"From the start they have misdiagnosed the problem -- they haven't come clean about what the problem is and hence the medicine is all wrong," said Simon Tilford, chief economist of the Centre for European Reform in London. "Quite clearly, the problem in the case of Greece, Ireland and Portugal is that investors have justified doubts about the ability of those countries to grow sufficiently quickly to service their debts," said Tilford. "In Portugal, the EU sees this as a liquidity crisis, but it's really a solvency crisis.