Portugal's Economic Problems Will Linger as Bailout Ends

Portugal will make a clean exit from its bailout program, showing slightly improved macroeconomic indicators and benefiting from the calm in the financial markets. However, life will remain difficult for many Portuguese as spending cuts and tax hikes remain in place. In the short run, the main political and economic debate will revolve around wages in the country, including demands by unions for an increase in the national minimum wage. In the long run, Portugal will have to deal with the consequences of demographic change and high emigration.