In its concerted action to oust the government, the left-wing parties showed a level of cohesion that was unexpected, considering the distance between the parties' historical positions. But any new leftist administration would face several challenges. Prior to the October election, the more-centrist Socialist Party had committed to continuing Portugal's adherence to EU-mandated budget limits -- policies which had already moved the country to exit its IMF bailout early. The two far-left parties, however, are more Euroskeptic and opposed to austerity measures in general, advocating instead increased spending. The deal struck between the three parties appears to balance the positions of both sides of the debate, maintaining a commitment to European budgetary constraints while also boosting spending to the smaller parties' satisfaction. Thus, the new government would be walking a fiscal tightrope, constantly running a risk of either breaking European rules or upsetting the junior members and once again bringing...
