LISBON (Reuters) - Portugal's president will address the nation on Thursday evening, when he is expected to name caretaker prime minister Pedro Passos Coelho to form a new government.
Passos Coelho's centre-right coalition won the most votes in an Oct. 4 general election but fell short of a majority in parliament. The opposition Socialists have pushed for an alternative government together with two far left parties.
But, the president is likely to follow Portuguese political tradition and name the candidate whose party won the most votes to form a government.
The president will make his statement shortly after 1900 GMT (8 p.m. BT), a spokeswoman said.
The political wrangling has prompted concerns that it could blight Portugal's nascent economic recovery, just a year after it finished a bailout. Passos Coelho's government launched harsh austerity and big tax hikes under the bailout, causing a 3-year recession.
Passos Coelho's government could soon come under threat as both the Communists and Left Bloc have said they would attempt to topple his administration in parliament. A new government has 10 days to present its programme to parliament for a vote.
Socialist leader Antonio Costa is working to create a government together with the Communists and Left Bloc. He argues that the majority in parliament handed to these three parties in the election shows voters want to move away from the austerity policies of the centre-right.
(Reporting by Axel Bugge; Editing by Ruth Pitchford)