Crisis in Portugal (Krize v Portugalsku)

SUMMARY
The current economic crisis in Portugal is the worst the country has seen since the 1970s, showing that the political crisis in the eurozone is not yet over. With nearly 18% of the population unemployed, Portugese residents with higher education have resorted to leaving the country to seek job opportunities abroad.
Politicians and ministers are under constant pressure due to the economic crisis, as a result two of the leading ministers have resigned. Finance Minister Vitor Gaspar and Foreign Minister Paulo Portas, announced their resignation in the midst of the critical situation and negotiations over austerity reforms.
Jeroen Disjsselbloem, the eurozone Finance Minister, called for Portugal to take responsibility for the current political instability. If the situation is not resolved as soon as possible it could threaten the financial credibility of Portugal as a country and member of the eurozone.
Though the government has shown commitment following some of the Brussels/Berlin reform suggestions by appling tax rises and budget cuts, Portugal will struggle to find political stability. If the financial credibility will be jeopardised by the current political instability it would be damaging for the Portuguese people as there were beginning signs of economic recovery.
Althought it won´t be easy, the government would like to ask Brussels to ease the terms of the bailout which was agreed in May 2011. The amount of the bailout is 78bn – euro. The Prime Minister, Pedro Passos Coelho, would like to avoid another bailout for the country. Politicians are aware that an additional bailout could lead to the collapse of the current government, making it difficult for the country to continue paying the international creditors for its loan obligations. Investors are already showing concern over Portugal´s ability to continue making payments on its international debts.
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In just a few days, the country has to find and put forward a solution on how it will meet the terms of its EU/IMF (The International Monetary Fund). The President, Anibal Cavaco Silva, would like to resolve the growing crisis by meeting with the prime minister and all of the members from each potitical party in the coming days.
The prime minister has already asked for the Portuguese people to be prepared for new sacrifices and further austerity reforms. Demonstrations in the capital city, Lisabon, have already taken place due to the recession lasting over 2 years and continued austerity reforms.
Portugal is not alone in suffering its worst economic recession, other eurozone members like Greece are also having political and economic troubles. The last crisis has shown how difficult it is for a country to exit a bailout programme and find a way to return to the market again.
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KEY WORDS
Economic crisis Hospodářská krize
Resignation Rezignace
Austerity reforms Úsporné reformy
Political instability Politická nestabilita
Financial credibility Finanční důvěryhodnost
Bailout Výpomoc
International creditors Mezinárodní věřitelé
Loan obligations Úvěrové závazky
Solution Řešení
Sacrifices Oběti
Resolve Vyřešit
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SOURCES
BBC News [online]. Publikováno 3.7.2013 [cit. 2013-07-07]. Eurozone Crisis: Why Portugal matters. Dostupné z: http://www.bbc.co.uk/news/world-europe-23162786.
BBC News [online]. Publikováno 3.7.2013 [cit. 2013-07-07]. Portugal borrowing costs rise amid looming crisis. Dostupné z: http://www.bbc.co.uk/news/business-23160037.