Today's Wall Street Journal article saying that Portugal will need a second help package in 2013 seems... likely. The point is though Portugal is in better shape than Greece, it will still need it. The economy is contracting (not a surprise, given the severe adjustment in Spending), the necessary cuts in Public Administration were not done (thus, savings are still to be done, and further economy contraction should actually be expected in 2013) and the constant downgrades are escalating interest rates for the Portuguese debt, making it unfeasable to expect market financing. So, Portugal should be ready for a much needed help package being announced towards the end of the year - and, hoping everything goes ok, we will then be in a much better position and fitter than we are today (but, let's act and see...).
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment