Gov't continuity expected as Socialists....>

PORTUGAL: Gov't continuity expected as Socialists make significant gains in Oct

6 election. 

- Governing Socialist Party (PS) of PM Antonio Costa wins 106 of 230 seats in

Assembly, up from 89 previously. Will require support from smaller party/parties

to secure a majority. 

- Previously worked with Unitary Democratic Coalition (CDU) and Left Bloc (BE).

CDU won 12 seats (down 5), while BE won 19 (=). As such, PS could seek to govern

with just one of these parties rather than both to minimise outside influence

over its policies. Four seats still to be called.  

- With PS dominating next gov't there is little change in policy expected, with

fiscal prudence set to take precedence over major spending increases.     

- Main opposition centre-right Social Democratic Party won 77 seats, down from

86 previously, while its allies the conservative People's Party won just 5

seats, a loss of 13.

- PS could also invite animal welfare People-Animals-Nature party (4 seats) into

government.