EU finance ministers at a summit in Budapest are discussing Portugal’s request for a bail-out. The conditions for granting a rescue package are likely to include strict austerity measures. The exact amounts that will be needed to shore up Portugal’s economy have still to be decided.
Portuguese Finance Minister Fernando Teizeira Dos Santos said: “The European Central Bank, the European Commission, together with Portuguese authorities must be involved to make an assessment of how much is required and, of course, that also will depend on how long the financial support will be provided.”
Following on from the Greek and Irish bailouts, the Portuguese request has raised fears that Spain could be next. But this has been denied by the Spanish authorities.
Meanwhile in Madrid, students have been rallying under the slogan “no home, no job, no pension, no fear!” They were protesting against the government’s austerity measures and soaring unemployment, which is running at 20 percent in Spain, but amongst under 25s is now over 40 percent – double that of France and the UK.