Brussels, 17/03/2011 (Agence Europe) - Portugal has entered a new political crisis. The minority government headed by José Sócrates is facing rebellion by most of the centre-right opposition, which is refusing to endorse the new austerity measures announced on the day of the eurozone summit to meet Portugal's pledge to reduce its public deficit to 4.6% in 2011 and 3% in 2012 (see EUROPE 10334). “Failure to approve the new measures in the budget plan would push the country to external help. Current market conditions are unsustainable in the medium- and long-term”, explained Portuguese Finance Minister Fernando Teixeira dos Santos to the country's budget committee. On Wednesday 16 March, Portugal rolled over a billion euros of one-year debt but there was little investor enthusiasm. The interest rate, 4.3%, is higher than the rate for the most recent equivalent rollover (just under 4% a fortnight ago). On the same day, Moody's downgraded Portugal's debt by two notches to A3. (M.B./transl.fl)