Portugal's political leaders weighing up possible bailout terms, wary of Greek and Irish woes

Simon Tilford, chief economist at the Centre for European Reform think-tank in London, said "previous bailouts have solved nothing" and Portugal "is right to bargain hard" because similar rates to those imposed on Athens and Dublin could be self-defeating. "There's a risk that unless loans are extended at a serviceable interest rate, all the bailout would do would make things worse," he said. Tilford said that underlying worry puts Portuguese authorities in a stronger bargaining position as they assess the bailout terms on offer.