Portugal's caretaker government said it had decided to seek financing from the European Union in an abrupt turnaround after resisting a bailout for months despite sharply deteriorating financial conditions.
Portuguese Prime Minister Jose Socrates said he has submitted his resignation to the president after parliament earlier rejected his minority Socialist government's latest austerity measures in a vote.
Portugal's political leaders urged the president to call a snap election in late May or early June after the Socialist prime minister's resignation, rejecting the option of a coalition cabinet.
Portugal's president dissolved parliament and set a snap general election for June 5, warning the next government faced an "unprecedented economic crisis."