Anti-Euro Sentiment Gains Traction In Portugal

The euro threatened to drop below $1.29 on Tuesday morning as fresh worries about a eurozone break up weighed on the common currency. With difficult austerity plans and sky high unemployment figures, radical anti euro movements in several of the eurozone's southernmost countries have been gaining popularity.

The latest of such movements came from Portugal after author Joao Ferreira do Amaral's book titled, “Why We Should Leave the Euro” became an overnight best seller. Ferreira's book suggests that Portugal will be unable to grow within such a strong currency.

The Wall Street Journal reported that Ferreria's support is rapidly growing as more and more Portuguese become disillusioned with a currency system that seems broken. After the nation's 78 billion euro bailout in 2011, the government has met all of the conditions set by the European Central Bank and the International Monetary Fund.

Tax increases, spending cuts and labor market reforms which were all designed to attract investors have failed to spur economic growth have left Portugal with a depressed economic output and a large deficit.

Opinion polls show that much like its southern European peers, the majority of Portuguese want to remain in the euro; but many are worried that as the recession drags on anti euro groups will gain momentum.

Political parties in several eurozone countries have been in the public eye recently as they turned against the common currency and promised referendums on membership to their constituents. In Italy, two such parties, the Northern League and the Five Star Movement, gained so much support they disrupted the nation's elections and left Italy without a government for weeks.

Even in Germany, where the financial crisis has had a comparatively small effect on the quality of life, an anti euro party called the Alternative for Germany has emerged.

BY Laura Brodbeck