Europe’s Time to Fend Off Crisis May Be Waning

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European Parliament Building

Spain and Portugal are hurting for good news lately, with neither country finding much of it.

Portugal’s political sphere has hit a brick wall in governing recently, when prominent member of the minority coalition party Paulo Portas resigned, leaving Prime Minister Pedro Passos Coelho’s government in a tough position. A growing weariness of austerity has infiltrated Portugal’s political arena, as recession, and a need to comply with bailout lender demands have worn heavily on the country.

However, Coelho’s position is a precarious one, as he continues to raise taxes and cut spending out of a need to shore up the country’s public finances in order to continue receiving funding. After a failure of Greece to make basically any headway on this front, it’s becoming more real to Portugal that a lack of reform could jeopardize their government completely, and recreate fears of another euro crisis.

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