From a comparative perspective, this thesis sets out to analyze how the socialist parties have adapted their discourse during the financial crisis in order to justify austerity in both Spain and Portugal. In this work we intend to understand the foundations of the twists and turns in discourse, which have its epicentre in the imperative demand of the European Institutions and the dispute of democracy. The object of this investigation has its departing point the crisis of the European social democracy due to its ideological difficulties and contradictions after adopting the austerity measures. Henceforth, we analyse the change in discourse and its strategy to recover both political initiative and leadership in order for socialist parties to return to power. In the Portuguese case, the leftward turn is discourse launched through an agreement of governance with other leftwing parties. In the Spanish case, this turn is made evident after the collapse of negotiations with the emerging political parties after the two general elections held. For these reasons, the left wing government in Portugal represents a paradigmatic case as a model of government for European social democracy. Lastly, from a normative perspective we argue that public policies can be key for a Portuguese style government in Spain and, confirming its emancipatory character, an alternative way of government to austerity.