German finance minister Wolfgang Schaeuble has demanded Portugal’s political parties come together around an austerity package before the European Union offers them a bailout, according to Bloomberg.”The rules are very clear. Whoever needs assistance by other European member states and member states of the euro zone, he has to deliver sustainable measures for reducing the deficits because the deficits are the reason why they need help,” Schaeuble told Reuters.
Portugal, which is set to hold elections in early June, does not have a full-fledged government in place to negotiate and pass bailout terms. Instead, Portugal’s political parties must get together and work out a consensus plan.
This domestic political instability, which arose when parliament rejected austerity measures proposed by Portugal’s prime minister, will add greater political uncertainty to the Portuguese crisis than we may have seen in Greece or Ireland.
And with German and Finnish officials demanding strict reforms, it could be a struggle for the country to make the June deadline, where it will be in need of cash for refinancing its debt.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.