The average interest Portugal is paying for [the stock of its] 10-year bonds is about 3%. Right? As the new issues cost 7%, the average rate is increasing (La Palisse). I wonder whether someone has already estimated the pace of growth of the interest rate. But the feeling is that this cannot last for much longer.
Now that Passos Coelho, the leader of the main opposition party, the Social Democratic Party, is seeing his chances of becoming prime minister increasing, many people are finally joining the old conclusion that our mess cannot be solved by the national government alone, whichever party is in power. Even less so by the President whose powers are quite limited. It seems that everyone here is now finally seeing the forest.
Portugal’s problem is a European problem, fortunately, and thus it needs a European solution, fortunately or not.
And Portugal's problem is different, considerably different, from those of Ireland, Spain or Italy (let's not speak about Greece here because Greece is where Greece is). Portugal still didn't have the time to find its proper position within an open European economy. Its economy was weaker and poorer when it joined the Communities, the Single Market and the euro (yes, we can learn a few lessons from Economic History), and still hasn’t adapted. It has an economic problem, with financial overtones, not a political problem.
The bottom line is that we need an answer quickly about how the mess is going to be solved, within the European Union. If the answer takes too long, we can always go back to the protectionist mode (which wont’ happen…).