LISBON, March 6 (Reuters) - Portugal's cabinet announced on Thursday its decision to proceed with a motion of confidence in the center-right government, despite opposition from the main opposing parties. A parliamentary vote is scheduled for next Tuesday.
Prime Minister Luis Montenegro heads a year-old minority government, facing the risk of his own dismissal and triggering an early election, which would be Portugal's third in less than four years.
If the motion is rejected by lawmakers, the government would collapse, assuming a caretaker role until President Marcelo Rebelo de Sousa decides whether to dissolve parliament and call for new elections, a scenario many analysts see as probable.
The core of the political crisis lies in a consultancy firm owned by Prime Minister Luis Montenegro's family, which has engaged in contracts with private companies. The opposition alleges these contracts have provided advantages to the prime minister. Montenegro has refuted any claims of conflict of interest or ethical misconduct.