Dec 20, 2013
In states like Illinois and large cities like Detroit in the U.S., as well as in countries like Greece, Spain, Portugal, the U.K., and elsewhere, pension agreements have been treated as dispensible contracts in the wake of the financial crisis that took hold in 2008. Even as wealthy individuals and corporations remain insulated from higher taxes, governments have increasingly looked at gutting public worker pensions as a way to pay off debt or reduce annual deficits.
But in Portugal on Thursday, where the government has imposed draconian austerity policies in order to please the "Troika"--the European Union, International Monetary Fund and European Central Bank--a court ruled that a new government ploy to cut pension payments to retired workers would be "illegal" as it would threaten the "principle of trust" on which such agreements are based.
As Euronewsreports:
Demonstrations appears to have paid off in Portugal, where the constitutional court ruled unanimously that one of the government's key austerity policies was illegal.
The government had planned to slash public sector pensions over 600 euros a month by 10%, but the court ruled that would constitute a "violation of trust".
The decision represents a significant reverse for the centre-right government's 2014 austerity budget. It would have saved some 388 million euros, or nearly 10% of the 3.9 billion euro public spending cuts the government wants to introduce.
Other ways of making savings must now be sought, with the government warning it may have no alternative but to raise taxes.
However the troika helping Portugal reduce its debt note that rises would threaten economic recovery. One of the current governments coalition partners, the Conservatives, have already ruled out any such hike.
________________________________
An Unconstitutional Rampage
Trump and Musk are on an unconstitutional rampage, aiming for virtually every corner of the federal government. These two right-wing billionaires are targeting nurses, scientists, teachers, daycare providers, judges, veterans, air traffic controllers, and nuclear safety inspectors. No one is safe. The food stamps program, Social Security, Medicare, and Medicaid are next. It’s an unprecedented disaster and a five-alarm fire, but there will be a reckoning. The people did not vote for this. The American people do not want this dystopian hellscape that hides behind claims of “efficiency.” Still, in reality, it is all a giveaway to corporate interests and the libertarian dreams of far-right oligarchs like Musk. Common Dreams is playing a vital role by reporting day and night on this orgy of corruption and greed, as well as what everyday people can do to organize and fight back. As a people-powered nonprofit news outlet, we cover issues the corporate media never will, but we can only continue with our readers’ support. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
In states like Illinois and large cities like Detroit in the U.S., as well as in countries like Greece, Spain, Portugal, the U.K., and elsewhere, pension agreements have been treated as dispensible contracts in the wake of the financial crisis that took hold in 2008. Even as wealthy individuals and corporations remain insulated from higher taxes, governments have increasingly looked at gutting public worker pensions as a way to pay off debt or reduce annual deficits.
But in Portugal on Thursday, where the government has imposed draconian austerity policies in order to please the "Troika"--the European Union, International Monetary Fund and European Central Bank--a court ruled that a new government ploy to cut pension payments to retired workers would be "illegal" as it would threaten the "principle of trust" on which such agreements are based.
As Euronewsreports:
Demonstrations appears to have paid off in Portugal, where the constitutional court ruled unanimously that one of the government's key austerity policies was illegal.
The government had planned to slash public sector pensions over 600 euros a month by 10%, but the court ruled that would constitute a "violation of trust".
The decision represents a significant reverse for the centre-right government's 2014 austerity budget. It would have saved some 388 million euros, or nearly 10% of the 3.9 billion euro public spending cuts the government wants to introduce.
Other ways of making savings must now be sought, with the government warning it may have no alternative but to raise taxes.
However the troika helping Portugal reduce its debt note that rises would threaten economic recovery. One of the current governments coalition partners, the Conservatives, have already ruled out any such hike.
________________________________
In states like Illinois and large cities like Detroit in the U.S., as well as in countries like Greece, Spain, Portugal, the U.K., and elsewhere, pension agreements have been treated as dispensible contracts in the wake of the financial crisis that took hold in 2008. Even as wealthy individuals and corporations remain insulated from higher taxes, governments have increasingly looked at gutting public worker pensions as a way to pay off debt or reduce annual deficits.
But in Portugal on Thursday, where the government has imposed draconian austerity policies in order to please the "Troika"--the European Union, International Monetary Fund and European Central Bank--a court ruled that a new government ploy to cut pension payments to retired workers would be "illegal" as it would threaten the "principle of trust" on which such agreements are based.
As Euronewsreports:
Demonstrations appears to have paid off in Portugal, where the constitutional court ruled unanimously that one of the government's key austerity policies was illegal.
The government had planned to slash public sector pensions over 600 euros a month by 10%, but the court ruled that would constitute a "violation of trust".
The decision represents a significant reverse for the centre-right government's 2014 austerity budget. It would have saved some 388 million euros, or nearly 10% of the 3.9 billion euro public spending cuts the government wants to introduce.
Other ways of making savings must now be sought, with the government warning it may have no alternative but to raise taxes.
However the troika helping Portugal reduce its debt note that rises would threaten economic recovery. One of the current governments coalition partners, the Conservatives, have already ruled out any such hike.
________________________________
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.