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Portugal seeks EU bailout

Portugal's caretaker government threw in the towel Wednesday (April 6), saying it's now decided to seek a bailout from the European Union. The country had resisted pressure to accept help for months, but finally caved-in after borrowing costs soared amid deepening political instability. Prime Minister Jose Socrates said parliament's rejection of austerity measures last month aggravated the financial situation, ultimately making the request "inevitable". SOUNDBITE (Portuguese) PORTUGUESE PRIME MINISTER JOSE SOCRATES SAYING; "My obligation and my responsibility is to think about the national interest, and the Portuguese government decided today to ask the European Commission for financial assistance, to ensure the financing conditions in our country, our financial system and our economy. We did so within the constitutional limitations of a management government. Portugal's position worsened last month when his minority Socialist government resigned after the parliamentary defeat, casting the country into political limbo. An early general election is set for June 5. EU officials and opposition leader Pedro Passos Coelho welcomed the decision to seek help (SOUNDBITE) (Portuguese) PSD LEADER PEDRO PASSOS COELHO SAYING: "It is important, that the Portuguese feel that this decision that the government has taken can only be understood as a supportive measure for the sake of national security and for the preservation of Portugal's reputation abroad." Portugal is the third member of the euro zone to seek a rescue after Greece and Ireland. Euro zone officials say Lisbon is likely to need between 60 and 80 billion euros in loans over three years, but any assistance will come with strict conditions. About 10 billion euros in Portugal's debt redemptions are due this month and in mid-June. Euro zone and EU finance ministers are due to meet from Friday (April 8) to discuss Portugal's financing needs.