Finance minister: Portugal needs a bailout
Portugal managed to borrow E1bn, short term, at interest rates so prohibitive that the finance minister has now announced they will seek a bailout. The prime minister is about to go on TV and admit defeat for the country's two year strategy of deficit reduction aimed at retaining financial sovereignty, which it will now effectively lose.
Though it's a humbling moment for Portugal, there is a chance this is endgame for the Euro crisis - IF - and that is a humongous if - the Eurozone and IMF can stop the cycle of austerity and low growth at the periphery here, so it does not spread to Spain.
I visited the country and spoke with ministers a month ago. Then they were determined to resist bailout - and they've gone into the snap election on a programme of avoiding it. That programme is now null, and it will place pressure on the opposition Social Democrats (confusingly named - they are centre right) to explain what their programme is (they had avoided it until now, and are likely to win the election).
For a link to my video report on the specifics of Portugal's crisis, go here. More tonight on Newsnight