Greece debt crisis: Portugal appears to weather storm from Athens, despite rise on bond yields

Like its opposite numbers in neighbouring Spain, the Portuguese government has been at pains to say that its economy, which like Greece needed European assistance four years ago, is now on the mend: if disaster strikes in Athens, the Portuguese economy will not be next, officials insist.

Unlike Greece, where economic disaster has been followed by political tumult, each of Lisbon’s three main parties agreed to the bailout conditions set by the so-called Troika of the European Commission, the European Central Bank and the IMF in 2011, and have broadly agreed on the austerity measures that followed.

Portuguese bond yields rose on the continued bad news from Greece, but not by as much as many had feared, suggesting that the markets have accepted that any contagion if Greece departs the eurozone will not imperil Portugal.

Indeed, the Portuguese have been among those calling for tough measures against Athens and insist that having kept to the terms of their own bailout agreement, Greece must do the same.

National elections this year are likely to cause anti-austerity rhetoric, but there is no Portuguese version of Syriza and whoever triumphs will aim to continue the gradual return to economic normality.