: RACHEL EVANS
Date received: 20th September, 2015 | Date approved: 2nd November, 2015
Teresa de Sousa Journalist for the Público
newspaper.
>
[email protected]
Carlos Gaspar Researcher at the Portuguese
Institute of International Relations of the
Universidade NOVA de Lisboa (IPRI_NOVA). Invited
Associate Professor, Faculty of Social and Human
Sciences of the Universidade NOVA de Lisboa
RELAÇÕES INTERNACIONAIS SPECIAL ISSUE : 2018
(NOVA FCSH). Member of the European Council
on Foreign Relations (ECFR) and of the Portuguese
Political Science Association (APCP). Author of
O Pós-Guerra Fria (2016) and A balança da Europa (2017).
>
[email protected]
088
ENDNOTES
*
This paper was first published in
Relações Internacionais no.48, December
2015.
1
A previous version of this paper was
published in 2013. GASPAR, Carlos and
SOUSA, Teresa de – «Portugal: Integrate
or be Marginalised» in WALTON, Nicholas
and ZIELONKA, Jan (eds) – The New Geography of Europe, London: European Council on Foreign Relations, 2013, pp. 65-70.
2
TEIXEIRA, Nuno Severiano – Portugal
and European Integration, In TEIXEIRA,
Nuno Severiano and PINTO, António Costa
(eds) – The Europeanization of Portuguese
Democracy, London: Routledge pp. 8-26.
3
MAGONE, José – European Portugal.
The Difficult Road to Sustainable Democracy.
London: Macmillan, 1997. L AINS, Pedro
and LOBO, Marina Costa (eds) – Em nome
da Europa. Portugal em mudança (19862006). Cascais: Principia, 2007. See also
ROYO, Sebastian (ed.) – Portugal, Espanha
e a integração europeia. Um balanço. Lisboa: Imprensa de Ciências Sociais, 2005.
4
GASPAR, Carlos – «As relações entre
Portugal e a Espanha da democracia à
crise europeia», In GARCIA PÉREZ, Rafael
and LOBO-FERNANDES, Luís (Coord.) ().
España y Portugal. Veinte años de integración europea : 168-188. Santiago de
Compostela: Tórculo Edicións, 2007.
5
GASPAR, Carlos – «Portugal e o alargamento da União Europeia». In Análise
Social, Vol. 35, 2000, pp. 154-155.
6
The comment from the Minister of
Foreign Affairs, José Manuel Durão Barroso, is cited by SOUSA, Teresa de – «Dez
anos depois da assinatura do tratado de
adesão, o processo de reforma de Maastricht. Recuos, recaídas e silêncios», In
Público, 12 June 1995.
7
In a first version, Italy, Spain, Portugal
and Greece (but not Ireland) were excluded
from the first phase of the single currency
as they did not meet the «convergence
criteria». This changed after the People’s
Party won the Spanish elections in 1997
when the new President of the Council,
José Maria Aznar, decided to focus European strategy on joining the single currency. Neither Italy nor Portugal were
indifferent to this change, albeit for distinct reasons. AZNAR, José Maria – Ocho
años de Gobierno. Madrid: Planeta, 2004.
PINTO, António Costa and RAIMUNDO,
Filipa – «When Parties Succeed. Party
System (In)Stability and the 2008 Financial
Crisis in Portugal», In APSA Annual Meeting, 2014. MAGALHÃES, Pedro – Economy,
Ideology, and the Elephant in the Room. A
Research Note on the Elections of the Great
Recession in Europe. SSRN 2122416, 2012.
LISI, Marco – «Portugal. Between apathy
and crisis of the mainstream parties», In
The European Parliament Elections of 2014.
Roma: CISE, 2014. FREIRE, André – The
Condition of Portuguese Democracy during
the Troika’s Intervention, 2014.
10
The Por tuguese exception can be
explained by the strong abstention in the
Por tuguese elections, higher than in
Greece and Italy, or the lack of a bipartisan
system, like that of Spain and Greece, or
by less clientalism than in Greece, or also
by the specific resilience of the two main
Portuguese parties. PINTO, António Costa
and RAIMUNDO, Filipa – «When Parties
Succeed. Party System (In)Stability and
the 2008 Financial Crisis in Portugal».
AFONSO, Alexandre; ZARTALOUDIS, Sotirios and PAPADOPOULOS, Yanis – «How
party linkages shape austerity politics:
clientelism and fiscal adjustment in
Greece and Portugal during the eurozone
crisis». In Journal of European Public Policy,
vol. 22, n.º 3, 2015, pp. 315-334. VINARAS,
Javier – «Portugal. El eslabón perdido?»,
In Politikon, 4 August 2015.
REIS, Ricardo – The Portuguese Slump
and Crash and the Euro Crisis. Communication presented at the Brookings Panel on
Economic Activity, March 2013.
11
The President of the European Commission, José Manuel Durão Barroso, and
the German Minister of Finance, Wolfgang
Schauble, among others, tried unsuccessfully to resist Chancellor Angela Merkel’s
decision to impose greater IMF participation in the Eurozone’s financial bailouts.
MARSH, David– The Euro. The Battle for the
New Global Currency. New Haven: Yale
University Press, 2009, p. 245
12
On the position of President José Luis
Zapatero, see ORTEGA, Andrés and PASCUAL-RAMSAY, Angel – Que nos ha pasado.
El fallo de un país. Madrid: Galaxia Gutenberg, 2012. In 2011, the Spanish Government went as far as to cancel the annual
bilateral summits with the Portuguese
Government. SÁ, Tiago Moreira de – Política
externa portuguesa, Lisboa: Fundação Francisco Manuel dos Santos, 2015, p. 77. See
also POWELL, Charles – The Pain in Spain.
Madrid: Real Instituto Elcano, 2012.
13
Direct witnesses on the crisis are still
rare. See SOUSA, Teresa de and AMADO,
Luís – Conversas sobre a crise. Lisboa: Dom
Quixote, 2012.
14
LOURTIE, Pedro – «Portugal no contexto da crise do Euro». In Relações Internacionais, n.º 32, 2011, pp. 61-106. LAINS,
Pedro – «A crise em 2012». In Relações
Internacionais, n.º 33, 2012, pp. 43-51.
15
The expression is used by the former
Prime Minister Cavaco Silva. SILVA, Aníbal
Cavaco – Autobiografia Política. Lisboa:
Temas e Debates, 2002.
On 31 March 2011, the new President
of PSD, Pedro Passos Coelho, formally
addressed the Socialist Prime Minister,
José Sócrates, to express his support of
«the use of external financial mechanisms
(to) support the balance of payments». The
Government requested external financial
assistance in the following days. «Carta
de Passos a Sócrates em 2011 prometia
apoio à vinda da troika», In Público, 16
September 2015.
9
16
8
In 1986, trade with Spain represented
5 per cent of Portugal’s foreign trade and
the Iberian neighbour was the sixth biggest investor in Portugal, after France,
Germany, the United Kingdom, Italy and
the United States. In 2010, Spain received
30 per cent of Portugal’s foreign trade and
was the biggest external investor in Portugal, which received 9 per cent of Span-
18
ish expor ts and was the third most
important market for Spain, after France
and Germany. SANTOS, Enrique – «Portugal e Espanha: 25 anos lado a lado», In
Público, 31 December 2010. See also
RIBEIRO, José Manuel Félix – «Em defesa
de uma nação rebelde». In Nação e Defesa,
1986. RIBEIRO, José Manuel Félix – «Portugal, Espanha, a integração europeia e a
globalização - balanço de uma época». In
Relações Internacionais, n.º 28, 2010, pp.
91-98. António Nogueira LEITE (2004). In
Desafios estratégicos. Portugal versus
Espanha. Ms., IPRI UNL.
«Socrates’s Poison», In The Economist,
4 May 2011.
17
MOURY, Catherine – The New Politics
of Austerity, MP SA 2014 Conference.
MOURY, Catherine and FREIRE, André –
«Austerity policies and politics : the case
of Portugal», In Pôle Sud, vol. 31, n.º 2,
2013, pp. 35-56.
Portugal, the European Union and the crisis Teresa de Sousa and Carlos Gaspar
19
20
FERNANDES, Tiago – «Country report
on Southern European social movements.
Anti-austerit y protests: Por tugal», In
PORTA, Donatella della et al. – Memory
and Movements. Democratization processes
and anti-austerity protests in Southern
Europe, 2015. PINTO, António Costa and
RAIMUNDO, Filipa – «When Parties Succeed. Party System (In)Stability and the
2008 Financial Crisis in Portugal». PINTO,
Pedro Ramos and ACCORNERO, Guya –
«‘Mild Mannered’ ? Protest and Mobilizat i o n i n P o r t u g a l u n d e r A u s te r i t y
(2010-2013)», In West European Politics,
Vol. 38, n.º 3, 2014, pp. 491-515.
21
AVILLEZ, Maria João – Vitor Gaspar,
Lisboa: Dom Quixote, 2014 pp. 31-53. See
also KIERKEGA ARD, Jakob – «Portugal’s
Political Crisis», In Peterson Institute of
International Economics, 3 July 2013.
22
Merkel first used this expression in
the context of mise au pas in May 2010,
which imposed Greece’s bailout as well as
budget retrenchment measures for Portugal and Spain. MERKEL, Angela – «Zwei
Linke Fusse», In Financial Times, 19 May
2010.
23
This remains a priority in the Programme of the coalition formed by PSD
and CDS-PP for the legislative elections.
PSD, CDS-PP. Coligação Portugal à Frente.
Agora Portugal pode mais. Programa eleitoral, p. 145.
24
When Schauble referred to the States
that opposed the German proposal,
including Greece’s suspension from the
089
Eurozone, Por tugal did not stand by
France, Italy or Cyprus and should therefore have aligned with Germany. «Interview with Wolfgang Schauble. ‘There is No
German Dominance’», In Der Spiegel, 17
July 2015.
25
ALMEIDA, João Marques de – «Portugal na União Europeia». In Relações
Internacionais, n.º 28, pp. 81-90, 2010. See
also MAYER, Thomas – Europe’s Unfinished
Currency. The Political Economy of the Euro.
London: Anthem Press, 2012.
26
In June 2011, PSD, with 108 MPs, and
PS, with 74, elected 182 of the 230 MPs. In
October 2015, the Parliamentary Groups of
the PSD, with 89 MPs, and PS, with 86, had
a total of 175 of the 230 MPs in Parliament.
27
In the elections for the European Parliament in June 2014, for the first time a
populist candidate running under the banner of the Earth Party (PT), was able to
win 7% of the votes and elect two MPs. Of
the various new movements in October
2015, PA N (People A nimal s Nature)
elected just one MP; the total number of
MPs elected by BE, Unitary Democratic
Coalition (CDU), including the PCP and the
Green Ecologist Party (PEV), and the CDSPP in the Parliament went up from 48 to
52. On the elections for the European
Parliament, see LISI, Marco – «Portugal.
Between apathy and crisis of the mainstream par ties». FREIRE, André and
PEREIRA, José Santana – «More Second
Order than ever? The 2014 European Election in Portugal». In South European Society
and Politics, vol. 20, n.º 3, 2015, pp. 381-401.
28
On the crisis of the Portuguese partie s , see L ISI, Marco – «Por tugal .
Between apathy and crisis of the mainstream parties».
29
The loss of confidence in the political
institutions was not limited to parties but
also included the President, the Government and the Parliament. André Freire
estimated that the level of satisfaction
with the «functioning of democracy»
could have fallen from 40 per cent to 10
per cent in the last years of the crisis.
FREIRE, André – The Condition of Portuguese Democracy during the Troika’s Intervention.
34
KUPCHAN, Charles – «Centrifugal
Europe», In Survival, vol. 54, n.º 1, 2012,
pp. 111-118. WRIGHT, Thomas – «What If
Europe Fails?», In The Washington Quarterly, Vol. 35, n.º 3, 2012, pp. 23-41. See
also FRIEDBERG, Aaron – Beyond the Euro
Crisis: Implications for U.S. Strategy.
Bruxelas: German Marshall Fund, EuroFuture Project Paper, 2012. See also GASPAR, Carlos – «O declínio europeu». In
Finisterra, n.º 77, 2015, pp. 29-37.
35
«PEC. Portugal não é um protetorado
mas um Estado Nação – Por tas», In
Expresso, 13 March 2011.
36
The leaders of the Left Bloc also
referred to Portugal as a «protectorate»
in the last election campaign, but neither
the BE not the PCP wanted to use the term
in their electoral programmes. Left Bloc.
Manifesto Eleitoral. Legislativas 2015. Portuguese Communist Party. Programa eleitoral do PCP. Legislativas 2015. Soluções
para um Portugal com futuro.
37
SÁ, Tiago Moreira de – Política externa
portuguesa, pp. 66-67.
38
Both the Strategic Concept 2013 and
the electoral Programmes of the PS and
the Coalition Por tugal Ahead in 2015
returned to the foundations of foreign
policy of the Portuguese democracy. Conceito Estratégico de Defesa Nacional 2013
In Instituto de Defesa Nacional, 2013.
Conceito Estratégico de Defesa Nacional.
Contributos e Debate Público, Lisboa: INCM,
pp. 509-548. «Agora Portugal pode mais.
Programa eleitoral», PSD, CDS-PP. Coalition Portugal Ahead, Legislative Elections 2015. «Programa eleitoral do PS»,
Legislative Elections 2015.
39
AMARAL, João Ferreira do – Porque
devemos sair do Euro. Lisboa: Lua de
Papel, 2013. See also RIBEIRO, José
Manuel Félix – Portugal. A economia de uma
nação rebelde. Lisboa: Guerra e Paz, 2014,
208-209.
40
President of the Republic, «Comunicação ao País», 6 October 2015.
41
SOARES, António Goucha – «As instituições da UE na ressaca de Lisboa e da
cr ise. A quadr atur a do círculo». In
Relações Internacionais, n.º 41, 2014, pp.
11-26.
The Socialist Government Programme
was approved in the National Council of
the Socialist Party on 7 November 2015.
«PS aprova por esmagadora programa de
Governo apoiado pela esquerda», In
Público, 7 November 2015. Socialist Party.
In Programa de Governo para a XIII Legislatura. Comissão Nacional do Par tido
Socialista, 7 November 2015.
31
42
30
FERREIRA, José Medeiros – Não há
mapa cor-de-rosa. A história (mal)dita da
integração europeia, Lisboa: Edições 70,
2014, p. 148.
32
MOURY, Catherine and FREIRE, André
– «O apoio dos ‘cidadãos’ e das ‘elites’ à
UE, antes e depois da crise financeira: os
países periféricos da Europa do Sul (Grécia, Portugal e Espanha) numa perspetiva
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33
As explained by Vitor Gaspar. AVILLEZ,
Maria João – Vitor Gaspar, pp. 131-165.
The PS did not want to raise questions
of foreign policy, security and defence in
the negotiations with the far-left formations and reached three separate agreements with the BE, PCP and PEV on other
matters, namely social and economic
policies, to ensure they had the minimum
conditions to form a «stable and lasting»
Government, according to the formula
used by President Cavaco Silva.
43
According to their electoral Programmes: the Left Bloc demands the end
of the Budget Treaty and is opposed to the
Transatlantic Trade and Investment Treaty
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(TTIP), while the PCP wants to dismantle
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SÁ, Tiago Moreira de – Política externa
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46
According to Félix Ribeiro, some of
the Portuguese elite were willing to accept
that Portugal was a «German protectorate
and a Chinese factor y». RIBEIRO, José
Manuel Félix – Portugal. A economia de uma
nação rebelde, p. 11.
47
Among others, the PS electoral Programme adopted this line and stressed
above all the Diaspora, which included five
million Portuguese. Socialist Party. Programa eleitoral do PS. Eleições Legislativas
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48
TEIXEIRA, Nuno Severiano – «Breve
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«Rising bloc of left-leaning parties in
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51
The PS electoral Programme stated
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GASPAR, Carlos – «A posição internacional de Portugal», In REIS, Bruno
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FERREIRA, José Medeiros – Portugal.
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On the German identity after reunification, see WINKLER, Heinrich August –
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56
ZIELONKA, Jan – Is the EU Doomed?,
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57
«Programa de Governo para a XIII
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58
The European Monetary Fund is an
old proposal of Schauble that was later
taken up by Passos Coelho. «Coligação
Portugal à Frente. Agora Portugal pode
mais. Programa eleitoral», p. 147.
59
The PS defends this position in a New
Impulse for Convergence with Europe
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61
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crise. The Programme of the Coalition
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