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Germany hails Portugal’s decision to forego more aid

German Finance Minister Wolfgang Schaeuble welcomed a decision by Portugal on Sunday not to tap further credit from the European Union when the current bailout package comes to an end soon.

“The announcement to exit the programme shows once again that the path the eurozone has chosen to take is the right one,” Schaeuble said in a statement.

“Portugal has used the past three years wisely and implemented an extensive programme of reforms,” he said.

“It has regained the confidence of the financial markets. Portugal has impressively succeeded in refinancing itself again,” the minister said.

Portugal decided to make a clean break from its EU-IMF bailout on Sunday, following in the footsteps of Ireland by forgoing a credit line as it prepares a full return to the credit markets.

“The government decided that we will exit our rescue programme without resorting to any precautionary programme,” Prime Minister Pedro Passos Coelho said during a television broadcast.

Portugal is now set to emerge from the bailout on May 17, and is expected to try to finance itself on bond markets without a so-called safety net, becoming the second stricken eurozone country to do so after Ireland.