Portugal is now closer that ever to accept a bailout from the EU and IMF after the Portuguese opposition voted against deficit-cut plan which forced Portuguese Prime Minister Jose Socrates to tender his resignation.

Yet, the President mentioned that the government will remain in power till he accepts the Prime Minister's resignation.

Now, the debt-strapped country is facing a political risk in addition to the bad financial situation as it will probably start early elections that will mainly bring minority government.

The Parliament decision came before the two-day European summit starting on Thursday to approve measures announced to combat future debt crisis.