The dangerous "Syriza"- style chosen by the socialists of António Costa for fragile Portugal

António Costa, the socialist leader

"Europe faces the risk of a second revolt 

by Left-wing forces in the South after Portugal’s Socialist Party 

vowed to defy austerity demands from the country’s creditors 

and block any further sackings of public officials", 

writes Embrose Evans-Pritchard

in The Telegraph newspaper.

"We will carry out a reverse policy,” said Antonio Costa, the Socialist leader.

Mr Costa said a clear majority of his party wants to halt the “obsession with austerity”. 

Speaking to journalists in Lisbon as his country prepares for elections - 

expected in October - he insisted that Portugal must start rebuilding key parts of the public 

sector following the drastic cuts under the previous EU-IMF Troika regime.

“There must be an alternative that allows us to turn the page on austerity, 

revive the economy, create jobs, and – while complying with euro area rules – 

restore hope to this county,” he said.

While the Socialist Party insists that it is a different animal 

from the radical Syriza movement in Greece, 

there is a striking similarity in some of the pre-electoral language and proposals. 

Syriza also pledged to stick to EMU rules, 

while at the same time campaigning for policies 

that were bound to provoke a head-on collision with creditors.

Mr Costa accused the Portuguese government 

of launching a blitz of privatisations in its dying days, 

signalling that the Socialists 

will either block or review the sale of the national airline TAP, 

as well as public transport hubs and water works.

His harshest language was reserved for the International Monetary Fund 

but this reflects the cultural milieu of the Portuguese Left. 

In reality the IMF was the junior partner in the Troika missions.

Mr Costa unveiled a package of 55 measures in March, 

led by a wave of spending on healthcare and education 

that amounts to a fiscal reflation package. 

The party would also roll back labour reforms 

and make it harder for companies to sack workers.

Portugal is no longer under Troika control. 

It exited its €78bn bailout programme last year 

and returned to the markets. 

It is currently able to borrow money for 10 years 

at an interest rate of 2.35pc. 

“We no longer have any direct leverage,” said one EU official.

Portugal has weathered the austerity crisis in much better shape 

than Greece but it remains vulnerable, 

with higher aggregate debt levels 

and far lower levels of education than Greece.

Voting for the Socialist Party or any of the leftist parties, 

would be like committing a planned, radical suicide for Portugal.