"Portugal’s borrowing costs have surged, and the latest central-bank forecasts suggest that the economy will barely recover in 2014 after three years of deep recession. Instead of the promised turnaround, the bank now expects only 0.3% growth next year. The main culprit is bigger-than-expected cuts in public spending that were necessary to keep the bail-out on track. This forecast is hardly likely to strengthen confidence in Portugal, Greece or across the wider euro zone that austerity is working. Nor will it support the fond hopes in Brussels that Portugal was safely pulling away from Greece and would follow Ireland by getting out of its bail-out programme. Just now, neither country looks anywhere near ready for graduation."
Posted on: Fri, 19 Jul 2013 19:37:51 +0000
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