Government reelected in Portugal

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.

With almost all votes counted, the incumbent Socialists had 36.5% compared with 29% for the centre-right Social Democratic Party, the main opposition party.

That gave the Socialists 94 seats in the 230-seat Parliament, making it vulnerable to opposition efforts to block legislation, which requires approval by more than half of politicians.

Four years ago the Socialists collected 43% of the vote and 121 seats.

Unable to repeat that landslide after introducing social and economic reforms that antagonised many, the Socialists might now seek parliamentary alliances to ensure that legislation is passed.

Only one minority government has survived its full term since democracy was introduced in Portugal 33 years ago.

Three smaller parties also secured seats in Parliament. The conservative Popular Party polled 10.5%, while the more radical socialist Left Bloc had almost 10%, and the Communist/Green coalition almost 8%.

Eleven fringe parties apparently won too few votes to earn seats in Parliament. Voter turnout was 60.5%.

Portugal’s economy requires urgent measures. It is forecast to contract by as much as 4% this year, and just over 9% of the work force – a 20-year high – is already unemployed.

The state budget deficit could exceed 6% this year – double the amount allowed for countries like Portugal, which use the 16-nation euro currency. Public debt is also forecast to overtake annual gross domestic product this year in one of the EU’s worst records of indebtedness.

“We have once more been chosen to govern Portugal,” said Prime Minister Jose Socrates, the Socialist leader.

“This is a clear and extraordinary victory,” he said, promising to consult with opposition parties on legislation.

Mr Socrates blamed Portugal’s economic woes on the global meltdown, and vowed to stick with his reforms.

“This was a victory for a policy of reform, of modernisation and social fairness,” Mr Socrates said.

Conceding defeat, Social Democrat leader Manuela Ferreira Leite said her party would continue to oppose the Socialist spending plan in the single-chamber Parliament.

“The Social Democratic Party won’t keep quiet nor will it be intimidated,” she said.