Market turmoil: Portugal slides closer to the abyss with forced austerity measures

The Extinction Protocol

July 3, 2013PORTUGALPolitical turmoil in Portugal is threatening to re-ignite Europe’s debt crisis after a year of relative calm. Having won praise for taking tough measures to restore the financial health of the eurozone state, Portugal’s government has been rocked this week by the resignation of two ministers who quit because of waning public support for its program of austerity. Prime Minister Pedro Passos Coelho has refused to accept the resignation of his foreign minister, who heads a junior partner in the center-right coalition. But anxious investors sold stocks and bonds heavily Wednesday on fears that the government may collapse. Portuguese media said two other ministers could follow their party leader in tendering their resignation Wednesday. New elections could delay economic reforms and prolong Portugal’s dependence on bailout funds. Yields on its 10-year government bonds surged above 7% for the first time this year and at…

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