“Political turmoil in Portugal and concerns about the pace of reform in Greece have raised fears that the eurozone crisis may be about to reignite. Nervous markets pushed up borrowing costs in Portugal to a painful 8 percent Wednesday (3 July) after the governing coalition of Pedro Passos Coelho saw the resignation of its finance and foreign ministers over the social and economic costs of austerity measures. Coelho’s weakened position raises doubts about whether Lisbon – until recently routinely praised for putting into place a series of harsh budget-cutting measures – will be able to meet the terms of the its €78 billion bailout, agreed in 2011.”
