IMF: Portugal next?

With Greece in the spotlight, the market is very focused on other high-deficit eurozone economies.

Portugal is getting a scolding now from the IMF.

Their deficit will grow to 8.6% of GDP in 2010 from 8% in 2009 if no new measures are taken.Current policies are not suffitient to return the deficit to the 3% EU limit by 2013, the Fund reports and says fiscal consolidation is critical and should focus on cutting current spending and public wages.Debt to GDP would rise to 100% by 2013, if cuts are not made, the IMF said

EUR/USD has fallen as low as 1.4081 intraday and now trades at 1.4097.

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