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Austerity may not be Portugal's best option, warns IMF
It stopped short of calling for targets set under an EU/IMF bailout to be eased, but signalled concern over waning external demand and the recessive impact of bailout austerity. But it also said that this year's targets remained in reach. Portugal's lenders from the European Union have so far said sticking to stringent fiscal targets and reforms is the answer to the country's woes. In a staff report following last February's mission to Portugal, the Fund also agreed with the European Commission that the bailout's size of €78bn was sufficient and considered Portugal capable of returning to the bond market in late ... (full story)