Germany, France 'push Portugal to seek bailout'

[Albion]

BERLIN (AFP) – Germany and France want to press Portugal to seek a bailout in order to stop Spain and Belgium becoming the next euro crisis casualties, German weekly Spiegel reported Sunday.
Paris and Berlin also want members of the 17-country eurozone to state that they are ready to do whatever it takes to save the currency union, including expanding a 750-billion-euro (970-billion-dollar) rescue fund, Spiegel said citing sources in Berlin.
German and French experts are worried by the high interest rates Portugal is being forced to pay in order to borrow money from investors concerned by Lisbon's public finances.
Interest rates on Portuguese debt rose sharply to record high levels on Friday -- as they did for Spain.
Spain is of much greater concern to Paris and Berlin, with its economy twice that of Portugal, Greece and Ireland combined, a banking sector struggling with bad debts and unemployment at almost 20 percent.

Full story... (http://news.yahoo.com/s/afp/20110109/bs_afp/eueurozoneportugalgermanyfrancespaineconomybonds_2 0110109162858)

[Albion]

It doesn't look like good news here, the Euro seems to be dropping down left, right and centre and this is sure to affect the non-Euro countries of Europe as well.

[Vasconcelos]

Germany and France denied it, tho.

Just today our PM announced that the Government will not seek international help and that the deficit dropped behind the expected value (7.3%) to 6.9%.

Personally, if some people weren't such Appocalipse Prophets -that includes newspapers who whose only intrest is selling- our situation wouldn't be as bad as it is now.

[Albion]

Germany and France denied it, tho.

Just today our PM announced that the Government will not seek international help and that the deficit dropped behind the expected value (7.3%) to 6.9%.

Personally, if some people weren't such Appocalipse Prophets -that includes newspapers who whose only intrest is selling- our situation wouldn't be as bad as it is now.

That's good some good news but that's the news papers don't report, I didn't know about that.
I agree, the apocalyptic articles publish can't be helping investor and trader confidence and must add to the Eurozone's troubles.

[Loki]

From this link (http://money.cnn.com/2011/01/11/markets/markets_newyork/index.htm):

Eurozone jitters ease: On Monday, stocks ended just below breakeven as investors worried about a possible bailout for Portugal.

Those concerns faded Tuesday amid reports that Japan will buy eurozone bonds to help prevent the spread of the region's debt crisis, but Gendreau said problems will resurface throughout the year.

Thanks Mongoloids!

[SwordoftheVistula]

They should hire this guy as a spokesman

http://www.bucksright.com/wp-content/uploads/2009/07/baghdad-bob.jpg

Edit: nevermind, image not showing

[Vasconcelos]

Portugal succeeds in selling bonds amid bailout pressure



Portugal, facing pressure to follow Greece and Ireland and agree to a financial bailout, succeeded in selling €1.25bn (£1bn) of bonds in an auction seen as a key test of investor confidence.



The country managed to sell €650m of bonds due in 2014 and €599m of bonds due in 2020.

The yield, or the price investors charge Portugal to hold its debt, on the shorter-term debt was 5.396pc, higher than the 4pc investors looked for in an October bond sale.

However the yield on Portugal's closely-watched 10-year bond was slightly lower, at 6.716pc today compared with 6.806pc in a November auction.

Portugal's government debt agency said there was high demand for the bonds, claiming it could have sold more than double the €1.25bn-worth it offered.

The yield on Portugal's 10-year bonds has been trading at around 7pc in recent days, a borrowing cost which some economists view as too high for the country to support.

Portugal is facing a split between its political leaders, who insist the country does not require a bailout from the European Union and International Monetary Fund (IMF) to deal with its budget deficit, and members of the Portuguese central bank who support accepting financial aid.

Portugal's leader Jose Socrates says his government has delivered on promises to the EU, cutting the budget deficit below the target of 7.3pc for 2010.

"Portugal will not request financial aid for the simple reason that it is not necessary" he said yesterday.

Japan gave a boost to the euro nations yesterday, saying it would buy bonds issued by Europe's financial-aid funds to help restore stability to the region.

Reuters

[CelticTemplar]

I vote we go back to the Escudo and just drop this whole EU nonsense, it has caused almost nothing but trouble since it's creation.

http://aes.iupui.edu/rwise/banknotes/portugal/PortugalP190e-5000Escudos-1998_b.jpg

Not to mention that the above looks much better than the crap on the Euro notes.

[The Lawspeaker]

Since when have you been in America ? Second: yes.. maybe we should drop the Euro but force America to stop paying all the money it owes us and the same goes for the other big banks.

The Euro as a currency is not too blame here. It's daylight robbery by the banks and the corruption of the southern countries. Like Italy, Portugal and Greece. And also like "Belgium" and Ireland.

O Portugal: let op u saeck,. de tyt en stont is daer*. So we don't have to do it for you !

* Mind your affairs. The time and hour is there.

[Raikaswinþs]

I preferthe icelandic way to dealwith the "crysis". bankersin jail and complete reestructuration of government and economical bases .

[The Lawspeaker]

The Icelandic model is indeed the way to follow. But leaving the Euro and letting ourselves be divided by a bunch of morons and obvious traitors on American and Israeli payrolls (right PVV, right UKIP ?!) is not the way to follow. We should clean up our house together.