Portuguese government at risk of collapse as foreign minister resigns
Portugal’s political crisis has deepened with the resignation of foreign minister Paulo Portas, in a move which could trigger the collapse of the ruling coalition government.
Mr Portas heads junior coalition party CDS-PP, which guarantees the government’s parliamentary majority.
His reasons for resigning concerned the replacement of finance minister Vitor Gaspar with Maria Luis Albuquerque, Secretary of State for Treasury.
Mr Gaspar stepped down on Monday over his consistent failure to meet Portugal’s deficit and debt targets under the €78bn bail-out.
“The Prime Minister decided to follow the path of mere continuity at the Finance Ministry,” Portas said in a statement e-mailed by the Foreign Affairs Ministry. “I respect that but disagree.”
Mr Portas has periodically been at odds with prime minister Pedro Passos Coelho and Mr Gaspar’s strong adherence to austerity, which has sent the country into its deepest recession since the 1970s.
On Tuesday night, Mr Coelho said he would not step down. “I won’t give up on my country,” he said, adding that he will not accept Mr Portas’ resignation.
Portugal has struggled to meet the terms of its bailout as the country’s recession deepened and the prime minister has said he may seek further relaxation of budget goals if the economy worsens further.
The centre-right government has led the country ever since Portugal got a bailout in 2011, which was requested by the former Socialist government before it collapsed.
The Portuguese 10-year bond yield crept nearer to 7pc – the level which effectively locks governments out of the markets – on Monday. It rose 24.3 basis points to hit 6.521pc.
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