Countries deny pressure on Portugal to seek bailout
2011-01-11 17:57:35
European powers Monday scotched reports of pressure on Portugal to seek a bailout amid worries of the eurozone debt crisis engulfing Spain and politically embattled Belgium.
Pressure is growing on Portugal from Germany, France and other eurozone countries to seek financial help from the European Union (EU) and International Monetary Fund (IMF) to stop the bloc's debt crisis from spreading, Reuters reported Monday, citing a senior eurozone source.
Some preliminary discussions on the possibility of Portugal asking for help if its financing costs on markets become too high have taken place since July, the source said.
No formal talks on aid have started yet, a number of eurozone sources said, but the pressure was rising in the Eurogroup, which brings together eurozone finance ministers.
"France and Germany have indicated in the context of the Eurogroup that Portugal should apply for help sooner rather than later," the senior source said, adding that Finland and the Netherlands had expressed similar views.
"There are no such talks, and there are not even any plans to have any such talks, whether it is about Portugal or another (eurozone) member state," said the commission's economic affairs spokesman, Amadeu Altafaj, according to AFP.
Spanish Finance Minister Elena Salgado also said Monday that "Portugal will not need any external aid" because "it is meeting its targets," according to AFP.
"It has structural weaknesses, but it is carrying out the needed reforms," she added.
Germany on Sunday denied any pressure. "It is not the strategy of the German government to push Portugal to take the bailout," said Steffen Seibert, spokesman for German Chancellor Angela Merkel.
Earlier on Sunday, a Portuguese government spokesman also denied that Lisbon was under pressure from Berlin and Paris to seek a bailout from the EU and IMF.