Turbulent Times in Portugal: Government Ousted After Year Amid Controversies

In a significant political shake-up, Portugal's Parliament has voted to remove Prime Minister Luís Montenegro's government after just one year in power, prompting a call for new elections in May. The ousting, fueled by controversies and the government's minority status, marks the third election in three years for the country.

Portugal's Parliament took decisive action on Tuesday by voting to oust Prime Minister Luís Montenegro's government, leading to yet another national election just a year after its formation. The center-right administration was susceptible from the beginning, lacking a parliamentary majority, and its recent entanglement in a business-related scandal further weakened its standing.

President Marcelo Rebelo de Sousa announced that elections could be held as soon as May. Montenegro's Democratic Alliance coalition, which narrowly won the March 2024 election with only 29 percent of the votes—overtaking the Socialist Party—failed to secure enough support to command a stable government. The right-wing Chega party, having gained traction with 18 percent of the vote, also contributed to the turbulent political environment.

The government faced intensified scrutiny recently due to reports linking Montenegro's family to a consulting and real estate venture that counted among its clients a casino operator dependent on state concessions. Montenegro claimed to have divested his stake in the company to his wife in 2022 and insisted he had not reaped financial benefits since taking office. Nevertheless, opposition parties branded the allegations as indicative of potential conflicts of interest, leading to the no-confidence vote.

In a potential shift in power dynamics, the Socialist Party, which previously led from 2015 until 2024, and the hard-right Chega may capitalize on the fallout experienced by Montenegro's government. Yet, both parties are not without their controversies; a Chega lawmaker has faced theft charges, and a senior member was expelled amid serious misconduct allegations.

Prior to Montenegro taking over, the Socialist Party famously achieved an absolute parliamentary majority in January 2022, marking a stronghold against coalition governance. However, the party's own downfall came when Prime Minister António Costa resigned in late 2023 amid an investigation into alleged connections between government officials and the growing lithium and hydrogen sectors. Although Costa was not charged and has since taken a prominent position within the European Council, the repercussions of these political dramas continue to reverberate through Portugal's political landscape.