Thursday 7 April 2011

Another Day, Another Bailout


As widely expected, Portugal is in talks with the EU regarding a bail-out, so widely expected in fact that the markets this morning appear to have taken the news in their stride.

This was soon followed by an announcement that Spain is not seeking a similar bailout:
'Spain is not at risk at all after Portugal has asked for a rescue,' Finance Minister Elena Salgado told Spanish National Radio.
So Spain has now passed; 'nothing is true until officially denied' test. The UK will naturally be contributing to the bailout of Portugal, to the tune of around £6bn. Thankfully we're not in debt ourselves and have lots of cash to spare to help out our EU neighbours. Oh wait...

2 comments:

  1. Spain is by no means out of the woods. It will hold out but Germany's actions on interest rates will ultimately see it go under.

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  2. Indeed James, I'm not sure if Spain will be next - Italy and Belgium look dodgy as well, but the (arrogant) confidence of the EU that contagion now stops at Portugal and won't affect Spain seems very misplaced to me.

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