Europe Markets in Turmoil Over Debt Worries
New concerns (and rumors) center on Portugal, Spain
By Matt Cantor,  Newser User
Posted Nov 26, 2010 12:31 PM CST
Members of the main opposition center-right Social Democratic Party, foreground left, stand up to abstain during the final vote of the Portuguese government's 2011 state budget proposal Nov. 26, 2010.   (AP Photo/ Francisco Seco)
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(Newser) – Authorities across Europe rejected a report that a Portuguese bailout would cut the risk of Spain needing similar action, the Wall Street Journal reports. A German paper had cited German finance ministers in the matter, but the ministry, Portugal, Spain, and the European Commission all said Portugal wasn’t being pushed to ask for such assistance. Still, worries centered on Spain and Portugal prompted European markets to plunge.

Details on Ireland's rescue package are expected Sunday, the Guardian notes, but that agreement hasn’t quelled market anxieties, with investors calling for a record-high risk premium to hold Irish debt. Meanwhile, in an effort to restore markets, Portugal adopted an austerity budget that would raise taxes and cut salaries and welfare, reports the AP; the country says the plan will prevent the need for a bailout.