by Joe Weisenthal
July 3, 2013

from BusinessInsider Website


And it's like the good old days in Europe today.

The Portuguese stock markets is crashing over 6%. Interest rates on Portuguese bonds are spiking.

The cause? The Finance Minister has resigned in a dispute over austerity.

From WSJ:

Mr. Gaspar said in his resignation letter that he had first offered to step down last October amid evidence that public and political support for the country's austerity program was fading.


Protests and strikes have become more common since then, and some lawmakers from the governing coalition have joined its critics in saying austerity is doing the country more harm than good.

"It is my conviction that my exit will contribute to reinforce your leadership and cohesion within the government," Mr. Gaspar wrote to Prime Minister Pedro Passos Coelho in the letter.


Also from LatestCurrentNews - India:


Portugal's Finance Minister Resigns
by Patricia Kowsmann
Laurence Norman in Brussels contributed to this article.
July 02, 2013


Finance Minister Vitor Caspar, the chief supporter of asceticism demands underneath Portugal's international bailout, resigned Monday amid growing resistance to budget-tightening from a recession-weary population.

The Portuguese president's workplace proclaimed Mr. Gaspar's departure and aforementioned he would get replaced beginning weekday by the treasury secretary, Maria Luís Alburquerque.

Mr. Caspar aforementioned in his resignation letter that he had initial offered to step down last Gregorian calendar month amid proof that public and political support for the country's asceticism program was attenuation.


Protests and strikes became a lot of common since then, and a few lawmakers from the governing coalition have joined its critics in speech asceticism is doing the country a lot of damage than sensible.

"It is my conviction that my exit can contribute to bolster your leadership and cohesion inside the govt," Mr. Caspar wrote to Prime Minister Pedro Passos Coelho within the letter.

The language gave the impression to counsel that he was releasing the prime minister to shift faraway from a stress on cutbacks.

Mr. Gaspar's exit, however, is unlikely to steer to a robust shift in policy by the govt, that should continue on the trail set to qualify for continued monetary facilitate from its lenders. Ms. metropolis has additionally stressed a necessity for tight limits on public disbursal.

The EU political economy commissioner Olli Rehn aforementioned in associate emailed statement that Ms. Alburquerque should "maintain the tempo of reform."


He added that he was "confident" that she,

"will show similar commitment and determination."

Western Europe's poorest economy is troubled to repair its finances underneath the terms of a €78 billion ($101 billion) rescue united 2 years with the ecu financial organization, the ecu Union and also the International fund.

Mr. Gaspar, associate social scientist WHO antecedently had worked at the ECB and had no previous political career, joined the government following its election in Gregorian calendar month 2011, shortly when the bailout agreement.


Since then higher taxes as well as cuts publically employees' salaries and disbursal on health and education have down the deficit to six.4% of gross domestic product last year from nearly 100% in 2010.

But with the recession coming into its third year and state surpassing 17 November, Mr. Caspar has taken the forcefulness of criticism.

Portugal's targets underneath the three-year bailout agreement caught up a deficit below third of value this year and economic process of one.2%. Instead, the economy is predicted to shrink this year by a pair of.3%.

"Target misses hit my credibleness as minister," Mr. Caspar aforementioned in his resignation letter.

Nicholas Spiro, director at Spiro Sovereign Strategy in London, called Mr. Caspar "a credible and well-respected" minister and aforementioned his departure may be a blow to Portugal's international name.

"Portugal's economic overhaul has suffered variety of setbacks lately, and Mr. Gaspar's surprising exit hardly conjures up confidence," he said.

Financial markets shrugged off the news, with 10-year Portuguese bond yields ticking up solely slightly when the announcement, to 6.439% from vi.387%.

Some analysts aforementioned Ms. Albuquerque's expertise overseeing the country's debt program may facilitate European country. She is thought among European finance ministers and technocrats in Belgian capital.

The bailout agreement runs come in Gregorian calendar month 2014, and from then on the country can ought to swear alone on monetary markets for funding.


European country completed a 10-year bond sale earlier this year, and Mr. Caspar aforementioned last week the government would presently announce a long-run finance arrange, together with additional bond sales this year.


Europe is red across the board:

  • Germany is down 1.5%

  • Italy is off 1.8%

  • Spain is down 2.6%