cepDefault-Index Greece and Portugal

The creditworthiness of Greece and Portugal continues to decline. This is the conclusion reached by cep, which has just updated its Default-Index for these two countries. In the case of Greece, the three rescue packages undertaken since 2010 have, in cep’s view, done nothing to change this. Sooner or later, Greece will therefore need a fourth rescue package.


Portugal's creditworthiness has been deteriorating since 2004. According to cep, this is caused, firstly, by falling capital stock due, in particular, to low public sector investment. Secondly, the country continues to consume beyond its means, although the consumption rate has dropped significantly since its peak in 2009.

In cep’s view, both countries must improve conditions for private investment.