Jürgen Kröger
Media playback is unsupported on your device
Video

What is the price of Portugal's bailout?

Portugal's economic recovery will begin in two years time but only after austerity measures have brought on a deep recession.

That is how the head of the EU and IMF mission in Lisbon described the likely impact of the terms of the $116bn loan package just agreed.

Lisbon was warned it must become far more competitive if it wants to grow again.

Portugal is the third eurozone nation to need such a bail-out.

Nigel Cassidy reports.

  • 05 May 2011
Go to next video: Portugal bailout in spotlight