Portugal's ruling Socialists have won the country's snap parliamentary elections, beating the center-right Social Democratic Party (PSD), the national electoral commission announced on Sunday.

The Socialists, led by Prime Minister Antonio Costa, received 42% of the vote, the electoral commission said after counting 95% of the ballots.

Costa said the Socialists had secured an absolute majority of 117-118 seats in the election.

"An absolute majority doesn't mean absolute power. It doesn't mean to govern alone. It's an increased responsibility and it means to govern with and for all Portuguese," Costa said in his victory speech.

The Socialists will now be able to govern alone, after having relied on the Left Bloc and Portuguese Communist Party for support since 2015. Both left-wing parties lost seats in the Sunday election.

Additionally, more than one-tenth of the country is estimated to be isolating due to COVID-19 concerns. Authorities have granted permission for the infected to go to the polls but requested that they do so in the final hours before polls close.

What is at stake in Sunday's election?

Costa told a crowd at a campaign rally in the country's second city Porto Friday, "Portugal needs stability after these two difficult years of fighting against the pandemic."

Fellow European left-leaning leaders such as Spain's Prime Minister Pedro Sanchez and Germany's Chancellor Olaf Scholz lent their support to Costa during the campaign. Scholz called Costa a "tireless defender of social justice."

Costa's government has rolled back austerity measures, held to budgets and reduced unemployment to the level it was at prior to the COVID-19 pandemic.

Opposition leader Rui Rio of the PSD challenges Costa's handle on the economy and says further expansion is needed. Rio has called for cuts to corporate tax rates.

The election Sunday comes after two far-left parties switched sides and joined with right-wing parties in rejecting the 2022 draft budget put forward by Costa last October.

Burned by that vote, should the Socialists win the most votes but fail to gain a majority, Costa said he will govern as a minority party and seek support from other parties on a case-by-case basis.

Lisbon University politics professor Antonio Costa Pinto said that governing in such a way would unlikely last until the term expires in 2026.

Far-right party Chega, meaning "Enough," has emerged as the third largest party in parliament, having received 7% of votes. This is much more than the 1.29% it received in 2019, allowing it to enter parliament with a single seat.

What challenges does Portugal face?

The country's tourism-dependent economy has been hurt by the ongoing COVID-19 pandemic, key challenges that will confront the country's next ruling coalition.

Portugal will receive €16.6 billion ($18.7 billion) in recovery funds from the EU by 2026. The next government will be tasked with maximizing the effectiveness of these funds.

ar/aw (AFP, dpa, Reuters, Efe)