Portugal is the pupil that gets good grades for learning bad lessons

While the negotiations over Cyprus’s bailout agreement have been extremely controversial, this month also saw the EU and IMF relax the terms of their financial assistance to Portugal. Alexandre Afonso details some of the main reasons why Portugal has been treated much more leniently in negotiations. Despite falling short of economic targets, the country has been praised for its determination to implement austerity policies. However the extent to which the crisis has encouraged emigration by young Portuguese citizens may pose a future problem for the sustainability of Portugal’s welfare state.