| Author (Person) | Nielsen, Nikolaj |
|---|---|
| Series Title | EUObserver |
| Series Details | 02.07.13 |
| Publication Date | 02/07/2013 |
| Content Type | News |
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Portugal’s finance minister and one of the chief architects behind its €78 billion bailout, Vitor Gaspar, tendered a surprise resignation on the 1 July 2013 in the face of widespread opposition to austerity-driven policies. Maria Luís Albuquerque, former Treasury Secretary, replaced Mr. Gaspar as the new finance minister. In his resignation letter to the prime minister, Vitor Gaspar said he lost the faith and support of the people to maintain a policy that had so far failed to curb rising unemployment and a deepening recession. The former minister had been praised by international creditors for keeping a tight rein on Portuguese finances following the country's 2011 bailout. 24 hours after Mr. Gaspar resigned from his position as finance minister, Paulo Portas, foreign minister and leader of the junior coalition partner in Portugal, presented his resignation to the Prime Minister, showing disagreement on the choice of Maria Luís Albuquerque as the new finance minister. The Prime Minister of Portugal Pedro Passos Coelho pledged to stay in office and seek to establish a stable government despite the resignation of Mr Gaspar and Mr Portas, whose move threatened to break-up the ruling coalition. On the 3 July 2013, and in the aftermath of the resignation of the Mr Portas, Portugal's borrowing costs rose sharply amid fears of a growing political crisis in the country. On the 3 and 4 July 2013, Mr Passos Coelho and Mr Portas met to negotiate the terms in which the coalition might avoid a new general election. Later on the 4 June Mr Coelho met President Cavaco Silva. Portugal's markets recovered somewhat after the scare that coincided with the country's political crisis. |
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| Source Link | Link to Main Source http://euobserver.com/economic/120712 |
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| Countries / Regions | Portugal |
