Portugal emerged as a country in 1143, after a 15 year rebellion by Dom Afonso Henriques (Afonso I). Afonso Henriques defeated his mother Countess Teresa of Portugal, regent of the County (Condado) of Portugal and loyal to the Kingdom of Leon, at the battle of Sao Mamede (Batalha de Sao Mamede) near the town of Guimaraes, in June of 1128. Countess Teresa was imprisoned and exiled by her son, and died in 1130. Guimaraes is therefore known as the birthplace city of Portugal.
However, the true test of an independent nation did not happened until 1385. Joao Mestre de Avis (John of Avis), with the help of legendary supreme constable Nuno Alvares Pereira, defeated the Castilians at the epic Aljubarrota battle, where the Castilians outnumbered the Portuguese 6:1. John I (Dom Joao I) was crowned King of Portugal. John I along with his sons, Duarte (to became the king in succession), Henry The Navigator, and Afonso started the "Golden Decades" of worldwide discoveries (15th and 16th centuries).
A 1911 revolution deposed the monarchy with the assassination of King Manuel I and his son. For most of the next six decades, repressive governments ran the country. Antonio Salazar a right wing fascist ran the country with an iron fist and a austere economic plan which slowly buried Portugal deeper and deeper in its third world status within Europe. Salazar also held on to the colonies of Angola, Mozambique and Guinea, which contributed not just to the deplorable state of those countries, but also to a colonial war which killed hundreds of thousands of Portuguese men.
In 1974, a left-wing military coup installed broad democratic reforms, which had the opposite effect. Too much freedom, too quickly, placed the country in total "democratic chaos". Union bosses, corrupt politicians, and left-wing and right-wing extremists took turns plundering the country, with disastrous economic and labor plans. Starting in 1976, Portugal granted independence to all of its African colonies, and a wave of refugees were poorly assimilated into a society that does not value ethnicity to this day.
Successive governments led by communists, socialists and social-democrats took turns managing Portugal. Portugal joined the EC in 1986. Socialist Prime Minister Mario Soares tenure managed to handcuff any chances for progress by signing treaties with the EU which destroyed the Portuguese agricultural and fishing industries to the benefit of the EU richer countries. Without prosperity in those two basic economic pillars of the Portuguese commercial balance, Portugal was forced to go on an import binge which contributed to the demise of its present economy.
Joining the EC gave the country a temporary boost with a flurry of grants and investments that contributed to new roads and an overall upgrade of a dilapidated infrastructure. Under the tutelage of Prime Minister Anibal Cavaco Silva, Portugal saw strong adherence to policies that allowed for little or no government control over the ROI of public and private investments. The country saw billions of Euros invested in non-ROI producing projects and millions more lost due to government corruption and money laundering. Decades later Silva was found to be tied to questionable and conflicting investments in the banking industry with some of his close associates winning an extended holiday in the Portuguese penal system. Cavaco Silva's tenure was the beginning of an era of policies which ended up with the country functionally bankrupt and in the hands of the IMF and the EC Central Bank. Two decades later, Anibal Cavaco Silva was rewarded with a two term election to President of Portugal by its people. Affectionately known as "Mumia" (The Mummy") for its single role of ribbon cutting, lack of leadership and refusal to participate in the betterment of social-economic issues, Silva presides over a country still led by his friends and recipients of political favors.
Pedro Passos Coelho, Portugal's sitting Prime Minister, is facing the arduous task of balancing the need to repay the huge debt with making the economy grow. Severe cuts have been made across areas such as pensions, retirement compensation, health care, education and elimination of blue collar jobs. Recently Passos Coelho government suggested and encouraged immigration of middle class professionals to every corner of the world which will most likely result in a dangerous drain of qualified professionals, leaving the country in the hands of the very rich and the very poor. The percentage of millionaires in Portugal has increased in the past fiver years along with the increase of the amount of people living below the already extremely low poverty level. Portugal's average salary is the lowest in Europe. Inequality has never been more salient in Portugal and the risk of social unrest higher. The latest bankruptcy of the Espirito Santo Group, one of Portugal's largest economic groups, and the related equity crash of Portugal Telecom, the communications giant monopoly, are the results incestuous and ill-fated relationship between the richest few and the government. The government lack of a reality compass was summarized by Passos Coelho's statement of being "surprised that the buying power of the Portuguese citizens decreased". The government continues to spend at will, refusing to cut its own fat and spending more money per politician than any other country in Europe. They consistently miss their budget targets. Political parties and the Parliament are obese machines that provide very little value while sucking an extraordinary amount of money from tax payers. If the House of Representatives in the USA was to have the same ratio of representatives to the people they serve as the Portuguese parliament, they would need around 8000 Assemblymen and women. The great percentage of parliamentarians do nothing but vote along party lines while moonlighting in conflict of interest jobs while having the poorest attendance rates in Europe. Many representatives work for the same firms that benefit from legislation passed on the floor of the Parliament. And that is perfectly legal in Portugal.
In early 2015 former PM Jose Socrates was jailed on corruption charges. In the mean time deputy PM Paulo Portas come out defending the "golden visa", a program laced with scandal and corruption where it's former head of emigration is also waiting judgment on corruption charges. Portas simply defends a program that exchanges residency for money. Critics call this a "visa dispensation to the wealthy" where rich Chinese, Brazilians, Colombians, Angolans and others buy their way into Portugal and therefore into the European Union. Portas was also involved in a corruption case where millions of Euros where invested in buying submarines from Germany, which never arrived, while the money is still untraceable. in March of 2015 PM Coelho was found to have skipped paid social security taxes for 5 years. Coelho used "lack of funds and ignorance" and was promptly excused of his mistake by his party leader and other prominent politicians. In the meantime "regular" citizens are prosecuted implacably for missing as much as an euro worth of taxes.
If Portugal is to raise about its current sad state of affairs, it will have to be with less reliance on its ineffective government and more in the merit, hard work, and innovation that its people are known for around the world. The Portuguese government has stopped innovating since royal times when Henry the Navigator discovered the sextant and the new world, and it sits with its hands extended to EC's charity. Its People, the private sector, entrepreneurs and free lancers however, are hard workers, imaginative, and innovative. Companies from high-tech to wine producers to fisheries are bypassing the molasses mentality of government handouts to create their own solutions, to innovate, to build, produce and export. It is the increase of trade and commerce outside its borders along with IP export that will improve the tax revenue, pay the bills, and bail out the inefficient partycracy government machine. What Portugal hopes is that its people do what its government cannot do. We bet they can. Here's to the future of a beautiful country. Now, just come and visit us!