And so, in two short days, Portugal has gone from a "poster child" of European periphery success to a full blown "Crise Politica." In moments, the country's PM Coelho will address the nation and while he is not expected to announced his resignation, according to local media he will announce a vote of confidence in parliament to test his majority. Even so, now that his coalition is blown, it is unlikely he will have a comfortable majority and the country will see early elections adding even more uncertainty to a continent where Greece is also on the rocks, and where Italy and Spain (despite the now blatant data manipulation) are constantly on the edge. Of course, to those who listened to our short EURUSD call [6]in the aftermath of the latest Stolper reco, congrats: 100 pips in 24 hours beats a fausterity stick in the eye.
Live stream after the jump.
Summary of his speech:
- PORTUGUESE PRIME MINISTER PASSOS COELHO SPEAKS IN LISBON
- COELHO SAYS HE DIDN'T ASK THE PRESIDENT TO DISMISS PORTAS
- COELHO SAYS THERE IS A LOT OF WORK TO DO
- COELHO SAYS POLITICAL INSTABILITY WOULD LEAD TO SERIOUS CONSEQUENCES
- PORTUGAL'S COELHO SAYS DIFFERENCES CAN BE OVERCOME
- COELHO SAYS WILL BE AT MEETING IN BERLIN TOMORROW
- COELHO DID NOT ACCEPT RESIGNATION OF FOREIGN MINISTER
- PORTUGAL'S PM SAYS HE WILL MEET WITH COALITION PARTNER CDS
- COELHO SAYS WILL NOT RESIGN
In short, nothing shocking. It is unclear how he can fix the relationship with the coalition partner, or what not accepting the resignation of the foreign minister means. We will find out very soon.

