Portugal requests bailout

The Portuguese Prime Minister Jose Socrates, has at last requested the much expected bailout, saying the need for EU assistance was inevitable, joining Greece and Ireland on the list of European countries in severe financial difficulty.

However, there is a safety net in place that works so the market is much more likely to take these matters in their stride than expecting a complete meltdown of the Eurozone and the Euro, creating higher borrowing costs for all  Eurozone members.

The amount they need is not clear at the moment but could be as high as 75 billion Euros over the next three years.The EU fund that they will draw on totals 440 billion Euro and the UK, who are part of this mechanism, may have to find 2.5 to 3 billion Euros as it's share of the Portuguese rescue.

The Portuguese request comes on a day when the European Central Bank are meeting and could announce a rate rise to keep inflation in check, though the overall inflation rate at 2.4% is somewhat  lower than the UK's 4.4% and rising.

The Bank of England is also considering interest rates today and although a rise is expected at some time, the general consensus is for a month or so down the line.