Parliament is dissolved: after the government fall: New election in Portugal on May 18

After the fall of the conservative minority government of Luís Montenegro, Portugal voted a new parliament on May 18. President Marcelo Rebelo de Sousa in Lisbon announced this decision. The parliament is being dissolved, he said. The third parliamentary election in the Southwest European EU country has already been early since the beginning of 2022. The next vote would not have been regular until 2028.

Rebelo did not lose time. He announced the new election just around 48 hours after the surprising fall of Montenegro due to a vote of no confidence. In the meantime, the head of state held consultations – first with the bosses of all parties represented in parliament and then also with the State Council. This committee advises the president in times of crisis, and he belongs to current and former mandate holders and other personalities.

Important projects are put on ice

The opposition had increasingly driven Montenegro, which had been ruling for just under a year. It was about allegations of a conflict of interest for a family business of the 52-year-old. The head of government therefore asked the parliament the question of trust and suffered a devastating defeat when voting on Tuesday evening. The result: 144 to 88.

Since then, Portugal has only had a managing government with limited powers. Several important projects must therefore be put on ice until the formation of a new government that should not be easy under the impression of the crisis. Including the privatization of the airline TAP, in which Lufthansa is interested.

What exactly triggered the crisis?

The allegations against Montenegro are about the Spinumviva company, which was founded by the trained lawyer in 2021. The consulting company is said to have benefited from the position of the prime minister to sign contracts with private companies. In the meantime, the public prosecutor’s office was investigating a tax offense.

Montenegro meanwhile denies the accusation of benefit and also any irregularity. The company now only belongs to its sons Hugo and Diogo, he emphasized. However, he did not reveal many of the information required by the opposition, for example for the exact activity of the company.

The crisis in Portugal came as a surprise, because even after the change of government in spring 2024, the former EU debt resident continued to record good growth rates and historically low unemployment with continued strict spending discipline. The state budget for 2025 was also easily adopted.

In the past few weeks, however, events overturned after the media published the allegations. As part of the affair, Montenegro survived two no confidence. However, since the opposition still did not want to give up its plans for an investigation commission, he asked the question of trust. He said he accepted a new election to prevent the government from “slow decay”.

Strengthen the right -wing populists of Chega feared

The overthrown politician has already announced that he wanted to run again despite the allegations. According to surveys, his alliance Democratic Allianz (AD) can hope for a new, if again scarce victory. However, many fear that the right -wing populist party Chega fears. With 49 MPs, this already forms the third force in parliament behind AD (80 seats) and the socialist party PS (78) by opposition leader Pedro Nuno Santos.

The last parliamentary election in Portugal did not exist until March 10, 2024, after the then socialist Prime Minister António Costa had resigned against him and other government members. According to the current status, Costa has not been guilty. The 63-year-old is now President of the European Council.