Portugal’s prime minister, Pedro Passos Coelho, has reached a deal with his junior coalition partner, over a rift that has been threatening the country’s bailout programme.
A recent resignation request by Paulo Portas, who heads up the rightist CDS-PP party, unleashed a political crisis. He disagreed with the choice of a new finance minister, after the previous one quit.
It is unclear exactly what kind of deal has now been struck. A further meeting is penciled in for Sunday – and any agreement will have to be cleared by Portugal’s president.
There have been concerns the political uncertainty could upset Lisbon’s progress on its 78 billion euro bailout programme.