By Simon Miller

Portugal will find out if it will receive its next tranche of bailout money on 8 October, the eurogroup has announced.

In a statement, the eurogroup said that the country's original €78bn (£48.4bn) remained "adequate" and noted that the Portuguese authorities had "continued to reign in expenditure".

However, it added that the country had "experienced revenue shortfalls resulting from the fast rebalancing of the economy from domestic demand towards exports, which are characterised by a lower tax intensity".

In a statement, the eurogroup added: "In addition, the social security budget came under pressure due to a stronger than expected increase in unemployment and lower social security contributions. On this basis and after having been reassured of the authorities resolve to continue implementing the programme, the Eurogroup welcomes that an agreement between the authorities and the Troika on revised fiscal targets has been reached."

Portugal's deficit was expected to fall below 3% of GDP in 2014 according to the eurogroup and "the public debt to GDP ratio will peak below 124%, remains sustainable, and will be on a firm downward trajectory after 2014".

Meanwhile, it appears that Spain will formally request aid within the month.

Its economy minister Luis de Guindos said that Spain would present a new list of reforms to Brussels by the end of the month which is aimed to "boost growth" and "will be in line with the recommendations of the European Commission.

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