EU Commission President Jose Manuel Barroso responded quickly to Portugal’s intention to ask for a bailout. He immediately said the activation of financial support mechanisms “will be processed in the swiftest possible manner.”
Two thirds of the money Portugal needs will come from the EU and one third most likely from the International Monetary Fund. Around 80 billion euros is needed.
The IMF’s involvement has not yet been officially requested but it says it stands ready to help. Any EU bailout requires member states to commit to an economic adjustment programme – something which other recipient countries have struggled with politically.