Thursday, 7 April 2011

Another Day, Another Bailout

As widely expected, Portugal is in talks with the EU regarding a bail-out, so widely expected in fact that the markets this morning appear to have taken the news in their stride.

This was soon followed by an announcement that Spain is not seeking a similar bailout:
'Spain is not at risk at all after Portugal has asked for a rescue,' Finance Minister Elena Salgado told Spanish National Radio.
So Spain has now passed; 'nothing is true until officially denied' test. The UK will naturally be contributing to the bailout of Portugal, to the tune of around £6bn. Thankfully we're not in debt ourselves and have lots of cash to spare to help out our EU neighbours. Oh wait...


  1. Spain is by no means out of the woods. It will hold out but Germany's actions on interest rates will ultimately see it go under.

  2. Indeed James, I'm not sure if Spain will be next - Italy and Belgium look dodgy as well, but the (arrogant) confidence of the EU that contagion now stops at Portugal and won't affect Spain seems very misplaced to me.