EU: Portugal needs €80bn bailout

Preliminary estimates show Portugal will need rescue loans of around €80bn, the EU’s Monetary Affairs Commissioner has said.

Olli Rehn added that talks over a strict reforms programme will start immediately with all major political parties, and he hoped a final deal will be in place by mid-May.

He said that the difficult political situation in Portugal – where a caretaker government is in charge until elections in June – makes it essential to reach a cross-party agreement.

Mr Rehn said the programme will include structural reforms, spending cuts, a stabilisation programme for the country’s financial sector and ambitious privatisation plans.