Wednesday, April 6, 2011

Portugal breaks

Today, the caretaker government of Portugal asked for help from its European neighbours. Interest rates on the markets to fund even more debt hit new highs this week, and the ECB has publicly shown its weariness of purchasing those bonds when no one else would.

Portugal will become the next aid recipient of the EFSF--the European Financial Stability Facility. The German government has underlined that other options are off the table. It's what the EFSF was created for. And now that the German government has paid the price by losing yet another regional election to voter backlash (a revolutionary labour-green government in the conservative south-west province of Baden-Wuerttemberg), it might as well accept the mantle of organising the control of Europe's finances.

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