24 April, 2011

Portugal

The caretaker government in Lisbon has granted public administrtion workers an extra half day holiday so they could leave early for the Easter weekend.

People who will not be taking the holiday are the guys - mostly non-Portuguese - working over the Easter holiday to produce a rescue package for the country thought to be worth €80 bn.

They will be reflecting that there is further to go than they thought. This is a point I have often made: the root of Portugal's problems is appallingly low productivity. The solution to that is not more loans, and it isn't more holidays either.

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