Yes it is a bit tabloid, but tabloids get debate going. There is a lot of anti Portuguese police feeling in this country and I am sure that this is affecting visitor numbers. Likewise, it may have a knock-on effect with property buyers.
I think that public mood does effect economies and I cite the queues at Northern Rock as an example of uninformed people acting in emotional response to a situation. If I was selling holidays in Portugal to Brits I'd be worried that I needed to diversify. (For the time being at least.)
Regards
Michele
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