The markets are taking a hand in Portugal’s democracy by continuing to give the thumbs down to an eventual left-wing government.
After shares fell on Monday borrowing costs rose on Tuesday as invisible forces battered the Portuguese economy, where voters have voted in the majority to reject austerity and selectively reflate the economy.
A Socialist government will need Communist and far-left support for its majority, and there is no certainty it will be able to pass a budget. But that is for the future. For now the left has to topple the interim prime minister, and investors are voting with their wallets.
If this week the left succeeds in outvoting the minority government in parliament the president has no choice; he must either ask the Socialists to try and form a left coalition, or demand the current PM stays on until a fresh poll can be held.
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