Europe must fight market 'attack': Portugal PM

(LISBON) - Portuguese Prime Minister Jose Socrates on Friday urged the European Union to react against a market "attack" following downgrades in the credit ratings of Greece, Portugal and Spain this week.

"This attack is directed against the European project," Socrates said during a parliamentary debate. "This attack, without foundation, is targeting the euro as a whole and the sovereign debt of several countries," he added.

"Europe should take measures and go from words to actions," he said, stressing in particular the importance of ensuring that credit rating agencies are regulated in such a way as to make them more independent.

Socrates also said the government on May 27 would submit to parliament for debate a draft law allowing Portugal to aid Greece as part of a bailout by the European Union and the International Monetary Fund.

"This law will enable us to lend money to Greece so they are not the victims of speculators. This is how we will defend the European project," he said.

Portugal is considered by many investors to be the next weak link in the eurozone after Greece as it is also heavily indebted. Experts say, however, that Portugal's problems are far smaller than Greece's.