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Portugal: under no eurozone pressure for financial aid
AFP - Saturday, November 27
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Portugal: under no eurozone pressure for financial aid
LISBON (AFP) - – The Portuguese government said on Friday it was under no pressure from the European Central Bank or other eurozone member states to accept financial aid to ease its debt and deficit problems.
The prime minister's office said a report published by the Financial Times Deutschland that Lisbon was being pressed to accept aid, as was Ireland last week, was "totally false."
The government denies there "is any pressure from the ECB or European countries for Portugal to accept aid," a spokesman said.
The FTD wrote earlier, without citing sources, that "The ECB and the majority of euro area countries are pressing Portugal, like Ireland, to apply for help, according to FTD information."
If Portugal were to tap the 500-billion-euro (664-billion-dollar) fund, it would help Spain, seen as a potential bailout case, the newspaper reported.
"If Portugal were to use the fund, it would be good for Spain because the country has high exposure in Portugal," the FTD quoted a German finance ministry source as saying.
Portugal was paralysed on Thursday by a crippling general strike in protest at a drastic round of spending cuts and tax rises worth some five billion euros which are currently being pushed through parliament.
The measures are intended to reduce the public deficit from 7.3 percent of GDP to 4.6 percent next year in a bid to quell growing international unease over the state of Portugal's finances.
Parliament is due to give a final reading to the budget measures later Friday.
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