German and British investors respectively sold more than €1.8bn and €450m worth of Portuguese treasury bonds between May and June, triggering a sharp rise in interest rates.

Portuguese bond interest rates rose from 5.3 per cent in mid-May to 7 per cent in June, writes Diário de Notícias, a situation that got steadily worse due to the country’s weak economy and the deepening political crisis in July, when Finance Minister Vitor Gaspar and Foreign Minister Paulo Portas resigned.