Fears that Portugal will follow Greece have been heightened by Standard & Poor's 27 April announcement of a negative outlook on Portuguese debt. With financial speculators closing in, Lisbon is preparing to batten down the hatches in the face of a growing financial storm.

The leader of the main centre-right opposition party, Pedro Passos Coelho, and Prime Minister José Socrates will shortly hold a crisis meeting to discuss measures to be adopted in response to the "speculative attack" on Portugal in the financial markets. The Standard & Poor's downgrade has highlighted fears inspired by the country's budget deficit and the risk of contagion from the Greek crisis in the eurozone. Público voices its alarm, and points to the fact that Portugal's rating is now on a par with the rating for Greek debt at the time when Athens requested assistance.

"The country is rapidly heading for the worst economic crisis since the government was forced to pursue IMF stabilization programmes 27 years ago […] What we need is a pragmatic response: we are caught in a hurricane and now is not the time for discussion as to its causes. We are expected to present a fiscal austerity package or to accept an even more draconian austerity package imposed by the IMF or Germany. Those who thought that we could adopt a moderate plan to restore confidence and buy time have been proved wrong. The dramatic cut in the rating of our sovereign debt is clear evidence of what will happen if we fail to respond: financial collapse followed by the surrender of control over our economy. It is at times such as these that the government, the President and the opposition must take into account the very real dangers that we are facing."

The fact that José Sócrates' government does not benefit from the support of a clearly defined majority is "one of the major risk factors," notes another Portuguese daily Diário de Notícias, insisting that "a growth and stability programme approved in Lisbon and Brussels is not enough." To avoid serious consequences, "Portugal must apply the necessary measures as soon as possible, and with the broadest possible consensus in parliament." In short, now is the time for everyone "to demonstrate a sense of statesmanship."