Portuguese PM Quits After Parliament Rejects Austerity Package

Facing a political and economic crisis, the country edges closer to an EU bailout.

Canada isn’t the only country with a minority government in trouble. Portuguese Prime Minister Jose Socrates announced his resignation Wednesday after he failed to convince the opposition-dominated parliament to accept an austerity plan aimed at tackling the country’s crippling debt. Socrates will stay on as a caretaker prime minister during an EU summit in Brussels Thursday and Friday, where Portugal’s financial woes are expected to take centre stage. During his tenure, Socrates was adamant that Portugal not resort to an international bailout to stabilize its economy, but it now appears inevitable that the country will follow debt-ridden Ireland and Greece, both of which were bailed out last year. It’s estimated Portugal needs 60 billion to 80 billion euros in aid.