By Claire West

Commenting on the news that Portugal has asked for an emergency bailout from the European Union, Prof Philip Booth, Editorial Director at the Institute of Economic Affairs, said:

“The EU should stop parcelling up the debt of member states and sending it round and round in circles through complex bailout mechanisms. The central institutions of the EU should not interfere in the debt markets of individual member states and Portugal should be allowed to default. Following that, the Portuguese economy needs urgent reform to ensure long-term economic growth, lower government spending and lower taxation.”