Pedro Passos Coelho

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Portuguese Prime Minister Antonio Costa

Portugal: The economy is Costa’s next big test

Portuguese Prime Minister Antonio Costa has helped keep populism in check by “taming” radical leftist parties and including them in his governing “contraption” coalition. He has avoided austerity, making him popular and likely to win October’s elections. After that, he will need to solidify Portugal’s recovery with deeper economic reforms. The question is whether he can do so with his far-left partners pulling in the opposite direction.

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