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Key minister quits as crisis grips Portugal coalition Key minister quits as crisis grips Portugal coalition
(35 minutes later)
A key figure in Portugal's centre-right coalition, Foreign Minister Paulo Portas, has quit government just a day after the finance minister.A key figure in Portugal's centre-right coalition, Foreign Minister Paulo Portas, has quit government just a day after the finance minister.
Mr Portas, head of the coalition's junior party, had been given the task of overseeing cuts after Vitor Gaspar stepped down in a shock move. Mr Portas, head of the coalition's junior party, had been given the task of overseeing cuts after finance minister Vitor Gaspar quit on Monday.
He has in the past objected to plans to raise taxes on pensioners. Mr Portas has in the past objected to plans to raise taxes on pensioners.
Portugal is under pressure to make savings in return for its 78bn euro ($102bn; £67bn) bailout in 2011.Portugal is under pressure to make savings in return for its 78bn euro ($102bn; £67bn) bailout in 2011.
The country has been in recession for two years and the economy is expected to contract by 2.3% this year.
Last week a general strike brought public transport to a halt.
Mr Portas has been odds in the past with Prime Minister Pedro Passos Coelho over aspects of the austerity drive.
It was not immediately clear on Tuesday why he had resigned but local media reports suggest he objected to the prime minister's choice to replace Mr Gaspar.
Maria Luis Albuquerque was picked as the new finance minister, replacing a man seen as the architect of austerity in Portugal.
Mr Gaspar said in his resignation letter that he was leaving because of the growing erosion of public support for austerity measures.