Sovereign Debt Crisis Sparks Privatisations

Good things often spring from the worst situations, and so it goes with Portugal's financial woes. Portugal has decided that the debt problem does not merely require a cut in state spending and tax increase on high earners, but also an extensive privatisation programme. Besides sending the financial markets a direct signal of the government's commitment to addressing the debt problem, privatisation has a lot going for it from a fundamental perspective. Not only does it provide much-needed cash towards debt repayment, but it also enables a rise in corporate efficiency (at least in theory---there are many exceptions to

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