Spain: Portugal will not need bailout

Source: Press TV
http://www.presstv.ir/detail/159578.html


Spanish Finance Minister Elena Salgado says Portugal will not follow in the footsteps of Greece and Ireland to ask for international financial aid.

“The Spanish government is confident that the fulfillment of its commitments will be recognized and Portugal won't need any external help,” Bloomberg quoted Salgado as saying in an interview with Spain's Cadena Ser radio on Monday.

The report comes as Portugal is coming under mounting pressure to apply for rescue loans from the European Union (EU) and the International Monetary Fund (IMF).

German weekly magazine Der Spiegel revealed last week that Berlin and Paris are deploying strong-arm tactics to make Lisbon accept aid in order to save the euro crisis from spreading to other member states.

Leading Portuguese newspaper Publico on Sunday embarked on the bandwagon that financial help for the eurozone country is inevitable. "Only a miracle will save us from the IMF," a Publico editorial read.

This is while Portuguese authorities deny the need for such a bailout and maintain that their country is meeting its commitments to the Western bloc.

Economists speculate that Portugal will be the next euro crisis casualty in line as it is going to any lengths to manage finances. Spain and Belgium could be the two other most likely victims.

Portugal's financial situation is of paramount importance to Spain, whose banks have actually invested heavily in their neighboring country.

Portugal is levying higher taxes and decreasing wages, hoping the measures help meet its 2011 budget deficit target of 4.6 percent of gross domestic product -- a target above the EU limit of 3.0 percent.