Market sends 'a message of no confidence in Portugal'
3 July 2013 Last updated at 15:20 BST
Portugal's borrowing costs have risen sharply amid fears of a growing political crisis in the country.
Yields on the country's benchmark 10-year bonds moved above 8% in early trading on Wednesday, while the stock market fell more than 6%.
Gilles Moec is a senior European economist at Deutsche Bank.
He said that the spike in borrowing costs for Portugal was "clearly a message of no confidence from the market".