The European Central Bank’s choice of Portugal for its annual forum puts its officials in a nation that shows what can be achieved by cheap funding and a program of economic reform — and the limits.Portuguese unemployment has dived since the euro area came out of a double-dip recession and debt crisis in 2013, and is now below the currency bloc’s average. The turnaround is partly due to economic reforms required as part of its 2011 bailout by the European Union and the International Monetary Fund, and partly because of the ECB’s ultra-low interest rates and bond-buying.Follow Draghi, Powell, Kuroda and Lowe on a panel at 2:30 p.m. in SintraThat’s likely to please ECB President Mario Draghi, who used his opening speech in the hilltop resort of Sintra to praise the euro zone’s “job-rich” recovery. It’s also in stark contrast to Italy, which avoided financial rescue but put off the structural adjustments that could have helped people back to work.“I wish Italy had the same prospects as Portugal these days,” Italian-born Luigi Zingales, professor of finance at the University of Chicago Booth School of Business, said in a Bloomberg TV interview in Sintra. Portugal “went through a very tough time,… Read full this story
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