PSD & CDS-PP sign accord
The winners of the general election on 5th June, the Social Democratic Party (PSD) have signed an accord with the third largest party the Democratic and Social Centre – People´s Party (CDS-PP) have signed an accord to form a coalition government.
President Anibal Cavaco Silva also announced that leader of the PSD, Pedro Passos Coleho, would be prime minister. As yet it is not known what role the CDS-PP leader Paulo Portas will take in the government.
The full Cabinet is expected to be announced in the next few days.
The new government faces the implementation of an agreement between Portugal and the EU and IMF over a €78 billion bailout. The new prime minister said that the first aim of the government was to restore confidence. The accord between the two parties has not been revealed, but the key points are likely to include establishing conditions for the creation of jobs, greater productivity and social mobility. The EU/IMF deal also required a series of privatizations which the new government is expected to exceed.