Portugal government: Socialist anti-austerity party to take power - and rely on support from communists

Antonio Costa appointed Prime Minister after Portugal Ahead lost a confidence vote

Leader of the Socialist Party Antonio Costa, left, leaves after meeting Portugal's president at Belem Palace in Lisbon (Getty Images)

Portugal has lurched to the left after President Aníbal Cavaco Silva appointed a Socialist government that campaigned on opposing austerity. It will rely on support from the Communist Party.

After two weeks of wrangling over what his administration might do, the Socialist Party leader Antonio Costa was asked to form a government. His appointment follows the collapse of the centre-right Portugal Ahead coalition, which lost a confidence motion last month, just 11 days after the general election. Neither the communists or the larger, radical, Left Bloc, are expected to join a formal coalition.

“After hearing political parties with parliamentary representation, the President has decided to nominate Antonio Costa for Prime Minister,” the President said in a statement.

He is believed to have sought assurances that Mr Costa would stick to public spending limits. Mr Costa had previously suggested that he could slow down cuts and accused his predecessor, Pedro Passos Coelho, of being “submissive” in his dealing with Brussels.