Europe’s Time to Fend Off Crisis May Be Waning
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.