European Commission warns Portugal on Breaking Austerity Agreements

The European Commission warned in a statement Sunday that failure by Portugal to implement its austerity program would results in the curtailment of future aid.

The move came after Portugal’s high court struck down some of the austerity measures enacted as part of the nation’s bailout. The EC, which acts as the European Union’s cabinet, said that “continued and determined implementation” of the austerity program “is a precondition for a decision on the lengthening of the maturities of the financial assistance to Portugal, which would facilitate Portugal’s return to the financial markets.” The court ruling, which declared some public-employee wage and pension cuts, prompted the Portuguese Prime Minister Pedro Passos Coelho and other officials to warn of consequences for the nation. The prime minister said the government would seek other spending cuts to fill the gap left by the ruling.

Click here for full EC Statement


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu