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Portuguese move government toward right

LISBON, Portugal, June 5 (UPI) -- Portuguese voters gave the country's Social Democrats a major parliamentary victory Sunday, moving the government to the right, election results show.

With the rejection of Prime Minister Jose Socrates' Socialists party at the ballot box, Social Democrats leader Pedro Passos Coelho is expected to become Portugal's next prime minister as his party forms a coalition with the conservative Popular Party, The New York Times reported.

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The elections also are seen as a mandate for the government to impose spending cuts in return for an international bailout of about $114 billion, the newspaper said.

With about 80 percent of the votes counted Sunday, the Social Democrats polled 39 percent to 28 percent for the Socialists and 12 percent for the Popular Party, the Times said.

Socrates had resigned in March over the defeat of his version of austerity measures; however, he has remained in office in a "caretaker" capacity since then.

CNN said the turmoil began when Socrates put together a plan of spending cuts that opposition parties in Parliament said were too hard on the poor. That package had been developed in conjunction with Portugal's application for aid from the European Commission.

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The austerity plan led to a jump in the rate Portugal pays for borrowing.

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