Portugal will hold early general elections following the rejection of the government's vote of confidence in the Assembly of the Republic on 11 March 2025. This outcome led to the resignation of the current government.
The vote of confidence was opposed by nearly all opposition parties, including the Socialist Party (PS), CHEGA (far-right), Left Bloc (BE), Portuguese Communist Party (PCP), LIVRE, and the sole deputy of PAN (People-Animals-Nature), Inês Sousa Real. The only votes in favour came from the ruling coalition, the Democratic Alliance (AD) – which includes the Social Democratic Party (PSD) and the People’s Party (CDS) – along with the Liberal Initiative (IL).
While the official election date is yet to be confirmed, two potential dates have been suggested: May 11 or May 18, 2025. The Portuguese President, Marcelo Rebelo de Sousa, is expected to make an official announcement today.
The political crisis leading to the dissolution of the government stems from allegations of a potential conflict of interest involving Prime Minister Luís Montenegro. Below is a timeline of the key developments:
Portuguese daily newspaper Correio da Manhã reported that the wife and children of Prime Minister Luís Montenegro are partners in a real estate trading company called Spinumviva. The company's corporate purpose was last amended on April 9, 2024, just a week after Montenegro’s government took office.
Originally a consulting firm, Spinumviva is also engaged in real estate trading, viticulture, and other consultancy, scientific, and technical activities. Until 2022, the company was jointly owned by Luís Montenegro, his wife, and their two children, with Montenegro serving as the managing partner and majority shareholder. However, after being elected president of the PSD in 2022, he transferred his shares to his wife – who became the majority shareholder – and their children.
Despite formally leaving the company, Montenegro remains married under a community property regime, meaning he could still benefit from Spinumviva’s profits. Additionally, the company could potentially gain from recent legislative changes, particularly
the new land law, which facilitates the conversion of rural land into urban land.
A motion of no confidence was presented in Parliament by CHEGA.
Prime Minister Luís Montenegro addressed the allegations but refused to disclose the company’s clients, citing confidentiality.
Correio da Manhã revealed that Montenegro had previously acted as legal counsel for Solverde, a casino operator, during negotiations with the Portuguese State.
These negotiations led to amendments in casino concession contracts in the Algarve and Espinho, which Montenegro’s government would now decide upon.
Portuguese weekly newspaper Expresso reported that Spinumviva has been receiving a monthly payment of 4,500 EUR from the Solverde Group since July 2021.
Solverde confirmed the contract for compliance and data protection services but refused to disclose who specifically provides these services.
On the same day, the Socialist Party (PS) proposed a parliamentary inquiry into Montenegro’s family business activities.
A second motion of no-confidence was presented by the Portuguese Communist Party (PCP), scheduled for a vote on 5 March 2025.
Prime Minister Luís Montenegro opened the debate by announcing that he would present a vote of confidence in the Government.
The vote of confidence was rejected by the Assembly of the Portuguese Republic, leading to the resignation of the current government.
The Portuguese Council of State convened.
Portuguese President Marcelo Rebelo de Sousa, as the highest authority in the country, is expected to announce the dissolution of Parliament and confirm the election date.
With Portugal now set for early elections, the coming weeks will be crucial in shaping the country's political landscape. At
Belion Partners, we will be closely monitoring developments and promptly presenting updates to our readers.
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