Businessman Pedro Passos Coelho will lead a coalition government after voters handed the center-right a convincing victory. Portugal's bailout and austerity measures were central issues.
Portugal formally requested a bailout Thursday, which will likely come just in time for it to pay back debts that come due in June.
This week, debt felled another European leader as Portugal's prime minister resigned. But the euro currency did not tumble. That's a sign that Europe is finally getting on top of its debt crisis.
The collapse of Portugal's government raised the likelihood of a bailout and set back efforts to beef up a financial rescue package for troubled European economies.
A Portugal bond sale today raised $1.6 billion for a country that many have expected will follow Ireland and Greece in receiving an economic bailout.
Amid budget cutbacks and a 'diminishing appetite' for war, Europe has turned increasingly to the 'soft power' assignments like training and institution-building.
In response to Europe's economic crisis, Spain and Portugal have announced austerity measures that reduce government spending and increase taxes, but Spain's plan puts more emphasis on reducing government spending.