Portugal is set to hold an early general election on May 18 following the collapse of its government, announced President Marcelo Rebelo de Sousa on Thursday.
This move comes just two days after a minority government, led by the centre-right Social Democrats in alliance with a smaller party, lost a confidence vote in parliament and resigned.
The government’s sudden downfall was triggered by a controversy surrounding potential conflicts of interest tied to the business dealings of outgoing Prime Minister Luís Montenegro’s family law firm.
Despite mounting pressure, Montenegro has denied any wrongdoing, claiming that he severed all ties with the firm after becoming leader of the Social Democrats in 2022, transferring control to his wife and children.
However, recent revelations about the firm’s financial connections, including payments from a company with a major government gambling concession, have intensified scrutiny. The Socialists have demanded a parliamentary inquiry into the matter.
In a televised address, President Rebelo de Sousa expressed that the government’s collapse was “unexpected and unwanted,” urging voters to engage in the election, as Portugal faces pressing challenges to its security and economic stability within the European Union.
This election marks the country’s third general election in just three years, as political instability continues to grow in the aftermath of the 1974 Carnation Revolution that ended decades of dictatorship.
Portugal, with a population of approximately 10.6 million, has struggled with a series of minority governments as both the Social Democrats and Socialists have lost ground to emerging smaller parties.
These minority administrations have struggled to secure lasting compromises, resulting in frequent opposition-driven efforts to block policies and bring down governments.
As Portugal navigates ongoing economic challenges, including the investment of over €22 billion in EU development funds, discontent with the political establishment may benefit the right-wing populist party Chega.
The party, which has gained traction amid growing frustration with traditional politics, surged into third place in last year’s election.
Despite the political turmoil, the Social Democrats are banking on positive economic indicators to maintain support, including a growth rate of 1.9% last year, well above the EU average of 0.8%, and a jobless rate of 6.4%, roughly in line with the EU average.
