More
than two weeks after the general election, Portugal will still be in
the awkward position of not knowing who is to form the next
government.
How
much easier it would have been if a group of extraterrestrials had
landed last week. They would have provided a handy solution to the
conundrum created by voters on 4th October.
Portugal’s
democratic history shows that minority governments can’t operate
efficiently and don’t last long. So, having received the most votes
but failing to win a majority, the centre-right (PaF) coalition under
caretaker prime minister Pedro Passos Coelho could do with some
backing from the opposition centre-left Socialists led by António
Costa.
Shortly
after the election, Costa said it would take “a Martian invasion”
to convince him to join an alliance with the centre-right. He stopped
short, however, of ruling out supporting a minority government on
major legislative issues on which they could find common ground.
Negotiations
between Passos Coelho and Costa on how they might compromise have so
far got nowhere.
The
Socialists may still hold the key to some sort of workable
power-sharing arrangement, but they have a dilemma. They are pro-EU
and have promised to honour this country’s budget commitments, but
they oppose and want to lessen the harshness of the austerity
measures imposed by the last government.
Before
the election, a coalition between the Socialists and the far left -
comprising the Left Bloc and the Communist Party - seemed almost
unthinkable because of fundamental policy differences.
Surprise,
surprise, it emerged that the centre and far left were seriously
considering getting together, if only to keep the centre-right out.
The
Socialists, unlike the far left, are opposed to dropping austerity or
exiting the eurozone. But if the centre and far left were to marshal
their differences, they could muster a majority in parliament.
Opinion
polls indicate that most Portuguese do not believe the three
left-wing parties could form the country's next government, but it
remains a possibility.
Bloomberg
Business reported that the election had been a victory for Passos
Coelho and had been hailed by pundits as “a triumph for austerity
and perseverance over Greek-style upheaval.”
The
Financial Times said “Mr Passos Coelho’s re-election
cannot be described as a ‘victory for austerity. At most, it
reflects a grudging acceptance”.
The
American online weekly Policy Digest claimed that, “along
with last month’s Greek election, it was two in a row for the
European Left.” Portugal’s ruling coalition lost its
majority“in spite of a well-financed scare campaign, and a not very
subtle effort by the European Union to load the dice” in the
election.
Whichever
way you look at it, political instability or any lack of fiscal
discipline can only make Portugal’s fragile economy all the more
vulnerable. Investors are already jittery.
President
Aníbal Cavaco Silva will hold separate meetings with the
leaders of the main parties on Tuesday and Wednesday, October 20 and
21. Only then will the president be able to decide who to ask to
form the next government.
It’s
probably all a bit farcical to the record number of voters who
abstained on 4th October because they don’t hold
politicians of any party in high regard. Some of the abstainers might
welcome a sudden influx of sensible Martians.
Passos Coelho and Costa, unlikely partners