The Daily Mail reports:
Portugal's financial markets nosedived today amid fears that repayments on its £64billion bailout could soon become unsustainable as the government looked set to collapse following a spat over the country's austerity programme.
Share prices dropped by around six per cent in early trading alarming investors and reigniting concerns that the eurozone's strategy for dealing with the financial crisis is flawed.
The market dip came as Portuguese Prime Minister Pedro Passos Coelho defied calls to resign last night after the resignations of key ministers in a spat over austerity.
Portuguese Foreign Minister Paulo Portas, the leader of the junior party in the center-right coalition government, quit on Tuesday in protest against plans to continue with tax hikes and pay and pension cuts.
The previous day, Finance Minister Vitor Gaspar walked out, saying he lacked political and public support for his austerity strategy.
Portugal is locked into a program of tough budget cuts demanded by its fellow euro countries, the European Central Bank and the International Monetary Fund in return for a 78 billion euro (£66 billion) bailout two years ago.
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