WASHINGTON — Portugal’s most recent economic crisis is worrying European Union (EU) analysts and officials, reminding some of Greece.
Two senior Portuguese ministers were pressured to resign and did so, which led to a spiral of activity of spending cuts, tax hikes and fueling their current economic woes.
The EU had hoped that Portugal would have been pulled out of the EU austerity program by next year if it stayed on schedule with the austerity (i.e. budget cuts) reform and program. Instead, many people think Portugal is looking more like Greece.
Portugal has a 18% unemployment rate and this current economic slump is reportedly the worst since the 1970s.
Overall, the EU is struggling with 12% unemployment. France has entered a recession, while Greece and Spain are mired in a recession. Most of the EU countries also have high unemployment rates, especially among the youth and young people. Germany has been keeping the continent afloat, but it cannot last for much longer at this pace.