LISBON, Portugal (AP) — The leaders of Portugal's governing coalition parties remained locked in negotiations Thursday as they attempted to repair differences that threatened to pitch the bailed-out country into turmoil and reignite concerns over Europe's debt crisis.
Prime Minister Pedro Passos Coelho, head of the senior coalition partner, and the leader of the junior partner, Popular Party chief Paulo Portas, met three times in 24 hours in an attempt to avoid the government's collapse in a dispute over austerity measures and other reported grievances concerning the relative standings of the two parties within the coalition.
Portugal's political stability, certainly compared with turmoil in Greece, has helped ease investor concerns over the country's financial fate since a 78 billion euro ($101 billion) international rescue two years ago.
The relatively calm backdrop helped lower Portugal's borrowing costs and allowed it to enact a raft of economic reforms which European Central Bank president Mario Draghi on Thursday described as "remarkable."
Investors had a different opinion, however, and Portugal's troubles helped send European and Asian stocks lower this week before recovering Thursday after the governing partners pledged to settle their differences.
After enduring two years of austerity, that have included sharp hikes in income taxes and in sales taxes and cuts in public sector pay and pensions, the country has been mired in recession and seen its jobless rate ratchet up to 17.6 percent.
Prime Minister Pedro Passos Coelho, head of the senior coalition partner, and the leader of the junior partner, Popular Party chief Paulo Portas, met three times in 24 hours in an attempt to avoid the government's collapse in a dispute over austerity measures and other reported grievances concerning the relative standings of the two parties within the coalition.
Portugal's political stability, certainly compared with turmoil in Greece, has helped ease investor concerns over the country's financial fate since a 78 billion euro ($101 billion) international rescue two years ago.
The relatively calm backdrop helped lower Portugal's borrowing costs and allowed it to enact a raft of economic reforms which European Central Bank president Mario Draghi on Thursday described as "remarkable."
Investors had a different opinion, however, and Portugal's troubles helped send European and Asian stocks lower this week before recovering Thursday after the governing partners pledged to settle their differences.
After enduring two years of austerity, that have included sharp hikes in income taxes and in sales taxes and cuts in public sector pay and pensions, the country has been mired in recession and seen its jobless rate ratchet up to 17.6 percent.
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