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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When Donald Trump talks, remember that Donald Trump almost always lies

Anyone getting excited about a trade deal between the United States and the United Kingdom should pay more attention to what Trump does, not what he says. 

Celebrations all round at the Times, which has bagged the first British newspaper interview with President-Elect Donald Trump.

Here are the headlines: he’s said that the EU has become a “vehicle for Germany”, that Nato is “obsolete” as it hasn’t focused on the big issue of the time (tackling Islamic terrorism), and that he expects that other countries will join the United Kingdom in leaving the European Union.

But what will trigger celebrations outside of the News Building is that Trump has this to say about a US-UK trade deal: his administration will ““work very hard to get it done quickly and done properly”. Time for champagne at Downing Street?

When reading or listening to an interview with Donald Trump, don’t forget that this is the man who has lied about, among other things, who really paid for gifts to charity on Celebrity Apprentice, being named Michigan’s Man of the Year in 2011, and making Mexico pay for a border wall between it and the United States. So take everything he promises with an ocean’s worth of salt, and instead look at what he does.   

Remember that in the same interview, the President-Elect threatened to hit BMW with sanctions over its decision to put a factory in Mexico, not the United States. More importantly, look at the people he is appointing to fill key trade posts: they are not free traders or anything like it. Anyone waiting for a Trump-backed trade deal that is “good for the UK” will wait a long time.

And as chess champion turned Putin-critic-in-chief Garry Kasparov notes on Twitter, it’s worth noting that Trump’s remarks on foreign affairs are near-identical to Putin’s. The idea that Nato’s traditional purpose is obsolete and that the focus should be on Islamic terrorism, meanwhile, will come as a shock to the Baltic states, and indeed, to the 650 British soldiers who have been sent to Estonia and Poland as part of a Nato deployment to deter Russian aggression against those countries.

All in all, I wouldn’t start declaring the new President is good news for the UK just yet.

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