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Portugal election: Socialists admit defeat | Portugal election: Socialists admit defeat |
(40 minutes later) | |
Portugal's governing Socialist Party has admitted defeat in the general election. | Portugal's governing Socialist Party has admitted defeat in the general election. |
Socialist leader Jose Socrates said he accepted responsibility for the defeat and resigned as head of his party. | |
The victorious centre-right Social Democrats (PSD) led by Pedro Passos Coelho are expected to form a majority with the conservative CDS. | |
The new government must implement a demanding austerity programme as a condition for an EU bail-out. | |
Exit polls gave the PSD between 37% and 42.5% of the vote, ahead of the Socialists who scored between 24.4% and 30%. | |
"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," Economy Minister Jose 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. | 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. |
Mr Passos Coelho, voting at a polling station on the outskirts of Lisbon, said Portugal had to stick to the bail-out terms to regain market confidence and return to growth. | |
"You know that we now have a very difficult period for the next two or three years," he said. | |
"But I am sure that we will make the necessary change and Portugal will achieve new prosperity with economic growth." | |
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. |
Mr 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 criticised Mr Passos Coelho for lacking experience in government. | |
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 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 increases, 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. |