Portugal’s anti-austerity government led by Socialist PM Antonio Costa sworn in after tumultuous period
After eight tumultuous weeks of political upheaval, Portugal’s anti-austerity left took power yesterday, marking a pivotal moment for the eurozone as Germany’s firm grip on economy policy is broken.
The country’s new Socialist Prime Minister Antonio Costa has sworn to end austerity for the country, saying on Thursday that the new government’s programme was “a clear bet on turning the page on austerity”.
The Socialist minority government, supported by far left parties, was sworn in after weeks of upheaval following Portugal’s elections in early October, during which a short-lived centre-right government was toppled and replaced with Costa’s.
Despite the anti-austerity programme Costa has promised to uphold European budget rules, saying his government would “guarantee continuity” on EU and other international commitments – but added that consolidation of public accounts would become “healthier”.
After the Greek drama rocking the eurozone, Portugal’s anti-austerity promise may prove the next chapter, as Germany can no longer rely on the country to support their austerity case, said Ricardo Amaro from Oxford Economics to the Telegraph:
They have lost their best ally for fiscal discipline.
The Socialists have vowed to end sweeping austerity measures imposed by the previous government, and increase disposable household income to reduce the budget deficit.