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Blackrock: Portugal, not Ireland, Is Europe's Next Big Problem

|Includes: EEA, Europe Fund (The) (EF)

Alister Hibbert, Blackrock's European outperformerming equity manager argues the focus on Ireland has distracted the European Union from what should be its much bigger concern: Portugal.

The issues facing Portugal are significantly worse concerning their government debt [and competitiveness]. The measures that Portugal is taking to restructure its budget deficit are far too little... There are a number of things going on in Ireland that are somewhat overblown. They got their current account back into balance, and it has already gone through a lot more pain than the other countries. Ireland's economy contracted by more than 13% and that has allowed competitiveness to return. The fact that the adjustment is almost complete puts it in a much better position than people believe"

...and in a much better position than Portugal.