The final results of the general election in Portugal show Mr Socrates and his Socialist party have just 36 per cent of the vote, losing their current absolute parliamentary majority.
The party secured 96 seats out of the 230 seats available in the Portuguese assembly, down 25 seats on their 2005 election win. The main opposition party, the Social Democratic party (PSD) gained 78 seats.
The election campaign had been dominated by disagreements over how to deal with Portugal's economic crisis, with the unemployment rate at a 22-year high.
After the election results were announced on Sunday, Mr Socrates said: 'The Socialist party has achieved an extraordinary electoral victory tonight.
'The people have spoken and they have spoken loudly. The Socialists were once again chosen to govern Portugal and they were chosen without any ambiguity.'
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