Portugal's prime minister is warning his country to prepare for deepening hardship next year as it struggles to climb out of debt.
Portugal is one of three eurozone countries that have needed financial rescue because of an unsustainable debt load.
It took a 78 billion euro (£68 billion) bailout in May.
But despite a series of tax hikes and pay and welfare cuts, Portugal is coming up short on its debt reduction targets.
Prime Minister Pedro Passos Coelho said in a televised address that his government plans more pay cuts and tax increases in 2012.
He said: "We are living through a national emergency."
The new measures are to be included in the 2012 budget, due to be unveiled next week.