Pimco CEO Mohamed El-Erian has warned that debt-ridden Portugal will become a second Greece and may also need a private-sector haircut. But he is exaggerating: Lisbon is forging ahead with its reform efforts, and the country has every chance of getting its finances under control.
Note: "opposition party PS blocked a plan to consolidate several administrative districts in Portugal as a way of reducing bureaucracy. It was the first time the party had voted against a reform Passos Coelho had negotiated with the troika. The government itself also made the first exceptions to its austerity policies, sparing airline TAP and bank Caixa Geral de Depositos from pay cuts -- and provoking protests from the rest of the country's workers."
Note: "opposition party PS blocked a plan to consolidate several administrative districts in Portugal as a way of reducing bureaucracy. It was the first time the party had voted against a reform Passos Coelho had negotiated with the troika. The government itself also made the first exceptions to its austerity policies, sparing airline TAP and bank Caixa Geral de Depositos from pay cuts -- and provoking protests from the rest of the country's workers."