Economist Nouriel Roubini, known around the world as Dr Doom for forecasting the credit crisis, says Portugal will be the next European country in line for an Irish-style bailout.
While Portugal currently denies it needs international funds, Roubini says both Greece and Ireland had a similar stance before their respective bailouts, Reuters reports.
"It (a bailout for Portugal) is becoming increasingly likely," Roubini told Diario Economico.
"Like it or not, Portugal is reaching the critical point. Perhaps it could be a good idea to ask for a bailout in a preventative fashion."
Roubini believes Spain must look to address its own problems however, as Europe has insufficient funding to bailout the country.
"Spain is too big to fail and too big to save," Roubini adds. "As such, if things turn out of control as seems possible with Portugal, it (Spain) should do everything possible to improve its situation."
Follows McVey's resignation
Schroders and Aviva Investors
LightTower Partners, Seneca Partners and Unicorn AM
Integration with Money Dashboard
View from the front row