LISBON (Reuters) - Portuguese Socialist leader Antonio Costa said on Friday a meeting with the caretaker prime minister was inconclusive in reaching agreement on backing a new government led by the outgoing centre-right coalition.
"This meeting was inconclusive because there was no proposal presented to us," Costa told journalists after the meeting with caretaker prime minister Pedro Passos Coelho.
Passos Coelho's ruling centre-right coalition won the most votes in the election but failed to win a majority in parliament, meaning it needs the support of the Socialists to pass legislation.
Passos Coelho said he was ready to consider alternative policies as long as the budget deficit remains below 3 percent of GDP. They will meet again on Tuesday.
(Reporting By Axel Bugge, Sergio Goncalves and Patricia Rua)
