Bailout Politics in Portugal (2008-2020)

In 2011, Portugal was one of the countries that were most dramatically hit by the emerging Eurozone crisis. As its cost of borrowing rose dramatically, the country faced both a political and an economic crisis, resulting in the fall of the PS government and the call for a bailout. That was conditioned on Portugal undertaking public spending cuts and structural reforms across numerous sectors. The case of Portugal is interesting as the MoU was negotiated by the PS government but implemented by its successor, a centre-right coalition. In this chapter, we begin by analysing the political economic context which led to the outbreak of the crisis; then, we look at how the reforms that were enacted to overcome the crisis were produced through a process of negotiation and bargaining between national and international actors. Finally, we examine the outcomes of such reforms and their resilience even after the end of the adjustment programme.