Pedro Passos Coelho is sworn in as Portugal's Prime Minister for a second term and appeals for talks to prevent the downfall of his minority government. SHOWS: LISBON, PORTUGAL (OCTOBER 30, 2015) (REUTERS ACCESS - ALL) 1. VARIOUS EXTERIORS OF AJUDA PALACE WHERE SWEARING-IN OF NEW GOVERNMENT IS TAKING PLACE 2. INCOMING PORTUGUESE PRIME MINISTER, PEDRO PASSOS COELHO, ARRIVING FOR SWEARING-IN CEREMONY AND GREETING VICE PRIME MINISTER PAULO PORTAS 3. CEREMONY IN PROGRESS 4. PORTUGUESE PRESIDENT, ANIBAL CAVACO SILVA, DURING CEREMONY 5. PASSOS COELHO BEING SWORN IN, UPSOUND (Portuguese) SAYING: "By signing the below, I solemnly swear that I loyally comply with the functions with which I have been confided." 6. INCOMING VICE PRIME MINISTER PAULO PORTAS AND INCOMING FINANCE MINISTER MARIA LUIS ALBUQUERQUE 7. CEREMONY IN PROGRESS 8. (SOUNDBITE) (Portuguese) PORTUGAL PRESIDENT, ANIBAL CAVACO SILVA, SAYING: "The government taking over today does not have majority in parliament so the effort of dialogue and compromise has to proceed with the other political forces to seek the necessary understanding for the safeguard of the superior national interest." 9. MINISTERS 10. (SOUNDBITE) (Portuguese) PORTUGAL PRIME MINISTER, PASSOS COELHO, SAYING: "There is no political illusion that could mask this imperative (of meeting our European Union and currency union obligations). Nobody should risk the well-being of the Portuguese in the name of ideological agendas or personal or political ambition." 11. CEREMONY IN PROGRESS 12. PORTUGUESE PRESIDENT, ANIBAL CAVACO SILVA LISTENING 13. PASSOS COELHO LEAVING AFTER INAUGURATION SPEECH / AUDIENCE APPLAUDING 14. END OF CEREMONY / PASSOS SHAKING HANDS WITH CAVACO STORY: Portuguese President Anibal Cavaco Silva and Prime Minister Pedro Passos Coelho appealed for renewed political talks to prevent a swift downfall of the minority government that was sworn in on Friday (October 4) and that the opposition says it will topple. Portugal's new opposition-dominated parliament will hold a vote on Nov. 10 or 11 on the centre-right government programme that could boot out the austerity-minded administration. The growing political uncertainty following an inconclusive Oct.4 election has prompted concerns that a timid economic recovery and improvements in public finances after a debt crisis and painful austerity measures could stumble. Portugal's benchmark 10-year bond yield rose 7 basis points on Friday to 2.58 percent. "The government taking over today does not have majority in parliament so the effort of dialogue and compromise has to proceed with the other political forces to seek the necessary understanding," Cavaco Silva said. He added that the country cannot afford to create any doubts about its European commitments. The centre-left Socialists argue they can form a government backed by a leftist majority that would respect the European budget rules. But the two left-wing parties they are talking to reject Brussels-imposed budget limits. Passos Coelho said he would reinforce his efforts to achieve an understanding with the opposition, and warned that political uncertainty would carry high costs for the country that only exited an international bailout last year. "There is no political illusion that could mask this imperative (of meeting our European Union and currency union obligations). Nobody should risk the well-being of the Portuguese in the name of ideological agendas or personal or political ambition," he said. If the government is rejected by parliament, the president would have to either name Socialist leader Antonio Costa as prime minister or leave Passos Coelho in a caretaker capacity until after a presidential election in January. The president cannot call new parliamentary elections in his last six months in office.

• published: 04 Nov 2015
• views: 58