The leader of Portuguese Socialist Party, António Costa (left), during a parliamentary debate on the government’s policy programme  on Monday. Costa is expected to become prime minister. Photograph: Antonio Cotrim/EPA

A Socialist government supported by the far left is set to take power in Portugal after defeating a short-lived minority centre-right administratio(...)

Portugal’s prime minister Pedro Passos Coelho with finance minister Maria Luis Albuquerque during a debate in parliament on Monday.  Photograph: Hugo Correia/Reuters

Portugal’s far-left parties are set to topple the centre-right administration and support a socialist government. But with no guarantee of support for(...)

Portugal’s president Anibal Cavaco Silva, who has  accepted the line-up of a new minority government formed by premier Pedro Passos Coelho. Photograph: Manuel de Almeida/ EPA

Portugal’s president Anibal Cavaco Silva has accepted the line-up of a new minority government formed by premier Pedro Passos Coelho, setting the coun(...)

Portuguese president Aníbal Cavaco Silva: described a Socialist-Communist-BE coalition as “a clearly inconsistent alternative” which threatened to undermine the economy. Photograph: Manuel De Almeida/EPA.

An upcoming parliamentary vote is expected to reject the government programme of prime minister-elect Pedro Passos Coelho, extending a political crisi(...)

The general election result was a clear victory for prime minister and Social Democratic party leader Pedro Passos Coelho but the coalition no longer controls parliament. Photograph: Juan Medina/Reuters

“A right-wing government in a left-wing parliament,” was the headline in Jornal de Notícias newspaper following Sunday’s Portuguese general election. (...)

Pedro Passos Coelho, Portugal’s prime minister and leader of the Social Democratic Party (PSD), celebrates after securing victory in the Portuguese election in Lisbon, Portugal. Photograph: Paulo Duarte/Bloomberg.

Portugal’s centre-right government on Sunday won an election that was a test of its tough austerity stance, but its failure to win a majority in parl(...)

Pedro Passos Coelho: ‘We’ve spent four years talking about finances and the economy and now everything is in order we can put the dignity back into politics.’ Photograph: Miguel A Lopes/EPA.

Tomorrow Pedro Passos Coelho will attempt to become the first prime minister of a bailed out euro-zone country to gain re-election. The conservative P(...)

 Andrej Babis: Greece has ‘gone bankrupt four times in the last 200 years and should do so a fifth time’. Photograph: Michal Cizek/AFP/Getty Images

As the escalating Greek crisis continues, one issue that is likely to emerge as a key sticking point in the forthcoming negotiations is the question o(...)

Spainish prime minister Mariano Rajoy: “We’re not responsible for the frustration of the Greek radical left, which promised what it could not deliver, as has been made clear.” Photograph: Andrea Comas/Reuters

They used to be fellow members of the group of highly indebted European nations known disparagingly as the “Pigs”. But a political fault line has open(...)

Pedro Passos Coelho: “The market conditions that Portugal has access to now are more favourable that those agreed on with the IMF and therefore we will save in the future by paying part of the IMF loan early.”  Photograph: Krisztian Bocsi/Bloomberg

Portugal plans to make an early payment of about €14 billion of its bailout loans from the International Monetary Fund after borrowing costs dropped, (...)