Back to external pressure: policy responses to the financial crisis in Portugal

Francisco Torres*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

25 Citations (Scopus)


The financial crisis caught Portugal in the midst of its long-protracted and slow fiscal consolidation process, which brought the budget deficit down to 2.2 per cent of GDP in 2008. The crisis was not a bursting bubble type of shock but it brought back the long-forgotten external (liquidity) constraints. Given Portugal's accumulated external imbalances, it is argued that the government should credibly pre-commit to mediumterm budgetary objectives with accelerated corrective measures to the 2009 fiscal overrun. Also, it should actively promote sustainable consumption patterns and a leap forward to a new 'green' competitive basis for sustainable development, thereby increasing the country's general creditworthiness.
Original languageEnglish
Pages (from-to)55-70
Number of pages16
JournalSouth European Society and Politics
Issue number1
Publication statusPublished - Mar 2009


  • Eurozone
  • Financial crisis
  • Portugal
  • Structural fiscal consolidation
  • Sustainable development


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