Premier quits after bail-out defeat
Portugal's prime minister has quit after opposition parties scuppered his proposals devised to avoid a bail-out.
All opposition parties united to defeat Prime Minister Jose Socrates' latest austerity measures in a parliamentary vote, saying the belt-tightening went too far.
Mr Socrates said in a statement the defeat made it impossible for him and his government to ensure Portugal's economic future.
The government's resignation was expected after days of political tension, but could re-ignite market anxiety about the financial soundness of the wider eurozone.
European leaders hope to soothe nervous international investors at a summit starting on Thursday.