Portugal should accept aid, feel Germany and France



German magazine Der Spiegel reported on Saturday that France and Germany want Portugal to accept an international bailout package as soon as possible to prevent any crisis and help contain a domino effect in the region.

After the borrowing costs increased at the end of 2010 for Portugal, government officials in Lisbon may not be able to raise funds at reasonable rates.

Two of the Euro zone’s biggest economies are seeking commitments from member countries of strict fiscal discipline and the assurance that they will undertake every possible step to prevent the collapse of the trading bloc’s single currency. Berlin and Paris also want a bigger emergency rescue fund than the current €750 billion (£623 billion) available.

Portugal is being viewed by many economists as the next country after Greece and Ireland to require a bailout package. The country is scheduled to hold the first bond auction of 2011 next week. It is already struggling with mounting debts and spiraling government borrowing costs.

Comments & Debate

  1. January 9, 2011 at 5:35 pm Ricardo Commented:

    I find it amazing that Reuters, and Der SPiegel, two fairly prestiged news agencies would allow themselves to publish these things. The only people who can claim, or not, whether Portugal is under pressure, or not from the EU, are either EU official, the german, the french, and the Portuguese government. The rest is just rumouring and speculation. I find it amazing how clear it is now that the press really chose Portugal as the culprit for this crisis and chosen to create this self-fulfilling promise, and first and foremost, in these times of crisis, dare to publsh such newsitems who only serve to try and harm and discredit the country even further. It is very shameful and bad bad journalism

    and this is the truth:

    from the wall street journal:


    The German government isn’t putting any pressure on Portugal’s government to apply for rescue aid, a German finance ministry spokesman told Dow Jones Newswires Sunday.

    “The federal government isn’t pressuring Portugal,” spokesman Tobias Romeis said, adding that the decision to apply for financial assistance is a sovereign one, made by the country concerned.


    In fact fiscally Portugal is much better than France, the UK, the US, Spain, Ireland, Greece, and Slovakia. This is what should be stressed by the media. Our deficit is lower than the deficit of all those countries mentioned above.

    The media keeps forgetting that:

    - Portugal is growing by 1.5% this year (higher than 50% of the rest of the eurozone)
    -Portuguese exports grew by 14% in 2010 – never saw this mentioned in the media
    - Portugal met it’s deficit target for 2010, of 7.3%, lower than the deficits of the US, the UK, France, Spain, Greece, Ireland and Slovakia.
    - Portuguese foreign investment in November increased by 8%.

    Why do we never see this mentioned in the media? It’s like they want this to happen. Tell a lie 1000 times and it becomes true. Shame .

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