Lisbon’s labours
If Lisbon has charmed its official creditors and is working hard to seduce private ones, it must not forget its own citizens
Portugal has become the third eurozone country to seek European Union financial assistance over the soaring cost of servicing sovereign debt
Opposition, business and union leaders want more rescue funds and more time to meet agreed fiscal targets amid a painful austerity programme
Lisbon sold €3bn of short-term Treasury bills in its biggest debt auction since agreeing a rescue package with EU and IMF in May
Successful auction of €1.5bn of shorter-term debt follows European Central Bank intervention in buying the country’s notes earlier this week
Lisbon aims to intensify structural reforms and regain access to debt markets next year, even though bond yields have touched perilously high levels
A fresh sale of six-month and three-month debt reaches targets and yields fall
If Lisbon has charmed its official creditors and is working hard to seduce private ones, it must not forget its own citizens
EU leaders may have to tackle problem within weeks rather than months
Its current rescue package expires in 2013, so a decision on whether to extend it should be taken this year. Why not act quickly?
If Lisbon continues along the path of Athens, it could spark default contagion to Italy and Spain, and reignite break-up fears
Moody’s controversial decision to downgrade Portuguese debt this week was really about Germany
The mood has soured once again, with investors appearing increasingly convinced that the crisis cannot be contained
High unemployment is due in part to the mass of regulations. Reforming these will bring opportunities for Portugal’s many economically excluded citizens
The rescue programme sets Portugal the task of tightening its fiscal stance by up to 10 percentage points of GDP over three years – a formidable task for a country that has avoided serious economic reform for years