NYT: Merkel vows full support for Portugal

12 November 2012

Chancellor Angela Merkel of Germany vowed continued support for Portugal, seeking to reassure that fiscal overhauls would be rewarded with long-term growth and stability.

Ms Merkel expressed confidence that the troika of international lenders that has bailed out both Greece and Portugal would issue a favorable report on Lisbon’s efforts at reforming its economy. As Ms Merkel arrived in Lisbon for a six-hour visit with Portuguese leaders, she was greeted by statues shrouded in black mourning cloth and shouts of “Merkel out!” from hundreds of protesters, who were largely outnumbered by the police. She received an even harsher reception when she visited Athens last month. “I feel a great sense of determination here in Portugal to overcome this difficult phase”, Ms Merkel said.

Public anger in Portugal, for years regarded as Europe’s model bailout recipient, has swelled in recent weeks as Mr Coelho’s centre-right coalition government has raised taxes and reduced spending in return for a bailout of €78 billion from the troika. The government is predicting a third consecutive year of recession in 2013, with unemployment reaching nearly 16 per cent, and more than twice as many young people out of work.

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