Will Portugal Ruin the E.U.?
An E.U. bailout of Portugal now seems inevitable. But at some point, E.U. taxpayers are likely to tire of bailing out nations like Portugal, which seem unwilling to curb their spendthrift ways.
How long will the European public, particularly in wealthier countries like Germany, tolerate other member states’ profligate ways? “It now appears inevitable that Portugal will become the third European country to require emergency funding to bail out its national economy. The strongest signal of Portugal’s insolvency came Wednesday, when the country’s prime minister unexpectedly resigned. Jose Socrates stepped down after failing to convince the Portuguese parliament to approve an austerity plan aimed at preventing default on its debt.”
