EU Summit Begins In Post-Portugal Collapse Chaos: What, If Anything, To Expect; A Look At Portugal’s Imminent €70 Billion Bail Out
By Tyler Durden
oldman’s Dirk Schumacher summarizes what to expect out of the EU Summit which begins today, and why following yesterday’s Portuguese government collapse, it may well be another toothless formality:”Yesterday’s resignation of the Portuguese prime minister Socrates, after parliament rejected the government’s consolidation program, does not necessarily imply that EU leaders will not be able to take any decisions at today’s summit…The resignation of Socrates, however, may now mean that it will take longer before the Portuguese parliament will be able to vote on todays summit outcome – how long will depend on whether there will be early elections or whether the current parliament will be able to form a new government. According to Portuguese law new elections cannot take place before 55 days after the parliament was dissolved and it may then also take a few weeks to form a new government.” In other words, any decisions made today will not be ratified for at least two months, long after Portugal will be in dire need of funding to roll its April maturities, as has been long discussed on Zero Hedge.
From Goldman Sachs: