José Socrates, the market-friendly Socialist who led the centre-left to a landslide win in Portugal's general election on Sunday, aspires to a blend of business competitiveness and public welfare that he calls "Nordic social democracy".

But his vision of emulating the economic success of countries like Finland, Ireland and Spain is a long-term programme that will require tough reforms and an austere approach to public spending unlikely to energise Portugal's frail economy in the near future.