The Austrian member of the European Central Bank, Ewald Nowotny, has spoken out about the situation in Portugal, and says that he recommends it.
Over the weekend, Nowotny said:
From a purely economic point of view one could probably recommend it. The domestic political situation in Portugal has clearly worsened … the head of the government has stepped down
This joins the pressure on the European Union coming from Ireland. A minister in the new Irish government drew the default, or burden sharing weapon. No senior bondholder is safe.
Read more about how Irish Banks are getting closer to a default.