LISBON, March 13 (Reuters) - Portugal's President Marcelo Rebelo de Sousa announced on Thursday that the country will hold an early parliamentary election on May 18, marking the third election in just over three years. The decision to dissolve parliament came after consultations with the main political parties and the Council of State, which unanimously agreed on the necessity of a snap election.
The current government has transitioned into a caretaker role until a new parliament is established. Prime Minister Luis Montenegro faced scrutiny last week for his family's data protection consultancy, with allegations of conflicts of interest. Montenegro has denied any wrongdoing, and while prosecutors are reviewing the claims, there is no ongoing investigation at this time.
President Rebelo de Sousa acknowledged that the election was unexpected and unwanted, emphasizing the importance of a dignified electoral campaign amidst the crisis surrounding Montenegro. The Social Democratic Party, led by Montenegro, has vowed support for him in the upcoming election, attributing the crisis to the opposition. However, some analysts point to Montenegro for the early election and suggest a possible erosion of public trust based on recent opinion polls.
Recent surveys indicate a close competition between the main opposition Socialists and Montenegro's alliance, with both parties polling around 30%. The rise of the far-right party Chega to third place in polls, although slightly below its performance in the previous year, is noteworthy.
Despite political turbulence, Portugal has maintained robust economic growth, budget surpluses, and reduced debt under various governments. Economists do not foresee immediate risks to the country's economic performance due to the upcoming election.
Analysts predict a potential increase in voter abstention this time, as some may be disillusioned by frequent elections that do not guarantee government stability. In the last election, a record number of voters turned out, benefiting the anti-establishment party Chega, according to analysts.