The New York Times has a good piece bringing you up to speed on wha could be the next crisis zone inside of Europe: Portugal.
Here are the numbers:
Portugal’s debt, at just under 90 per cent of gross domestic product, is lower than Greece’s 113 per cent level. The government in Lisbon has taken pre-emptive steps to cut spending and raise taxes.
Portugal’s financing needs for the year, while high at 24 billion euros, or $32.7 billion, are not as onerous as Greece’s. On Wednesday, the government was able to raise two billion euros comfortably on the bond market.
But Tim Lee of pi Economics, a consultancy based in Stamford, Conn., said a country’s savings rate, more than its deficits or debt-to-G.D.P. ratio, is the best measure of an economy’s ability to pay down its debt.
So sure, Portugal could survive with the right combination of luck and implicit backing.
But the trend is against you, as demographic and other structural problems continue to eat away at government finances across the continent.
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