in FT

“No political party in Portugal wants to preside over a bail-out, but any new government must realise that a rescue will not address the country’s largest longer term problem: poor economic prospects. (…) [E]uro membership has given the country a “lost decade”. How different to Ireland, which suffered a damaging bubble. Ireland’s problem, however, is acute (a banking collapse), while Portugal’s is chronic. Austerity measures are necessary but temporary measures to address a short term crisis. It will take much bolder action to restructure Portugal’s anaemic economy.”