Portugal ‘to do all it can’ to avoid bailout

PORTUGAL has vowed to “do all it can” to avert a bailout after Prime Minister Jose Socrates stepped down following a showdown with parliament over his minority government’s latest austerity plan.

Socrates, in power since 2005, tendered his resignation late on Wednesday, saying he could not govern without support after all five opposition parties voted against his fourth programme in a year of spending cuts and tax hikes.

The austerity plan was aimed at avoiding the need for an EU-IMF bailout to help Lisbon meet debt repayment obligations, a package similar to those granted fellow eurozone members Greece and Ireland last year.