Matthew MelchiorreFebruary 6, 2013 07:20

Why a ‘small’ bailout for little Cyprus is a big deal

Commentary: Letting one member fail can be contagious for the rest of the euro zone.

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People walk past closed shops in the old town of Nicosia, Cyprus, on Jan. 26, 2013. The bailout of Cyprus is garnering much less attention than did the help provided to other struggling euro zone members. (Patrick Baz/AFP/Getty Images)

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The bailout of Cyprus is garnering much less attention than did the help provided to other struggling Euro Zone members. Cyprus is tiny, and rescue or no rescue, the euro will remain largely unaffected. Or so the argument goes.

Anti-austerity protests in Spain, Portugal draw tens of thousands (PHOTOS)

Priyanka BoghaniSeptember 29, 2012 15:02

Anti-austerity protests in Spain and Portugal drew tens of thousands of protesters into the streets.

Drug decriminalization in Portugal decreases number of addicts

Samuel Blackstone, Business Insider July 18, 2012 16:50

On July 1, 2001, Portugal decriminalized every imaginable drug, from marijuana, to cocaine, to heroin. Some thought Lisbon would become a drug tourist haven, others predicted usage rates among youths to surge. Eleven years later, it turns out they were both wrong.

Portugal hit by public sector strike against austerity

Luke BrowneMarch 22, 2012 15:00

Portugal’s biggest union, the General Confederation of Portuguese Workers called the strike to fight changes to labor laws making it easier to hire and fire workers and cut holidays and layoff compensation.

Michael GoldfarbMarch 20, 2012 05:50

Austerity: from Portugal proof that it's bad for your health.

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European Commissioner for Economic and Financial Affairs Olli Rehn (R) attends a press conference accompanied by the Portuguese finance minister, Vitor Gaspar (L) at S. Bento Palace, in Lisbon, on March 14, 2012. Portugal is swallowing the EU's austerity medicine in return for loans. It seems that medicine is not helping individual patients using the country's health system. (PATRICIA DE MELO MOREIRA/AFP/Getty Images)

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This is a story I've been expecting to see for some time coming out of the U.S. and my thanks to The Guardian's Giles Tremlett for finding it in Portugal. Clearly the economic situation in the West since 2008 - crash followed by government imposed austerity measures - has been having a terrible effect on many folks' mental and physical well-being.

Now in Portugal comes a very specific set of data showing how devastating things are.

Portugal passes latest bailout review by troika

Luke BrowneFebruary 28, 2012 11:11

The government has been working hard to cut spending and implement key economic reforms in the face of a steep recession and a record high jobless rate of 14 percent.

Michael GoldfarbJanuary 27, 2012 08:16

Portugal: the new Greece

Unsustainable bond yields being used to finance unpayable debts.

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Things are really rough all over the Iberian peninsula as Portugal's Prime Minister Pedro Passos Coelho (R) seems to be telling his Spanish counterpart Mariano Rajoy. (PATRICIA DE MELO MOREIRA/AFP/Getty Images)

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In Portugal the numbers are all bad:

The deficit is 9.1 percent of GDP. The economy is expected to contract by anywhere between 3.1 and 5 percent this year. It took a bailout from the EU, ECB, IMF "troika" of 78 billion euros ($102.6 billion) and will have a hard time paying it back because its credit rating is now "junk." Five year bond yields yesterday broke a record: 18.9 percent. Three year bond yields hit 21 percent.

Oh, and unemployment stands at a record 13.2 percent.

Portuguese ask: brother can you spare a dime – for the president?

Paul AmesJanuary 25, 2012 15:09

BRUSSELS, Belgium — Cavaco Silva admits error after angering recession-hit nation with claim he won’t be able to make ends meet on presidential pension.

Is New Europe out-gunning the Old?

Paul AmesJanuary 20, 2012 07:33

COIMBRA, Portugal — An end-of-year journey in the East and West paints a stark contrast in Europe. But it may be deceiving.

Michael GoldfarbJanuary 10, 2012 13:44

European economic news: today's round-up

Meetings, bank runs and some surprising good news for France

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AAA ratings of sovereign debt. France will keep hers, says rating agency Fitch (PHILIPPE HUGUEN/YouTube)

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Let's start with the good news: Ratings agency Fitch announced France would keep its AAA rating for the rest of the year. A Fitch spokesperson in Paris said, "Fitch maintains its position from December. In the absence of important shocks that could be linked to a strong worsening of the situation in the eurozone, Fitch does not foresee modifying its negative outlook (on the ratings) before 2013."

Now, it's Europe, let's get to the bad news. In London, Fitch's managing director, David Riley, said Italy was the country that was most at risk of a downgrade. "The future of the euro will be decided at the gates of Rome," Riley told reporters.

The country's A+ rating could be lowered as soon as the end of January.