Germany and France want Portugal to accept aid: report

BERLIN Sat Jan 8, 2011 10:34am EST

A sculpture showing the euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt, April 1, 2010. REUTERS/Kai Pfaffenbach

A sculpture showing the euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt, April 1, 2010.

Credit: Reuters/Kai Pfaffenbach

BERLIN (Reuters) - Germany and France want Portugal to accept an international bailout as soon as possible in order to prevent its debt crisis spreading to other countries, German magazine Der Spiegel reported on Saturday.

Without citing its sources, the magazine said government experts from both European heavyweights were concerned Lisbon will soon not be able to finance its debt at reasonable rates, after its borrowing costs rose at the end of last year.

Berlin and Paris also want euro zone countries to publicly commit to do whatever it takes to protect the bloc's single currency, including topping up a 750 billion euro ($968 billion) rescue fund if necessary.

Portugal is viewed by many economists as the peripheral euro zone country that is most likely to follow Ireland and Greece to seek an international bailout as it grapples to cut its debts and borrowing costs. It holds its first bond auction of the year next week.

(Writing by Brian Rohan; Editing by Alison Birrane)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see
Comments (3)
PedTeles wrote:
It’s amazing at which point the media has got in order to completely discredit Portugal. What kind of news item is this? Whata re the official sources? A German neespaper? Sounds more like a rumour to me, which the media is trying to use to make it worse for Portugal. It’s time to stop the persecution. Leave the country bem it’s doing what it can to avoid the bailout, it’s trying to calm the markets, and this type of speculative, unfounded and unsourced type of news is harmful to the country. People are truly growing tired of this.

Jan 08, 2011 2:24pm EST  --  Report as abuse
lx008 wrote:
Information as weapon of mass destruction

Jan 09, 2011 5:51am EST  --  Report as abuse
PedTeles wrote:
I find it amazing that Reuters, and Der SPiegel, two fairly prestiged news agencies would allow themselves to publish these things. The only people who can claim, or not, whether Portugal is under pressure, or not from the EU, are either EU official, the german, the french, and the Portuguese government. The rest is just rumouring and speculation. I find it amazing how clear it is now that the press really chose Portugal as the culprit for this crisis and chosen to create this self-fulfilling promise, and first and foremost, in these times of crisis, dare to publsh such newsitems who only serve to try and harm and discredit the country even further. It is very shameful and bad bad journalism

and this is the truth:

from the wall street journal:

The German government isn’t putting any pressure on Portugal’s government to apply for rescue aid, a German finance ministry spokesman told Dow Jones Newswires Sunday.

“The federal government isn’t pressuring Portugal,” spokesman Tobias Romeis said, adding that the decision to apply for financial assistance is a sovereign one, made by the country concerned.


Jan 09, 2011 11:02pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.