The portuguese public debt grows at a rate of two million euros per hour.

The public debt of Portugal rose 7.5 billion in the first five months of 2010, shooting for 140 200 million. That is to say that from the 12 bells that marked the entry into this new year that the national debt grows at a rate of two million euros per hour. This at a time when the country saw its interest rates to issue debt almost doubled in a few months.It is with this background that Jose Socrates arrives today in Parliament to discuss the state of the nation. If we look at the evolution of public debt since the advent of Socrates to the Government in 2005, the increase is 38.5 billion euros, would buy one car per minute for five years. The Executive acknowledges that between 2010 and 2011 the public debt has increased, the Report of Budgetary Policy tabled in Parliament.

Yesterday the state sold 877 million euros in government bonds maturing in 2012 with an average interest rate of 3.159 percent. Just two months ago, a similar issue, interest rates were almost half that, standing at 1.715 percent. The high prices in the country if outside funding have consequences for families. The credit becomes more expensive for the few who can access the stand. This is because with the cut of Moody's rating to eight domestic banks (see box), confirm the sentence conveyed by the bankers that "the time of easy credit is over." Socrates has yet to respond to the criticisms of the Opposition pointed out that the increased tax burden, unemployment and record levels of deficit. And if the debate on the State of the Nation today discussing the future of the country, the prospects are not brighter. The economist Anthony de Mello Sampaio, who was a consultant to the U.S. president Barack Obama, admits that Portugal can fail because it is a 'company that does not generate revenue. How does not generate revenue, has no borrowing capacity nor has the capability to create and distribute wealth. "Prime Minister Jose Socrates, gave a speech yesterday against the current criticizing the 'negativism': 'I see no reason not to trust in our country,' promising that 'the Government will work alongside business'.


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