- Oct 26, 2006
Budget talks between Portugal's Socialist government and the main opposition party ended on Wednesday without a deal, raising the risk of a political and financial crisis in one of the euro zone's weakest members.
Socrates has threatened to resign if the budget is not approved and ministers have warned that Portugal could be forced to seek a financial rescue, as Greece did earlier this year.
UPDATE 2-Portugal budget talks collapse, threatening crisis | Reuters* Finance minister says there will be no further talks
* Bond spreads widen on news talks ended without deal
* Portugal may be forced to seek rescue early 2011-analyst
Portugal may beat us and default first. Not good news here either.