New signs suggest the euro crisis is flaring up again
From Sober Look:
The date is set for the troika inspectors to pay a visit to Portugal.
CBS News: Portugal’s Finance Ministry says inspectors from the country’s bailout creditors will arrive Sept. 16 to assess Portugal’s progress on repairing its public finances and adopting economic reforms.
In return for a 78 billion euros rescue package in 2011, the creditors — the International Monetary Fund, European Central Bank and other euro countries — demanded spending cuts to reduce debt. They also required measures to modernize the economy. Disbursement of bailout funds depends on Portugal’s compliance.
Of course these compliance targets have been loosened considerably since the original agreement. Based on the new hurdle level, Portugal should be able to pass the “inspection” this time around…