Portuguese Foreign Minister Says Country May Need To Leave Euro

Portugal Praying

Portuguese foreign minister Luis Amado has suggested his country might need to leave the eurozone if it cannot come to agreement on an austerity budget, according to Expresso (via WSJ.com).

According to the Wall Street Journal’s translation, Amado says that Portugal may face, “a scenario of exit from the eurozone.”

This comment may not seem like much, but it is evidence that fringe eurozone members are considering whether they should be in the currency union at all. Portugal has been unable to build a government coalition capable of passing the sort of cuts ECB officials are calling for, putting their membership at risk.

In a week dominated by headlines relating to Ireland’s imminent bailout, the return of Portugal to the front of the PIIGS crisis will only increase the pressure on the euro.

Check out Niall Ferguson’s complete and definitive guide to sovereign debt crises >

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