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Tuesday, March 29, 2011

Crisis-hit Portugal encouraged to accept eurozone’s bail-out package




Crisis-hit Portuguse encouraged to accept eurozone?s bail-out package



The Portuguese government has come under renewed pressure to accept a European bail-out at the start of another crucial week for the eurozone

Ewald Nowotny, a governing council member of the European Central Bank, said Portugal should seek help from Europe after the resignation of the prime minister over austerity measures .

He told reporters: “From a purely economic point of view one could probably recommend it. The domestic political situation in Portugal has clearly worsened ... the head of the government has stepped down.”

Jose Socrates was re-elected leader of Portugal's Socialist party on Sunday, four days after resigning as prime minister, and vowed to run in a parliamentary election on a platform opposing a financial bail-out.

Mr Socrates, who won 93pc of the leadership votes despite the country's political crisis, spared no criticism of the opposition whose rejection of his minority government's austerity measures last week led to his resignation.

"I am here to face the judgment of the Portuguese. I am not afraid and I will fight for victory," he told a party meeting after being re-elected as general secretary.

The Telegraph



MORE:
http://www.telegraph.co.uk/finance/economics/8409990/Crisis-hit-Portugal-encouraged-to-accept-eurozones-bail-out-package.html




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