REUTERS - Portuguese Prime Minister Jose Socrates has presented his resignation Wednesday evening after the rejection by parliament of the austerity measures proposed by the
minority Socialist government.
President Anibal Cavaco Silva was charged with handling current business and said he would receive on Friday leaders of political parties.
Jose Socrates warned that the rejection of the austerity measures would compel Portugal, like Greece and Portugal, to seek international assistance, a solution he is hostile.
The decline of the euro against the dollar accelerated after the rejection of the austerity program, the single currency back below the 1.41 dollar.Around 2100 GMT, the euro yielded 0.8% against the greenback.
Parliament's vote is not a surprise, the main opposition, the Social Democratic Party, said Monday that it would not support such measures.
The cost of debt Portuguese has also registered higher before the vote in parliament.
Insurance against default on sovereign debt Portuguese was more expensive on the market for CDS (credit default swap) while the yield spread between government bonds and German Portuguese widened.
Lisbon had hoped to get his plan before the EU summit dedicated to the comprehensive plan for the debt crisis, which begins Thursday.
All opposition parties voted for a resolution to reject the measures, which are part of the stability and growth for the years 2011-2014.
Only the Socialists, who hold 97 of the 230 seats in Parliament, voted in favor of the measures.
