Early reports suggest that there were no survivors.
The origin of the balloon is unknown, but is believed to be still at large.
A United Nations peace-keeping force has been designated to the region to aid the clear up operation.
Air Forces of Central Europe have been put on standby, in case the balloon attacks again.
Satellites are tracking the movement of the balloon, which is thought to be cruising several thousand feet above Portugal at present.
President Bush has offered his support to the people of Portugal, but Gordon Brown was unavailable to comment as he is currently on the toilet.
The last known balloon city flattening incident occurred late in 1978, when a giant balloon shaped like Noel Edmonds squashed the Polish city of Katowice injuring 14 people.
An evil balloon shaped like Johnny Vegas
carries off a hapless child during an attack
on Nuneaton in 1583
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