It appears that a new crisis in the Eurozone has been averted. Especially with respect to the economies of Portugal and Greece, which have been mired in recession for quite some time now. Borrowing costs in both these countries had surged in recent times. This was largely due to the fact that the political and economic climate had become unstable. In Portugal, the coalition government looked to be falling apart. And in Greece, the government was struggling to convince the EU and the IMF that it would be able to meet the terms of the bailout. But these issues seem to have been addressed.

Portugal has managed to patch things up. And Greece could reach a deal that would ensure that it continues receiving bailout funds. But does that mean that things are improving for the Eurozone? We believe not. All these are just short term fixes. None of them really address the structural issue of massive debt that these countries are burdened with. Thus, Portugal and Greece may have barely managed to keep their heads above water. But the possibility of another crisis lurking around the corner cannot be ruled out.