"The focus of uncertainty will, of course, be the eventual slowdown of the European economy, forcing the socialist government into a process of adjustment," he said.
According to Susana Salgado, research fellow and professor of political communication, media and politics in Social Sciences Institute in Lisbon, the new government will have to choose between budgetary balance and economic growth.
"The government will have to choose to keep the deficit low or to carry out necessary structural reforms. If the international economic environment worsens, the impact on Portugal can be serious, jeopardizing any growth targets. If, in addition, there is an increase in public investment levels, it will be very difficult to keep the deficit low rates," she said.
With no formal written agreements with the parties that supported the previous government in last legislature, there are some political challenges awaiting Costa's new government, according to analysts.
Susana Salgado said that, without a full majority, the government is dependent on temporary agreements inside the parliament to see some structural measures approved, and will come under pressure from the other parties to ensure other measures, even if those are not among its priorities.
However, Costa Pinto believes that political stability is not expected to decline as there is no alternative at the right of the political spectrum and the PS has some capacity to have its budgets approved by the left.
【国际英语资讯:News Analysis: Portugals new govt enjoys favorable position, but faces challenges ahead】相关文章:
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