The center-right party of Social Democrats (PSD) began on Monday to form a coalition government in Portugal with its rightist allies. At the same time, it spoke of the need for the Portuguese people to be courageous regarding new austerity measures.
The PSD received 39% of the vote on Sunday and brought an end to political uncertainty after the minority Socialist government failed in March to pass its newest austerity budget and then collapsed, Reuters reported.
After long denying that it would need or accept a bailout, in May Portugal finally accepted a package from the European Union (EU) and the International Monetary Fund (IMF). But the deal called for much stricter measures on raising taxes and reducing debt, and the Portuguese economy is already suffering.