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Portugal bail-out fears as government faces collapse
Business digest: Prime minister’s austerity package looks likely to be defeated in parliament
Portugal today faced the threat of financial collapse as opposition parties withdrew their support for austerity cuts that are a last ditch attempt to deal with the country's huge debt.
Prime Minister Jose Socrates's government is expected to lose a parliamentary vote today as opposition parties derided the cuts for going too far. He has said that if the package is rejected, he will no longer be able to govern the country.
The yield on Portugal's 10-year bond was yesterday at 7.4 per cent, an indication of investors' worries over the country's ability to make good its debts. Greece and the Republic of Ireland were bailed out when markets lost faith in them.
The news comes as eurozone leaders meet to discuss a debt crisis plan.
Read a full report at BBC News. ·
