Steinbock, D. (2014) “Portugal and Greece: the odd return to markets“, Opinion Article, EU Observer, 05 Μαΐου.
BRUSSELS – In the past few weeks, Portugal and Greece have returned to the markets in moves seen in Brussels as heralding a rebound in Southern Europe. In reality, a fragile recovery has barely begun and will take years.
On Sunday (4 May), Portugal’s Prime Minister Pedro Passos Coelho announced that his government will not seek a precautionary credit from the Troika lenders: the European Commission (EC), the International Monetary Fund (IMF), and the European Central Bank (ECB). Instead, Lisbon seeks to rely only on markets for financing.
After it shortly takes its final installment of a €78 billion bailout package, Portugal hopes to have a “clean exit” from its three-year rescue programme.
In Brussels, Coelho’s announcement was welcomed with a sigh of relief. It was timed well; just a month before the European Parliament election, which is expected to squeeze the political middle but strengthen the minorities of radical left, eurosceptics and extreme right.
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