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Portuguese president accepts PM’s new cabinet

July 24, 2013

LISBON, Portugal (AP) — Portuguese President Anibal Cavaco Silva has accepted new cabinet members proposed by the prime minister, ending the rift in the country’s coalition government that threatened its financial bailout.

The new cabinet, which will be sworn in later Wednesday, will give a more prominent role to the foreign minister who threatened to resign over how Portugal should deal with austerity. Paulo Portas will become the deputy to Prime Minister Pedro Passos Coelho.

Portas’ threatened resignation this month threw Portugal into a political uncertainty amid deep investor concern over how the government would comply with terms of the nation’s 78 billion euros ($102 billion) international bailout.

The country’s stock and bond markets have calmed since Cavaco Silva decided Sunday that Passos Coelho’s coalition could continue governing and snap elections were not needed.

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