Merkel, in anxious Lisbon, hails austerity drive

A protester gestures at police officers during a demonstration against German Chancellor Angela Merkel in central Lisbon November 12, 2012. REUTERS/Hugo Correia

LISBON (Reuters) - Angela Merkel faced scattered protests on Monday in Lisbon, where she delivered German endorsement of a government austerity drive designed to honour a bailout loan but which critics fear may only deepen the slump.

"The situation is difficult but what Portugal is doing, it is for the future," the chancellor told a joint news conference with Prime Minister Pedro Passos Coelho, who has seen popular patience and political consensus begin to fray in recent weeks.