In Portugal: Requiem for O Manel

Manuel Simões is being forced to close his 70-year-old family business, a restaurant on the outskirts of Lisbon. Since VAT rose for businesses like his, 75,000 jobs has disappeared from the industry.

Manuel Simões, 64, stands behind the steel and glass counter of his restaurant, O Manel, looking tired under the dim lights. “Everything has a beginning and an end,” he says, trying to hide how emotional he can get when talking about closing his 70-year-old business.

Simões has been serving meals and pouring drinks since the early 1970s, when he inherited this business from his father, who established it in the 1940s. Running the restaurant has never made Simões rich but it provided him with enough to keep the business profitable while employing four members of staff.

Located in Vale da Amoreira, a troubled, working-class neighbourhood on the outskirts of Lisbon, O Manel is a place where you can enjoy the rare sight of an amiable conversation between African immigrants, gypsies and Portuguese. 
 
“Even those kids who are involved in all sorts of things – you know, drugs and what not – when they come here they never cause any trouble,” says Fatima Simões, Manuel’s wife and the restaurant’s cook. 
 
O Manel was founded back when Vale da Amoreira’s landscape was all pine trees and wild nature, not sevenstorey grey buildings enveloped in an aura of crime and poverty. Seven decades later, the restaurant is the only institution left that has seen it all.
 
But this month marks the end of O Manel. Although Portugal’s financial crisis is partly responsible, Simões was driven over the edge by the VAT rise from 13 to 23 per cent for restaurants and cafés – an austerity measure implemented in 2012 as part of Portugal’s bailout programme. This has slashed most businesses’ profit margins, at a time when eating out has become more of a luxury than a habit.
 
According to the association of Portuguese restaurants and hotels, since VAT for restaurants has risen, 75,000 jobs have disappeared in an industry that employs 300,000 people, 6 per cent of Portugal’s workforce. The association predicts that by the end of 2013 the number of jobless food-service workers will rise to 120,000. 
 
Simões reacted to the VAT hike in the way he thought most fair to his blue-collar, crisis-affected clientele: instead of raising his prices, he reduced them in order to keep the customers coming. 
 
His hope was proved wrong – or rather, insignificant, as Portugal’s economic crisis spread like wildfire, bringing the country to a record overall unemployment rate of 17.8 per cent. Although the customers stuck with O Manel, spending €6 (£5.20) for a meal gave way to paying just €1 (90p) for a beer. 
 
“When we shut the restaurant down, people won’t know what to do,” Simões told me when I met him. “We’ve always been here. We’ve seen so many people grow up. It’ll be like losing family.”

 

A "Pastel de nata" - Lisbon's most popular pastry. Photograph: Getty Images.

This article first appeared in the 12 August 2013 issue of the New Statesman, What if JFK had lived?

Photo: Getty
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Britain is running out of allies as it squares up to Russia

For whatever reason, Donald Trump is going to be no friend of an anti-Russia foreign policy.

The row over Donald Trump and that dossier rumbles on.

Nothing puts legs on a story like a domestic angle, and that the retired spy who compiled the file is a one of our own has excited Britain’s headline writers. The man in question, Christopher Steele, has gone to ground having told his neighbour to look after his cats before vanishing.

Although the dossier contains known errors, Steele is regarded in the intelligence community as a serious operator not known for passing on unsubstantiated rumours, which is one reason why American intelligence is investigating the claims.

“Britain's role in Trump dossier” is the Telegraph’s splash, “The ‘credible’ ex-MI6 man behind Trump Russia report” is the Guardian’s angle, “British spy in hiding” is the i’s splash.

But it’s not only British headline writers who are exercised by Mr Steele; the Russian government is too. “MI6 officers are never ex,” the Russian Embassy tweeted, accusing the UK of “briefing both ways - against Russia and US President”. “Kremlin blames Britain for Trump sex storm” is the Mail’s splash.

Elsewhere, Crispin Blunt, the chair of the Foreign Affairs Select Committee, warns that relations between the United Kingdom and Russia are as “bad as they can get” in peacetime.

Though much of the coverage of the Trump dossier has focused on the eyecatching claims about whether or not the President-Elect was caught in a Russian honeytrap, the important thing, as I said yesterday, is that the man who is seven days from becoming President of the United States, whether through inclination or intimidation, is not going to be a reliable friend of the United Kingdom against Russia.

Though Emanuel Macron might just sneak into the second round of the French presidency, it still looks likely that the final choice for French voters will be an all-Russia affair, between Francois Fillon and Marine Le Pen.

For one reason or another, Britain’s stand against Russia looks likely to be very lonely indeed.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.