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Thursday, November 26, 2015

Antonio Costa Named Prime Minister of Portugal


Portugal’s president on Tuesday Nov 24,2015 appointed anti-austerity Socialist leader António Costa as prime minister in a move that ends weeks of political turmoil but opens the door to a period of economic uncertainty.

The ascent of 54-year-old Mr. Costa, the former mayor of Lisbon, makes Portugal the second eurozone country this year after Greece to rebel against a belt tightening  recipe imposed on troubled Southern European economies by the European Union’s executive arm. Greece’s rebellion, which started with the election of far-left Syriza party in January, has been short-lived, with the government now imposing austerity measures to meet the terms of its latest EU bailout.

Mr. Costa, who has formed a parliamentary alliance with three euroskeptic far-left parties, will also face challenges making good on his pledges to increase public wages and unfreeze pensions. Such was the concern of the Portuguese political establishment over the proposals that President Aníbal Cavaco Silva on Monday insisted that Mr. Costa adhere to 6 conditions, including maintaining a tight budget and strong banking system, before he named him as prime minister.

Costa’s appointment comes weeks after Oct. 4 national elections in which the center-right coalition of incumbent Prime Minister Pedro Passos Coelho won the most seats in parliament, but lost its majority

Costa’s administration will be the first Portuguese government supported by far-left parties in the country’s 4 decade of democratic r ule

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