Portugal president warns of tough sacrifices ahead

Portuguese President Anibal Cavaco Silva warned Wednesday his country may need a second international bailout if its economy does not begin to grow again. The Portuguese President said in a speech on the occasion of the 101st anniversary of the Portuguese republic that, if the country''s financial imbalances are corrected only temporarily, it will ''again be placed in the possible situation of seeking outside aid. " We need to avoid that at all costs," he said. Portugal is currently implementing austerity measures agreed earlier this year with the European Union and the International Monetary Fund, which together provided it with a bailout worth 78 billion euros (101 billion dollars). The austerity has contributed to slowing down the economy, which is expected to shrink by more than 2 per cent this year. Portugal was the third country after Greece and Ireland to receive a bailout from the EU and IMF.