Portuguese PM stakes re-election claim as biggest fiscal hawk

Bloomberg

Portuguese PM Antonio Costa prodded two opposition parties into supporting fiscal discipline, staking his claim as a champion of responsible budgets ahead of a national election on October 6.
The maneuvering reduces the likelihood of political turmoil in a euro-area country that required a bailout in 2011 and gives additional signals about the terms on which parties will contest the election. Costa, a Socialist, has led a minority government since 2015.
With Costa putting them on the spot, two center-right opposition parties reaffirmed
fiscal-discipline pledges after the premier dangled the threat of resignation over a proposed increase in teachers’ pay, which he portrayed as irresponsible.
The gambit raised the prospect of an early election at a time when the Socialists have a poll lead. The PSD party said it would back the teachers’ pay plan in parliament only if it includes “financial safeguards” that it has already proposed, party leader Rui Rio said.