With luck, the pain will be worth it. Politically, the strategy seems to be working. Lisbon’s best-boy behaviour has won it plaudits everywhere but in markets. The European Central Bank is sufficiently satisfied to act to bring down the record-high yields on Portugal’s sovereign debt, now downgraded to junk. Lisbon has manoeuvred itself into a position where other eurozone governments will find it acceptable to extend more loans – as they should in the very possible case that markets remain shut by the end of the current programme. Sobre isto, recomendo o texto (comentários incluídos) que escrevi aqui.