Europe faced more seemingly inevitable bail-outs today as it battled to keep the debt crisis from engulfing country after country.

Portugal’s parliament has approved a plan to hike taxes and cut salaries and welfare benefits next year in a bid to reverse waning market confidence in its public finances.

PORTUGAL’S Finance Minister has said “the risk is high” Ireland will have to ask for an international rescue, and said the Irish Government must take into account what is best for the eurozone as well as the country when it decides whether to seek financial help from the European Union and International Monetary Fund.

PORTUGAL announced new austerity measures yesterday, cutting welfare benefits and government hiring as well as selling assets and raising taxes.

Portugal announced new austerity measures today to avoid a debt crisis like the one engulfing Greece, cutting welfare benefits and government hiring as well as selling assets and raising taxes.