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(From Political Risk Services)
The center-right government made up of the PSD and the PP suffered a crushing defeat at a snap election held on February 20, as the main opposition PS gained 25 seats for a total of 121, giving the Socialists their first outright majority ever. The new government has inherited an economy in trouble. Growth remains sluggish and unemployment has risen sharply since 2002, and the population has grown weary of the fiscal austerity demanded by the EU. Prime Minister Socrates has promised to promote growth and employment through state investment in science, technology, and education, and to ease social hardships by guaranteeing that ...