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Austerity backlash rattles Spanish, Portuguese bonds but contagion limited
Spanish and Portuguese borrowing costs rose on Tuesday on signs of growing public discontent with austerity, though fears of wider contagion were tempered by the European Central Bank's asset purchases. A battering in Sunday regional and local elections cast doubt on Prime Minister Mariano Rajoy's bet that an economic recovery will secure him a second term later this year and raised concerns in Portugal about the outcome. Portugal has been celebrated among Europe's elite as a model of how to reform an economy after a debt binge. But concerns are rising that its enthusiasm for change has waned as Europe loses its ... (full story)