Portugal buffeted by Greek budget storm

Portugal is under pressure to convince investors that its public finances are under control - a tough job for the Socialist government after the country's credit rating was downgraded.
Prime Minister Jose Socrates has been briefing parliament on the government's austerity plans. He says Portugal is being targeted by "speculative attacks".
His room for manoeuvre may be limited as the markets probe eurozone weaknesses and many investors now see Portugal through a Greek prism. Portugal's growth depends largely on its trading partners.
This week the ratings agency Standard & Poor's lowered Portugal's credit rating two notches, sending yields on its euro-denominated bonds to record highs. So investors are demanding a higher price for lending to Portugal.
The People's Party, the smaller of two centre-right groups in parliament, also blames speculators but says the government failed to act decisively and thus left the economy vulnerable.
Party leader Paulo Portas warned of the impact as the cost of borrowing rises, "on a banking sector that will have difficulty financing itself, on companies that face losing access to some or all credit, on families that may see their mortgage payments increase in the medium term, and above all on economic confidence".
In 2009 Portugal's budget deficit reached 9.3% of gross domestic product and the public debt rose to 77% of GDP.

Greek transport halts as anti-austerity strike extends

Public anger in Greece is growing over government austerity measures

A general strike has been called across Greece as protests against planned spending cuts and tax rises continue.

Trains, planes and ferries are at a standstill as transport workers join public sector workers who began their own 48-hour strike on Tuesday.
Austerity measures planned in return for a 110bn euro (£95bn) international rescue package for the debt-struck economy have sparked widespread anger.
The Greek parliament is to vote on the measures by the end of the week.
Measures include wage freezes, pension cuts and tax rises. They aim to achieve fresh budget cuts of 30bn euros over three years, with the goal of cutting Greece's public deficit to less than 3% of GDP by 2014. It currently stands at 13.6%.
The general strike is the third to hit Greece in as many months.
Meanwhile, the German parliament has begun considering the bail-out plan for Greece.
Chancellor Angela Merkel will defend her government's decision to take part in the deal agreed by European finance ministers, which requires Germany to pay the largest proportion of the loans to be made available to Greece.