ECB’s Constancio says:

  • “Relatively pessimistic” about short-term prospects for Portugal economy
  • Adjustments needed in Portugal economy are of “great significance”
  • There is “imperative” need to reduce Portugal’s budget deficit
  • New and difficult spending cut measures needed to cut Portugal budget deficit
  • Portugal economic growth to be weak, below euro zone
  • In long-tem Portugal’s public finances are sustainable

Meanwhile Greek FinMin says Greek problems are a euro zone issue, other countries may follow. Reminds me of an English saying “misery likes company.”