Socialists lose stronghold as centre-right Luís Montenegro appointed PM

Portugal’s president, Marcelo Rebelo de Sousa, has asked Luís Montenegro, leader of the centre-right PSD (EPP), to form a government during an audience held on Thursday (21 March) night, putting an end to eight years of Socialist rule.

The appointment comes after a knife-edge election on 10 March where the Democratic Alliance (AD), a centre-right coalition led by Montenegro’s PSD party, earned 80 out of 230 seats, followed closely by the Socialists with 78. Far-right party Chega surged with 50 seats.

“The AD won the election … [so] the president … decided to nominate Luís Montenegro as prime minister,” the president’s office said in a statement.

After meeting Rebelo de Sousa on Wednesday, Montenegro said that on behalf of his party, he had “expressed our willingness to take on the leadership of the government and to be appointed prime minister.”

Montenegro confirmed he will present the organisation and composition of the next government on 28 March, while the government is expected to take office on 2 April.

Balancing act ahead

However, his new cabinet will face a tough legislature as he will need to gather support from either the far-right or the left-wing forces to be able to pass legislation, with his first stress test expected to be the approval of the budget for 2025.

Far-right Chega has demanded a role in the government in return for its support, threatening to vote against the budget and saying AD would be responsible for any instability that occurs if Montenegro ignores his party.

The new prime minister, however, said he would not enter a coalition or any informal alliance with Chega, meaning he must try to agree with the Socialists to form a majority government. This will mean trying to find common ground in a legislative programme that will be backed by the centre-left.

Earlier in the week, de Sousa met with Socialist leader Pedro Nuno Santos, who said the opposition would be a “responsible opposition” that is “open to agreements” and “stable, strong, and solid.”

Nuno Santos added it was “practically impossible” for his party to support AD’s 2025 budget, but it was open to negotiating measures to help the flagging healthcare, education and security sectors and other areas “where there are common points of view.”

However, a small faction of Montenegro’s party is said to be pressuring the new prime minister to work with Chega, arguing that a stable majority government is only possible with their response.

Without it, they say, Montenegro would have to pass laws on a case-by-case basis, risking new elections in the autumn if the budget fails.

The government change followed a corruption scandal in November involving high-ranking Socialist officials that led to former prime minister António Costa’s resignation.

Ahead of the EU elections, the loss of one of its strongholds means the Socialists will have less weight in the European Council, holding just four members out of 27. It also likely means the Socialists will lose a Commissioner portfolio to the centre-right European People’s Party.