Portugal seeks political deal amid debt crisis

[March 25, 2011]  LISBON, Portugal (AP) -- Portugal's president is meeting with political parties as he searches for ways to ease the debt-heavy country's acute financial crisis.

Portugal is rudderless and at the mercy of financial markets after the government quit in a dispute with its rivals over debt reduction proposals.

Many analysts expect the uncertainty to push Portugal into taking a bailout like Greece and Ireland.

President Anibal Cavaco Silva, a figurehead who has no government rule but can act as a facilitator, was asking parties Friday whether they would voluntarily form a coalition government or demanded new elections.

Portugal's interest rates surged to new record highs after Standard & Poor's cut its credit rating late Thursday.

[Associated Press]

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