Flash: Iberian turmoil boils to forefront – Deutsche Bank

FXstreet.com (New York) - In Portugal, newswires were reporting late last night that the three main political parties have set a July 21st deadline to agree a cross-party national salvation pact that would keep the country’s troika program on track until elections next year, note Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.

President Silva has said if a pact is reached, he will call for early elections after Portugal exits the program in June. Meanwhile, across the border in Spain, a Spanish newspaper published text messages allegedly linking PM Rajoy to ex-treasurer of the People’s Party who is at the center of an illegal payments controversy. According to the Analysts, “The report has led to a renewed round of calls for the PM to step down.”