Europe’s Time to Fend Off Crisis May Be Waning

European Parliament Building

Spain and Portugal are hurting for good news lately, with neither country finding much of it.

Portugal’s political sphere has hit a brick wall in governing recently, when prominent member of the minority coalition party Paulo Portas resigned, leaving Prime Minister Pedro Passos Coelho’s government in a tough position. A growing weariness of austerity has infiltrated Portugal’s political arena, as recession, and a need to comply with bailout lender demands have worn heavily on the country.

However, Coelho’s position is a precarious one, as he continues to raise taxes and cut spending out of a need to shore up the country’s public finances in order to continue receiving funding. After a failure of Greece to make basically any headway on this front, it’s becoming more real to Portugal that a lack of reform could jeopardize their government completely, and recreate fears of another euro crisis.