Will Greece and Portugal Reignite the Euro Crisis?
Following in Greece’s footsteps, Portugal’s coalition is being tested with the resignation of several prominent officials.
Secretary of State for Treasury Maria Luis Albuquerque replaced Vitor Gaspar at Portugal’s Ministry of Finance. The move prompted Paulo Portas, who leads the CDS party crucial to the Portuguese coalition, to offer his resignation, fearing a continuation of austerity policies that appear to falling out of favor, even by the coalition government.
Fatigue from higher taxes and lower spending will not solve Portugal’s current predicament, as the future of their bailout depends on continued political resolve and fiscal restraint. While Prime Minister Pedro Passos Coelho tries to hold the path in order to meet the terms of the European troika, the 78-billion euro bailout his country accepted is looking ever more on the rocks.