Portugal PM says to form minority government

LISBON, Oct 15 (Reuters) - Portugal's ruling Socialists, who won a Sept 27. general election, will form a minority government after talks with other parties produced no partners for a coalition cabinet, Prime Minister Jose Socrates said on Thursday.

Socrates said that although none of the opposition parties was open to any lasting political agreement with his center-left Socialists, all had demonstrated a willingness for compromise.

"I will do everything possible so that this dialogue yields positive results. I will now take the necessary steps to present to the president a government under Socialist Party's responsibility," Socrates said in a televised statement after two days of consultations with four opposition parties.

Socrates' reform-minded Socialists won a second term in last month's election, but lost their absolute majority in parliament.

Most political analysts have been expecting the Socialists to rule on their own, negotiating support for their bills in parliament on a case-by-case basis with the right and left.

Western Europe's poorest country needs to swiftly address problems such as rising debt and unemployment, a growing budget deficit and a widening wealth gap with European partners. The 2010 budget bill must be presented to parliament before year-end. (Reporting by Andrei Khalip; Editing by Angus MacSwan)