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| Version 0 | Version 1 |
|---|---|
| Euro falls ahead of Portuguese austerity vote | Euro falls ahead of Portuguese austerity vote |
| (40 minutes later) | |
| The euro has fallen again as fears that the Irish debt crisis may spread to other European economies continue to grip currency markets. | The euro has fallen again as fears that the Irish debt crisis may spread to other European economies continue to grip currency markets. |
| The euro fell one cent against the dollar in early trading to $1.3265. It has now fallen by almost four cents, or 3%, this week. | |
| The Portuguese parliament is voting later on billions of euros of proposed austerity measures. | The Portuguese parliament is voting later on billions of euros of proposed austerity measures. |
| Many commentators say Portugal will be next in line for a bail-out. | Many commentators say Portugal will be next in line for a bail-out. |
| Reports in the Financial Times Deutschland suggest that some eurozone countries and the European Central Bank are putting pressure on the country to ask for financial assistance. | Reports in the Financial Times Deutschland suggest that some eurozone countries and the European Central Bank are putting pressure on the country to ask for financial assistance. |
| However, the Portuguese government said the reports were "completely false". | |
| Spending cuts | Spending cuts |
| This week's fall in the euro was triggered by the Irish Republic's request for financial assistance last weekend. | |
| It is currently negotiating with the European Union (EU) and the International Monetary Fund (IMF) over a rescue package expected to amount to 85bn euros ($113bn; £72bn). | |
| The Republic will be the second eurozone economy to be rescued, after Greece was granted a 110bn-euro bail-out over the summer. | |
| In order to tackle its high budget deficit, and meet conditions of any loan package, the Irish government unveiled a tough recovery plan on Wednesday, designed to save 15bn euros over the next four years, which will be voted on next month. | In order to tackle its high budget deficit, and meet conditions of any loan package, the Irish government unveiled a tough recovery plan on Wednesday, designed to save 15bn euros over the next four years, which will be voted on next month. |
| However, the impending EU/IMF bail-out has failed to calm investors' fears that the Irish debt crisis could spread to other countries with high budget deficits, particularly Portugal and Spain. | |
| Government bond yields - an important indicator of investor confidence - have also risen this week, but were virtually unchanged on Friday. | |
| Portugal will vote later on its own austerity budget, which outlines measures to cut the country's deficit from 7.3% of economic output this year to 4.6% in 2011. | Portugal will vote later on its own austerity budget, which outlines measures to cut the country's deficit from 7.3% of economic output this year to 4.6% in 2011. |
| It proposes public spending cuts and raising VAT - measures that have proved very unpopular with voters. | It proposes public spending cuts and raising VAT - measures that have proved very unpopular with voters. |