Man with newspapers in Portugal
Media playback is unsupported on your device

Feeling the pinch in austerity-hit Portugal

3 July 2013 Last updated at 10:39 BST

The resignation of two key ministers has left many questioning whether Portugal's right-of-centre government, which has enthusiastically embraced austerity measures, can survive much longer.

But in a statement to the nation on Tuesday night, Prime Minister Pedro Passos Coelho pledged to stay the course, saying the country desperately needed political stability in the current economic crisis.

Alison Roberts reports.