European finance ministers are insisting that Portugal deepen government spending cuts in return for a package of emergency loans worth an estimated €80 billion, according to The Daily Telegraph. European Union central bankers and finance minister have opened discussion over the shape and size of emergency aid for Portugal, which is to be offered jointly with the International Monetary Fund. The group asserted that any country seeking aid “has to deliver sustainable measures for reducing the deficits, because the deficits are the reason why they need help.”
The President of Portugal, Anibal Cavaco Silva, has assured leaders that the country’s leading political parties have reached an agreement over budget deficit goals until 2013. Portugal is set to host experts from the IMF, ECB, and European Commission on Tuesday to begin negotiating the bailout, and the international groups hope to also meet with main political parties ahead of a snap election on Jun. 5. The terms of the bailout are expected to be finalized by the middle of next month, although Silva has a called for an “interim” aid package to cover upcoming bond maturities.
Click here to read the story on austerity cut pressure from The Daily Telegraph.
Click here for coverage of the negotiations from The Daily Telegraph.