Eurogroup chief expects Portuguese situation to stabilise

The head of the Eurogroup, Jeroen Dijsselbloem, has said that he expects the "worrying" situation in Portugal to stabilise, as two of the government's ministers have quit in two days, with more set to announce resignations today.

There is some suggestion that the austerity programme in Portugal has been the catalyst for the political crisis, with finance minister and architect of the programme, Vitor Gaspar, being the first to quit.

I assume the political situation in Portugal will stabilise and that Portugal will stay committed to the undertakings that are part of its programme.

Dijsselbloem wants to calm markets as Portuguese government bond yields have spiked, and share values plummeted, implying a loss of confidence in the country's ability to pursue that austerity package.

The Eurogroup chief gained notoriety after comments on the Cyprus bail-in, at the time he implied that the rescue could become a template for the Eurozone.