Portugal

Portugal could need a bailout 'imminently' after opposition parties rejected the government's austerity policies, leading Prime Minister Jose Socrates to resign, according to reports.

IS PORTUGAL NEXT?

Moody's has downgraded Portugal's government debt two more notches because of 'subdued' growth prospects.

Eurozone leaders in Brussels have come to a ‘in principle' agreement on economic policy, designed to rescue Europe from its debt crisis, European Union President Herman Van Rompuy has announced.

Portugal is set to receive a financial rescue package from the EU within a month, as the country's high borrowing costs are increasingly untenable, says Chris Iggo at AXA.

Speculation Portugal is facing an imminent bailout was fuelled this morning as the European Central Bank was forced to buy the country's government bonds.

Ten-year Portuguese bond yields have reached a new high of 7.16%, driven by speculation the country will ask the EU for a bailout.

PIIGS STILL A CONCERN FOR EURO CREDIT

Portugal has successfully issued €500m of short-dated government bonds, but at a higher yield than its previous auction.

Economist Nouriel Roubini, known around the world as Dr Doom for forecasting the credit crisis, says Portugal will be the next European country in line for an Irish-style bailout.