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Portugal Could Hold Snap Elections Over Lack of Support For State Budget

Portugal could head for snap elections as the country’s Socialist government led by Prime Minister Antonio Costa failed to secure support for its 2022 budget.

October 26, 2021
Portugal Could Hold Snap Elections Over Lack of Support For State Budget
SOURCE: THE NEW INDIAN EXPRESS

Portugal could be heading to snap elections, as the country’s parties have failed to reach a consensus on the state budget. The socialist government’s former hard-left allies have threatened to vote against the 2022 budget, leading to the collapse of Portugal’s minority rule after six years.

On Monday, President Marcelo Rebelo de Sousa appealed to the parties to use “common sense” and warned that lack of support for the budget, which relies heavily on the European Union’s pandemic recovery funds, could lead to the immediate dissolution of the parliament and snap elections. Sousa said he would dissolve the parliament if MPs are not able to agree on a budget.

To avoid the dissolution, Prime Minister (PM) Antonio Costa, whose Socialist government holds 108 seats in the 230-seat parliament, needs at least nine lawmakers to abstain during the first voting on Wednesday. The budget proposes an income tax cut for the middle class and more significant investment in public institutions. In addition, the PM needs to provide concessions to the Portuguese Communist Party (PCP), the Left Bloc, and another hard-left party.

The PM called for an emergency cabinet meeting on Monday night. The junior minister for parliamentary affairs, Duarte Cordeiro, said the cabinet was expected to meet to review the political deadlock and prepare for negotiations. Despite this, no reconciliations seem plausible from the hard-left.

At the same time, Communist party leader Jeronimo de Sousa noted that his ten lawmakers would vote against the budget and said his party does not fear electoral battles. “Portugal doesn’t need just any budget; it needs a response from the government to the problems that are piling up. Given the commitments and signals so far, the PCP [Portugese Communist Party] will vote against this budget,” he said.

Similarly, Left Bloc leader Catarina Martins said her party, which holds 19 seats, would vote against the budget unless some of their suggested proposals are accepted. Martins said she is open to negotiations until Wednesday. Additionally, the Socialists’ former allies accused the government of being focused on cutting deficits and not doing enough to increase the purchasing power of Portuguese citizens.

Commentator Helena Garrido told RTP that time for negotiations is running out as the deadline approaches. She said, “It seems inevitable that we are entering an early-election phase.” Portugal’s next legislative elections are scheduled for 2023.

During the 2019 elections, Costa’s Socialist party missed attaining majority by narrow seats, which made it dependent on the Communist party or the Left Bloc to pass any legislation. Both parties have suffered embarrassing defeats in recent local and presidential elections, and it is unlikely they will gain anything from early elections.