Members of the public wear red clown noses ahead of a  vote on a motion of confidence on prime minister Pedro Passos Coelho’s government. Photograph: Rafael Marchante/Reuters.

Portugal’s prime minister ruled out any backtracking on its bailout terms tonight as his revamped government easily won a confidence vote intended to (...)

Portugese prime minister Pedro Passos Coelho appears to have stabilised the country’s centre-right coalition government following two ministerial resignations last week. Photograph: Reuters/Tobias Schwarz

Brussels is preparing a second bailout package for Portugal, according to reports.The European Commission wants to have the so-called “soft rescue” re(...)

In a televised address after Portugal’s constitutional court deemed recent deficit-cutting measures illegal, prime minister Pedro Passos Coelho said he had no choice but to pursue alternative austerity policies, and vowed to cut spending in other areas. Photograph: Reuters/José Manuel Ribeiro

Berlin and the European Commission have urged Portugal to stay on the path of austerity, after the country’s top court clashed with the governm(...)

Portugese prime minister Pedro Passos Coelho said his government would have to introduce “important cuts” in expenditure on social security, health and education. Photograph: Reuters/José Manuel Ribeiro

Portugal’s prime minister has promised further cuts in government spending after the country’s constitutional court rejected austerity measures(...)