M. Continuo

Portugal centre-right, Socialists fail to reach deal on government

LISBON (Reuters) - Portugal's caretaker prime minister obtained no backing from the Socialist Party leader on forming a new government on Tuesday, with no other meeting scheduled between the two for now, the two leaders said.

"Our meeting ended with absolutely no conclusion," caretaker prime minister Pedro Passos Coelho told journalists after meeting Socialist leader Antonio Costa.

The meeting took place after Costa told Reuters that the Socialists are better placed to form a stable government than Passos Coelho's centre-right coalition.

Passos Coelho's centre-right coalition won the most votes in an Oct. 4 election but failed to win a majority and therefore needs the support of the Socialists to pass laws. The caretaker prime minister said his government had won the election.

(Reporting By Axel Bugge, editing by Shrikesh Laxmidas)

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