Portuguese ruling partner wants negotiation to end political crisis

Portuguese ruling partner, the People\' s Party (CDS-PP) of the coalition government, said Wednesday that its Chairman Paulo Portas will meet with Prime Minister Pedro Passos Coelho to find \"a viable solution for governance in Portugal.\" After the conclusion of the executive committee meeting at the headquarters in capital Lisbon, Luis Queiro, chairperson of the Congress of the CDS-PP, said the party was to \"mandate the party chairman in order to, as soon as possible, meet with the leader of the PSD (Socialist Democratic Party), to jointly define the circumstances to ensure a viable solution for the governance of Portugal.\" \"It is essential in the context of this effort to ensure the usefulness of the effective contribution of the CDS in the formulation of the policies of the majority,\" Queiro said. Portas, the country\'s foreign minister, resigned Tuesday to show his opposition to the appointment of former Secretary of State of Treasury Maria Luis Albuquerque as new financial minister to replace Vitor Gaspar who stepped down the previous day. Portas has been at odds with the coalition government over its tough austerity measures, the reduction of pension in particular, under a 78-billion-euro bailout agreement with international lenders of the troika comprising the European Union, the International Monetary Fund and the European Central Bank. The government move has triggered outrage among the Portuguese who often take to the streets in protest against the government. The resignations of the two top ministers in the coalition government has left it on the verge of collapse. In a nationwide address following Portas\' resignation Tuesday, Prime Minister Passos Coelho said he will not resign or accept Portas\' resignation. Passos Coelho said he will try his utmost to reach consensus with the People\'s Party headed by Portas to ensure political stability in Portugal. According to local media reports, European Commission President Jose Manuel Barroso warned Wednesday that the political crisis in Portugal has eroded investors\' confidence with Portugal\'s finance sector. It will also generate an adverse influence on the bailed- out country\'s economic recovery, he added. Portuguese President Anibal Cavaco Silva said in a statement that he will meet separately with Prime Minister Passos Coelho and representatives of all parties on Thursday to solve the political crisis in the country. Enditem Socialist Democratic Party formed a coalition government with the support of the People\'s Party led by Portas.