Irish elections will soon loom large for investors as political uncertainty yesterday helped send the borrowing costs of Portugal and Spain significantly higher.

The centre-left Socialist Party is staying in government for four more years after winning elections but its reduced parliamentary majority may handicap its efforts to lead Portugal out of an economic crisis.

Portuguese politicians today approved a bill liberalising abortion until the 10th week in a country where more than 90% say they are Catholic.

Portugal’s parliament has voted for a national referendum on legalising abortion in the strictly conservative Roman Catholic country.