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With all the news coming out of Egypt of its second revolution and military coup, it would be easy to let some other important news pass us by. Reuters reports HERE a high possibility of a collapse by the Portugal majority coalition. Lets take a look at what this may look like in the next 48 hours….

From Greece to Cyprus, Slovenia to Spain and Italy, and now most pressingly Portugal, where the finance and foreign ministers resigned in the space of two days, a host of problems is stirring after 10 months of relative calm imposed by the European Central Bank.

Portuguese Prime Minister Pedro Passos Coelho told the nation in an address late on Tuesday that he did not accept the foreign minister’s resignation and would try to go on governing.

If his government does end up collapsing, as is now more likely, it will raise immediate questions about Lisbon’s ability to meet the terms of the 78-billion-euro bailout it agreed with the EU and International Monetary Fund in 2011.

Coming soon after the near-collapse of the Greek government, which has been given until Monday to show it can meet the demands of its own EU-IMF bailout, the euro zone may be on the brink of falling back into full-on crisis.

During a meeting of finance officials from the 17 euro countries on Tuesday, there was agreement that the “optimism in the euro zone is not justified, that we are in worse shape than it seems,” according to one source at the meeting.

The situation in Portugal was a particular concern, said JP Morgan economist Alex White.

“The announcement this afternoon that Paulo Portas, the foreign minister, has resigned significantly escalates our near-term concerns,” he said in a note to clients. “At the moment risks appear elevated.”

Portuguese 10-year bond yields spiked up to eight percent on Wednesday with reports of further ministerial resignations throwing the coalition government’s future into peril.

While Ireland’s problems are likely to blow over, those in Portugal, Greece and Cyprus, which also has tough bailout conditions to meet, are clear and present, and those in Italy and Spain show few signs of disappearing.

EU institutions effectively shut down in August. but that might not prevent a restless summer as the slumbering crisis reawakens agitated.

Agitated indeed.