Spread

Assuming that the current value of the cost of default equals the excess
price of assumedly risk-free 10y German bonds over the 10y bonds of other
euronations today we get

Portugal
Spread b.p. 1057
Default recovery rate % 35
Maturity years 10

Default prob. % 100.39
i.e. assuming a default recovery rate of 35%  the market are certain that
Portugal will default.

For Italy a 50% default recovery rate yields

Italy
Spread b.p. 370
Default recovery rate % 50
Maturity years 10

Default prob. % 61.85
which isn't exacly reassuring either.

Also the following is interesting:
Greece
 Spread b.p. 3100
Default recovery rate % 5
Maturity years 10

Default prob. % 100.52
The markets, who already know that Greece has defaulted, think that  the recovery rate will be just  5%.