Portugal reiterates it does not require financial assistance

| December 1, 2010 | 0 Comments
Portugal reiterates it does not require financial assistance

Portugal has, once again, denied that it does not require an EU bailout as speculation mounts that it will follow Greece and Ireland and request emergency funds.

The euro has been falling over recent days over debt concerns in the euro zone. The single currency is falling as investors are nervous that the debt crisis could spread to weaker economies, such as Portugal.

The yield on Portuguese bonds has stabilised at 6.97% and Prime Minister, Jose Socrates, said that the country needed confidence, not a bailout.

However, the country is struggling with a spiralling deficit, which has been making markets nervous as failure to hit Government targets for bringing down the deficit could cause a market panic over the country early next year, according to analysts.

Last week, an austerity budget for 2011 was approved last week but the economy is still struggling to meet its targets for deficit reduction.

Meanwhile, in an interview on Portuguese radio, Mr Socrates said: “I do not see any reason to change the position of the Portuguese government which is very clear: we do not need any help, what we need is confidence in the Portuguese economy.”

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