April 24, 2012
Blog #3 Portugal
As we all know, Portugal has been suffering since the recession started and had to ask for a bailout from the European Union. Since this all occurred the country has been trying to fix their problems. The answer to the problem has come a bit too late for Portugal as it appears that it may worsen before it improves. According to a recent interview the prime minister of Portugal has stated that Portugal for a long time “pursued an irresponsible path of policies and structures that failed to promote growth.” The prime minister does not believe that the problems of his country can be resolved in a short time since the problems need long term fixes.
Portugal has hopes of returning back into the financial markets starting in 2013 but this may be stopped if the economy continues to fall. The country suffers from very high unemployment and very high debt. The government is working on changing the labor market and welfare system in addition to boosting trade. The problem is that there are many factors affect the success of Portugal as a country. For example the country thrives on tourism which depends on other countries. If the tourists cannot spend their money by visiting Portugal then the country will continue to fail.
The European Union is starting to sell bonds in order to raise money for the Portugal bailout. The cost of the bailout is affecting all of the countries in the European Union as well as around the world. Since the world is so globalized most countries tend to slip at the same time. Hopefully things will start to get better in Portugal. The new reforms will take time however in the long run the reforms will show that the country can succeed.