News Summary: Portugal government under pressure

The Associated Press
April 3, 2013

ANGER: Opposition parties in Portugal presented a motion of no confidence in the government, giving voice to the country's widespread discontent.

THE RESULT: The government had enough votes to easily defeat the motion. But the political pressure added another dose of uncertainty into financial markets already jittery about the fate of Cyprus and the wider eurozone.

THE BACK STORY: Portugal needed a $100 billion rescue two years ago. The three-year bailout agreement locked Portugal into austerity policies which are now widely blamed for the steep economic downturn. Portugal is enduring a predicted third year of recession and a 17.5 percent jobless rate.