After the fall of the government: new elections in Portugal on May 18

Rebelo wasted no time. He announced the new election only around 48 hours after the surprising fall of Montenegro through a vote of no confidence. In the meantime, the head of state held consultations - first with the heads of all parties represented in parliament and then with the Council of State. This body advises the President in times of crisis and is made up of current and former elected officials and other personalities.

Important projects are put on hold

The opposition has increasingly cornered Montenegro, which has only been in power for just under a year, in recent weeks. There were allegations of a conflict of interest due to a family business owned by the 52-year-old. The head of government therefore put a vote of confidence to parliament and suffered a crushing defeat in the vote on Tuesday evening. The result: 144 to 88.

Since then, Portugal has only had a caretaker government with limited powers. Several important projects will therefore have to be put on hold until a new government is formed, which is unlikely to be easy in light of the crisis. These include the privatization of the airline TAP, in which Lufthansa, among others, is interested.

What exactly triggered the crisis?

The allegations against Montenegro relate to the company Spinumviva, which was founded by the trained lawyer in 2021. The consulting firm is said to have profited from the prime minister's position to sign contracts with private companies. In the meantime, the public prosecutor's office has opened an investigation on suspicion of a tax offense.

Meanwhile, Montenegro denies the accusation of taking advantage and any irregularities. The company now belongs solely to his sons Hugo and Diogo, he emphasized. However, he did not disclose much of the information demanded by the opposition, such as the exact activities of the company.

Crisis came as a surprise

The crisis in Portugal came as quite a surprise, as the former EU debtor continues to record good growth rates and historically low unemployment with continued strict spending discipline even after the change of government in spring 2024. The state budget for 2025 was also passed without any problems.

In recent weeks, however, events came thick and fast after the media published the allegations. Montenegro at least survived two votes of no confidence during the affair. However, as the opposition still refused to abandon its plans for a commission of inquiry, he called a vote of confidence. He said that he would accept a new election in order to prevent a "slow disintegration" of the government.

Chega fears the rise of right-wing populists

The ousted politician has already announced that he intends to run again despite the accusations. According to opinion polls, his Democratic Alliance (AD) can hope for a new victory, albeit another narrow one. However, many fear a strengthening of the right-wing populist Chega party. With 49 MPs, Chega is already the third largest party in parliament behind AD (80 seats) and the Socialist Party PS (78) of opposition leader Pedro Nuno Santos.

The last parliamentary election in Portugal for the time being was only held 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.