Portuguese Constitutional Court Decision 399/2010 (Surtax on Personal Income Tax 2010)Decision 396/2011 (State Budget 2011)Decision 353/2012 (State Budget 2012) Decision 187/2013 (State Budget 2013) Decision 474/2013 (Public Workers Requalification)Decision 602/2013 (Labour Code)Decision 794/2013 (40-Hour Work Week)Decision 862/2013 (Pensions Convergence)Decision 413/2014 (State Budget 2014)Decision 572/2014 (Special Solidarity Contribution 2014)Decision 574/2014 (Pay cuts 2014-2018)Decision 575/2014 (Special Sustainability Contribution)
Published online by Cambridge University Press: 04 August 2015
Faculty of Law, University of Coimbra; law clerk at the Portuguese Constitutional Court; [email protected].
Faculty of Law, Nova University of Lisbon; doctoral researcher at Centro de Investigação & Desenvolvimento sobre Direito e Sociedade (CEDIS – Center for I&D on Law and Society); law clerk at the Portuguese Constitutional Court; [email protected].
Faculty of Law, University of Lisbon; Guest lecturer at the Faculty of Law, University of Lisbon; doctoral researcher at Centro de Investigação de Direito Público (CIDP – Lisbon Centre for Research in Public Law); law clerk at the Portuguese Constitutional Court; [email protected].
1 Between 2008 and 2013, public debt went up from 71.7 to 129 per cent of the GDP; during the same period, investment has fallen almost 40 per cent in nominal terms. In a country with approximately 10 million people, between 2010 and 2013 almost 500,000 jobs were destroyed. Unemployment increased from 7.6 per cent in 2008 to 16.2 per cent in 2013; the percentage of unemployed youth (15 to 24 years of age) grew from 16.7 per cent in 2008 to 38.1 per cent in 2013. More than 100,000 people (48 per cent between 20 and 40 years old) left the country, definitively or temporarily, in 2011, and over 120,000 (57 per cent between 20 and 40 years old) in 2012. After important changes of the rules of application to unemployment benefits, the number of jobless citizens receiving public aid fell from 60 per cent to slightly over 40 per cent between 2010 and 2013. Numbers can be found at: <www.ine.pt> and <www.pordata.pt>.
2 Executive summary of the Stability and Growth Programme 2010-2013, <ec.europa.eu/economy_finance/economic_governance/sgp/pdf/20_scps/2009-10/01_programme/pt_2010-03-29_sp_en.pdf>, visited 8 May 2015.
3 Internationally, clear signs were given that these measures were insufficient. As yields in the sovereign bond market kept increasing and the financial conditions of Portuguese banks kept deteriorating, two additional austerity measures packages followed in May 2010 and October 2010 (the latter included in the State Budget for 2011). In both cases, additional sets of fiscal and social measures to control expenditure were adopted, including a rise in value-added tax and a sharp cut in public sector workers wages. In March 2011, under increasing pressure from national banks, the financial markets, the ECB and other EU institutions and governments, the PS Government submitted to the parliament a new austerity package. This package was rejected by all opposition parties and the Government resigned. On 7 April 2011, Portugal requested financial assistance from the EU, the Euro Area member states and the IMF.
4 Which comprises three documents: the Memorandum of Economic and Financial Policies, <www.portugal.gov.pt/media/371354/mefp_20110517.pdf>, visited 8 May 2015; the Technical Memorandum of Understanding, <www.portugal.gov.pt/media/371360/tmou_20110517.pdf>, visited 8 May 2015; and the Memorandum of Understanding on Specific Economic Policy Conditionality, <www.portugal.gov.pt/media/371369/mou_20110517.pdf>, visited 8 May 2015.
5 The financial loan was provided by the European Financial Stabilisation Mechanism (EFSM), the European Financial Stability Facility and the IMF.
6 A general election was held in Portugal on 5 June 2011 to elect the Portuguese Parliament. The social-democrats (PSD) won the election with 38.66 per cent of the votes cast. The defeat of the incumbent PS was severe, as it fell below 30 per cent of the votes cast (28.05 per cent). Given the election result had made it impossible to form a majority Government with parliamentary support from a single party, PSD established a coalition agreement with CDS/PP. The XIX Constitutional Government took office on 21 June 2011.
7 This selection does comprise all the legislation adopted in order to cope with the financial crisis. For example, legislation was approved limiting the recruitment powers, the budgetary discretion and financial autonomy of the autonomous regions and municipalities. However, despite the fact that this legislation also has a relevant constitutional impact, it will not be considered in the present article since it does not directly affect individual rights and freedoms.
8 It should be noted that the access to the Constitutional Court on concrete review proceedings takes the form of a ‘constitutionality appeal’, following the exhaustion of ordinary remedies. The admissibility of such appeals lies only on formal requirements, regardless of its merits. Therefore, the number of concrete review procedures concerning austerity measures and the scope of constitutionality challenges brought before the Constitutional Court are such that it would be impossible to include all of them in this analysis. Furthermore, the decisions issued in concrete review proceedings are only binding inter partes.
9 In case of regional norms or organic laws, the Representatives of the Republic in the Autonomous Regions, the Prime Minister and the Members of Parliament, also have the right of bringing prior review claims of unconstitutionality.
10 An extended English summary has been prepared by the Court for each decision and can be accessed through the Court’s English version of the website, <www.tribunalconstitucional.pt/tc/en/home.html> under Jurisprudence – Summaries.
11 Decision 396/2011 (State Budget 2011) point 5, ‘Vigência temporal das normas impugnadas’, in fine.
12 Again, Decision 396/2011 (State Budget 2011) point 5, ‘Vigência temporal das normas impugnadas’, in fine.
13 Decision 396/2011 (State Budget 2011) point 7, ‘Irredutibilidade dos Salários’.
14 Decision 396/2011 (State Budget 2011) point 9, ‘Princípio da Igualdade’, in fine.
15 Christmas and holidays’ pay, also known as 13th and 14th month, correspond to additional monthly pays, usually due in June/July and November.
16 Article 59 (Workers’ rights): ‘1. Regardless of age, sex, race, citizenship, place of origin, religion and political and ideological convictions, every worker shall possess the right: a) To the remuneration of his work in accordance with its volume, nature and quality, with respect for the principle of equal pay for equal work and in such a way as to guarantee a proper living; […] 3. Salaries shall enjoy special guarantees, as laid down by law.’ An English version of the Portuguese Constitution can be found at <www.tribunalconstitucional.pt/tc/conteudo/files/constituicaoingles.pdf>, visited 8 May 2015.
17 Decision 187/2013 (State Budget 2013) point 44.
18 Decision 187/2013 (State Budget 2013) point 44, in fine.
19 Decision 413/2014 (State Budget 2014) point 42, in fine.
20 Decision 574/2014 (Pay cuts 2014-2018).
21 Decision 574/2014 (Pay cuts 2014-2018) point 12.
22 Decision 574/2014 (Pay cuts 2014-2018) point 12.
23 Decision 602/2013 (Labour Code).
24 Decision 794/2013 (40-hour Work Week).
25 Decision 602/2013 (Labor Code).
26 Applying the same restriction of its decision’s effects, in 2012, as was stated above – see Pay cuts 2012, supra.
27 Decision 862/2013 (Pensions Convergence).
28 Decision 575/2014 (Special Sustainability Contribution).
29 Decision 575/2014 (Special Sustainability Contribution) point 25.
30 485 euros of monthly minimum wage times 14 (for 12 months plus Christmas and holiday pay), amounting to 6,790 euros per annum.
31 Decision 187/2013 (State Budget 2013) point 109.
32 Decision 187/2013 (State Budget 2013) point 110.
33 Decision 187/2013 (State Budget 2013) point 98.
34 Decision 187/2013 (State Budget 2013) point 98.
35 Decision 187/2013 (State Budget 2013) point 100.
36 Decision 187/2013 (State Budget 2013) point 103.
37 Decision 187/2013 (State Budget 2013) point 91.
38 Decision 187/2013 (State Budget 2013) point 93,
39 Decision 187/2013 (State Budget 2013) point 94.