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Portuguese party leaders say a rift that threatened to bring down the government and caused turmoil on financial markets has been patched up with details of the coalition-saving pact to be announced Saturday.
The crisis was triggered by the resignation of two government ministers, and an accord was hammered out and presented to President Aníbal Cavaco Silva late Friday, Popular Party spokesman Nuno Melo says.
Melo says the proposal "guarantees government stability" and says coalition leaders would later make a joint statement. He says the deal enables Portugal, which agreed a 78 billion euro ($102 billion) sovereign bailout, "to face future challenges."
The political instability rocked European financial markets during the week as the government teetered on the verge of collapse in a dispute over austerity measures.