Courtesy of Google Translate, please consider Portugal again revised upwards the deficit in 2010

Portugal’s public deficit stood at year-end 2010 to 9.1 percent of Gross Domestic Product (GDP), five tenths above the 8.6 percent reported three weeks ago.

Early estimates on the Portuguese executive deficit in 2010, which received clearance from Brussels, they set a decline in the deficit to 7.3 percent, which Portugal is ranked as one of the countries of the European Union ( EU) with a greater reduction.

But last March 31, the caretaker government rose to 8.6 percent deficit for the loss of large public transport and a nationalized bank, which had not been included in the accounts submitted to Brussels.

The new upward revision is that the harsh adjustment measures implemented in the country Luso during the past year to reduce the public deficit-increasing tax burden, reducing public spending, cuts in salaries of civil servants, etc .- are having a more limited effect than expected.

These changes also had an impact on the level of public debt, which rose from 92.4 per cent of GDP to account for 93 percent, equivalent to 160,470.1 million.

Shortly after the INE making the announcement, from the Social Democratic Party (main opposition group) considered that these figures prove “financial incontinence” practiced by the Portuguese government for the past six years, when current Prime Minister Jose Socrates came to power.

The original link (in Spanish) from my friend Bran who lives in Spain: Portugal vuelve a revisar al alza el déficit de 2010 y lo eleva al 9,1 %

Portuguese 10-Year Government Bond Yield 9.5%

Spanish 10-Year Government Bond Yield 5.47%

Italian 10-Year Government Bond Yield 4.76%

Irish 10-Year Government Bond Yield 10.48%

Greek 2-Year Government Bond Yield 23.01%

The 2-Year yield on Greek bonds says a haircut on sovereign debt is coming regardless of daily denials from Greece by the Finance Minister and Prime Minister. For more on Greece, please see Next Phase of Sovereign Debt Crisis; Greek 2-Year Yields Top 20%; Greece Denies Restructuring Plan; Why the Denial?

Some have an eye on Spain. I have an eye on both Spain and Italy. For more on Italy, please see Italy The Invisible Elephant

A crisis in Spain or Italy would more than consume all the Eurozone allotted bailout funds.

Italy is the granddaddy. It has nearly as much debt as Germany. So far, Italy has been able to roll over its huge pile of debt over at reasonably attractive rates.

Eventually, I believe that the debt of both Italy and Spain will be called into question.

Mike “Mish” Shedlock
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