Portuguese government to collapse within 48 hours

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The chief economist at Saxo Bank has said that the Portuguese government will fall in the next 48 hours, according to Portuguese media. Protestors assembled in Lisbon last night - the banner above reads "obviously, you are dismissed".

Steen Jakobsen, chief economist at Saxo Bank, said "Portugal will ask for a second bailout in the next six months. Especially because the yields to 10 years and 8% are unsustainable."


Despite the refusal of the Prime Minister to resign, more ministers are expected to announce their resignation today, following two high-profile ministers quitting over the past two days.

The Eurogroup chief still expects Portugal to continue with its austerity programme.