Portugal's ruling Socialist Party, led by Prime Minister Jose Socrates, will remain in power following Sunday's parliamentary elections. With nearly all votes counted the center-left Socialists polled 36.5 percent of the vote, compared to 29 percent for the center-right Social Democratic Party. The main opposition party headed by conservative leader Manuela Ferreira Leite has conceded defeat.

"The people have spoken with a clear voice. The PS has been re-elected to govern Portugal," said Socrates at an election party in Lisbon.

Exit polls show support for Socialists down 8.5 percent, which could hamper future coalition talks.

The electoral commission said that the conservative nationalist CDS/PP came third with 10.46 percent, slightly ahead of the conservative nationalist CDS/PP with 9.85 percent. Both the CDU and the Left Bloc have ruled out forming a coalition with the Socrates' ruling Socialists.

Voter turnout was estimated at around 60 percent. About 9.5 million Portuguese were eligible to vote for candidates in the 230-seat parliament.

Socrates has vowed to push through a controversial a social and economic reform program, despite opposition from unions and opposition parties. Portugal is struggling to deal with an economic crisis which has produced the country's highest jobless rate in over 20 years.

nrt/AP/AFP/dpa

Editor: Nigel Tandy