Accord reached to save Portuguese government coalition

Portugal's centre-right government coalition averted its break-up Thursday after finding "a formula" that secures its survival, Prime Minister Pedro Passos Coelho said.

"A formula has been found that will secure the stability of the government," said Passos Coelho after talks with President Anibal Cavaco Silva. A dispute over austerity policies squeezing the bailed-out nation had led markets to plunge on Wednesday before rallying.