Is Portugal about to take the same path as Greece? That’s the question being asked as the country’s new Socialist government was sworn in promising to end austerity.
Prime Minister Antonio Costa says he will respect European budget rules.
After years of hardship and protests since Portugal’s bailout in 2011 the Socialists want to reverse many measures such as wage and pension cuts.
But the political upheavals have prompted concerns that an economic recovery could be undermined.
The socialists will need the far-left Communists and Left Bloc to pass measures through parliament.
A new budget for 2016 is already overdue and there are fears it may increase the budget deficit and debts.
Portugal’s president has vowed to guarantee the country adopts a disciplined budget.