Portugal has turned its economy around, slashing the deficit. This should boost investor confidence, but rating agencies won’t take Lisbon off the junk pile.
As expected, the shaky Portuguese right-wing government led by a centre-right coalition fell, toppled by a left-wing alliance. Considered by many as a milestone, the collapse of the Portugal à Frente coalition paved the way for a left-led government headed by the alliance formed by the Socialist Party (PS), the Left Bloc and the Communist Party together with the Greens.
On Sunday, October 4th, Portugal had national elections. Seventeen parties entered the fight. Following the social crisis outcry, expectations and predictions reflected the general sentiment that the Socialists would be the next winners. How can we explain, then, that the voters rewarded the parties (PSD and CDS) that had made their lives so miserable with austerity measures?