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?

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Who is the EU's chief Brexit negotiator Michel Barnier?

The former French foreign minister has shown signs that he will play hardball in negotiations.

The European Commission’s chief Brexit negotiator today set an October 2018 deadline for the terms of Britain’s divorce from the European Union to be agreed. Michel Barnier gave his first press conference since being appointed to head up what will be tough talks between the EU and UK.

Speaking in Brussels, he warned that UK-EU relations had entered “uncharted waters”. He used the conference to effectively shorten the time period for negotiations under Article 50 of the Lisbon Treaty, the legal process to take Britain out of the EU. The article sets out a two year period for a country to leave the bloc.

But Barnier, 65, warned that the period of actual negotiations would be shorter than two years and there would be less than 18 months to agree Brexit.  If the terms were set in October 2018, there would be five months for the European Parliament, European Council and UK Parliament to approve the deal before a March 2019 Brexit.

But who is the urbane Frenchman who was handpicked by Commission President Jean-Claude Juncker to steer the talks?

A centre-right career politician, Barnier is a member of the pan-EU European People’s Party, like Juncker and German Chancellor Angela Merkel.

A committed European and architect of closer eurozone banking integration, Barnier rose to prominence after being elected aged just 27 to the French National Assembly.  He is notorious in Brussels for his repeated references to the 1992 Winter Olympics he organised in Albertville with triple Olympic ski champion Jean-Claude Killy.

He first joined the French cabinet in 1993 as minister of the environment. In 1995, Jacques Chirac made him Secretary of State for European Affairs, teeing up a long and close relationship with Brussels.

Barnier has twice served as France’s European Commissioner, under the administrations of Romano Prodi and José Manuel BarrosoMost recently he was serving as an unpaid special advisor on European Defence Policy to Juncker until the former prime minister of Luxembourg made him Brexit boss.“I wanted an experienced politician for this difficult job,” Juncker said at the time of Barnier, who has supported moves towards an EU army.

 

Barnier and the Brits

Barnier’s appointment was controversial. Under Barroso, he was Internal Market commissioner. Responsible for financial services legislation at the height of the crisis, he clashed with the City of London.

During this period he was memorably described as a man who, in a hall of mirrors, would stop and check his reflection in every one.

Although his battles with London’s bankers were often exaggerated, the choice of Barnier was described as an “act of war” by some British journalists and was greeted with undisguised glee by Brussels europhiles.

Barnier moved to calm those fears today. At the press conference, he said, “I was 20 years old, a very long time ago, when I voted for the first time and it was in the French referendum on the accession of the UK to the EU.

“That time I campaigned for a yes vote. And I still think today that I made right choice.”

But Barnier, seen by some as aloof and arrogant, also showed a mischievous side.  It was reported during Theresa May’s first visit to Brussels as prime minister that he was demanding that all the Brexit talks be conducted in French.

While Barnier does speak English, he is far more comfortable talking in his native French. But the story, since denied, was seen as a snub to the notoriously monolingual Brits.

The long lens photo of a British Brexit strategy note that warned the EU team was “very French” may also have been on his mind as he took the podium in Brussels today.

Barnier asked, “In French or in English?” to laughter from the press.

He switched between English and French in his opening remarks but only answered questions in French, using translation to ensure he understood the questions.

Since his appointment Barnier has posted a series of tweets which could be seen as poking fun at Brexit. On a tour of Croatia to discuss the negotiations, he posed outside Zagreb’s Museum of Broken Relationships asking, “Guess where we are today?”

 

 

He also tweeted a picture of himself drinking prosecco after Boris Johnson sparked ridicule by telling an Italian economics minister his country would have to offer the UK tariff-free trade to sell the drink in Britain.

But Barnier can also be tough. He forced through laws to regulate every financial sector, 40 pieces of legislation in four years, when he was internal market commissioner, in the face of sustained opposition from industry and some governments.

He warned today, "Being a member of the EU comes with rights and benefits. Third countries [the UK] can never have the same rights and benefits since they are not subject to same obligations.”

On the possibility of Britain curbing free movement of EU citizens and keeping access to the single market, he was unequivocal.

“The single market and four freedoms are indivisible. Cherry-picking is not an option,” he said.

He stressed that his priority in the Brexit negotiations would be the interests of the remaining 27 member states of the European Union, not Britain.

“Unity is the strength of the EU and President Juncker and I are determined to preserve the unity and interest of the EU-27 in the Brexit negotiations.”

In a thinly veiled swipe at the British, again greeted with laughter in the press room, he told reporters, “It is much better to show solidarity than stand alone. I repeat, it is much better to show solidarity than stand alone”.

Referring to the iconic British poster that urged Brits to "Keep Calm and Carry On” during World War Two, he today told reporters, “We are ready. Keep calm and negotiate.”

But Barnier’s calm in the face of the unprecedented challenge to the EU posed by Brexit masks a cold determination to defend the European project at any cost.

James Crisp is the news editor at EurActiv, an online EU news service.