EU bailout is requested
Portugal has finally asked for the financial bailout which has been coming for months. The request was made to the European Commission yesterday and EU ministers will now negotiate with the caretaker government on the size and conditions of the bailout.
Most observers are suggesting that the bailout required will be around €80 billion. Portugal is the third EU country to request a bailout following Greece and Ireland last year.
The situation follows the collapse of the socialist government two weeks ago after they failed to get further austerity measures passed in parliament. A general election has been called for 5th June 2011.