euinside

Cause and Effect in European Politics and Law

Portugal will be the last tile of the domino in the euro area

Ralitsa Kovacheva, May 1, 2011

Will Spain prove to be the next eurozone country to fall under the pressure of the debt crisis? euinside forecasts that Portugal will be the last tile of the domino in the euro area. One of the reasons for this vision of ours is that not all countries suffer from one and the same disease and, although Spain is having tough problems, including in its banking sector, the country has already demonstrated determination when implementing restrictive measures and structural reforms. The second reason is that, although with some delay and hesitation, in the past year the EU has undertaken measures to tackle the debt crisis and to increase economic coordination, which will inevitably deliver. Once constrained into the framework of the periphery, the "infection" will be treated painfully but will not turn into an epidemic.

This is euinside's forecast. How about yours?