Portugal stood up against austerity, and won

Following a 2012 bailout, Portugal shared an unenviable spotlight with Greece. The hammer had fallen, and austerity measures were on the way.

But Portugal defied the EU in 2015 by taking a stand against a painful tightening of the fiscal belt.

Much to the chagrin of Germany’s Chancellor Merkel, Portugal has since prevailed — proving that austerity is not the only solution to recovery in the euro zone.

Well into a rebounding economy, Portugal has become a fashionable start-up scene, and has signed a 10-year contract to extend its hosting of the Web Summit, Europe’s largest tech event.

But the recovery is vulnerable. And not all Portuguese will benefit.

The New York Times’s Liz Alderman digs deeper into how Portugal’s revival is playing out.