Business, Finance & Economics

Portugal's president decides to keep working government


President of Portugal Anibal Cavaco Silva laughs after a family photo on the terrace of the presidential palace at Buda Castle in Budapest on April 9, 2011 prior to their second day talks. Europe offered Portugal an 80-billion-euro ($115 billion) bailout, but set tough conditions as it bid to draw a line under a destabilizing debt crisis.


Attila Kisbenedek

Portugal's President Anibal Cavaco Silva on Wednesday said the nation's struggling government will continue working instead of moving toward early elections, reported the Associated Press.

Opposition parties have been calling for flash elections after the government nearly collapsed last week. 

But Cavaco Silva said he will work toward a multi-party political agreement when Portugal has made good on its fiscal obligations after receiving a $100 billion euro bailout from international lenders two years ago, reported Reuters.

It was feared that the debt-strapped nation would further endanger the European bloc's financial stability. Portugal will be finished in terms of the bailout as of June 2014, according to Reuters

Holding elections before that takes place would be "extremely negative" for the nation's image, the AP cited Cavaco Silva as saying, describing political stability as the first priority given "current context of emergency," reported Reuters.