The euro came under pressure today as Portuguese bond yields surged higher on news that Portugal’s Finance Minister Vitor Gaspar resigned late on Monday.
Since taking office two years ago, Gaspar implemented harsh austerity measures, which included tax rises, spending cuts and state job layoffs, all in an effort to bring the highly indebted peripheral Euro zone economy’s finance back to balance.
These strict measures have given rise to growing discontent among the Portuguese people, a main factor leading to Gaspar’s resignation.
52-year-old Gaspar wrote in his resignation letter to Prime Minister Pedro Passos that he was stepping aside because of the growing erosion of public support for these austerity measures which provides challenges to the government to stay the course.
Last week the national statistics agency reported that Portugal’s public debt rose to 10.6 percent of economic output in the first quarter of 2013 with plunging tax receipts, while a general strike by the nation’s two main unions brought the country to a near standstill, with members calling on the government to ease off austerity measures.
“It’s my firm conviction that my departure will contribute to reinforce the leadership and cohesion of the government team,” Gaspar said in his resignation letter.
Prime Minister Pedro Passos Coelho accepted his resignation, which was also approved by President Anibal Cavaco Silva. Today it was announced that Secretary of State for Treasury Maria Luis Albuquerque will replace Vitor Gaspar as Finance minister.
The euro came under pressure today as Portuguese bond yields surged higher on news that Portugal’s Finance Minister Vitor Gaspar resigned late on Monday.
Since taking office two years ago, Gaspar implemented harsh austerity measures, which included tax rises, spending cuts and state job layoffs, all in an effort to bring the highly indebted peripheral Euro zone economy’s finance back to balance.
These strict measures have given rise to growing discontent among the Portuguese people, a main factor leading to Gaspar’s resignation.
52-year-old Gaspar wrote in his resignation letter to Prime Minister Pedro Passos that he was stepping aside because of the growing erosion of public support for these austerity measures which provides challenges to the government to stay the course.
Last week the national statistics agency reported that Portugal’s public debt rose to 10.6 percent of economic output in the first quarter of 2013 with plunging tax receipts, while a general strike by the nation’s two main unions brought the country to a near standstill, with members calling on the government to ease off austerity measures.
“It’s my firm conviction that my departure will contribute to reinforce the leadership and cohesion of the government team,” Gaspar said in his resignation letter.
Prime Minister Pedro Passos Coelho accepted his resignation, which was also approved by President Anibal Cavaco Silva. Today it was announced that Secretary of State for Treasury Maria Luis Albuquerque will replace Vitor Gaspar as Finance minister.
Related Posts: