Portugal could be the next victim of the eurozone debt crisis, but an EU-IMF led bailout is unlikely to solve the eurozone's larger problems, experts say.

The proposed Irish bail-out has not calmed the financial markets. And now their attention is moving on to new victims in the Iberian peninsula, reports The Economist.

This report from the Luso-American Foundation hosted by the German Marshall Fund for the United States discusses challenges and opportunities in the southern Mediterranean from a Portuguese and Euro-Atlantic vantage point. It says that over the last decade, Europe has developed an active strategy of engagement with the southern Mediterranean countries in the form of the Euro-Mediterranean Partnership (the Barcelona Process) and the Mediterranean dimension of the Common Foreign and Security Policy (CFSP).