Portuguese political turmoil intensifies

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Portuguese political turmoil intensifies

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Portuguese stocks tumbled further on Wednesday in response to the political crisis gripping the cash-strapped country.

The market reaction follows the resignation of the country’s Foreign Minister, Paulo Portas, the leader of the ruling coalition’s junior partner.

Embattled Prime Minister Pedro Passos Coelho refused to accept his resignation and said he would continue to lead the government for the sake of stability.

Portas must now decide his next move; if he goes the government loses its majority.

He will hold meetings with his CDS-PP party later.

Local media report that two more ministers are set to quit, piling even more pressure on an already rickety administration.