Portugal is set to default on its loans from the Bond market because of pressure from a disillusioned electorate who are enduring a third year of austerity measures. It will be upto the richer members: Germany, France, Denmark, Luxumberg and Holland to underpin the weaker southern economies. But there own economies are under increasing pressure from weak employment and exports data. Expect the Euro to weaken in the coming week on the Bond market expected higher interest rates to beleagured countries.
Unless the ECB create a long awaited fire wall fund of at least a trillion euros Portugal and Spain will default and threaten the financial viability of the EU.
