Portugal safe from Greek contagion, experts say

"Portugal could be affected if Greece is forced out of the euro. But in the short-term Portugal is safe," Political analyst Antonio Costa Pinto from the University of Lisbon tells Xinhua recently.

Costa Pinto also points out that Portugal would try to take advantage of any leeway given to Greece in the future. Portugal is trying to separate its image from Greece's from an external point of view, he says.

Joao Cesar das Neves, Portuguese President Anibal Cavaco Silva's former economic consultant and professor at Lisbon's Catholic University, says Portugal is the second worst off country in the euro zone after Greece, but agrees that contagion from Greece is unlikely given Portugal's relative stability.

"The situations are different, given the way Portugal complied, but also because if there was to be a problem in Greece all of Europe will want to highlight the union of those countries which remain," he says.

Cesar das Neves says if Portugal hadn't applied austerity the country could be in a situation similar to that of Greece.

"If we had continued with our previous policy we would be in a more serious and fragile situation," he says. "The disease is the same, if we continued to commit mistakes there would be no alternative."

While Greece is being governed by a radical leftist government defying austerity, the Portuguese have not turned to left-wing parties and have been dubbed Europe's "best pupil" for the way in which the country rigorously implemented reforms over the past years.

Costa Pinto says this is down to great diversity in left-wing parties, and due to the Socialist and Communist parties occupying the political sphere.

While the opposition parties say Portugal should show more solidarity towards Greece's anti-austerity stance, both experts believe Portugal is in a much better situation than Greece.

"Greece never complied with the rules but always said it would, this is not sustainable, it is a situation of rupture," says Cesar das Neves.

"Portugal is in a much better situation. Greece is in a desperate situation, it has reached an extreme limit," he adds. Endit