Understanding Portugal’s Election: Why Political Instability Persists and What It Means for You

LISBON — Portugal’s recent general election has left the country facing ongoing political instability. This marks the third election in just three years for the nation of approximately 10.6 million people.

The Democratic Alliance, a center-right coalition led by the Social Democratic Party, emerged with at least 89 seats in the National Assembly. This is not enough for a majority, meaning they will likely struggle to govern effectively. The hard-right populist party Chega (Enough) also made significant gains, claiming as many seats as the center-left Socialists—58 each—while still waiting for overseas votes to finalize the count.

This election was called early after a vote of no confidence in March, sparked by controversies surrounding Prime Minister Luís Montenegro’s family law firm. Montenegro has denied any wrongdoing.

Historically, Portugal has seen its political landscape dominated by the Social Democrats and the Socialists, who have alternated power for the past five decades. However, the rise of Chega reflects a broader trend in Europe, where populist parties are gaining traction amidst widespread discontent with traditional parties.

The challenges facing the new government are numerous. Portugal is grappling with corruption scandals that have eroded public trust in politicians. Voter discontent also stems from rising immigration, with the number of legal immigrants jumping from less than 500,000 in 2018 to over 1.5 million by early 2023. Many of these newcomers are from Brazil and Asia, contributing to tensions over job competition and cultural integration.

Housing has become another flashpoint. House prices and rents in Portugal have surged over the past decade, further alienating locals amidst a backdrop of stagnant wages. The average monthly salary hovers around 1,200 euros ($1,340), while the minimum wage is set at just 870 euros ($974).

Portugal’s President, Marcelo Rebelo de Sousa, is now consulting with political parties to determine who will form the next government. As uncertainty looms, many voters are anxious to see how the new leadership will tackle these pressing issues.

For a detailed analysis of the political situation in Europe, you can refer to the European Commission’s report on political trends.

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