Stricken Portuguese economy in desperate need of aid.
Portugal's finance minister, Fernando Teixeira dos Santos, has expressed a desire for EU funding in order to beat its financial hardship. Last year saw the bailouts of Greece and Ireland as their economies threatened to collapse and potentially damage the single currency.
Speaking to the business daily web publication Jornal de Negocios, Dos Santos said "In this difficult situation, which could have been avoided, I understand that it is necessary to resort to the financing mechanisms available within the European framework". A finance official later confirmed the statement.
Economists are increasingly pointing to the necessity of a full bailout similar to the offer given to Greece and Ireland. At this stage it is uncertain whether Dos Santos is seeking such a full bailout or whether his comments relate to a short-term cash injection prior to the general election in June.
Failure to pass a set of austerity measures, as well as skyrocketing borrowing costs after the government's collapse last year, are thought to be the root causes of Portugal's recent financial woes. Dos Santos also noted in his comments that the present state of the country's economy could have been avoided. The EU's top economic official, Olli Rehn, has said that it was in the best interest of countries in the Eurozone to help Portugal or face a collapsing of the single currency.
If a fully fledged loan is agreed, it is likely that Portugal will receive between £50bn and £70bn from the EU and IMF over a three year period.
