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Portugal coalition partners reach deal on internal crisis: government

Portugal's Prime Minister Pedro Passos Coelho addresses a news conference in Berlin July 3, 2013. REUTERS/Tobias Schwarz
Portugal's Prime Minister Pedro Passos Coelho addresses a news conference in Berlin July 3, 2013. REUTERS/Tobias Schwarz

LISBON (Reuters) - Portugal's Prime Minister Pedro Passos Coelho has reached a deal with the ruling coalition's junior partner CDS-PP to resolve a rift which has threatened the country's adjustment program under a bailout, a government spokesman said on Friday.

"The prime minister presented to President Anibal Cavaco Silva a political deal reached with the leader of CDS-PP," the spokesman said. A deal will have to be approved by Cavaco Silva, who is due to meet all political parties Monday and Tuesday.

The spokesman did not provide any details on the deal, but said the two parties will hold a meeting on Saturday to be followed by a statement.

The political crisis in the coalition broke out following the resignations of the foreign and finance ministers this week and has threatened to upset progress of Lisbon's program under its 78-billion-euro bailout from the European Union and IMF.

(Reporting by Shrikesh Laxmidas, editing by Daniel Alvarenga)

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