Who's Fiddling Here

dated 2010-05-10 | posted in columns | topic Economy | permanent link

And the Band Played On

If Nero fiddled while Rome burned, the Portuguese are not far behind. In the USA, where I spent the past two weeks, CNN blared the news about Greece and continually asked “Who’s next?” I cowered as commentators talked about Portugal, “a tiny country that can’t handle its debt.” Other journalists lumped Portugal with Spain. (Many Americans don’t know that Portugal is a separate country.) The two, broadcasters said, had soaring unemployment rates, sprawling social benefit programs and citizens who live on credit rather than on earnings. The New York Times called Portugal, Spain and Italy, “ The Club Med Countries,” unable to sustain themselves except as vacation destinations where people can no longer afford to visit or live. With all the terrifying talk about Portugal, I wondered if my TAP plane would even be at the Newark Airport on the day I was to fly home. (It was.)

“What if your country goes away?” my best friend asked.

“No way," I said. But secretly I feared for the fate of tiny Portugal.
Until I got home. Talk about time warps: Portugal seems as prosperous as ever. The restaurants in our town, admittedly one of the most prosperous in the country, are full. A friend told me he arrived at an Alcabideche restaurant this past weekend only to be told, “If you don’t have a reservation, we can’t seat you. We’re fully booked.”

On a fact finding mission I went to CascaiShopping this past weekend. FNAC had so many customers in the checkout line that I thought they were having a huge sale. “No, my Portuguese friend said, “It’s the beginning of the month, The Portuguese have money now, and they spend it.” Kiosks peddling credit cards litter the aisles of the centre. Credit cards suffice for cash. When I spied on the counter at FNAC, 90% of the clients paid with their cards.

The only indications I see of the crisis coming here are in the numerous real estate signs indicating businesses, apartments and houses for sale or rent. For an experiment Don and I looked at an apartment for rent in a nearby building. The location was superb: looking out on a tranquil park. But the apartment dated from 1986 with clear signs of aging. The kitchen, Don’s favourite room, was as small as a closet. The apartment had what the agent called a “maid’s room”, surely a throwback from the old Portugal. When Don suggested that the owner enlarge the kitchen using this room, the agent said: “No way” and held to the €2,000 monthly rent. When we told the agent showing us the property that we thought it was way overpriced she was unconcerned. “No problem she said, “I have two families coming to see it this weekend.” Six weeks later the apartment is still empty.

Prosperity reigns in Portuguese football. Benfica won this week, and my God son told me that all 65,000 seats were sold. Even with the modest cost of seats, surely there could be a better use of the money. (My God daughter wisely said, “The money they spend for seats could pay the electric bill for a month.”)

Channel surfing the Portuguese news stations was enlightening too. SIC Notícas talks about the Pope’s visit, the erratic weather, strikes in Greece and terrorist attempts in the USA, but rarely about Portugal’s problems. I can only conclude that Portugal has always managed to survive and will again this time. But it sure would feel comforting to read about the country in the travel rather than in the finance sections of the international newspapers.

patwestheimer@gmail.com