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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 finance minister Vitor Gaspar quit on Monday. 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.
Mr Portas has in the past objected to plans to raise taxes on pensioners. In his resignation letter, Mr Portas said he disagreed with Prime Minister Pedro Passos Coelho's austerity path.
Portugal is under pressure to make savings in return for its 78bn euro ($102bn; £67bn) bailout in 2011. Portugal is struggling to meet the terms of its 78bn euro bailout in 2011.
The country has been in recession for two years and the economy is expected to contract by 2.3% this year.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.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. 'I disagree'
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. The prime minister's choice of Treasury Secretary Maria Luis Albuquerque to replace Mr Gaspar was interpreted by many as meaning he intended to press ahead with cuts.
Maria Luis Albuquerque was picked as the new finance minister, replacing a man seen as the architect of austerity in Portugal. "The prime minister has chosen to maintain its path at the finance ministry," Mr Portas said in his letter.
Mr Gaspar said in his resignation letter that he was leaving because of the growing erosion of public support for austerity measures. "I respect this choice but I disagree. I expressed this view to the prime minister who nevertheless confirmed his choice."
To remain in the government would be an "act of simulation... neither politically viable nor desirable", he added.
Mr Portas has in the past objected to plans to raise taxes on pensioners.
It was not immediately clear what effect the resignation would have on relations between Mr Portas's party, the CDS-PP, and the prime minister's Social Democrats.
The coalition has been in power for two years.
Mr Gaspar, the man seen as the architect of austerity in Portugal, said in his own resignation letter that he was leaving because of the growing erosion of public support for austerity measures.