The markets' attention is now directed at Spain after Portugal buckled to pressure and requested a bailout this week.
Spain has claimed that there is no risk of the crisis spreading. Though Spain has a 20 per cent unemployment rate, and its future growth forecast was cut by 2 per cent and 3 per cent for 2012 and 2013, respectively, Spain remains optimistic about its economy.
The Portugese bailout is expected to cost between €70bn - 80bn (£61bn - 70bn) with Britain potentially having to contribute more than £3bn, according to the thinktank Open Europe.
The EU and Goldman Sachs both applauded Portugal's decision, claiming a bailout request was a responsible decision to maintain stability in the country and the Eurozone as a whole.