Portugal’s moderate opposition Socialists opened the door to talks with the hard left on a majority left-wing government on Wednesday, complicating efforts by the outgoing centre-right coalition to form a minority administration with their support.
Prolonged political uncertainty could derail a fragile economic recovery in the euro zone country, which endured years of deep spending cuts and big tax hikes during its debt crisis when it had to be bailed out by its European Union partners and the International Monetary Fund.
Prime minister Pedro Passos Coelho’s centre-right coalition won most votes in Sunday’s national election but fell well short of a parliamentary majority, meaning he needs the Socialists’ support to pass legislation.
Passos Coelho, now serving as caretaker prime minister, earlier on Wednesday invited Socialist leader Antonio Costa to coalition talks.
But Costa said his party would not enter a formal coalition government with the centre-right and instead, in a departure for his moderate party, said he would hold talks with the leaders of two anti-austerity far-left parties. Together with the Socialists, they could muster a parliamentary majority.
“I don’t think it would be healthy for the main political forces to share government responsibilities, except in emergency situations like if Martians invade,” Costa told reporters, ruling out a coalition government with the centre-right.
“We have the mandate to talk to all political forces without exception,” Costa added.
Costa was due to meet Communist leader Jeronimo de Souza later on Wednesday and with Left Bloc leaders on Thursday.
In Portugal’s new parliament Passos Coelho’s centre-right grouping holds 104 seats in the 230-seat assembly, the Socialists 85 seats, the Left Bloc 19 and the Communists 17.
The Socialists want to ease austerity but back budget goals agreed with the EU. Both the Communists and the Left Bloc back a renegotiation of Portugal’s debt load, but the Left Bloc has dropped its opposition to the euro currency.
President Anibal Cavaco Silva, who on Tuesday gave Passos Coelho the mandate to form a new government, has urged all political parties to show a spirit of compromise in the coalition talks.
Passos Coelho said he hoped to hold talks with Costa later this week. – (Reuters)