Coalition talks in Portugal

Portugal's centre-right PSD party was expected to work fast Monday to form a majority coalition government with its traditional allies, the rightist CDS-PP, to implement the country's bailout programme.

Now that Portugal’s political uncertainty is over following a decisive win by the centre right Social Democrats or PSD party, the process of coalition talks in order to form a government is beginning in ernest.

Time is of the essence as an ambitious bailout programme needs to be implemented.

Portugal received a 78-billion-euro bailout last month from the European Union and IMF, whose terms include higher taxes, spending cuts and privatizations.

Speaking following his party’s election on Sunday leader Pedro Passos Coelho hoped that this would be an new era of recovery for the debt ridden nation.

Analysts say a new coalition government should be able quickly to enact reforms and austerity measures to reduce Portugal's large deficit and debt.

Despite Portuguese stocks opening higher on Monday there are a myriad of problems to tackle such as high unemployment and the expected contraction of the economy over the next year.