A European Commission spokesman said on Monday that Portugal was “sufficiently financed” discarding the need for a second Troika bail out.
However, the same source warned that the scenario could change if the current situation with Greece got any worse.
Speaking on the sidelines of the European Commission’s daily press conference in Brussels, Amadeu Atajaf Tardio recognised that Portugal was doing everything requested by the international ‘Troika’ and that Portugal had “stuck to the programme to the letter”.
He also praised Portugal for achieving a good political consensus and not just at a governmental level although he warned that if Greece defaulted on its financial commitments that would hurt Portugal.
Amadeu Altajaf said that under the circumstances “a gradual return to market confidence was hoped for” but that market confidence was also being dented by events that were beyond Portugal’s control.
“It should be understood that what happens in Greece will also have an impact in turn all over Europe, including Germany and Portugal” said the EU Commission spokesperson for Economic and Monetary Affairs. The country’s most under pressure would suffer the worst effects of the fallout said Olli Rehn’s spokesman.