Ahead of EU leader's meeting today, Portugal announced further spending cut measures and reforms that would enable the debt-stripped country to reduce budget deficit by additional 0.8% of GDP in the current year.

Probably, the Portuguese government is trying to avoid accepting a bailout which is expected after the rise in long-term bond yields to record high recently.

The announcement came before today's meeting and the EU Summit that will take place later in the month, where European leaders will discuss European debt crisis and the possibility of expanding the EFSF as well as facilitating debt requirements for highly indebted nations in the region, following Moody's downgrade to Spain's credit rating yesterday.