SPOKESPERSONS for both the Portuguese and German governments and the European Commission have denied a newspaper report this morning which claimed that Portugal was coming under pressure from the rest of the EU to accept a financial bailout.
An article in the German edition of the Financial Times said that the European Central Bank was hoping Portugal would agree to receive a “rescue” package from the ECB, as it scrambled to try and stop the Eurozone debt crisis from continuing to spread and risking the ability of Spain to borrow.
An unnamed German government source told the paper that “if Portugal were to use the [European Financial Stability Facility], it would be good for Spain, because the country is heavily exposed to Portugal,” and were similar to remarks published about Ireland’s financial state just days before discussions began on an Irish bailout.
A Berlin government spokesman dismissed the story, saying that the Merkel administration “isn’t pressing anybody to seek funding from the bailout fund”, while another spokesman said nobody authorised to comment had actually done so.
European Commission president Jose Manuel Barroso also downplayed the report, describing it as “false – completely false”. A Portuguese government spokesman, meanwhile, also said it was “false [and]has no foundation”.
Spain’s prime minister Jose Luiz Rodriguez Zapatero has, meanwhile, said there is “absolutely” no chance of Spain having to seek a bailout, despite the cost of its borrowings rising to 5.190% today.
The denials must be taken with a pinch of salt, given that parties on all sides also denied the need for Ireland to take a bailout, and refused to acknowledge any pressure on Dublin.
To embed this post, copy the code below on your site
have your say