Portugal Faces Political Instability With New Minority Government

May. 20, 2025, 6:00 am ET

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  • Portugal’s latest general election has resulted in another minority government for the center-right Democratic Alliance.
  • The significant rise in support for the hard-right populist party Chega adds to the political uncertainty.
  • This election marks the third in three years, highlighting ongoing political instability in Portugal.

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Quick Brief

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Essential Context

Portugal’s recent general election has failed to break the cycle of political instability, with the center-right Democratic Alliance securing another minority government. This outcome follows a vote of confidence loss in March, which was triggered by allegations of potential conflicts of interest involving Prime Minister Luís Montenegro’s family law firm.

Core Players

  • Luís Montenegro – Prime Minister of Portugal and leader of the Social Democratic Party
  • Democratic Alliance – Center-right coalition led by the Social Democratic Party
  • Chega (Enough) – Hard-right populist party seeing significant rise in support
  • Socialist Party – Center-left party that has traditionally alternated power with the Social Democrats

Key Numbers

  • 32% – Democratic Alliance’s share of the vote
  • 23% – Socialist Party’s share of the vote
  • 89 – Seats won by the Democratic Alliance in the 230-seat National Assembly
  • 58 – Seats won by both Chega and the Socialist Party

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The Catalyst

The latest election was triggered by a vote of confidence loss in March, following allegations of potential conflicts of interest involving Prime Minister Luís Montenegro’s family law firm. Montenegro has denied any wrongdoing.

This early election, which was originally scheduled for 2028, reflects the ongoing political instability in Portugal.

Inside Forces

The Democratic Alliance, led by the Social Democratic Party, captured at least 89 seats in the 230-seat National Assembly but fell short of a majority. This outcome means the government will be at the mercy of opposition parties.

The rise of Chega, which competed in its first election just six years ago, has significantly altered the traditional balance of power. Chega’s success mirrors trends seen in other European countries with the rise of hard-right populist parties.

Power Dynamics

The Democratic Alliance’s minority government status gives opposition parties considerable influence. The Socialist Party, which has traditionally alternated power with the Social Democrats, is now without a leader after Pedro Nuno Santos announced his resignation following the party’s worst result since 1987.

Chega’s growing support adds another layer of complexity, as it could potentially claim second place once all seats are finalized.

Outside Impact

The election’s outcome has broader implications for Portugal’s political landscape and its relationship with the European Union. The continued instability may affect economic policies and international relations.

The rise of populist parties like Chega also reflects a broader European trend, similar to the success of parties like France’s National Rally and Italy’s Brothers of Italy.

Future Forces

President Trump is consulting with political parties to determine the next steps in forming a government. This process is crucial given the minority government status and the need for coalition support.

The future of Portuguese politics will depend on how effectively the Democratic Alliance can negotiate with opposition parties and address the rising influence of Chega.

Data Points

  • March 2025: Vote of confidence loss triggers early election
  • May 19, 2025: Election results announced with Democratic Alliance winning 32% of the vote
  • 2028: Original scheduled date for the general election
  • 6 years ago: Chega’s first election, where it won one seat

The ongoing political instability in Portugal, coupled with the rise of populist parties, suggests a challenging period ahead for the country’s governance and its relations with the European Union. The ability of the Democratic Alliance to form a stable government will be crucial in navigating these complexities.