Portugal's Partial Reprieve
Editorial, The Independent | January 13, 2011
While the panic surrounding Portugal subsided a little yesterday, the reprieve may turn out to be a temporary one at best. ++ Investors continue to fear a default on Europe’s periphery. ++ Moreover, European policymakers' insistence that struggling countries like Portugal cut their budgets undermines the economy’s recovery. ++ The Bank of Portugal cautions that GDP will decline in 2011 because of the spending cuts. ++ Portugal’s debt ought to be restructured and the country needs a strong market for its exports.
