Albert Jaeger, who heads the IMF office in Lisbon, is still upbeat regarding the country’s bailout programme but Portugal still needs to rebuild full credibility, he tells PDV in an exclusive interview.

Thousands took to the streets once again in Lisbon and other district capitals across Portugal on Saturday against the government’s increasingly harsh austerity policies.

The 17 eurozone member states formally approved the release of €800m under the framework of the Portugal’s bailout programme.Tuesday sees a meeting of the European Union Finance Ministers that is expected to correspondingly authorise a further €2bn in funding.

The Portuguese president told Spanish leading financial newspaper ‘Expansión’ the EU and the ECB tended “to react too late”, adding that German Chancellor Angela Merkel should be “more consistent” in defending the single currency.

In a piece reflecting the impact of austerity measures on recent elections, Financial Times Brussels correspondent Peter Spiegal draws special attention to Portugal, where he says the most unexpected shock has been for many European leaders.

Train operator CP said Monday it expected to run about half the usual express services scheduled until Wednesday but only a quarter on Thursday.

After hitting an all-time low in January confidence had been rising every month until falling again in September.

The Portuguese government is to meet this Monday with the social partners after announcing it was available to discuss alternatives to its controversial proposal to change social security contributions. A new tax over Christmas bonuses, among others, is on the table, according to media reports.

The coalition government was still at risk of breaking up Monday evening after the rift created by the controversial cuts to company-paid social security contributions. This week’s busy schedule includes a meeting of senior partner PSD’s national political committee and a meeting of Portugal’s Council of State convened by President Cavaco Silva.