We've had part I of the saga, and now – like night follows day – we have the Portuguise version (via Reuters):
Germany and France
want Portugal
to accept aid
Reuters, (by Brian Rohan; Editing by Alison Birrane)
Fri, Jan 7 2011
BERLIN
(Reuters) – Germany and France want Portugal to accept an international
bailout as soon as possible in order to prevent its debt crisis spreading to
other countries, German magazine Der Spiegel reported on Saturday.
Without citing its sources, the magazine said
government experts from both European heavyweights were concerned Lisbon will soon not be
able to finance its debt at reasonable rates, after its borrowing costs rose at
the end of last year.
Berlin and Paris also want euro zone
countries to publicly commit to do whatever it takes to protect the bloc's
single currency, including topping up a 750 billion euro ($968 billion) rescue
fund if necessary.
Portugal
is viewed by many economists as the peripheral euro zone country that is most
likely to follow Ireland and
Greece
to seek an international bailout as it grapples to cut its debts and borrowing
costs. It holds its first bond auction of the year next week.
Unlikely the Chinese will be able to help. Although I am sure they are interested of averting a euro disaster (aka depreciation) and have plenty of cash to buy the euro to keep the yuan cheap. There are only two questions: how long will it take until Portuguise debt is being "restructured" in a European aid program, and how many times do we need to hear the Portuguise finance minister deny that such a program is needed.