Portugal's prime minister says his country will ask for a bailout due to its high debts and difficulty raising money on international markets.
Jose Socrates said today: "The government decided today to ask the European Commission for financial help."
Portugal becomes the third financially troubled eurozone country after Greece and Ireland to request assistance from Europe's bailout fund and the International Monetary Fund.
Analysts expect Portugal will need up to 80 billion euro.
A bailout had long been expected as Portugal, one of the 17-nation eurozone's smallest and weakest economies, struggled to finance its economy.