Portuguese stocks and bonds take another dive owing to what some are calling "austerity fatigue."
In 2011 the EU's Big Three--the ECB, the IMF and the European Commission--coughed up $106
billion to help the nation's ailing economy. No small amount for a country with a $215 billion GDP.
Portugal's unemployment hovers near 18% and its GDP has been in a slump since late 2010. The money came with strings in the form of required budget cuts. Those cuts, according to some, are starting to bite. Complicating matters two political figures tendered their resignations in recent days raising questions about government stability.
The stock market is down nearly 18% and yields on 10-year government bonds linger near 8%, up from 5.5% just two months ago. And Portugal is not alone. Greece faces similar problems meeting its demands trying to qualify for more handouts from EU officials.
Austerity fatigue or not, the EU's economic turmoil looks a long way from being resolved.
_____________
No comments:
Post a Comment