Portugal’s
head of state has given the green light to Pedro Passos Coelho and
his centre-right Forward Portugal (PaF) coalition to follow up on
their first term in office and form a new government. But that
doesn't mean the inconclusive outcome of the general election is
all sorted. Far from it.
President
Aníbal Cavaco Silva’s decision to deny an unprecedented
left-wing alliance the opportunity to govern has gone down well in
Brussels and across conservative Europe, but it has caused a
commotion at home.
The October 4 election produced no clear winner and this presented the largely
ceremonial head of state with stark options. Although a former Social
Democrat leader himself, Cavaco Silva was required by the
constitution to fairly judge which group was best positioned to lead
the country.
After
consulting with all the political parties and in line with tradition,
on Thursday evening the president nominated the group with the most
electoral votes. He gave them ten days to present a four-year
programme for approval by parliament.
Passos Coelho hopes to be able to count on support from
any centre-left Socialists (PS) unhappy about the notion of an
alliance with the radical Far Left (BE) and the hard-line Communist
parties (PCP).
Should
Passos Coelho fail to obtain a parliamentary vote of confidence for
his programme for the next four years, the president will then be
expected to ask the broad left to try to form a government.
Passos
Coelho has told the president of the steps he would take to continue
sound pro-European governance by the PaF coalition despite failing to
get an absolute majority on October 4.
Catarina
Martins, spokesperson for the anti-establishment Left Block, which has much
in common with Greece’s Syriza and Spain’s Podemos, has said the
BE will have the PCP’s support in tabling a motion rejecting the centre-right confidence vote in parliament in the days ahead.
It
is thought the Socialists may close ranks and do the same, although
more moderate members of the PS are said to be increasingly uneasy
about “the self-defeating and reckless” direction in which their
leader may be taking them.
Socialist
leader António Costa, whose party came second in the
election, decided against striking any deal with the incumbent
centre-right, but managed to garnered support from the Left
Bloc and the Communists who finished third and fourth in the
election.
Because
of historic feuding, it seemed improbably before and even immediately
after the vote counting that the country could end up with a triple
left-wing alliance. But it has become a possibility.
The
prospect of a sudden shift from a government that co-operated closely
with international lenders, to one with anti-austerity and anti-EU
leanings, sparked concern among conservative governments and fiscal
markets in the eurozone.
During
the immediate post-election period this month, Costa, whose personal
position seemed in doubt after the disappointing PS election result,
reasoned that the centre-right option would not be viable and would
simply “prolong the uncertainty” in the country. He has now
criticised the president for creating a “useless political crisis.”
The Left
Bloc's Catarina Martins said another centre-right
government would be “a waste of time” as it could not expect to
serve for long. She has chastised the president for “creating
instability” and acting like “a cult leader.”
Jerónimo
de Sousa, leader of the Communists, maintained that a majority
left-wing government was feasible though it had long been spurned by
many Socialists. He criticised Cavaco Silva for his “confrontational
stance and disregard for the constitution.”
Paulo
Portas, the incumbent deputy prime minister and leader of the
rightist CDS-People's Party, said it was “absolutely extraordinary
that a political leader fighting for his survival” (Costa) could
even consider overriding “the vote of the people,” albeit it a
minority vote.
Amid
the domestic slanging, EU officials have threatened to take action
against Portugal for not presenting its draft 2016 budget by the 15
October deadline. Portugal is still running one of the highest budget
deficits in the eurozone.
Thursday’s
announcement by President Cavaco Silva did not banish international
fears that further weeks of uncertainty could harm Portugal's
economic recovery more than a year after it exited the strict terms
of its €78bn international bailout.
On
the same day as President Cavaco Silva’s new government announcement, Angela
Merkel, the German chancellor, expressed hope that Passos Coelho
would be successful, but also spoke of her concern that upcoming
elections in Spain and Ireland could see a swing to anti-austerity
forces.
“We face difficult situations in Ireland, Spain and Portugal,” she told
a meeting of the centre-right European People’s Party (PPP) in
Madrid.
Even
if Portugal’s centre-right get a vote of confidence in parliament
in the days ahead, the new government will struggle to get through
major legislative issues and is likely to have a limited life span.
No
further general election can be held before May or June of next year.
There will, however, be a presidential election when Cavaco Silva
steps down in January. The future president’s first task may be to
help clear up a political mess.
President Cavaco Silva with Prime Minister Passos Coelho (above)
and opposition leader António Costa (below)
and opposition leader António Costa (below)