Lisbon .- The possible resignation of the Socialist government of Portugal, which can happen today if the Parliament rejects the new fiscal plan, pressure on the Lisbon Stock Exchange and raised the sovereign interests of the five and ten years. The spread of the Treasury Obligations (OT) at five years was up this morning to 7 basis points to reach 8.05%, a new record since the country's entry into the euro in 2002, while interest jumped to 10 years five basis points to 7.54%.
The PSI-20, the main index of the Lisbon Stock Exchange, midmorning fell 1.40%, to 7748.860, cycle against most European markets. The feeling of a serious political crisis in the country, already living its worst economic recession of the past 30 years, increased speculation about the possibility that Portugal needed external financial assistance in the short term and prompted many investors to dispose of lusa debt, according to financial analysts.
The government of socialist Prime Minister Jose Socrates, whose parliamentary group, today submitted to a vote in Parliament a new fiscal plan, expected to be rejected by all opposition groups, from Conservatives to the Marxist left. In case of failure, several leaders of the Socialist Party (PS) of Portugal acknowledged that the political crisis in the country is imminent.
"If confirmed (the rejection of the new plan of adjustment), the Government will understand that has no conditions to continue in functions, "reflected the Socialist parliamentary leader, Francisco de Assis, after last night's meeting of the Political Commission of the PS. Assis, who in recent days had urged the main opposition party, the Social Democrats (PSD, center-right), to enable the adoption of the plan, considered highly unlikely a point of understanding.
"I do not think now that agreement (with PSD) around the adjustment program possible. Unfortunately, since a political crisis comes at a particularly pernicious," lamented the director. After the meeting, other senior Socialists demanded faster action to the country's president, Anibal Cavaco Silva conservative to avoid a political crisis in the country.
However, Cavaco itself, whose main functions are to pass laws, hold elections and ensure the proper functioning of the institutions, said yesterday that the "speed" with which it took the events left him no room to act preventively. The new government's austerity plan, the fourth in a year, was presented last March 11 by surprise with the goal of reducing the public deficit to 2% in 2013 through cuts in salaries of civil servants, freeze pensions and savings in public investment, education and health.
Hailed by Brussels, the program was quickly banned by the Portuguese opposition, which accused the executive of Socrates had not discussed the measures with the other political forces and social actors in the country. 
The PSI-20, the main index of the Lisbon Stock Exchange, midmorning fell 1.40%, to 7748.860, cycle against most European markets. The feeling of a serious political crisis in the country, already living its worst economic recession of the past 30 years, increased speculation about the possibility that Portugal needed external financial assistance in the short term and prompted many investors to dispose of lusa debt, according to financial analysts.
The government of socialist Prime Minister Jose Socrates, whose parliamentary group, today submitted to a vote in Parliament a new fiscal plan, expected to be rejected by all opposition groups, from Conservatives to the Marxist left. In case of failure, several leaders of the Socialist Party (PS) of Portugal acknowledged that the political crisis in the country is imminent.
"If confirmed (the rejection of the new plan of adjustment), the Government will understand that has no conditions to continue in functions, "reflected the Socialist parliamentary leader, Francisco de Assis, after last night's meeting of the Political Commission of the PS. Assis, who in recent days had urged the main opposition party, the Social Democrats (PSD, center-right), to enable the adoption of the plan, considered highly unlikely a point of understanding.
"I do not think now that agreement (with PSD) around the adjustment program possible. Unfortunately, since a political crisis comes at a particularly pernicious," lamented the director. After the meeting, other senior Socialists demanded faster action to the country's president, Anibal Cavaco Silva conservative to avoid a political crisis in the country.
However, Cavaco itself, whose main functions are to pass laws, hold elections and ensure the proper functioning of the institutions, said yesterday that the "speed" with which it took the events left him no room to act preventively. The new government's austerity plan, the fourth in a year, was presented last March 11 by surprise with the goal of reducing the public deficit to 2% in 2013 through cuts in salaries of civil servants, freeze pensions and savings in public investment, education and health.
Hailed by Brussels, the program was quickly banned by the Portuguese opposition, which accused the executive of Socrates had not discussed the measures with the other political forces and social actors in the country.
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