It seems that divergent opinions towards the bailout agreement have become the principal factor for the political uncertainty in Portugal. The coalition government is thus stuck in a dilemma. To comply with the terms in the bailout agreement, it has to implement strict austerity policies and speed up structural reforms, which will undoubtedly exert negative impacts on the interests of the different political parties, interest groups and labor unions, and even of the public. In addition, the government is facing great challenges in reforming the social security system and the labour market. What makes the situation worse is that it is almost impossible for the economy to recover in the short- or medium-term. <<