Political Turmoil in Portugal: Third Election in Three Years Amidst Economic Struggles

Portugal is gearing up for its third election in three years, reflecting a deepening political crisis. Prime Minister Luis Montenegro's government faces scrutiny over a data protection consultancy scandal, leading to a confidence vote defeat. Current surveys suggest the Democratic Alliance may lead again but still lack a majority. Public frustration is mounting due to repeated elections, low wages, and rising inflation, prompting many young citizens to seek opportunities abroad. As the country grapples with healthcare and housing crises, the upcoming elections could significantly impact its future. Explore the complexities behind this political turmoil and its implications for the Portuguese people.

By Narendra Chaudhary May 16, 2025, 17:16 IST

Political Instability in Portugal

Cristiano Ronaldo has made Portugal famous on the football field, but the political landscape in the country is becoming increasingly unclear. Citizens are preparing to vote for a new government for the third time in three years. The repeated elections and unstable administrations have shaken public trust. On Sunday, May 18, general elections are set to take place, driven by complex reasons.

The Confidence Vote and Its Aftermath

Prime Minister Luis Montenegro himself introduced a confidence vote in Parliament, but he faced defeat. The opposition raised concerns regarding a data protection consultancy linked to his family. This controversy led President Marcelo Rebelo to dissolve Parliament and call for new elections. Montenegro has denied any wrongdoing, and the public does not perceive this as a significant scandal. Nevertheless, political conflicts and ethical debates continue to cause governments to collapse repeatedly.

Survey Insights

In the previous elections, Montenegro's party, the Democratic Alliance (AD), secured approximately 29% of the votes and 80 seats out of 230. Current surveys indicate that they are leading again, but still falling short of a majority. The AD is projected to receive around 32% of the votes, while a majority requires 116 seats. Meanwhile, the center-left Socialist Party stands at 27%, and the far-right Chega party is at 17%. The Liberal Initiative, which supports the AD, is at 6%, but collectively, they still do not achieve a majority.

Public Discontent

The continuous elections and instability have frustrated the populace. In 2024, a record 6.47 million people voted, but this time, a decrease in voter turnout is anticipated. Frequent elections leave policies in limbo and halt significant projects, such as lithium mining and the privatization of TAP Airlines. The most pressing issues are low wages and inflation. The average monthly salary in Portugal is below 2,000 euros, compared to the European average of 3,155 euros. Consequently, many young people are leaving the country in search of better job opportunities. The Montenegro government has attempted to retain youth by offering tax breaks and incentives to companies, but the public is now demanding tangible results.

Additional Challenges: Inflation, Health, and Housing

Despite good economic growth, with expectations of over 2% this year and 1.9% in 2024, the GDP fell by 0.5% in the first quarter, raising concerns. Healthcare services are in disarray, with staff shortages, strikes, and long waiting times for treatment. Housing has also become a significant crisis, with property prices skyrocketing due to a tourism boom. In 2023, home prices surged by 9%, three times the EU average. Additionally, the presence of around 1.5 million migrants, constituting 14% of the population, has led to increased tensions in some areas, contributing to Chega's rise.