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| Portugal coalition will survive, PM says | Portugal coalition will survive, PM says |
| (35 minutes later) | |
| Portugal's prime minister says he has negotiated a "formula" to keep his coalition government intact after two resignations plunged it into crisis. | Portugal's prime minister says he has negotiated a "formula" to keep his coalition government intact after two resignations plunged it into crisis. |
| The political uncertainty had sent the interest rate on Portuguese 10-year bonds soaring above 8%, but on Friday the rate fell back to 6.8%. | |
| PM Pedro Passos Coelho says his centre-right coalition partner has pledged to maintain its crucial support. | PM Pedro Passos Coelho says his centre-right coalition partner has pledged to maintain its crucial support. |
| The government is struggling to fulfil tough bailout conditions. | The government is struggling to fulfil tough bailout conditions. |
| Portugal received a bailout worth more than 78bn euros ($102bn; £67bn) in May 2011, on the condition it implemented austerity measures. | Portugal received a bailout worth more than 78bn euros ($102bn; £67bn) in May 2011, on the condition it implemented austerity measures. |
| The latest uncertainty rekindled market anxiety that Portugal might need further international assistance and put new pressure on the eurozone. | The latest uncertainty rekindled market anxiety that Portugal might need further international assistance and put new pressure on the eurozone. |
| On Thursday night Mr Passos Coelho, leader of the Social Democratic Party, said a "formula [had] been found to maintain the government's stability". He was speaking after crisis talks with President Anibal Cavaco Silva. He did not explain what that formula meant. | On Thursday night Mr Passos Coelho, leader of the Social Democratic Party, said a "formula [had] been found to maintain the government's stability". He was speaking after crisis talks with President Anibal Cavaco Silva. He did not explain what that formula meant. |
| Earlier he held a series of meetings with Paulo Portas of the centre-right Popular Party (CDS-PP), who resigned as foreign minister on Tuesday. | Earlier he held a series of meetings with Paulo Portas of the centre-right Popular Party (CDS-PP), who resigned as foreign minister on Tuesday. |
| Mr Passos Coelho, who refused to accept Mr Portas's resignation, said the latter had told him "it was a personal decision and does not involve the support of the CDS-PP for the government". | Mr Passos Coelho, who refused to accept Mr Portas's resignation, said the latter had told him "it was a personal decision and does not involve the support of the CDS-PP for the government". |
| 'No contagion' | 'No contagion' |
| President Cavaco Silva is due to begin talks with the parties on Monday. | President Cavaco Silva is due to begin talks with the parties on Monday. |
| Germany's Finance Minister, Wolfgang Schaeuble, said he did not expect contagion to spread from Portugal to other eurozone countries. | Germany's Finance Minister, Wolfgang Schaeuble, said he did not expect contagion to spread from Portugal to other eurozone countries. |
| "I think the euro is now viewed on the world's financial markets as so stable that domestic political situations in individual countries... don't mean a crisis for the stability of the euro as a whole,'' he said in Berlin. | "I think the euro is now viewed on the world's financial markets as so stable that domestic political situations in individual countries... don't mean a crisis for the stability of the euro as a whole,'' he said in Berlin. |
| European Central Bank president Mario Draghi praised the Portuguese government's efforts in the debt crisis. | European Central Bank president Mario Draghi praised the Portuguese government's efforts in the debt crisis. |
| "Certainly, it's been a painful route - and the results that have been achieved have been quite significant, remarkable, if not outstanding," he said. | "Certainly, it's been a painful route - and the results that have been achieved have been quite significant, remarkable, if not outstanding," he said. |
| The crisis began on Monday with the resignation of Finance Minister Vitor Gaspar, who for two years had overseen the unpopular austerity policies. | The crisis began on Monday with the resignation of Finance Minister Vitor Gaspar, who for two years had overseen the unpopular austerity policies. |
| Portugal has been in recession for two years and the economy is expected to contract by 2.3% this year. | Portugal has been in recession for two years and the economy is expected to contract by 2.3% this year. |