Portuguese island awash in sea of debt

Country’s island of Madeira, nearly $8bn in debt, has become example of fiscal mismanagement.

portugal debt crisis package screengrab

Many economists predict that Portugal may need a second bail-out from its European partners.

This week, Angela Merkel, the German chancellor, drew attention to the situation on the Portuguese island of Madeira, which has a population of just over 250,000, but has run up debt of more than $8bn.

Al Jazeera’s Barnaby Phillips reports from Madeira.

Source: Al Jazeera