Small Portugal party to table no-confidence in govt

LISBON Feb 10 (Reuters) - Portugal's Left Bloc, one of the smaller parties in parliament, said on Thursday it would table a motion of no confidence in the minority Socialist government over its painful austerity measures to cut the budget deficit.

While the Left Bloc only holds 16 seats in Portugal's 230-seat parliament, the move showed that political uncertainty in the country could increase in the wake of a presidential election last month, analysts said.

That could further unnerve investors, who dumped Portuguese bonds this week, sending yields to euro lifetime highs. Many economists think the country will be the next likely euro zone member to need a bailout after Greece and Ireland.

Prime Minister Jose Socrates, whose government needs the support of opposition parties to pass laws, told journalists the motion showed a "colossal lack of responsibility".

"A political crisis would exacerbate the country's economic crisis ... and 10 million Portuguese would suffer from this," Socrates said.

Left Bloc leader Francisco Louca said the government's austerity measures were hurting the Portuguese people and had to be challenged.

"The Left Bloc will present a no-confidence motion here in parliament exactly one month from now, on the first day (March 10) when it can have a practical impact," Louca told lawmakers during a debate with Socrates.

Under Portugal's constitution, President Anibal Cavaco Silva can only dissolve parliament and dismiss the government, which he would almost certainly do if a no-confidence motion passed in parliament, after he starts his second term on March 9.

If Portugal's main opposition party, the centre-right Social Democrats, were to support the motion of no confidence, it would pass, while abstention by the party would be sufficient for the government to survive.

Miguel Macedo, Social Democrat bench leader, said his party would adopt a position on the motion at the time of the vote.

The government's austerity measures, including higher taxes and public sector wage cuts, are aimed at convincing investors the debt-laden country can put its public finances in order and avoid the fate of Ireland and Greece in requesting a bailout.

Political analysts say the Social Democrats may try to trigger an election if their opinion poll lead widens enough to show they can be certain of winning an absolute majority in parliament. They lead in opinion polls, but are short of a full majority in most surveys. (Reporting by Andrei Khalip and Daniel Alvarenga; editing by Axel Bugge)