POLITICS

Portugal has been transformed in the recent decades. The consolidation of democracy since the 1974 " carnation revolution " and the EU membership since 1986 has bought Portugal into the European mainstream. The new confidence was shown in 1988 with the " Expo'98 " in Lisbon. In 1999 Portugal was one of the first countries to introduce the euro.

Presidential election : During 10 years the presidency and the government were controlled by opposing parties - this situation encouraged conflict. All this was ended in 1996 when former PS leader Jorge Sampaio defeated Anibal Cavaco Silva in the succession of President Mario Soares.

Profile : A decade of centre-right government was bought to an end by the legislative elections of 1995 when the PS rejected the PSD from power. The PS polled almost 44 % of the vote and its leader replaced Cavaco Silva as Prime Minister at the head of a minority government.

Having fought the elections on a platform of social reform within weeks of the PS victory, Finance Minister Antonio Sousa Franco warned that his first priority would be to reduce the budget deficit by cutting public spending. The success of these measures has put the economy on a strong footing and secured popular support for the government, which was returned to office with an increase in seats in october 1999.

Portugal is now an enthusiastic member of the European Union.