Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Central African Republic: Brazzaville ceasefire talks deliver fragile deal

Read more

DEBATE

Gaza: A Truce At All Costs?

Read more

FOCUS

Sluggish tourist season in Crimea

Read more

ENCORE!

Bartabas : Mixing Christ with Spanish music and dancing horses

Read more

IN THE PAPERS

Shifts in the propaganda war waged between Israelis and Palestinians

Read more

IN THE PAPERS

French MPs face quandary in pro-Palestinian rallies

Read more

THE INTERVIEW

Yezid Sayigh, Senior Associate at the Carnegie Middle East Center in Beirut

Read more

#TECH 24

Mind the Gender Gap : getting more women into the tech sector

Read more

INSIDE THE AMERICAS

Bolivian children: heading to work aged 10

Read more

  • Wreckage of Algeria plane found in Mali

    Read more

  • Air Algérie crash: 'We should eliminate the missile hypothesis'

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Italy’s Nibali cruises to victory in 18th stage of Tour de France

    Read more

  • Iraqi parliament elects moderate Kurd as president

    Read more

  • US, European agencies lift travel restrictions to Tel Aviv

    Read more

  • No end to fighting until Israel ends Gaza blockade, Hamas says

    Read more

  • Two foreign women shot dead in western Afghanistan

    Read more

  • At least 60 killed in attack on prison convoy near Baghdad

    Read more

  • Cycling is ‘winning the war on doping,’ says expert

    Read more

  • Ceasefire agreed for Central African Republic

    Read more

Europe

Prime Minister unveils new cabinet to tackle debt crisis

Text by News Wires

Latest update : 2011-06-18

Prime Minister Pedro Passos Coelho (pictured left) unveiled a new, pared-down cabinet Saturday, including two economists, as the country struggles to tackle its debt crisis. The cabinet will begin work Tuesday immediately after parliament meets.

AFP - Portugal's new Prime Minister Pedro Passos Coelho Friday unveiled a slimmed-down cabinet and appointed seasoned bank policymaker Vitor Gaspar finance minister to tackle the debt crisis.

The 11-member cabinet includes four members of centre-right Social Democrat party (PSD), the winner of June 5 polls, three from junior coalition partner CDS-PP and four independents, the presidency announced.

The previous government had 16 ministers.

Socialist PM quits

AFP - Outgoing Portuguese Prime Minister Jose Socrates on Sunday quit the leadership of the Socialist Party after it lost an early general election to the centre-right Social Democrats.

"This defeat is mine and I feel it is necessary to open a new political cycle that is able to prepare a consistent alternative," he said in an address to party supporters in Lisbon.

"I want to give the Socialist Party the space to discuss its future and select a new leadership."
 

The new cabinet will begin work next Tuesday after parliament meets, Passos Coelho said following a meeting with President Anibal Cavaco Silva.

"I was appointed 48 hours ago, and since I have committed myself, I took initiatives very quickly so that the country would know in a record time the government which will lead the country for the next four years," he said.

The PSD agreed on a coalition with the CDS-PP after it failed to win a majority of seats.

The independent Gaspar was appointed finance minister. A trained economist, Gaspar has been a special adviser to Portugal's central bank since 2010.

Previously he led the European Commission's Bureau of Policy Advisers and worked before that as a research director at the European Central Bank for six years.

Another economist and independent lawmaker, Alvaro Santos Pereira, was given the economy and employment portfolio. CDS-PP leader Paulo Portas was appointed foreign minister and Social Democrat Jose Aguiar was named defence minister.

Final results released this week by the interior ministry showed the PSD had won 108 seats in the 230-strong chamber while the CDS-PP won 24 seats.

The 132 seats they command between them gives them a comfortable overall majority.

The Socialists won 74 seats, the Communist-Green CDU coalition 16, while the far-left Left Bloc picked up eight seats.

The three leading political parties have all broadly agreed to implement the loan conditions laid out by the EU and the IMF.

Portugal owed 160 billion euros at the end of 2010 and its deficit for the year was 9.1 percent of GDP, more than triple the rate allowed among EU members. Unemployment for 2010 stood at 11 percent.

Passos Coelho had previously agreed to go beyond the conditions set out by the EU and IMF, specifically favouring a more aggressive privatisation plan.

 

Date created : 2011-06-18

  • PORTUGAL

    Pedro Coelho named as Prime Minister of Portugal

    Read more

  • PORTUGAL

    Social Democrats inherit painful austerity agenda

    Read more

  • PORTUGAL

    Social Democrats oust Portugal's ruling Socialists

    Read more

COMMENT(S)