Forex: Countdown to Lisbon: Accession of Portugal to the “mechanism” by June “sees” W. Schäuble
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Inevitable is considered by Berlin the integration of Portugal in the European mechanism of support, according to official statements by the German Finance Ministry in the newspaper Handelsblatt. According to the newspaper, Mr Schäuble predicts that the request will be presented in Lisbon in June, so it is expected to take effect with the new government that emerged after the early elections. The German newspaper reports that Portugal is reluctant to seek international help, and worries that the IMF would require cuts in government spending as a condition for the loan.
For its part, the German government would press its case that Lisbon will have to negotiate the austerity program with IMF. Ministry spokesman declined to comment on the statements allegedly made by a close associate of Wolfgang Schäuble at the German newspaper. “The initiative of entering in the mechanism lies within the jurisdiction of each country and it has not changed,” he said, without denying the content of statements.