Portugal asks for bail-out estimated at €80bn

Portugal has announced that it needs an economic bail-out from the EU, following months of caretaker prime minister Jose Socrates protesting that the country was able to manage its huge debts.

Economists have estimated that the financial rescue package may cost as much as €80bn, with British involvement reaching as much as £5bn (€5.7bn).

European Commission president Jose Barroso assured Portugal that its request for help would be dealt with as swiftly as possible, and the International Monetary Fund said it was ready to help if needed.

Portugal is the third country, after Ireland and Greece, to be bailed out with EU funds. There are now fears of a risk of contagion to neighbouring Spain.

Read a full report at the Daily Telegraph. ·