Portugal says no to 2.6b euros bailout

Portugal announced it will not take the final tranche of its bailout program, worth 2.6 billion euros, because it cannot comply with conditions requested by the lenders: the EU and the International Monetary Fund.

After Portugal's Constitutional Court blocked any future austerity measures that could have been taken, the government now cannot go ahead with reductions to state pensions and government workers' salaries.

Although Portugal needs the bailout money, it will have to handle the situation without it. The government announced it has enough funds to cover spendings until the middle of 2015.

Portugal's bailout program was set at 78 billion euros.