New trouble spot Portugal Family firm topples government - new elections expected
Until a few weeks ago, all seemed well in Portugal. But suddenly Europe has another trouble spot there - and one that also affects German interests.
12.03.2025, 05:02
12.03.2025, 05:09
dpa
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- The opaque business dealings of a company belonging to the family of Prime Minister Luís Montenegro have brought down the conservative minority government in Portugal.
- In recent weeks, the head of government had been increasingly driven into a corner by the opposition, which accused him of taking advantage and having a conflict of interest - until the 52-year-old called a vote of confidence in parliament in Lisbon and suffered a crushing defeat in the vote.
- The popular vacation destination is thus heading for an early parliamentary election in May.
The opaque business dealings of a company belonging to the family of Prime Minister Luís Montenegro have brought down the conservative minority government in Portugal. In recent weeks, the head of government had been increasingly driven into a corner by the opposition, which accused him of taking advantage and having a conflict of interest - until the 52-year-old called a vote of confidence in parliament in Lisbon and suffered a devastating defeat in the vote: 144 votes to 88 in the "Assembléia da República".
The popular vacation destination is therefore heading for an early parliamentary election in May. President Marcelo Rebelo de Sousa could now appoint another politician from the governing alliance Democratic Alliance (AD) or opposition leader Pedro Nuno Santos from the Socialist Party (PS) to form a new government. However, it is considered likely that he will call elections for May 11 or 18.
The head of state, who had already canceled a visit to Estonia this week due to the crisis, wasted no time and called the party leaders for consultations today. On Thursday, he will then consult with the Council of State - a body that has existed in Portugal since 1845 and advises the president in times of crisis and which includes current and former elected officials and other personalities.
Will the right-wing populists benefit?
Rebelo's decision is expected on Friday at the latest. But whatever the outcome, Portugal's future is uncertain. Many fear a strengthening of the right-wing populists of Chega, who already form the third force behind AD (80 seats) and PS (78) with 49 MPs. Chega boss André Ventura spoke of "theater" during the heated debate. Columnist Manuel Fonseca had already predicted in "Correio da Manhã" before the vote: "Chega wins today." Commentators on CNN Portugal later expressed similar sentiments.
A new flashpoint is anything but convenient for Europe. But especially in Germany, some people are likely to be particularly worried about the country with a population of 10.5 million. Not only because Montenegro, which has only been in office for just under a year, was considered a reliable partner in Brussels. The caretaker government has limited powers. Many projects have been put on hold, including the privatization of the airline TAP, in which Lufthansa, among others, is also interested.
Everything seemed fine in Portugal until recently
The crisis came as quite a surprise. Even after the change of government in spring 2024, the former EU debtor has recorded good growth rates and historically low unemployment while maintaining strict spending discipline. However, events have recently come thick and fast.
Montenegro wants to attempt a comeback despite the bankruptcy.
Image: dpa
The head of state must now make a decision. (archive image)
Image: dpa
Montenegro has governed Portugal since the beginning of April 2024.
Image: dpa
The parliamentary debate was heated.
Image: dpa
Is he benefiting from the chaos? Chega boss André Ventura. (archive picture)
Image: dpa
Montenegro wants to attempt a comeback despite the bankruptcy.
Image: dpa
The head of state must now make a decision. (archive image)
Image: dpa
Montenegro has governed Portugal since the beginning of April 2024.
Image: dpa
The parliamentary debate was heated.
Image: dpa
Is he benefiting from the chaos? Chega boss André Ventura. (archive picture)
Image: dpa
The opposition accuses Montenegro of taking advantage. The consulting and real estate company Spinumviva, founded by the trained lawyer in 2021, is said to have benefited from the prime minister's position in order to sign contracts with private companies. Montenegro denies any irregularities. The company now only belongs to his sons Hugo and Diogo. However, he did not disclose any further information about the clients, for example.
Montenegro survived two votes of no confidence during the affair. However, as the opposition did not abandon its plans for a commission of inquiry, he faced a vote of confidence. The new election was a "necessary evil". "Two months of instability are better than a year and a half of slow disintegration," emphasized the outgoing head of government.
The head of government did not want a grueling investigation
According to observers, Montenegro accepted the new election because he wanted to avoid a grueling investigation - and because, according to polls, his AD alliance can even hope for a victory with a better result than in March 2024. In any case, the ousted president is not throwing in the towel and has announced that he will run again. However, quite a few observers doubt that the comeback will succeed. "Público" columnist Pedro Adão e Silva accuses Montenegro and Santos of playing a high-risk poker game for AD and PS "and also for Portuguese democracy".
The new parliamentary election would be the third in just over three years. The last one took place on March 10, 2024, after the then socialist Prime Minister António Costa resigned due to corruption investigations against him and other members of the government. As things stand at present, however, Costa is not guilty of anything. The 63-year-old is now President of the European Council.