Portugal: State Aid

In April 2010, rating agency Standard & Poor’s slashed Greek debt to junk status and downgraded Portugal’s, as investors worried political pressures could block a multibillion euro bailout of Greece. Markets in Europe and the United States tumbled in reaction to signs that the Greek debt crisis was spreading to other highly indebted states on the periphery of the eurozone, as was the case with Portugal. The financial and economic crisis hit Portugal hard and state aid became an unavoidable topic.