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The Austrian member of the European Central Bank,  Ewald Nowotny, has spoken out about the situation in Portugal, and says that he recommends it.

Over the weekend, Nowotny said:

From a purely economic point of view one could probably recommend it. The domestic political situation in Portugal has clearly worsened … the head of the government has stepped down

This joins the pressure on the European Union coming from Ireland. A minister in the new Irish government drew the default, or burden sharing weapon. No senior bondholder is safe.

Read more about how Irish Banks are getting closer to a default.