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Portugal: Coalition partners seal deal to heal rift

06/07/13 02:15 CET

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.

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