The Portuguese government has failed to pass a budget that would cut spending and reduce debt in the hopes of bringing the troubled PIIG state back to normalcy.
Instead, they pushed through a budget which will allow the government to rack up more debt, fueling an already rampant fire in the market for the country’s credit default swaps.
Yesterday, Portugal saw their CDS spread widen as more concerns have risen about the country’s ability to pay down their debt.
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