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portugal could exit euro says minister

News Posted On: 16 November 2010

Portuguese foreign Affairs Minister Luis Amado has courted controversy by saying that Portugal could exit the eurozone.

If Portugal were to come out of the Euro, the potential devaluation of the Escudo, the currency it would be returning to (I presume) would present incredible opportunities for foreign buyers to get some tremendous deals on Portuguese property.

Amado told reporters that Portugal faces “a scenario of exit from the euro zone” if it fails to tackle its economic challenges.

“There has to be an effort by all political groups, by the institutions, to understand the gravity of the situation we’re facing,” he said.

However, experts doubt the validity of his claims. More likely the statement is made in a bid to increase commitment among the political parties to the austerity that Portugal must implement if it is to get its economy back on track.

They do not doubt the irresponsibility of his claims however. At the moment, fear and uncertainty is a massive problem for the EU and statements like this only increase the tension.

That said, in my opinion, if the statements were to successfully increase the Portuguese political parties to work together and bring the economy back on track, then it would be worth it in the trade off. Unfortunately this is unlikely, because if I can see through the statements then the political parties will be able to as well.

That is, if I am right. We will find out very soon; in all likelihood if these were rash statements made without the backing of his party, then we will soon see a higher ranking minister pour water on the fire. If not...

Written by Liam Bailey

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