Econintersect: The Financial Times reports that José Sócrates, Portugal’s prime minister, resigned on Wednesday night. The resignation was announced in a televised address after opposition in parliament defeated Sócrates’ proposed austerity budget, designed to keep Portugal from an EU bailout. Sócrates said in his TV address that he had tried to prevent Portugal from following Greece and Ireland into a bailout process.The resignation puts Portugal on the path to new elections. According to the Financial Times:
Sócrates said the opposition parties had blocked austerity measures endorsed by the European Central Bank and the European Commission, the EU’s executive branch, out of a “mere hunger for power”.
The crisis increases the likelihood of a financial rescue led by the EU. It also threatens a political vacuum that would complicate negotiations on a bail-out package.
All the opposition parties voted in favour of five resolutions to reject the measures in what amounted to a censure motion. Only the 97 Socialists in the 230-seat parliament voted in support of the government.
Source: Financial Times
