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Center-Right Coalition That Applied Austerity Measures Is Re-elected in Portugal Center-Right Coalition That Applied Austerity Measures Is Re-elected in Portugal
(about 9 hours later)
LISBON — Portugal’s governing center-right coalition won re-election Sunday in national elections that were seen as a bellwether for the austerity measures that creditors have imposed on Portugal and other countries during the euro debt crisis. LISBON — Portugal’s governing center-right coalition won re-election on Sunday in national elections that were seen as a bellwether for the austerity measures that creditors have imposed on Portugal and other countries during the euro debt crisis.
Even though it appeared that the coalition would fall short of a parliamentary majority, Prime Minister Pedro Passos Coelho celebrated his victory and told supporters he was ready to lead the next government. But even though Prime Minister Pedro Passos Coelho is set to stay in office, he is likely to lead a weaker and less change-minded government after his center-right coalition failed to keep its parliamentary majority.
Mr. Passos Coelho’s two-party coalition won almost 39 percent of the vote, according to preliminary results, ahead of the main opposition Socialist party, which got 32 percent. With the results for 214 of the 230 seats in Parliament determined, the coalition had 100 seats, making it unlikely that it would reach the 116 seats needed to keep its majority.  Mr. Passos Coelho’s two-party coalition won almost 39 percent of the vote, according to preliminary results, ahead of the main opposition Socialist party, which got 32 percent.
Like Prime Minister David Cameron of Britain — another conservative leader, who won an unexpected parliamentary majority in May — Mr. Passos Coelho benefited from an economic recovery that has allowed Portugal to return to growth and reduce unemployment to 12 percent, from a peak of 17.5 percent in early 2013.  With the votes of overseas Portuguese still to be counted, the coalition held 104 of the 230 seats in Parliament, down from the 129 seats that it won in 2011 and also short of the 116 seats needed for a majority. The Socialists got 85 seats.
During the campaign, Mr. Passos Coelho argued that this recovery could be jeopardized if voters switched to a left-wing government that would turn its back on fiscal discipline and irk international creditors.  Like Prime Minister David Cameron of Britain — another conservative leader, who won an unexpected parliamentary majority in May — Mr. Passos Coelho benefited from an economic recovery that has allowed Portugal to return to growth and reduce unemployment to 12 percent, from a peak of 17.5 percent in early 2013.
Yet even if the electorate heeded his call for government continuity, voters expressed a great despondency. But with a fragmented Portuguese Parliament, “political stability could become a challenge very soon, possibly as early as next year as the government tries to get support in Parliament for the 2017 budget,” said Antonio Barroso, an analyst at Teneo Intelligence, a London think tank, in a note that was based on the preliminary results.
“Our politicians haven’t properly explained or justified austerity, so this election has just come down to a battle between those who are so angry that they want change for change’s sake and those who are now extremely cautious or worried about the cost of making any kind of change,” Amália Silva said after she cast her vote Sunday in the Lapa neighborhood of Lisbon. During the campaign, Mr. Passos Coelho argued that this recovery could be jeopardized if voters switched to a left-wing government that would turn its back on fiscal discipline and irk international creditors.
Diogo Costa, 28, said he voted for the radical Left Bloc, but without holding any genuine hope that a different government could change tack and unwind austerity.  Yet even if the electorate heard his call for government continuity, the turnout of 57 percent also showed a high level of apathy and despondency among voters.
“I think the rules of Europe don’t give anybody the chance to opt for an alternative, as we have just seen in Greece,” Mr. Costa said.  “Our politicians haven’t properly explained or justified austerity, so this election has just come down to a battle between those who are so angry that they want change for change’s sake and those who are now extremely cautious or worried about the cost of making any kind of change,” Amália Silva said after she cast her vote on Sunday in the Lapa neighborhood of Lisbon.
The recent debt haggling and political turmoil in Greece also helped Mr. Passos Coelho by increasing the friction among Portugal’s already fragmented left, which includes parties that want Portugal to restructure its debt. On Sunday, the Left Bloc emerged as the main party of the radical left, ahead of the Communists, according to preliminary results.  After meeting the different party leaders over the coming days, President Aníbal Cavaco Silva is expected to ask Mr. Passos Coelho to try and form the next government.
Diogo Costa, 28, said he voted for the radical Left Bloc, but without holding any genuine hope that a different government could change tack and unwind austerity.
“I think the rules of Europe don’t give anybody the chance to opt for an alternative, as we have just seen in Greece,” Mr. Costa said.
The recent debt haggling and political turmoil in Greece also helped Mr. Passos Coelho by increasing the friction among Portugal’s already fragmented left, which includes parties that want Portugal to restructure its debt. On Sunday, the Left Bloc emerged as the main party of the radical left, ahead of the Communists, according to preliminary results.
Mr. Passos Coelho took office in 2011, shortly after Portugal requested an international bailout. Going into Sunday’s election, he was already the first prime minister to lead a coalition through a full term in office here since 1974, when a revolution toppled Portugal’s dictatorship.Mr. Passos Coelho took office in 2011, shortly after Portugal requested an international bailout. Going into Sunday’s election, he was already the first prime minister to lead a coalition through a full term in office here since 1974, when a revolution toppled Portugal’s dictatorship.
Sunday’s result was a major turnaround for a prime minister whose popularity plummeted during the first years of his mandate, as his government enforced a bailout program despite street protest and strikes.Sunday’s result was a major turnaround for a prime minister whose popularity plummeted during the first years of his mandate, as his government enforced a bailout program despite street protest and strikes.
Even as the recovery has gathered pace, left-wing parties have also highlighted studies showing that Portugal has one of Europe’s highest levels of income inequality and poverty. Mr. Costa, the Left Bloc voter who is an assistant topographer, said his monthly salary of 600 euros, or about $672, forced him to live with his parents. “I don’t think it’s normal to have a salary that doesn’t even allow you to leave home,” he said.Even as the recovery has gathered pace, left-wing parties have also highlighted studies showing that Portugal has one of Europe’s highest levels of income inequality and poverty. Mr. Costa, the Left Bloc voter who is an assistant topographer, said his monthly salary of 600 euros, or about $672, forced him to live with his parents. “I don’t think it’s normal to have a salary that doesn’t even allow you to leave home,” he said.
In coming days, President Aníbal Cavaco Silva is expected to ask Mr. Passos Coelho to try to form the next government. The Socialist leader, António Costa, conceded defeat, but said he would not resign.  The Socialists are likely “to harden their stance towards the government,” according to Mr. Barroso, the political analyst, because of pressure from the strengthened Left Bloc and other more radical parties.
On Sunday, Mr. Passos Coelho called on the Socialists to support him in his efforts to make further economic changes.On Sunday, Mr. Passos Coelho called on the Socialists to support him in his efforts to make further economic changes.
Without a parliamentary majority, however, the next center-right government will have less room to put privatizations and other controversial measures in place than during its first mandate.Without a parliamentary majority, however, the next center-right government will have less room to put privatizations and other controversial measures in place than during its first mandate.
Even as Portugal has won plaudits from creditors, its level of public debt — about 125 percent of gross domestic product — is among the highest in Europe. The country’s deficit was also recently hit by the near-collapse of the Espírito Santo family conglomerate. The cost of rescuing the conglomerate’s bank ballooned the country’s 2014 budget deficit to 7.2 percent of G.D.P., from a projected 4.5 percent.Even as Portugal has won plaudits from creditors, its level of public debt — about 125 percent of gross domestic product — is among the highest in Europe. The country’s deficit was also recently hit by the near-collapse of the Espírito Santo family conglomerate. The cost of rescuing the conglomerate’s bank ballooned the country’s 2014 budget deficit to 7.2 percent of G.D.P., from a projected 4.5 percent.