The leader of the Democratic Alliance, Luís Montenegro, has been appointed prime minister of Portugal, according to a statement from the presidency cited by news agency AFP.
He now has one week to form a coalition. If successful, his inauguration will take place on 2 April.
Montenegro’s centre-right party narrowly won parliamentary elections on 10 March and succeeds the Socialist Party, which had been in power since 2015 but aroused the ire of voters through a corruption scandal, housing crisis and a runaway cost of living.
The 51-year-old new prime minister is a seasoned political veteran but must now try and govern without a clear majority in parliament.
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He has so far ruled out a coalition deal with the far-right Chega party, which is hoping for a kingmaker role after polling 18 percent of the vote and winning 48 seats in the 203-seat legislature.
The outgoing Socialists have also made it clear that they won’t do deals with the Democratic Alliance.
In a recent TV interview, Alexandra Leitão, campaign coordinator for the Socialist Party, said the party should “be the leader of the opposition” and “have an alternative programme for the country” instead of propping up the Democratic Alliance in a coalition.