Portugal success shows austerity measures can work
The European bail-out program hit Portugal as hard as it did Greece or Spain, but the country’s austerity program has been relatively successful in comparison to other European economies still reeling from the debt crisis.
Things first starting going wrong when Portugal’s interest rates, in the form of bond yields, rose by 17% but now the nations’ success story has returned the ruling conservative government to power at their recent elections.
While Portugal still grapples with some severe economic issues, such as an unemployment rate of 13%, their position remains considerably more stable than others who were bailed out by the European Union.
Vincent Su spoke with independent economist Shaun Richards, to find out why austerity worked for Portugal when the same programs failed in other European economies.
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