The ruling centre-right coalition Democratic Alliance (AD/PSD-CDS) remained the strongest political force in Portugal, with 32% of votes won in the Sunday general election.
With 99% of the vote counted, far-right party Chega which earned 22,56% is closed to the Socialist Party (PS) with 23,38% of the vote. Both parties will have the same number of seats in the new parliament, 58.
Without a majority of seats the Democratic Alliance, led by the Social Democratic Party, can try to recruit support from smaller parties, currently seen as unlikely, or take office as a minority government as it did during its last term. That leaves it at the mercy of opposition parties combining to bring it down, as happened two months ago.
The election on Sunday was triggered by the Portuguese parliament’s vote of confidence, ordering the resignation of the PSD/CDS-PP minority executive a year and a day after the victory of the AD/PSD-CDS coalition in the early legislative elections of March 2024.
The vote took place after two motions of censure, which Prime Minister Luís Montenegro survived, were requested by Chega and the PCP following the controversy involving Montenegro and the family company Spinumviva.
The case raised doubts about compliance with the regime of incompatibilities and impediments for holders of public and political positions.
Political instability
The ballot deepens political uncertainty just as Portugal is considering investing more than €22 billion of EU development funds.
Voter discontent with a return to the polls could benefit the far-right Chega (Enough), which has fed off frustration with the two mainstream parties.
Portugal has been caught up in the rising European tide of populism, with Chega surging into third place in last year’s election.
The government, led by the Social Democrats in an alliance with a smaller party, fell amid a controversy centred on potential conflicts of interest in the business dealings of Montenegro’s family law firm.
Montenegro, who is standing for re-election, has denied any wrongdoing.
He said he left control of the firm to his wife and children when he became PSD’s leader in 2022 and has not been involved in its running.
The Socialists demanded a parliamentary inquiry into Montenegro’s conduct.
The Social Democrats are hoping that economic growth estimated at 1.9% last year, compared with the EU’s 0.8% average, and a jobless rate of 6.4%, roughly the EU average, will hold their support steady.
The Portuguese president has urged voters to participate actively in the country’s third general election in three years, saying the continent faces stiff challenges to its security and economy that require political stability.