LISBON – Portugal has re-elected prime minister José Socrates but stripped his Socialist Party of an absolute majority, raising questions over the government’s make-up and survival and making the passage of bills difficult.
That means Mr Socrates needs a lot of delicate political manoeuvring to form and sustain a government and may have to change his assertive ways.
Western Europe’s poorest country faces problems such as soaring debt levels and budget deficits, unemployment at its highest since the 1980s and a widening wealth gap with richer EU partners.
It will eventually have to resort to austerity measures and possibly tax hikes, even though Mr Socrates is still banking on public spending as a way out of the crisis. Such measures are likely to make the approval of bills a daunting task.
The process of forming a government could be further complicated by the fact that there are local elections on October 11th.
In his victory speech on Sunday, Mr Socrates left his options for a coalition open but also said the Socialists felt the vote empowered them to rule according to their election manifesto, meaning on their own.
He said a decision was likely to come in mid-October after consultations with the main parties. However Manuel Alegre, an important figure in the Socialist Party, was quoted as saying that “there are no political conditions for a coalition”.
With 96 socialists elected, 20 short of a majority in the 230-seat parliament, a minority government will have to negotiate support on a case-by-case basis.
“That’s the most likely option and the Socialists will have a wide choice of parties to negotiate with, including the rival PSD, which will be in a tough spot after their defeat,” said Viriato Marques, a political analyst at Lisbon University. – (Reuters)