The Eurozone’s next domino : why Portugal is not Greece
Document Type
Journal article
Source Publication
World Economics
Publication Date
6-1-2012
Volume
13
Issue
2
First Page
125
Last Page
153
Publisher
Economic and Financial Publishing Ltd.
Keywords
Öffentliche Schulden, public debt, finanzkrise, financial crisis, Wirtschaftskrise, economic crisis, Portugal, Eurozone, Euro area
Abstract
With Greece’s problems taking a back seat with the approval of the second €130 bailout and bond-swap deal, attention has turned to Portugal – the other most troubled economy in the Eurozone. Will Portugal’s debts also prove unmanageable, requiring debt restructuring where private creditors are forced to take a big haircut, or will the €78 billion bailout Lisbon has received from the European Union and the International Monetary Fund, and domestic structural reforms, be enough to stave off a Greek-style default? This paper illustrates that Portugal’s woes are different from those of Greece, Ireland and Spain. Given the structural conditions and deep commitment to reform and political will demonstrated by the Portuguese leaders and citizens alike, Portugal has a good chance to avoid Greece’s fate.
Print ISSN
14681838
E-ISSN
14743884
Language
English
Recommended Citation
Sharma, S. D. & Tam, S. (2012). The Eurozone’s next domino. World Economics, 13(2), 125-153.