Portugal’s president summoned the main political parties for crisis talks over the government’s future, with markets reeling on fears that a snap election could derail Lisbon’s exit from an international bailout.

Portuguese people will suffer from cuts to schools and hospitals to protect civil service benefits after the constitutional court rejected austerity measures that would have reduced holiday bonuses and other public sector perks.

THE Portuguese went to the polls yesterday to elect a new government which will lead the nation through a period of deep austerity and recession after it received a €78 billion bailout from the European Union and International Monetary Fund.

Portugal’s conservative president said he is reluctantly ratifying a law allowing gay marriage, making the predominantly Roman Catholic country the sixth in Europe to let same-sex couples wed.