Global General

Portuguese PM quits on eve of key summit

(China Daily)
Updated: 2011-03-25 08:28

LISBON, Portugal - Portuguese Prime Minister Jose Socrates resigned on the eve of a key EU summit on the eurozone debt crisis after parliament rejected his new austerity plan, increasing Lisbon's chances of seeking a bailout.

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All five opposition parties voted on Wednesday against his Socialist government's fourth cost-cutting plan in a year aimed at avoiding a multi-billion euro financial bailout like those given to Greece and Ireland.

China commended Socrates' contribution to strengthen bilateral communication and cooperation between the two countries, China's Foreign Ministry spokeswoman Jiang Yu told a regular news conference on Thursday. China and Portugal have always maintained a good relationship, and the prime minister attached high importance to ties with China. China will continue to work with Portugal to deepen bilateral relations, Jiang said.

The political drama threatened to derail a two-day summit that gets under way in Brussels on Thursday which is expected to finalize the bloc's response to a year-long eurozone debt crisis.

It also will increase borrowing costs for the Portuguese government as it faces bond repayments amounting to nine billion euros ($12.9 billion) falling due by June 15, boosting the probability that Lisbon will seek a bailout.

"The opposition removed from the government the conditions to govern. As a result I have presented my resignation to the president," Socrates said after a 20-minute meeting with President Anibal Cavaco Silva.

AFP-China Daily