Posts Tagged ‘Jose Socrates’

Portugal’s Government May Collapse Before EU Summit

March 24, 2011 Comments off

In a report published by Reuters, the Portuguese parliament is expected to reject government austerity measures on Wednesday, which could lead to the collapse of the minority Socialist administration one day before the EU summit.

The country’s Prime Minister, Jose Socrates, has declared that he will resign if the plan is defeated, due to the fact that its rejection would force debt-ridden Portugal to seek a similar international bailout to Greece and Ireland.

If Socrates stands by his word, then he appears to be heading for the exit door as all opposition parties have proposed resolutions calling for the rejection of the measures, which would look to cut the debt by reducing pensions and state spending.

The main opposition is the Social Democrats, and the party has already begun talking about a snap election. When asked if it is likely that the government will step down, Socialist bench leader in parliament Francisco Assis said that, “If all these positions that now seem irreversible are confirmed, then yes.”

“The prime minister does not want to resign, but he cannot govern against his convictions,” Assis said.

Pressure on Portugal After New Credit Downgrade

March 16, 2011 Comments off

LISBON — Portugal’s borrowing costs pushed higher after Moody’s downgraded the country’s credit rating, stoking the pressure on the country’s beleaguered minority government.

The yield on Portugal’s ten-year bond rose 0.04 percentage point to 7.44 percent. The equivalent yields for Greece and Spain, two other euro countries struggling with high borrowing levels, were down modestly.

Moody’s Investors Services cut the country’s rating by two notches to A3 late Tuesday, saying the debt-stressed country is struggling to generate growth and faces a tough battle to restore the fiscal health needed to calm jittery financial markets.

Prime Minister Jose Socrates said late Tuesday he would quit if Parliament doesn’t consent to his government’s latest batch of contested austerity measures.

Portugal aims to raise up to €1 billion in a sale of Read more…