Finance Minister

January 15, 2013

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Pressure on Portuguese debt forced months earlier to seek a bail of 78 billion euros in charge of the EU and of the International Monetary Fund (IMF) aid which required a strict program of reduction of public spending. Neither the cuts, which include the suspension of the bird between Lisbon and Madrid, nor the announcement of a new tax of 50% on the extra pay for Christmas, were enough to convince the rating. On 6 July the Portuguese markets collapsing and the risk premium was fired after that Moody s also take the determination of lowered from Baa1 Portuguese debt to Ba2, the junk bond level, given the growing risk that the Portuguese country breach its deficit reduction and had to ask for more help. A decision that was attacked with hardness from Brussels and described as purely speculative. Italy, the latter in sow mistrust but perhaps Greece the most paradigmatic example of the lack of confidence before the reforms.

After nearly two years into the financial abyss, the elapsed time since destapara the magnitude of its financial debt after irregularities committed during years, the adoption of new measures of economic adjustment and renewal of his Finance Minister not do more than generate doubts in the markets. An instability that contributed last Monday the inability of the Eurogroup to reach an agreement with respect to the second bailout to Greece, which will exceed 100 billion euros. Italy is the last peripheral country in jump on the bandwagon of uncertainty. The announcement of Berlusconi does not stand for re-election in 2013, before the new European solvency tests banking problems and the apparent weakness of the figure of the economy Minister, Giulio Tremonti, have put Italy in the point of view of financial speculators, despite the plan of 47,000 billion euros adjustment tabled at the end of June. Source of the news: changes of Government, plans of austerity and uncertainty remains in the markets