Portugal Asks Europe for Financial Bailout

Portugal is the latest European nation to seek a financial bailout, citing high interest rates on an increasingly burdensome debt load.

"The government decided today to ask the European Commission for financial help," Prime Minister José Sócrates said in a televised statement Wednesday evening.

Analysts are projecting bailout costs in the range of €80 billion, or $114.4 billion. Economic and Monetary Affairs Commissioner Olli Rehn confirmed that the amount would be agreed upon soon.

According to a Reuters report, "Such an announcement had long been expected as Portugal, one of the 17-nation eurozone's smallest and weakest economies, struggled to finance its economy. Following a rejection of additional austerity measures by its parliament last month, Portugal has seen its borrowing costs rise to unsustainably high levels."

Prime Minister Sócrates noted that “I had always considered outside aid as a last recourse scenario. I say today to the Portuguese that it is in our national interest to take this step.”