Finns And Germans Pushing For Massive Austerity Wave In Portugal In Return For €80 Billion Bailout

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Portugal will get a €80 billion bailout, but it will have to wait until a new government is in power in June to confirm it, according to the Financial Times.It’s likely all the details on the deal will be hashed out between this weekend’s European finance ministers meeting and next month’s on May 16, however.

Olli Rehn, who is the EU’s economic and monetary affairs chief, doesn’t see Portugal facing problems with its debt financing this month or next, but that June would be more difficult.

In order to get the bailout, Portugal still needs to convince Germany that its austerity program is strict enough, and also may have to engage in a new round of privatizations. Finland is also demanding that Portugal institute reforms that are, “stricter, harder and more comprehensive than the one the Portuguese parliament voted against,” according the country’s finance minister, via

Without a government in place, it may be difficult to gain consensus amongst competing parties to sign off on a such a deal, particularly before the country’s election in June.

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