IDEAS home Printed from
   My bibliography  Save this article

Portugal’s bailout and the crisis of the European Union from a capability perspective


  • Leonardo Costa
  • Nuno Ornelas Martins
  • Francisca Guedes de Oliveira


The global financial crisis revealed the weaknesses of the EU integration process, in general, and of the Eurozone, in particular. The EU institutions responded to the crisis in an inadequate way, in the belief that government debt stabilisation had to be pursued before the economy recovers. This strategy was based on economic forecasting errors, exposing member-states to the speculative behaviour of financial markets, leading to the bailout of countries such as Portugal, and undermining the confidence in the single currency, in the European economy and in the European project itself. We analyse here the crisis of the European Union (EU) in light of the bailout of Portugal, and propose an alternative strategy for Portugal and the EU, drawing upon Amartya Sen’s capability approach.

Suggested Citation

  • Leonardo Costa & Nuno Ornelas Martins & Francisca Guedes de Oliveira, 2016. "Portugal’s bailout and the crisis of the European Union from a capability perspective," Cambridge Journal of Economics, Oxford University Press, vol. 40(6), pages 1479-1496.
  • Handle: RePEc:oup:cambje:v:40:y:2016:i:6:p:1479-1496.

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Trabelsi, Mohamed Ali & Hmida, Salma, 2017. "A Dynamic Correlation Analysis of Financial Contagion: Evidence from the Eurozone Stock Markets," MPRA Paper 83718, University Library of Munich, Germany, revised 2017.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:cambje:v:40:y:2016:i:6:p:1479-1496.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.