And Lisbon was slow to adjust. Political divisions cast doubt on its ability to control public finances. In 2010 the deficit was only shrunk by putting the telecoms pension fund on the public balance sheet. The government now seems committed to control the deficit in earnest, but possibly too late to regain market confidence. If a European rescue of Portugal is still avoidable, it is becoming less and less so.
By refusing to tap European funds until they had no choice, Athens and Dublin made the path to their rescues messier and more painful than necessary. Lisbon is repeating their mistake by seeing it as a national disgrace to ask for help. In truth, pre-emptively going to the EFSF would improve the chance of calming markets and leaving rescue funds untapped.
Via FT
Sem comentários:
Enviar um comentário