Political and economic danger signs flashing in Portugal and Ireland threaten to punch a hole in the European Union's attempts to contain a financial crisis that has gripped the continent for more than a year.

Europe has already provided billions in bailouts to keep the Irish and Greek governments from going bankrupt. With Portugal now teetering on the edge of financial catastrophe, and Ireland's upcoming election unsettling financial markets, an ominous new phase in the biggest emergency in the 17-nation euro's history could be opening up, menacing the livelihoods of millions of Europeans.

With Portugal apparently unable to rid itself of punishingly high borrowing costs demanded by.......