Portuguese right hopes for victory after Socialist own goal on Euro 2004

Portugal went to the polls yesterday amid a row over the cost of hosting the 2004 European football championships.

High spending on public works, including the building of seven stadiums and refurbishment of three others, has angered many Portuguese and sent the economy lagging further behind other EU states, prompting predictions that the ruling Socialists will be ousted after six years in power.

Jose Manuel Durao Barroso, leader of the rightwing Social Democrats (PSD), threatened to halt funding for some new stadiums. The move was controversial, prompting the opposition leader to wheel in national soccer legend Eusebio and a host of younger stars into the campaign to placate angry fans.

The row reached its height in the northern city of Oporto, where a new PSD mayor obstructed the £8m set aside by his Socialist predecessor for work around the new FC Porto stadium, where the opening match is due to be played.

Without the cash, the club's owner halted all work on the new 50,000-seater ground, risking Portugal's ability to host the tournament.

Other countries were poised to takeover the event, claimed Uefa, European football's governing body.

Analysts say the fallout could dent the PSD's election prospects in Oporto.

Anibal Cavaco Silva, the former PSD prime minister, has said Lisbon should never have accepted the tournament: "We will lose economic growth because we have invested in stadiums and not in factories, industry or human resources."

Yesterday's election was called two years early by the outgoing prime minister, Antonio Guterres, after the Socialists were mauled by the PSD in December municipal elections. Mr Guterres stepped aside so that a new leader, Eduardo Ferro Rodrigues, could revive party fortunes.

Recent opinion polls put the PSD between 5% and 10%, ahead, although it remains to be seen if its lacklustre campaign will win a majority.