Yesterday a mass rally, organized by the PCP, was held at Lisbon with the participation of thousands. We publish now the statement of Jeronimo de Sousa, General Secretary of PCP at a Press Conference under the theme "Renegotiate the debt - Develop national production" at the headquarters of our Party on 5th April.

As the PCP has long been denouncing, the country's net external debt is one of the most visible consequences of the PS, PSD and CDS policy of national disaster that was imposed for the past 35 years. A debt – both public and private, with the private debt larger than the public debt - that today totals a colossal sum of over 107% of GDP, and which is inseparable from de-industrialization, the abandonment of national production, privatization, submission to the impositions of the European Union (EU) and of domestic and foreign big capital.

The debt is not the result of people "living beyond their means”, but of a process of ever greater dependence and subordination to foreign economic and financial groups.

Those who have benefited from the country's indebtedness are those - such as France and Germany - who imposed upon us the destruction of the country's productive apparatus and from whom we have bought what the country has ceased to produce. Those who have benefited from the country's indebtedness are the Banks from Germany, Britain, Spain, the Netherlands, France and also from Portugal, that fund themselves in a scandalous way from the ECB [European Central Bank] at an interest rate of around 1% and then acquire public debt, charging the Portuguese State 6%, 7% and 8%, in an illegitimate usurpation of the country's resources.

Those who have benefited from the country's indebtedness are the bankers, whose losses were covered by the State (as was the case with the BPP and BPN [banks]) and who were granted State guarantees, transforming private into public debt and then imposing sacrifices upon the workers and the people.
As a consequence of this indebtedness, of the European Union's complicity and role, and of the framework resulting from capitalism's nature and modus operandi, Portugal is currently confronted with an unbearable and illegitimate process of extortion of its national resources as a result of increased interest rates on Portugal's public debt.

With the escalating interest rates for Portuguese public debt already exceeding 10% - namely the 5-year and 10-year debt - and the debt service exceeding 5200 million euros in 2010, (with the prospect of over 7100 million euros for the current year) the Portuguese State's financing process and the national economy have embarked on an unsustainable spiral of deterioration.
This process is taking place with the complicity and active role of the European Union, which is committed to safeguarding the interests of big finance capital and of the major powers (especially Germany). [The EU] is an accomplice to this speculative wave, when it is in a position - even in the current political and institutional context - to put an end to it. Instead, the EU embodies the IMF's viewpoints and policies, whether under the name of the IMF or of the European Financial Stabilization Fund, with devastating consequences for several countries - like Greece and Ireland - where results speak for themselves: rising interest rates, a deepening economic recession, worsening unemployment and social injustice.

Contrary to what has been said, the so-called austerity measures imposed by the PS and PSD in successive PECs [Stability and Growth Programs] and in the last State Budget, far from containing the ongoing plunder or calming down the "markets" are, in themselves, – namely as a result of their recessionary effect - an aggravating factor for even higher interest rates and for the process of blackmail and extortion with which big capital is confronting the country. Today it is the deficit, tomorrow it will be the recession: the speculative spiral will never stop as long as the blackmail victim gives in to the blackmailer.

The indispensable rejection by Parliament of the so-called PEC 4 in Portugal - which would represent yet another qualitative leap against the rights of the Portuguese workers and people - did not annul the negative impact of the so-called austerity measures taken in recent months by the PS, PSD and CDS. But neither has it made it necessary, as some try to make believe, to resort to foreign intervention in our country, namely by the IMF.

While the pressure – both external and internal - for the IMF's entry in Portugal is increasing, it is becoming clearer what big capital wants: to perpetuate the "austerity" agenda and to increase exploitation and foreign dependence, thereby compromising our country for the coming decades, in order to increase their profits and serve their interests.

This much was confirmed today by the position taken by the country's banks, which after having benefited from State support and non-refundable financing, after speculating with public debt, after avoiding paying taxes, have now publicly refused loans to the Portuguese State and demanded that the IMF be called in, in order to continue with the financial speculation that fills their pockets. This is an unacceptable statement. The country does not need the private banks' “favours”. What our country needs is a strong financial sector in State hands, with a decisive role for the [State-owned] Caixa Geral de Depósitos, which is the only way of defending the country's interests and national sovereignty.

Portugal cannot, therefore, accept that those who have most benefited from our country's growing debt burden – domestic and foreign big capital - dictate the means and the conditions under which our country will continue to be plundered.

The PCP considers that the response cannot be other than a steadfast refusal of this course of "austerity”, either through the PEC or the IMF. The response can be none other than the clear statement that Portugal cannot continue to pay usury interest rates and to fall prey to the speculators, that are now called the markets.

Confronted with the unsustainable situation that has been created and the foreseeable future developments, the PCP considers that the Portuguese State must break with the current policy, and take the following positions:

- Imediately renegotiate the current Portuguese public debt - with a reassessment of the deadlines, interest rates and amounts to be paid – in order to relieve the State of the burden and requirements of the current debt service, channeling resources to the promotion of productive investment, to create jobs and other needs of the country.

- Intervene alongside other countries facing similar public debt problems - Greece, Ireland, Spain, Italy, Belgium, etc. – with a view to promoting convergent actions to stop the current speculative spiral, alongside with the revision of the Statutes and goals of the ECB and the adoption of measures for economic growth, job creation and wage increases.

- Adopt policies for economic growth, where defending and promoting national production plays a leading role – so as to produce ever more, in order to pay ever less. Immediate measures are needed to increase public investment, bet on producing tradeable goods and introduce an exceptional control framework of the entry of goods in Portugal, ensuring import substitution.

- Diversify sources of financing, resuming an active policy of issuing Savings and Treasury Certificates and other instruments which seek to raise domestic savings, and developing bilateral relations to find more advantageous forms of funding, as well as a policy of diversifying trade relations that is mutually beneficial, namely with countries in Africa, Asia and Latin America.

The overall assessment of situations involving the so-called Public - Private Partnerships, in order to renegotiate or terminate contracts that are ruinous for the State.

The Portuguese workers and people cannot continue to feed the bankers' super profits with obscene interest rates, or save the shareholders of bankrupt banks as happened with the BPN and BPP. The Portuguese workers and people cannot continue to endure sacrifices in order to fill the pockets of speculators and banking, whilst the country drowns in recession, unemployment spreads and the cost of living spirals.

For the PCP, there is no other patriotic attitude to defend the national interest, other than to clearly refuse to have the country subjected to plunder and speculation. That requires taking into consideration the measures we propose.

This is the indispensable and urgent option, part and parcel of a left -wing, patriotic, government policy that the PCP proposes for the country.