A trader works in front of a board displaying the chart of German share index DAX at the stock exchange in Frankfurt. (file photo)
Share prices have plunged in Germany and Spain following Cabinet resignations in Portugalâ„¢s coalition government.
Germany’s blue-chip DAX-30 stocks index shed over 2.0 percent in morning trade on Wednesday while Madrid stock exchange plummeted over 3 percent.
The drops come amid rising concerns over Portugalâ„¢s political crisis. The Lisbon stock exchange’s key index plunged 5.99 percent in early trading on Wednesday to 5,199.01 points at 0730 GMT.
The resignation of Portuguese Finance Minister Vitor Gaspar on July 1, followed by the shock departure of the nationâ„¢s Foreign Minister Paulo Portas on July 2, threw the Portuguese governmentâ„¢s survival into question.
Gaspar, the architect of spending cuts and tax hikes that Portugalâ„¢s lenders have required as a condition for their financial support, stepped down due to what he described as erosion in support for the bailout.
Portugal is witnessing severe budget conditions which have been imposed on the country by a European Union/International Monetary Fund (IMF) bailout.
Portuguese Prime Minister Pedro Passos Coelho said late on July 2 that he refused to accept Portas’ resignation, adding that he would proceed with leading the government to guarantee political stability.
The premier further said he would work in coming hours to conquer the crisis sparked by the resignation of the foreign minister.
Å“One thing is certain, the prime minister is going to do everything to stay on, giving all possible concessions to Portas,” said political scientist Antonio Costa Pinto. Å“Failing that, however, we can hardly avoid an early election.”
Lisbon had been hopeful to come back to normal debt markets but disputes over continued and unpopular austerity measures have currently thrown this into question.
MR/KA
Republished with permission from: Press TV