Portuguese government in turmoil as coalition is likely to break up

Portugal's Prime Minister Pedro Passos Coelho will address the country after two of his ministers have resigned in two days.

Speaking at 19.00, Coelho will have to address the breakup of the coalition government - as one of those ministers is the leader of the coalition's junior partner.

Coelho can now no longer guarantee the majority the government requires. Open Europe says the junior party leaving the coalition now looks likely.

Portuguese bonds have been trading higher (implying that the cost of borrowing to government is rising). The initial resignation came from former finance minister Vitor Gaspar, who has had to implement Portugal's austerity programme.

From Portuguese newspaper Sabado (a rough translation):

The president said on Tuesday that a political force that wants to "dispel the Government" must submit a censure motion in Parliament. "Who determines whether or not the continuity of a government is the Parliament. A political force that wants away from the government that has to do under the Constitution, is to present a motion of censure and to convince the majority of MPs effectiveness of functions to vote in favor, "said Cavaco Silva. "It is becoming a political force that has to do their own work and not expect others to be doing what it competes.'s What the Constitution says," added the Head of State, while speaking to reporters on the sidelines of the ceremony Day PSP, Lisboa.No following the same statements Cavaco Silva also said to have received the Prime Minister, Pedro Passos Coelho, the "absolute guarantee" that on future finance minister "does not weigh" anything "less correct ". CAVACO RECEIVES JOSÉ ANTONIO SEGUROO President of the Republic, Aníbal Cavaco Silva, will receive the general secretary of the PS, António José Seguro, in the hearing on Wednesday, at 16.30, according to a note published today on the website of the Presidency República.O Head of State also responds to the request for a 'general audience with urgency, the President of the Republic', made on Monday by the Socialist spokesman, during a press conference at the headquarters of the PS after the dismissal of Vítor Gaspar.

(Sabado)