Portugal's Statists Seek Bailout From EU After Failing to Stem Crisis

Portugal will seek a bailout from the European Union after the nation’s political crisis pushed borrowing costs to record levels and forced it to become the third euro-region country needing a rescue.

“I tried everything but we came to a moment that not taking this decision would bring risks we can’t afford,” Prime Minister Jose Socrates told the nation in a he had tried everything to televised statement in Lisbon late yesterday.

Portugal is aiming for a package that may be worth as much as 75 billion euros ($107 billion), two European officials with knowledge of the situation said. The surge in yields on Portuguese bonds as the country struggled to raise funds for 9 billion euros of bond maturities in April and June had fueled investor expectation that Portugal would need aid.

“Financial markets have long priced in the idea of a Portuguese bailout,” said Paul Donovan, deputy head of global economics at UBS AG in London. “It has been widely anticipated by everyone except, it would seem, the Portuguese government.”

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Portugal's Statists Seek Bailout From EU After Failing to Stem Crisis

Portugal's Statists Seek Bailout From EU After Failing to Stem Crisis

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