Portugal Faces Debt Crisis, Bailout Looms

Ad Feedback

Yet another European country appears to be on the verge of financial collapse.

Portugal's heavy debt resulted in Prime Minister Jose Socrates' resignation due to the country's opposition parties rejecting his proposal to reduce that debt.

"The opposition (parties) took away the government's ability to continue running the country. As a consequence, I have tendered my resignation to the president," Prime Minister Jose Socrates said in a televised statement.

His resignation also ended the government's six-year period in power.

"This crisis comes ... at the worst possible time - ahead of a summit that's decisive for Portugal and decisive for Europe too," Socrates said.

International markets took that as proof that the country will need a bailout -- just as Greece and Ireland did last year.

Socrates said his government had done everything in it's power to dodge a bailout "so we wouldn't end up in a situation like Greece or Ireland" where fiscal measures imposed by the bailout terms have squeezed the finances of families and companies.

Portugal's crisis is another setback for European leaders who've been trying to reassure markets about the financial soundness of the 17-nation Eurozone.

Log in or create an account to post a comment.  

CBN IS HERE FOR YOU!

Are you seeking answers in life? Are you hurting? Are you facing a difficult situation?

Find peace with God, discover more about God or send us your prayer request.

Call The 700 Club Prayer Center at 1 (800) 823-6053, 24 hours a day.

A caring friend will be there to pray with you in your time of need.

 CBNNews.com

CBNNews.com

CBN News is a national/international, nonprofit news organization that provides programming by cable, satellite, and the Internet, 24-hours a day. Follow us on Facebook, Twitter, and Google+.