New Portuguese cabinet unveiled

Barroso's cabinet faces huge economic challenges

Portuguese Prime Minister designate Jose Manuel Durao Barroso has announced his centre-right cabinet, just over two weeks after his Social Democrats ousted the Socialists from power in an early general election.

These are ministers with a proven track record, most of them with previous government experience, because the new government can not fail

Jose Manuel Durao Barroso

The new Finance Minister will be the economist, Manuela Ferreira Leite, and the Foreign Ministry goes to the Portuguese ambassador in Spain, Antonio Martins da Cruz.

The Social Democrats will govern with the help of the right-wing Popular Party, and their leader, Paulo Portas, has been named as Defence Minister.

"These are ministers with a proven track record, most of them with previous government experience, because the new government can not fail," Mr Barroso said after presenting his 17-member team cabinet to President Jorge Sampaio.

The BBC's Alison Roberts in Lisbon says the new government's main task will be to tackle a weak economy and deteriorating public finances.

Tall order

Portugal - one of the poorest countries in the European Union - last year had a budget deficit of 2.4% of its gross domestic product, more than double the target set by the former Socialist Government.

In fact, this is not an ideal team

Constance Cunha e Sa, political analyst

The country narrowly avoided a rebuke form the EU in February over its yawning budget gap, and analysts say this may delay Mr Barroso's vote winning cuts promises.

The new Finance Minister, who was also named Minister of State, said drastic cuts were needed to reduce the huge state deficit.

"Portugal needs to urgently rationalise its spending," Manuela Ferreira Leite said.

'Not an ideal team'

Portuguese media reported that a number of high profile Social Democrats had turned down offers of cabinet seats, and that the government failed to meet expectations raised by Mr Barroso.

The socialists have been punished for their inefficiency

"In fact, this is not an ideal team," political analyst for TVI television, Constanca Cunha e Sa said.

A popular political satire show depicted a Mr Barroso puppet walking the streets of Lisbon with a sign "Cabinet ministers wanted".

But Mr Barroso denies having issued invitations to candidates other than those he nominated to the president.

"I have the ministers I wanted for this government, which faces a huge state deficit".

The Social Democrats won 105 of the 230 seats in parliament in the early elections on 17 March, but fell short of a majority.

Their coalition with the Popular party, which won 14 seats, gave them a slim majority in parliament.

The new government will be sworn on Saturday.