World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
Portugal Is Next Nation in European Union's Debt Trap
Keywords:
The Portuguese government asked the European Union for bailout loans. The aid the EU is providing to Portugal comes with conditions- asking Portugal to make additional austerity cuts even as new elections loom. The aid is essentially more loans at high interest rates, even if the rates are lower than the steep rates in financial markets for a country with a collapsing credit rating. There is serious concern about whether this formula applied by the EU is going to work because at this rate it may take a decade or more for Portugal to pay off all the loans. The major problem is that with severe spending cuts- a country that lacks competitiveness and cannot devalue its currency because of being the euro zone- it is that much harder to generate growth. Simon Tilford, chief economist for the Center for European Reform in London, says the EU leaders have failed to come to grips with the core of the problem for Ireland, Greece and now Portugal- which is how to restore the finances to some sustainability, and how this could ever be achieved by a policy of deeper and deeper spending cuts. Tilford points out that the other more fundamental problem EU leaders are not tackling, is that the problem is deep down the large amount of Portuguese, Irish and Greek debt held by German, French, British, Spanish and Dutch banks. If these countries default the governments of these countries would have to recapitalize their banks at the expense of the taxpayers of Germany, France, Britain, Netherlands. Political leaders of these countries want to avoid confronting angry taxpayers and lose political support. Germany has called for a bondholder haircut, something that banking interests do not support. Tilford says Portugal is not getting a bailout, because for a bailout there would need to be a default by Portugal. What it is getting along with Ireland and Greece, are loans at high interest rates, and an EU plan that simply stifles the ability to pay back accumulated debt, leaving the situation in limbo for some future resolution.
German reaction to the debt crisis in Greece, Portugal, Spain and Italy.
04/09/2009
Germany said to be turning nationalistic in this crisis, seeing Germany's economic successes as its own, and not accepting the advantage of export markets in Europe in strengthening Germany's economic position.
Grouped Articles
Wall Street Journal 03/03/2010
New York Times 11/03/2013
Germany's Surplus Isn't the Problem
Wall Street Journal 11/11/2013
How Italy's ENI Vastly Boosted Oil Output
BusinessWeek 04/09/2009
Greek Crisis Shows How Germany’s Power Polarizes Europe
Wall Street Journal 07/07/2015
New York Times 05/26/2010
Portugal's austerity measures and the financial crisis 2010-2015
09/27/2010
Collapse of the government in Portugal in 2011, after failing to win support for further austerity measures.
Grouped Articles
Wall Street Journal 05/03/2013
Portugal Returns to Bond Market
Wall Street Journal 05/08/2013
Portugal Plans Cuts in Spending
Wall Street Journal 05/30/2013
Portugal's Government Thrust Into Turmoil
Wall Street Journal 07/03/2013
Lisbon Cabinet Shuffle Buoys Junior Coalition Party Leader
Wall Street Journal 07/08/2013
Portugalâs President Calls for Early Elections
New York Times 07/11/2013
The European Union and the financial crisis of 2010-2011
05/13/2010
The E.U. and the $1 trillion package to calm the panic in financial markets after the crisis in Greece. Efforts to prevent the contagion effects spreading to Spain and Portugal.
Grouped Articles
New York Times 05/22/2014
Economist 05/13/2010
Don't Rule Out a Double Dip Recession
Wall Street Journal 05/24/2010
Wall Street Journal 05/22/2010
Luxembourg Foots a Big Piece of the Greek Tab
BusinessWeek 05/27/2010
ECB Chief Seeks Tighter Fiscal Union
Wall Street Journal 06/22/2010
Portugal- politics and government 2011-2016
03/26/2011
Grouped Articles
Portugal's Government Thrust Into Turmoil
Wall Street Journal 07/03/2013
Lisbon Cabinet Shuffle Buoys Junior Coalition Party Leader
Wall Street Journal 07/08/2013
Portugalâs President Calls for Early Elections
New York Times 07/11/2013
Outsiderâs Victory in Portugal Reflects Continentâs Discontent
New York Times 11/07/2013
Portugal on Road to Recovery Post-Bailout, But Scars Remain
Wall Street Journal 07/20/2015
Pedro Passos Coelho, Who Led Austerity Plan in Portugal, Nears Re-Election
New York Times 10/02/2015
Portugal- government debt, ratings and borrowing costs
10/23/2010
Grouped Articles
Ratings Gag Is No Joking Matter
Wall Street Journal 07/12/2011
Return of Long-Term Bond Buyers Seen as Crucial to Europe
New York Times 06/29/2012
Greece Gets New Bailout as U.S. Nears Brink
Wall Street Journal 07/22/2011
Wall Street Journal 05/07/2013
Portugal Returns to Bond Market
Wall Street Journal 05/08/2013
Portugal's Government Thrust Into Turmoil
Wall Street Journal 07/03/2013
Why Portugal is different from Greece in 2012-2013, and yet may find its debt unsustainable as the economy shrinks- the situation in 2012-2013
04/30/2010
Portugal is taking vigorous steps without social unrest, including spending cuts that will stabilize the deficit, labor reform, and increasing exports through trading links to Africa and Latin America. Portugal needs to borrow about 10 billion euros in 2012 and the ratings downgrade has hurt Portugal by raising rates on new borrowing to about 20%. The economy is expected to shrink by 3% in 2012.
Grouped Articles
Ratings Gag Is No Joking Matter
Wall Street Journal 07/12/2011
Greece Gets New Bailout as U.S. Nears Brink
Wall Street Journal 07/22/2011
Portugal Returns to Bond Market
Wall Street Journal 05/08/2013
Idea of Euro Exit Finds Currency in Portugal
Wall Street Journal 05/27/2013
The Next Global Problem: Portugal
New York Times 04/30/2010
Portugal Emerges From Recession
Wall Street Journal 08/15/2013
How Greece's and Ireland's debt crisis affects Germany, France, Portugal and Spain.
04/28/2010
German banks have large holdings of Greek bonds, and much larger holdings of bonds from the crisis affected countries of Greece, Portugal, Spain and Ireland.
Grouped Articles
Already Holding Junk, Germany Hesitates
New York Times 04/28/2010
Euro Rises After I.M.F. Increases Aid Pledge to Greece
New York Times 04/29/2010
As Greek Drama Plays Out, Where Is Europe?
New York Times 04/29/2010
Europe Acts Swiftly on Long-Delayed Greek Bailout
New York Times 04/29/2010
The Next Global Problem: Portugal
New York Times 04/30/2010
Portugal to cut wages, raise taxes
Wall Street Journal 05/14/2010
The debt crisis that Portugal faces, after the crisis in Greece.
04/30/2010
Greece and Portugal are in much riskier shape than Argentina was when it defaulted in 2001, argues Simon Johnson.
Grouped Articles
Portugal Returns to Bond Market
Wall Street Journal 05/08/2013
Idea of Euro Exit Finds Currency in Portugal
Wall Street Journal 05/27/2013
Wall Street Journal 02/11/2014
Greece Defaults on IMF Loan Despite New Push for Bailout Aid
Wall Street Journal 07/01/2015
Greece, Missing I.M.F. Payment, Is Called Effectively in Default
New York Times 06/30/2015
Portugal on Road to Recovery Post-Bailout, But Scars Remain
Wall Street Journal 07/20/2015
Actions taken by EU leaders in 2011-2012 to resolve the debt crisis in member countries.
02/26/2011
Actions taken for Ireland, Greece, Portugal and other countries facing debt problems.
Grouped Articles
Policy âTroikaâ for Europe Financial Woes at Odds
New York Times 06/07/2013
Ireland Shows How to Ski Down the Debt Mountain
Wall Street Journal 09/28/2015
European Debt Deal Has Flaws - News Analysis
New York Times 03/14/2011
Portugal Pays Higher Yield at Bond Sale
Wall Street Journal 03/16/2011
Europe Needs to Apportion Pain
Wall Street Journal 03/17/2011
Portugal under siege: The winter of living dangerously
Economist 02/26/2011
Portugal- economy in 2010-2015
10/23/2010
Grouped Articles
Idea of Euro Exit Finds Currency in Portugal
Wall Street Journal 05/27/2013
Portugalâs President Calls for Early Elections
New York Times 07/11/2013
Portugal Emerges From Recession
Wall Street Journal 08/15/2013
After a Recession in Portugal, the Tiny Green Fruits of Success
New York Times 08/28/2013
Portugal Unveils Toughest Austerity Budget Yet
Wall Street Journal 10/16/2013
Portugal's public finances: The apology of Sócrates
Economist 10/23/2010
The loan deal Portugal negotiated with the EU and the IMF in May 2011.
09/27/2010
The terms of the loan deal and the problems negotiators faced in coming up with a deal that will give Portugal the breathing space to it needs. The economy is expected to contract 2% in 2011, and 2% in 2012. As a result the defict as a percentage of GDP target of 3% was set for the third year in the three year program, instead of earlier as originally planned. The IMF loan interest rate was set at 3.25% for the first 2 years. Portugal's weakness in competitiveness and in its educational system means Portugal badly needs this breathing space.
Grouped Articles
Portugal's Government Thrust Into Turmoil
Wall Street Journal 07/03/2013
Lisbon Cabinet Shuffle Buoys Junior Coalition Party Leader
Wall Street Journal 07/08/2013
Portugalâs President Calls for Early Elections
New York Times 07/11/2013
Portugal Unveils Toughest Austerity Budget Yet
Wall Street Journal 10/16/2013
Economic Report Supports Socialistsâ Policy in Portugal
New York Times 09/27/2010
Portugal's public finances: The apology of Sócrates
Economist 10/23/2010
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us