Lisbon - Portuguese President Anibal Cavaco Silva Monday designated Socialist leader Jose Socrates as prime minister following his victory in the September 27 parliamentary elections, while Socrates' party reinforced its position in Sunday's local elections. Cavaco Silva tasked Socrates with forming his second government and with submitting his government programme to parliament.
Socrates announced he would launch talks with the other parties "without preconceptions" this week in view of forming a "stable" government after losing his absolute majority in the parliamentary elections.
Analysts had previously said he might find it difficult to find coalition partners. He might thus end up forming a minority government, a situation which might make it more difficult for him to revive an economy slowly recovering from a steep downturn.
Cavaco Silva and Socrates had waited until the elections were held before making moves towards the formation of a new government.
The Socialists made gains on the local level, though the conservative Social Democratic Party (PSD) remained the strongest party, according to definitive results released Monday.
The Socialists now have a majority in 131 of Portugal's 308 municipal councils, up from 110 previously, in what Socrates described as a "good result."
The PSD will govern 138 cities, down from 157.
Socialist mayor Antonio Costa won re-election in Lisbon and conservative Rui Rio held onto power in second-largest city Porto. Voter turnout stood at 40 per cent.
The local elections were overshadowed by a killing at a polling station in the northern village of Ermelo, where a Socialist candidate shot dead the husband of the conservative mayor who was challenging him in the poll.
Some witnesses claimed the victim had first fired at the killer. It was suspected that the killing was linked to political rivalries or a family feud.
Police continued searching for the killer in a nearby forest.
