European Commission admits concern over Portugal

The European Commission has admitted it is concerned about the ongoing political instability that is occurring in Portugal at the moment.

With the country's government reportedly close to collapse, commission leader Jose Manuel Barroso stated that the organisation is worried about the situation.

It was pointed out by the president that the Portuguese economy has already started to bounce back from the global financial slowdown.

In a statement, Mr Barroso said: "The initial reaction of the markets shows the obvious risk that the financial credibility recently built up by Portugal could be jeopardised by the current political instability."

He called for a great sense of responsibility from all political forces and leaders in order to get through the current crisis in the European nation.

Portugal was among the countries to be hit the hardest by recession across the continent and this has led to dissatisfaction with the government among the general public.

However, despite concern over Portugal's future, European markets are up today (July 4th). The Dax, the FTSE 100 and the Stoxx 50 are all up on the start of trading.

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