Crisis talks in Portugal ‘progressing’

Talks between Portugal’s prime minister and his coalition partner were said yesterday to be progressing to defuse a political crisis that has jolted Lisbon’s hope of a smooth exit from its international bailout.

Prime Minister Pedro Passos Coelho kicked off meetings with the leader of the rightist CDS-PP party overnight and met with him again yesterday to heal a rift that some investors say could make a second rescue package necessary for Lisbon.

“The conversations are ongoing in a very positive atmosphere,” said a government spokesman.