Portugal will not leave the euro, Finance Minister Fernando Teixeira dos Santos has told the BBC.
“We are very far from that scenario, I don’t think the situation will lead to such an outcome,” he said.
Currency traders had feared that some countries with large budget deficits – such as Greece, Spain and Portugal – might be tempted to leave the euro.
A country which left the euro could allow its currency to fall in value, and thus improve its competitiveness.
The chances are now that all governments in the eurozone will make a massive effort to keep it together.
