(Image Source: Sky News)

BY EMOKE BEBIAK

ANCHOR ALEX HOLLEY

You're watching multisource world video news analysis from Newsy.

The possibility of a Portuguese bailout was on top of the agenda at an EU summit on Thursday. Portugal will likely get a bailout for more than $100 billion after its government failed to implement austerity measures and fell as a consequence Wednesday night.

Former Prime Minister Jose Socrates resisted asking for EU funding and resigned after all five opposition parties voted against spending cuts following public sentiment.

The New York Times says regardless of what a future Portuguese government wants, the bailout is coming - the only question is, when?

“With a rescue of Portugal seen now by most analysts as almost inevitable, the debate shifted Thursday to its likely timing — and whether any bailout would precede the formation of a new government in Lisbon following an expected general election in about two months.”

Sky News reports the Portuguese bailout is troubling, because other countries might also refuse to reduce spending and could ask for EU funds.

“The thing that’s noteworthy here is the way that Portugal ended up getting up to the point where it needs a bailout. Inside Portugal there was a popular revolt against the austerity measures that the EU said were needed. And that is fairly unpredictable.”

But German Chancellor Angela Merkel says Portugal needs to take responsibility for its financial crisis.

“Now everyone in positions of responsibility today in Portugal, all those who hold those positions tomorrow have to invest in the austerity program, so that market confidence increases.” (euronews)

But the bailout is needed to save the euro, which most countries are dependent on. Also, World Politics Review points out Germany and other major European countries have no choice but to bail out Portugal for their own sake.

“Banks in Germany and France are among the largest holders of existing debt for countries like Portugal, Spain, Italy and Ireland. If Portugal were to default on its existing debt, German and French banks would be near the top of the list of casualties from those defaults.”

Surprisingly, the news of the bailout had barely any effect on the markets. An analyst for the Wall Street Journal explains,

“Very few in the market think they will not get a rescue, and now we’re entering the game where they will get a rescue. And I think that’s one of the reasons that the euro and stock markets are largely taking this in stride.”

The European Union has already bailed out Ireland and Greece. The LA Times wonders whether Portugal’s financial crisis is a precursor to more problems.

“The bigger concern is that, if Portugal needs a bailout, investors may begin to bet that struggling Spain will follow. Spain is the world's 12th-largest economy.”

But a blogger for The Huffington Post says the root of the problem is the European Union itself.

“The problem with the ‘EU’ banner is that it links together economies that are quite different from each other. … Greece, Ireland and Portugal account for less than 5% of EU GDP. It is wise to remember that often overreaction offers the most profitable investment opportunities.”

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Transcript by Newsy.