Portugal | featured news

Portuguese Prime Minister Jose Socrates resigned Wednesday and warned of grave consequences for the country after parliament rejected his government's latest austerity measures aimed at avoiding a bailout.

Portugal was put on notice on Tuesday that its credit rating could be cut and fellow euro zone debtor Spain had to pay more to issue new debt, suggesting the currency bloc's crisis will rage unabated in 2011.

The budget plan for 2011 is aimed at reassuring nervous lenders that the country can avoid a bailout by meeting its deficit-cutting targets.

Voting for two UN Security Council seats began Tuesday in New York. (Eric Thayer/Reuters) Canada has dropped its bid for a seat on the United Nations Security Council after coming behind Portugal in second ballot voting Tuesday in New York.

David Villa was Spain's hero yet again as his goal helped them past Portugal and claim the last spot in the World Cup quarterfinals.

Brazil meet Portugal in a mouth-watering finale to the World Cup group matches on Friday after holders Italy were knocked out in a humiliating defeat by tournament debutants Slovakia.

Portugal put on the most dominant performance of the World Cup on Monday, knocking in a flurry of second-half goals and routing North Korea 7-0, a win that puts Portugal on the brink of advancing to the round of 16 and means the Koreans won't make it out of group play.

Euro zone leaders decided on Friday they have special measures ready before financial markets open on Monday to prevent financial turmoil in Greece spreading to other countries such as Spain and Portugal.

Greece qualified for the World Cup on Wednesday, beating Ukraine 1-0 on aggregate after Dimitrios Salpigidis' first-half goal in the second leg.

"I love Portugal. The people are friendly, the weather is great, the landscape is spectacular, the history is rich and the prices are low. It is truly one of Europe's hidden gems," said iReporter David Shaul.