The political crisis appears to be worsening by the hour.
According to Reuters, local media in Portugal say
that more ministers are considering resigning....
But the resignation of Paulo Portas,
the leader of the conservative Popular Party
which is the junior partner in the coalition government,
could have major political and economic ramifications.
Portas's resignation has raised new questions
on whether Portugal can push on with its unpopular programme
of spending cuts and tax rises.
With austerity fagitue rife in Portugal,
can Passos Coelho hold things together?
The early reaction from the City isn't encouraging:
Portuguese sovereign debt has slumped in value this morning.
This has driven the yield (or interest rate) on its 10-year bonds up sharply.
It's now above the 7% mark,
from less than 6.5% at the start of the week.
the leader of the conservative Popular Party
which is the junior partner in the coalition government,
could have major political and economic ramifications.
Portas's resignation has raised new questions
on whether Portugal can push on with its unpopular programme
of spending cuts and tax rises.
With austerity fagitue rife in Portugal,
can Passos Coelho hold things together?
The early reaction from the City isn't encouraging:
Portuguese sovereign debt has slumped in value this morning.
This has driven the yield (or interest rate) on its 10-year bonds up sharply.
It's now above the 7% mark,
from less than 6.5% at the start of the week.
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