News / Europe

Portugal Ousts Ruling Socialists, Moves Toward Austerity

Pedro Passos Coelho (L) leader of the center-right Social Democrat Party, PSD, is received by Portugal's President Anibal Cavaco Silva, June 6, 2011, at Belem presidential palace in Lisbon
Pedro Passos Coelho (L) leader of the center-right Social Democrat Party, PSD, is received by Portugal's President Anibal Cavaco Silva, June 6, 2011, at Belem presidential palace in Lisbon
Lauren Frayer

The new conservative prime minister is expected to slash public spending and privatize state industries, in an effort to try to tamp down Portugal's spiraling debt crisis and prevent it from being a further drain on Europe.

Supporters of the center-right Social Democrats are celebrating in the streets of Lisbon. The Social Democrats ousted Portugal's ruling Socialist Party and are expected to form a new coalition government.

That new government will be tasked with implementing austerity measures tied to a more than $114 billion bailout from the European Union and International Monetary Fund.

The man tasked with leading Portugal into this new age of austerity is the leader of the Social Democrats, Pedro Passos Coelho. He is a former businessman who has never held public office. But he says he wants to try to help Portugal earn back the trust of investors.

"I hope that the new step we are beginning now, could be the first step to a new hope for Portugal, to have a new credibility outside Portugal, and to restore confidence in the markets," said Coelho.

The incumbent prime minister, Jose Socrates, admitted defeat and said he would also resign as his party's leader.

Portugal's Socialists are the latest ruling party to suffer at the polls, as high unemployment and public debt sweep southern Europe. Three weeks ago, the ruling Socialist Party in neighboring Spain lost control of many municipalities it long considered strongholds, and is forecast to lose control of Spain's parliament in elections next year.

Portugal is one of three eurozone economies to seek EU bailouts. Greece and Ireland also have suffered political backlash from their constituents.

Iain Begg, a Europe economist at London's Chatham House, says Portugal's election results are in line with what has happened across Europe. Governments in power during the economic crisis have been blamed for it.

"The government that's getting the blame for it is the one that's being kicked out, and the government that's now doing the difficult task, it's hoping that it will be re-elected because it's confronted the problem," said Begg. "So we see volatile politics across much of Europe."

There is some optimism in Portugal, at least among Mr. Coelho's supporters, that a new government might improve conditions for citizens struggling with rising costs and stagnant wages. This voter says she is happy about electoral change.

"I'm so happy," said a Coelho supporter. "I'm so proud for Portugal and for this voting. It's everything we needed right now. I'm so, so happy."

But Begg says Portugal's new Social Democratic-led government can expect huge challenges ahead.

"A long slog. They have to collect the balance of payments deficit, they have to correct the public sector accounts deficit, and they have to make sure that the structural reforms, the long-term supply -side reforms, are on track," said Begg. "All of that simultaneously - which is never easy when the economy is not growing."

Begg says Mr. Coelho would do well to try to implement austerity measures as quickly as possible.

"A government coming into power has the mandate to make the hard decisions quickly," Begg added. "They say, 'Let's get all the bad news out of the way so that when it comes around to our re-election period, it will be forgotten. We will have already made the hard choices.'"

Mr. Coelho has promised to privatize some Portuguese state industries and scale back infrastructure projects, such as plans for a new high-speed railway.

You May Like

Report: $60 Billion Leaves Africa Illegally Each Year

Report by a joint UN and African Union panel says African countries need to take concrete measures to stop billions of dollars from illegally being moved out of continent each year More

Video Spy Murder Probe Likely to Further Strain British-Russian Relations

Some analysts say Russian Tu-95 bombers were flying near British airspace to warn Britain about an inquest into a murdered Russian spy More

Mugabe Defends Image Amid Controversy at Close of AU Summit

He rejects concerns about how the West might perceive his leadership, saying he's focused on African development More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Spy Murder Probe Likely to Further Strain British-Russian Relationsi
X
Henry Ridgwell
January 31, 2015 10:50 PM
Relations between Russia and the West are set to become even more strained amid an inquiry in London into the murder of a former Russian spy. Lawyers at the inquiry accuse Russian President Vladimir Putin of directing a "mafia state." Meanwhile, Royal Air Force fighters intercepted Russian bombers close to British airspace this week, prompting authorities to summon Moscow’s ambassador. Henry Ridgwell reports.
Video

Video Spy Murder Probe Likely to Further Strain British-Russian Relations

Relations between Russia and the West are set to become even more strained amid an inquiry in London into the murder of a former Russian spy. Lawyers at the inquiry accuse Russian President Vladimir Putin of directing a "mafia state." Meanwhile, Royal Air Force fighters intercepted Russian bombers close to British airspace this week, prompting authorities to summon Moscow’s ambassador. Henry Ridgwell reports.
Video

Video Ukrainian Neighborhood Divided Over Conflict

People in eastern Ukraine’s Donetsk and Luhansk districts find themselves squarely in the path of advancing Russian-backed rebels, who want to take back the territory they held at the beginning of the conflict last year. Many local residents are afraid, but others would welcome the change, even when a rebel shell lands in their neighborhood. From the Luhansk district, 15 kilometers from where the Ukrainian government marks the front line, VOA’s Al Pessin reports.
Video

Video Threat of Creeping Lava Has Hawaiians on Edge

Residents of the small town of Pahoa on the Big Island of Hawaii face an advancing threat from the Kilauea volcano. Local residents are keeping a watchful eye on creeping lava. Mike O’Sullivan reports.
Video

Video Jefferson's Library Continues to Impress, 200 Years Later

Two hundred years after the U.S. Congress purchased a huge collection of books belonging to former President Thomas Jefferson, it remains one of America’s greatest literal treasures and has become the centerpiece of Washington’s Library of Congress. VOA’s Deborah Block reports.
Video

Video Egypt's Suez Canal Dreams Tempered by Continued Unrest

Egypt plans to expand the Suez Canal, raising hopes that the end of its economic crisis may be in sight. But some analysts say they expect the project may cost too much and take too long to make life better for everyday Egyptians. VOA's Heather Murdock reports.
Video

Video Pro-Kremlin Youth Group Creatively Promotes 'Patriotic' Propaganda

As Russia's President Vladimir Putin faces international pressure over Ukraine and a failing economy, unofficial domestic groups are rallying to his support. One such youth organization, CET, or Network, uses creative multimedia to appeal to Russia's urban youth with patriotic propaganda. VOA's Daniel Schearf reports.
Video

Video Filmmakers Produce Hand-Painted Documentary on Van Gogh

The troubled life of the famous 19th century Dutch painter Vincent van Gogh has been told through many books and films, but never in the way a group of filmmakers now intends to do. "Loving Vincent " will be the first ever feature-length film made of animated hand-painted images, done in the style of the late artist. VOA’s George Putic reports.
Video

Video Issues or Ethnicity? Question Divides Nigeria

As Nigeria goes to the polls next month, many expect the two top presidential contenders to gain much of their support from constituencies organized along ethnic or religious lines. But are faith and regional blocs really what political power in Nigeria is about? Chris Stein reports.
Video

Video Rock-Consuming Organisms Alter Views of Life Processes

Scientists thought they knew much about how life works, until a discovery more than two decades ago challenged conventional beliefs. Scientists found that there are organisms that breathe rocks. And it is only recently that the scientific community is accepting that there are organisms that could get energy out of rocks. Correspondent Elizabeth Lee reports.
Video

Video Paris Attacks Highlight Global Weapons Black Market

As law enforcement officials piece together how the Paris and Belgian terror cells carried out their recent attacks, questions are being asked about how they obtained military grade assault weapons - which are illegal in the European Union. As VOA's Jeff Swicord reports, experts say there is a very active worldwide black market for these weapons, and criminals and terrorists are buying.
Video

Video Activists Accuse China of Targeting Religious Freedom

The U.S.-based Chinese religious rights group ChinaAid says 2014 was the worst year for religious freedom in China since the end of the Cultural Revolution. As Ye Fan reports, activists say Beijing has been tightening religious controls ever since Chinese leader Xi Jinping came to office. Hu Wei narrates.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid