Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

François Hollande: "Brexit result is irrevocable"

Read more

BUSINESS DAILY

Hollande pledges tax cuts ahead of France's 2017 elections

Read more

IN THE PAPERS

Britain's battle for leadership begins

Read more

MEDIAWATCH

Istanbul's suffering in the shadows?

Read more

EYE ON AFRICA

Uganda: Opposition leader in court on treason charges

Read more

THE DEBATE

Turkey targeted: Terror attack coincides with foreign policy pivot (part 2)

Read more

THE DEBATE

Turkey targeted: Islamic State group blamed for Istanbul attack (part 1)

Read more

THE INTERVIEW

" We have a lot that we can do together to make Middle East a better place"

Read more

FOCUS

Will Bolivia see a lithium boom?

Read more

Europe

Portugal in crisis as more ministers threaten to quit

© AFP

Text by FRANCE 24

Latest update : 2013-07-03

The Portuguese government faced its most pressing challenges to date on Wednesday as two more ministers threatened to jump ship after the country’s finance and foreign ministers tendered resignations this week.

Prime Minister Pedro Passos Coelho struggled to keep Portugal’s government from collapsing on Wednesday, with two more cabinet ministers threatening to quit after Finance Minister Vitor Gaspar and Foreign Minister Paulo Portas tendered their resignations earlier this week.

Portuguese media reported that Agriculture Minister Assuncao Cristas and Social Security Minister Pedro Mota Soares were ready to follow Portas, the leader of their centre-right Democratic and Social Centre – People's Party (CDS-PP), who tendered his resignation on Tuesday.

But Prime Minister Coelho said in a speech on Tuesday that he did not accept Portas’s resignation and would work to overcome the political stalemate.

Coelho’s conservative Social Democratic Party (PSD) is in a coalition with the smaller CDS-PP, and the future of the government now appears to rest on Portas’s decision to either stay or leave.

Markets head south

Markets reacted severely to the uncertainty that reigned over the small debt-stricken country that has imposed strict austerity under the terms of a 2011 joint EU-IMF bailout.

The Lisbon stock exchange's main index plunged 5.99 percent to 5,199.01 points in the first half hour of trade, while borrowing costs soared to danger levels.

Portugal's economy is already in turmoil, with debt rising over 10% of GDP in the first quarter of 2013 and unemployment expected to soar above 18%.

Date created : 2013-07-03

  • PORTUGAL

    Portugal's finance minister quits amid signs of austerity backlash

    Read more

  • EUROZONE

    Eurozone unemployment hit record high in May

    Read more

  • PORTUGAL

    Portugal austerity budget raises pension age, cuts jobs

    Read more

COMMENT(S)