This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/world-europe-13658998

The article has changed 9 times. There is an RSS feed of changes available.

Version 2 Version 3
Portugal election: Vote amid bail-out austerity Portugal election: Socialists admit defeat
(about 2 hours later)
Voters in Portugal have gone to the polls to choose a new government that will implement a demanding 78bn euro ($116bn; £70bn) bail-out. Portugal's governing Socialist Party has admitted defeat in the general election.
Opinion polls suggest the opposition centre-right Social Democrats (PSD) lead the governing Socialists, but not by enough to form a majority. Economy Minister Jose Vieira da Silva said exit polls showed a clear victory for the centre-right Social Democrats (PSD) led by Pedro Passos Coelho.
Analysts say the PSD may try to form a coalition with the third-ranked CDS. The PSD will be able to form a majority with its traditional ally, the conservative CDS, analysts said.
All the main parties endorsed the bail-out, which requires tough austerity measures amid a faltering economy. The new government must implement a demanding austerity programme as a condition for a EU bail-out.
"These are clear results which the Socialist Party wants to recognise. All the results point to a win for the PSD and a defeat for the Socialists," Mr Vieira da Silva said.
All the main parties are backing the 78bn euro ($116bn; £70bn) bail-out, which requires tough austerity measures amid a faltering economy and a debt crisis.
Socialist leader Jose Socrates resigned as prime minister in March, triggering early elections after the opposition in parliament rejected his minority government's fourth austerity package in less than a year.Socialist leader Jose Socrates resigned as prime minister in March, triggering early elections after the opposition in parliament rejected his minority government's fourth austerity package in less than a year.
Since then, he has acted as caretaker prime minister.Since then, he has acted as caretaker prime minister.
'Politically difficult''Politically difficult'
Portugal is faced with unemployment of more than 12% and an economy that is expected to contract by 2% this year and next.Portugal is faced with unemployment of more than 12% and an economy that is expected to contract by 2% this year and next.
Polls suggest the centre-right Social Democrats will win nearly 37% of the vote, compared with about 31% for the Socialists. Social Democratic leader Mr Coelho suggested this week that he was the preferred candidate of donors to the bail-out fund.
Social Democratic leader Pedro Passos Coelho suggested this week that he was the preferred candidate of donors to the bail-out fund.
"We are going to cut state waste and excesses while finding a way for the needy to get what they need," he told supporters."We are going to cut state waste and excesses while finding a way for the needy to get what they need," he told supporters.
Mr Socrates has accused the Social Democrats of pursuing a "radical right-wing agenda" and criticises Mr Passos Coelho for lacking experience in government.Mr Socrates has accused the Social Democrats of pursuing a "radical right-wing agenda" and criticises Mr Passos Coelho for lacking experience in government.
"If you think social protection programs are important, vote for the Socialist Party because our policies ensure the welfare state," he told a party rally on Friday."If you think social protection programs are important, vote for the Socialist Party because our policies ensure the welfare state," he told a party rally on Friday.
Whoever wins on Sunday will have to enact urgent and far-reaching social and fiscal reforms, including more austerity measures, to restore national fiscal health and encourage growth. The new government will have to enact urgent and far-reaching social and fiscal reforms, including more austerity measures, to restore national fiscal health and encourage growth.
The terms of the bail-out call for tax hikes, a freeze on state pensions and salaries and cuts in unemployment benefits.The terms of the bail-out call for tax hikes, a freeze on state pensions and salaries and cuts in unemployment benefits.
"The road with this package is long and filled with reforms which may be politically difficult to pass," Diego Iscaro, an economist at IHS Global Insight, told Reuters news agency."The road with this package is long and filled with reforms which may be politically difficult to pass," Diego Iscaro, an economist at IHS Global Insight, told Reuters news agency.