The leadership in Portugal have complied with international lenders' advice on economic restructuring. This had resulted in praise for the continued compliance with these provisions under its bailout plan. This week though may prove to be the first time that a negative grading would be received by the Iberian country.
EU and IMF officials who would be arriving Monday would have to deal with the new Deputy Prime Minister Paulo Portas. Portas' recent actions nearly caused the downfall of the coalition government last July as he challenged the austerity measures imposed by the international lending agencies.
Portas had threatened to break away together with his populist center right party out of the coalition, which would have turned the tide for the majority. With the threat of the pull out, he was able to leverage the position of deputy prime minister with oversight over the bailout negotiations.
Previously, he had sought the lowering of the budget deficit goal for 2014, causing a major rift between his position and that of former Portuguese Finance Minister Vitor Gaspar. Gaspar, for his part, was unswayed in his determination to comply with the internationally set budget standards.
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