Portugal’s economic slump and grim battle to repay its debts are threatening

 

Greece, in its desperate struggle to avoid default, is unique. Europe’s policymakers defend this argument until they are blue in the face. But Portugal’s economic slump and grim battle to repay its debts are threatening to prove them wrong – and to place another storm cloud over the euro. Portugal was not at the centre of the summit discussions that European Union leaders held on Monday in Brussels. But it is a dossier they dare not leave untouched for long. If Europe is to banish the spectre of Greek-inspired contagion from its sovereign debt crisis, it may need to address Portugal’s plight within weeks rather than months.