video Video

Portugal knocks at the euro zone crisis door, again

Monday, April 08, 2013 - 02:17

April 8 - Exactly two years after seeking a 78 billion euro international bailout, Portugal's constitutional court has blocked austerity measures, forcing PM Coelho to look for new options to keep on track.

▲ Hide Transcript

▶ View Transcript

Expect GT is off to seeking a 78 billion yearly national bailout Portugal is back in the spotlight. Prime minister Pedro passes quail oh promised -- then the -- is a tough measures would lead to Christ. Instead the country is facing a long and deep recession. The government was one of your staunchest advocates austerity. But it's it's a major stumbling block. The constitutional court to -- for up to nine austerity measures from the -- DA's budget depriving the state for around 900 million year race. I -- New York -- Simon Derrick. Many house depression on whatever austerity measures you can do whatever spending cuts he can mag because clearly the -- -- -- the Northern Europe to provide. Any more support she's scared she's gonna -- steadily -- Cyprus is clearly weakened support to Northern Europe for. Giving feather right to Southern Europe or reason tensions of the year upset I think he's an extremely difficult position having what society. Portugal's austerity packages was about five billion year race and he creates the largest tax hikes in living memory. Two point its second bailout it -- now find me measures to replace -- he's rejected by the -- it. The European Commission has already given political more time to pay and says it must solve this crisis on its and but other international -- as a waiting and in his first official visit to the -- and US Treasury Secretary Jacqui they -- European countries to relax their austerity measures and focus on grace. The US economy is expanded for fourteen consecutive quarters and although the pace of job creation is not as fast as we would like. The private sectors added jobs for 37 straight months. As we address our long term challenges however our economy's strength remains sensitive to events to be under shores. And we have an immense stake in Europe's health and stability. Theory same sentiment fell for a second consecutive month in April. Cyprus is being blamed officers forced heavy losses on wealthy deposited. Secured ten billion near bailout from the EU and IMF. The Portugal's plight also highlights how old problems as well as new ones can still be a close the consigned.