M. Continuo
Portugal president names Pedro Passos Coelho as new PM
"I named Pedro Passos Coelho, as the leader of the largest party in the coalition that won the election, as prime minister today," said President Anibal Cavaco Silva in a televised address.
Passos Coelho's centre-right coalition won the most votes at the election but fell short of a majority in parliament.
Opposition Socialist leader Antonio Costa has said he wants to form an alternative government with the backing of two smaller far left parties, the Communists and Left Bloc.
Together, the Socialists and two other parties gained a majority in parliament, meaning they could attempt to topple Passos Coelho's administration.
(Reporting By Axel Bugge and Sergio Goncalves)