The European arm of Roman Catholic relief charity Caritas has concluded that austerity is not working – “the economic crisis is getting worse, not better”. In a report released in Athens over the weekend, the charity declares: “Five years since the start of the crisis, growth, if it exists, is still ridiculously low. Unemployment continues to rise, as well as the number of people in situations of poverty.”
Failings within systems designed to protect populations are “leaving many in abject situations” and public service cuts have “disproportionately affected low income groups”.
The document, entitled “Human Consequences of the European Crisis”, identifies Portugal as one of the countries with the greatest risk of “social agitation” and the re-emergence of child labour.
The picture is a far cry from the “inclusive growth” that Europe signed up for in José Manuel Durão Barroso’s European Strategy 2020, it warns.
The hard-hitting report, purposely released one week before the meeting of Europe’s financial council (Ecofin), is designed to show leaders the need for new thinking.
Data shows, for instance, that in just one year the number of Portuguese families needing help from the charity doubled – to 56,000.
Two days after Caritas presented the report, new statistics released by INE showed that the 27% of Portuguese were at risk of poverty and social exclusion in 2012 and 18.7% were surviving on wages “well below the limit of poverty”.