Fri Jul 12, 2013 6:22am EDT
LISBON, July 12 (Reuters) - Portuguese Prime Minister Pedro Passos Coelho said on Friday he is ready to overcome differences with his coalition partner and the opposition Socialists to resolve a political crisis as requested by the country's president.
"The president's words must be heard...let us reach a deal that matches everyone's wish, which is to conclude successfully the adjustment programme by June 2014," he told parliament.
"The complexity of our situation forces all political agents, including the government, to cultivate democratic unity and political realism," the premier added.
The resignation of Foreign Minister Paulo Portas, who also leads the junior coalition partner CDS-PP, last week triggered a crisis that has threatened to derail Portugal's plans for a smooth exit from its 78 billion euro bailout in June 2014.
President Anibal Cavaco Silva threw the country into disarray this week by rejecting the premier's bid to heal the coalition rift via a cabinet reshuffle, lighting the fuse on what critics called a "time bomb" by calling for early elections next year.
"What happened should not have happened, and we have to show that it will not happen again," Passos Coelho said, adding that the government is still in office and fulfilling its duties.
Socialist leader Antonio Jose Seguro also told parliament that his party is ready to contribute to solutions for the country, but reaffirmed it would not join the current centre-right coalition government.
"The government's days are numbered," he said.
Analysts say political uncertainty could delay Portugal's execution of austerity measures needed to complete the adjustment programme and possibly even force it to request a second bailout.
The premier said the crisis had forced Lisbon to request a delay in the eighth regular review of the bailout by its creditors, initially due to start on Monday, until the end of August or early September.
"Portugal is going through a critical phase in which the risks of slipping in our adjustment are alive," Passos Coelho said. "We have had great difficulties in the negotiations with the troika. It is not simple."
The delay of the review led Portuguese government bonds to underperform other euro zone debt on Friday, with Portuguese 10-year yields rising 11 basis points on the day to 7.09 percent.
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