Portugual: What the

4th May 2011

The Guardian reported that financial markets have welcomed the €78bn (£70bn) bailout agreed for Portugal on Tuesday night.

The deal sent the euro rallying on Wednesday while Portuguese bond prices also recovered.

It reports that " In return for financial help from the European Union and the International Monetary Fund, Portugal must slash its budget deficit from 9.1% of GDP to 5.9% this year, and then reduce it to 3% by 2013."

Mindful Money blogger Sean Richards gives his take on Portugal's EU bail-out deal here.

"Mr. Socrates further said that this was a "good" but "demanding" deal for Portugal. How he could say this when he was unable to declare the interest-rate that will have to be paid on the money merely illustrates his usual combination of hyperbole and disregard for reality."

The Telegraph reports that the deal makes the debt-laden country the third eurozone member to do so after Greece and Ireland.

On the Telegraph comment boards  nickinfrance comments: "Don't know if you've noticed, but Portugal's budget deficit isn't very different to the UK's.

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