Portugal and the Straitjacket of the European Financial Crisis

The austerity program negotiated with the Troika (IMF-ECB-EC) and adopted by Portugal in 2011 is having a devastating impact on the Portuguese economy. Although the Portuguese government is clearly fulfilling the measures agreed with the Troika, the final outcome of the adjustment program is not entirely in its hands, but rather awaiting further EU decisions involving measures to stimulate economic growth, mutualisation of public debt and additional steps towards a federal Europe. As time goes by, the negative repercussions - in particular social and political instability, as well as the erosion of the Portuguese democratic regime - are inevitable if there is no light at the end of the tunnel.
Keywords: Portugal, Troika, European Union, financial crisis