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From Market News: "Portugal's President Anibal Cavaco Silva is prepared to accept the resignation of Prime Minister Jose Socrates and is getting ready to call an election to choose a new government, Portuguese daily Jornal Publico reported on its website Wednesday evening....The political instability that would ensue from a collapse of the government, combined with market tensions that have pushed Portuguese ten-year bond yields to a euro-era high above 8%, seem likely to increase the pressure on Lisbon to seek a financial aid package from the European Financial Stability Facility and the International Monetary fund." Look for Portuguese, Irish and all out toxic fallout (pardon the pun) to be bought with impunity by JC Trichet as the entire market goes bidless.
PORTUGUESE PARLIAMENT REJECTS GOVERNMENT'S DEFICIT-CUTTING PLAN
PORTUGAL'S PARLIAMENT BACKS RESOLUTION AGAINST GOVERNMENT PLAN
Next up: government resignation, crisis, bail out, etc. You know the drill.
Great. Portugal is officially broke. Time to get in line for a handout with the Irish and the Greeks.
Originally posted by hardamber
Lindsey Williams said once the Euro falls the dollar will follow within three weeks. Portugal was a marker to watch for. This is not good.
Originally posted by onequestion
reply to post by Vitchilo
It collapses when people stop going to work. Not when a publication says a budget didn't go through.
LISBON (Reuters) – Portugal's parliament rejected government austerity measures on Wednesday in a vote that is set to topple the minority Socialist administration a day before a European summit and is likely pave the way for a snap election.
Prime Minister Jose Socrates has said he will resign if the plan is defeated. He has said its rejection would force the debt-laden country to follow Greece and Ireland and seek an international bailout, which he opposes.
The rejection will "provoke an election," Cabinet Minister Pedro Silva Pereira told parliament shortly before the vote. "The government does not fear the judgment of the Portuguese people."
Whatever the outcome, opposition to austerity may increase as the Portuguese face lower wages and higher taxes, and the country returns to recession.
Large protests have been held against austerity on the past two weekends and on Wednesday train drivers went on strike to demand higher wages, creating traffic chaos around Lisbon as commuters were forced to take their cars to work.