The Prime Minister of Portugal, Jose Socrates has offered to resign at a European Union summit. The summit was held to address the region’s debt crisis. Following the decision of the Prime Minister, the country has moved closer to an international bailout. Greece and Ireland were forced to seek bailouts last year.

Jacques Cailloux, a London-based Economist at RBS said that Portugal will soon require a rescue. The market conditions are expected to deteriorate in the absence of any measures or rescue.

Portugal has already increased taxes and implemented the highest cuts to convince that investors it can reduce its budget shortfall. These additional cuts were announced on March 11. The proposed Portuguese cuts have received support by the EU and European Central Bank. The Opposition parties have jointly rejected the additional cuts. These cuts were equivalent to 4.5% of gross domestic product over three years.

The government of Socrates and President Anibal Cavaco Silva will attend a meeting with the main parties to resolve the political crisis or call elections. The meeting is excepted to open new avenues of negotiation of an international bailout package.