Portuguese Prime Minister Jose Socrates has resigned after the government’s latest austerity package was rejected by parliament.
Only the Socialist Party of Jose Socrates voted for the new measures in the fourth austerity package to be proposed in eleven months. In this package there would have been cuts in spending on pensions, health and education whilst taxes would have risen and some infrastructure projects would have been postponed or abandoned.
The Socialist Party has 97 seats in the 230 member parliament. President Cavaco Silva will now talk to all of the parties, but he is expected to put in place a caretaker government to cover until elections are held in about two months time.