Portuguese bail-out expected to push country into recession

Portugal's €78 billion EU-IMF bailout is expected to push the country into a two-year recession, outgoing finance minister Teixeira dos Santos has said.

The deal will mean "deep reforms and profound changes for our country" said dos Santos, including an overhaul of the public sector and the selling of state-owned stakes in important companies.

He also admitted that it is likely to cause the Portuguese economy to contract by 2 percent both this year and next, while unemployment is ...