Most Portuguese do not believe leftist government is possible: poll

LISBON (Reuters) - One in three Portuguese believe three left-wing parties could form the country's next government, but almost twice as many say they will fail to agree on a coalition, leaving the center-right in power, a poll indicated on Tuesday. An inconclusive election on Oct. 4 saw the ruling center-right coalition win the most votes but lose its parliamentary majority. The Socialists, Communists and Left Bloc have begun exploratory talks about forming a government. That prospect sent Portuguese shares sharply lower on Monday and Tuesday, on fears that a left-wing government could reverse strict budget policies imposed under a 2011-2014 international bailout, derailing Portugal's recovery after a debt crisis. In a survey of 603 people between Oct. 7 and 10, 63.8 percent thought the three leftist parties, known for their ideological differences, would fail to form a government. The poll was carried out by the pollsters Aximage for the Jornal de Negocios and Correio da Manha newspapers. Just over 32 percent said they favored a majority centrist government of the outgoing center-right coalition with the Socialists. Another 20.4 percent preferred the center-right coalition to try to govern without a majority, with periodic backing from the opposition. A leftist majority government was favored by 26.6 percent of the respondents. Nearly 64 percent said that, if the center-right coalition had to go it alone, they would prefer the Socialists to abstain in a likely vote of no confidence, which would allow Prime Minister Pedro Passos Coelho's government to start working. Around 30 percent wanted the Socialists to vote down such a government. Socialist leader Antonio Costa has ruled out forming a government with the center-right but is negotiating with Passos Coelho on possibly offering periodic support. They were due to meet again later on Tuesday to discuss new proposals, which the coalition said would "facilitate a compromise", after fruitless talks last week. Costa has sought to calm worried investors, saying any new government formed with the backing of far-left parties would still respect Portugal's budget pledges. (Reporting by Andrei Khalip; Editing by Tom Heneghan and Kevin Liffey)