Portugal begins talks Bail-Out

18 April 2011 last updated at 14: 54 GMT Finance Minister Fernando Teixeira dos Santos leads the Portuguese delegation in talks Portugal euro ($115bn, £ 70bn) started with international authorities about the conditions of a Bail-Out, expected to be worth up to zurückgeschnitten talks.

Senior officials from Europe and the International Monetary Fund meet Portuguese Finance Minister Fernando Teixeira dos Santos in Lisbon.

Meanwhile denied Greece that a Bail-Out got in the last year, reports that its debts would have to restructure it.

Euro lost 1% of its value against the dollar as one of the reports.

It was trading at $1.4275. Against the pound, it was 0.7% to 87.78 pence.

Benchmark for Portugal and Greece reached the yields on government bonds also its highest level since the introduction of the euro of 1999 on concerns the European debt crisis.

"Greece in such a difficult situation that restructuring is inevitable, sooner rather than later", said Daniel Gros of the Central for European policy studies BBC world.

"Most earlier say would would be better than later, but the politicians do not agree, do they want to keep, as long as possible" he added.

Read the most important story of

, that the Finnish Parliament has the right to vote at the request of the EU to other countries Bail-Out. The strong showing of the true Finns could potentially delay the rescue plan for Portugal. "

End quote Bank of Greece Governor George Provopoulos its debt - i.e. the conditions change - restructuring Gavin Hewitt was"neither necessary nor desirable"BBC Europe Editor."

The General Confederation of the Workers Union, the one million members, which said that it, the cost-cutting measures to protest would hold a strike on the 11.

And the European Commission denied there were talks about a possible restructuring of the Greek debt.

The nervousness spread market even after Spain, which, to borrow money for 12 months at an auction on Monday had to pay much higher interest rates.

The heavily indebted State, which is often spoken as the next State, a sovereign debt crisis could be facing a rate of 2.77%, up from 2.13% paid last month.

Finnish question

Officials have suggested that the conditions of Portugal's rescue deal agreed by mid-May.

It is to find a Bail-Out the third element of the euro within a year.

Greece received € 110bn in May last year, during the Irish Republic a Bail-Out at about 85bn euro in November were.

Read the most important story that two German EU delegations - Jürgen Kröger for the European Commission and Rasmus Rueff for the European Central Bank - lead while the IMF team is headed by Dane, Poul Thomsen.

However the true Finns can be the completion of the Portuguese Bail-Out more complicated by the strong showing last party in Finland. The true Finns are take advantage of and against the Bail-Out.

The European facility for financial stability, worth up to 440bn euros, financed by members of the eurozone and requires unanimous approval to be used.

An enemy of the Finnish Government could theoretically veto the package and, in contrast to other countries of the euro area, the Finnish Parliament can vote whether to approve the measures.

The European Commission tried to downplay this possibility in the light of the election campaign.

"We expect Finland fully to its obligations with regard to the involvement of Finland as the rest of the eurozone,", he said.

Watch: "It is almost a done deal," says Daniel Gros of the Centre for European policy studies

In the Finnish television, the true Finns, leader, Timo Soini, said: "The package, that is, I think it is."

Strict opposition

In Portugal, the main opposition party in the Transitional Government bid Bail-Out is secure, but many members of the public have been vocal in their opposition, the BBC's Alison Roberts reports.

"Is not clear how much can be more rigour imposed on results from the June elections, regardless of which Government," says our correspondent in Lisbon.

Workers in the public sector, which have already cut their wages plan to strike at the beginning of May. Also, there were widespread protests with young people in the last month about the lack of job opportunities.

The Government of José Sócrates collapsed last month - Bail-Out - request, because he does not pass package an ambitious austerity measures and privatization could get.

But some economists suggest that the IMF are on the interest rate and duration of the loan to EU officials, under pressure from voters in the Member States are, which put the money could take a softer line.

This is, since the IMF last week that Portugal forecast would GDP this year and continue to shrink.

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Bail-Out views

Last updated 7 April 2011 to 23:08 am by Rob young business reporter, BBC World Service, Lisbon and Frankfurt Dinis Coelho Dordio had to cuts in his shop that view by Dinis Coelho Dordio farm has one of the most beautiful in all Portugal.

His Sintra you can farm house an old Castle and a former Royal Palace located at the top of the wooded hill, starting at the bottom of his country.

In the Centre of the well-maintained lawn can a giant white marquee holds 300 guests. The family rented it to couples hold wedding receptions.

But the business has made by Portugal's savings program of spending cuts and tax rises are, as their growing debt control the Government fought has.

"Today is a little too large [marquee]." Nowadays, it is not usually 300 guests. There are 200 maximum, because we are in a crisis, "he says."

The family business to employees had fired and tries to diversify in the restaurant industry.

Dini is concerned, but things get even worse if, as expected, an international Bail-Out more closely strapped means more belt.

"People are afraid because we don't know if we have social security, when we will have money for pensions in a few years." "As people start, really, whether or not money to spend."

Jobs problem

The Centre of the city of Lisbon is an hour away by train, where old, bright yellow trams along cobbled streets trundle.

The sidewalk cafés of Chiado of district are the place to politics and philosophy for more than a century to discuss.

In fact a statue of famous writer of the country travelled Fernando Pessoa, on one of the tables.

SIP an espresso near 27-year-old Joao Gomes.

He graduated from the University with a degree geography a few years ago, since he can only get temporary jobs - a major problem for the young nation.

But he does not think, strict - whether by the Government or a EU IMF Bail-Out - is the right recipe to get the economy on its feet again.

"I accept it." I think taxes are very high, they are too high, "says he."

He fears that achieve a Bail-Out of Portugal's European Union partners, the country in an even bigger financial mess.

We should manage the problem and not ask for help from the outside. We know that every cent we questions, we have to back pay more in the future. "

"Happy People" Homens as Luta hope restore national pride in the this year's Eurovision Song Contest

Financial crisis of the country is also the subject of the Portugal's entry in the Eurovision Song Contest.

The ironically titles that Sung "A Luta É Alegria" or "The battle is joy" of comedians turned singer of Homens da Luta.

Lyricist JEL says that to solve leaders and ordinary people of the country in complete disagreement to the financial difficulties of the country are.

"The vast majority of the politicians who govern us demand to bring people to the victims." "Young people with talent are Portugal because they can find jobs, where they can ahead."

He shall think it restore some national pride, numbers can be when he and his group in Eurovision in Germany may, compete may even against the country for Portugal's Bail-Out?

"Our song bad, speak of Germany or any other country" he says. "We go to Germany, to Europe show that Portuguese are not sad people." "We are happy people who want to live with our brothers in Europe."Euro capital

The European charity strain is a thousand miles away in Germany signs for.

Opinion polls have about half the German does not want to, that their country to hand over all more money to bail out debt-ridden countries proposed.

As Europe's richest country, Germany is the largest guarantor of programme to give that money to run massive money in European countries.

Frankfurt is the capital of the European monetary system, housing the European Central Bank, the guardian of the single currency.

The European Central Bank is highly visible in Frankfurt am main

Outside Headquarters, there is a huge bright yellow and blue sculpture in the form of the euro currency symbol.

Tourists get their photos under it. But the currency and everything, what it has become a source of irritation for some in Frankfurt am Main.

Clemens Christmann from the Hess "German taxpayers fear of other countries debt to pay are", says industry association, an organization that represents mainly family owned company.

"I'm pretty sure that the German taxpayer will not accept from year to year increased spending for other European countries."

"Other laws"

Germany's various levels of Government are their own levels of public spending cuts as they try to balance their books.

Rome's square, the medieval square next to the main, has a main meeting place of the city for centuries.

People here not about whether euro contributions to the most indebted Nations still should Germany multi-billion agree.

It has a mixed reaction in Germany the country's contribution to the euro-zone rescues

"We have more laws make, so that countries in Europe, which have difficulties need no help from the other countries in Europe," says a local.

Her friend remembers the days before the euro was lovingly.

"The German mark was better." "It was better when each country had its own currency."

But European solidarity has not completely disappeared. The Federal Government's argument that benefits from a strong euro Germany resonates clearly with some.

"Germany got huge benefits from the euro." You [countries in difficulties] must be supported. What can we do? These countries would break "another says resident."

Exporter benefits

In Frankfurt's oldest music store hundreds of classical and e guitars on the walls hang music, cream.

Half of the shop are selling for people outside of Germany.

Co-owner Bernie Hahn says that exporters benefit his country of all Bail-Outs in the long run.

"If we strong neighbours, still not, our buy products that have?" As an investment in our own economy at the end of the day is it, "he says."

But it is not only trade, which motivates him - it's also a feeling of being a European.

"It was part of the deal from the beginning." Everyone knew that we pay for it. "We are the strongest economy in Europe so that only the deal is."

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Portugal searches Bail-Out from the EU

6 April 2011 last updated at 21: 28 GMT José Socrates: "we have achieved in the moment where is it to much risk" Portugal's caretaker Prime Minister José Sócrates said that he has called for financial assistance from the European Union.

Socrates said that the country "on too much risk" was, it should be exposed to that is not.

The Government has long resisted for help ask but last week admitted to that it 2010 budget deficit target had missed his.

Portugal follows Greece and the Irish Republic in the search for a Bail-Out.

Mr Socrates said "I said always questions, would be the last way to go for foreign aid, but we have achieved at the moment,".

"Above all it is in the national interest."

President who Commission said José Manuel Barroso would be processing the request in a statement of Portugal "in the fastest manner in accordance with the rules in force".

He reiterated his "trust in Portugal the capacity, the current difficulties, to overcome with the solidarity of their partner".

Borrowing costs

Socrates not said how much help would be Portugal. Negotiations now are Robert Peston in progress and the BBC business editor rescue said as zurückgeschnitten euros ($115bn, £ 70bn) could make loans.

Socrates was speaking after Finance Minister Fernando Teixeira dos Santos said it was necessary for financial help from the EU.

Continue reading the main story of Matthew Preis Europe correspondent, BBC News

First Greece and Ireland, now Portugal. But unlike the previous two Bail-Outs, this one seems not to panic - either in the corridors, which makes here, nor have the markets provoked.

The EU top economic official Olli Rehn called the Portuguese decision a "responsible move". The President of the European Commission José Manuel Barroso - is Portuguese - said that the request can be processed as quickly as possible.

A team could be sent in the coming days after Portugal.

EU finance ministers hold a planned meeting in Hungary at the end of the week. Portugal will be high on the agenda.

The European Commission and the European Central Bank will both share the Bail-Out financing. The International Monetary Fund says it is ready, also help.

Earlier, the Government raised over EUR 1 billion to creditor pick a higher interest rate numbers on the financial markets to repay loans, but.

Portugal's costs for borrowing has risen so sharply, because the minority joined Socialist Government last month after his proposed more stringent cost-cutting measures in Parliament defeated.

Since then, several agencies of the country have downgraded debt.

An informal meeting of European Finance Ministers had already planned in Budapest for Thursday were. Portugal was not originally on the agenda but should be discussed.

The UK Treasury Minister Mark Hoban will take part. A source at the Treasury said that the bilateral loan UK the Irish Republic was offered "very much a special case" and is a similar offer "not on the table" for Portugal.

Jan Randolph, head of the country risk at IHS global insight, told the BBC, that Portugal could organize "a kind of bridging loan" in the short term.

But he added: "the real big loans over several years need a medium-term plan and I don't think that can be agreed until the new Government in place."

Elections are expected to take place in a few months.

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