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Portugal's minority government is bracing for a tough battle over its planned austerity reforms after a parliamentary vote this week failed to gather support from opposition parties.
The non-binding resolution on measures including a public sector salary freeze and social welfare cuts was passed by the parliament on Thursday but only after the main opposition party, the PSD, abstained.
Other opposition parties voted against the draconian measures. "The debate is only just beginning," said the newspaper Diario Economico.
"What will we say to the international community on Monday? Who will vote for the austerity measures in parliament? Who will pass the budget?"
The political wrangling came after Fitch Ratings agency downgraded Portugal's credit rating on Wednesday, a move that set off alarm bells among investors in Europe worried about a possible repeat of Greece's debt crisis.
International attention has shifted to eurozone countries like Portugal after a financial fix in the Greek drama was unveiled on Thursday in Brussels.
Analysts have warned that Portugal and other heavily indebted economies are also at risk, while officials have rushed to reassure investors.
But Standard & Poor's analyst Kai Stukenbrock warned that the ratings agency could still downgrade Portugal's creditworthiness "should the government be unable to garner opposition support as expected."
Portuguese Prime Minister Jose Socrates has called for "a broad consensus" to implement austerity measures but the Social Democrats (PSD), the largest opposition party, are not planning to make it easy on the government.
