Financial plight deepens in Portugal

Portugal’s financial plight has deepened after official figures showed its budget deficit last year was 8.6% of GDP – way above the government target of 7.3% intended to ease market fears.

The estimate by the National Statistics Institute was another setback for Portugal’s struggle to avoid taking a bailout, like those Greece and Ireland accepted last year, as it faces two months without a government and debt repayments it cannot afford.