A quick thought on interest rates

Portugal is now paying 7% of interest rate on its sovereign debt. That means that a country that is not growing (actually, the soundest GDP projections point out that Portuguese Product will decrease in 2011 and probably 2012 as well) will have to pay a debt growing at a 7% rate - a financial disaster for an already over-burdened country. Lets just recall that around 2/3 of total Individual Income Tax is already necessary to service debt.

On that situation, I think it is necessary to deeply think if it wouldn't be advisable to resort to IMF emergency fund - that would, at least, secure a 5% interest rate, a much needed decrease to allow for economic recover. And, it would also enable the room for much necessary structural reforms to the Portuguese economy.