Portugal and PIGS: Main Lessons of Economic Recovery

... deficit and sovereign debt. To avoid default, Dublin was the first to apply for international credit, and in late 2010 received 62.5 billion euro, i.e. 17.7 billion euro from the EFSF, 22.5 billion euro from the EFSM, and 22.5 billion euro from the IMF. Another 22.5 billion euro came from other sources). In exchange, Ireland launched a reform program focused on toughening budget policies that included lowering social expenses and raising taxes. The government increased excise duty but flatly refused to put up corporate income tax (12.5 percent). In 2011-2013, total ...