Portugese President calls snap election on January 30 next year

In a major development in Portugal, President Marcelo Rebelo de Sousa has announced that the Portuguese parliament would be dissolved and a snap election will be held on 30 January next year. The announcement comes after the parliament last week rejected the minority government’s proposed state budget bill for 2022. Responding to it, the President, as per BBC, said that the national assembly's rejection has happened for the first time in ten years. When Portugal is trying to recover from the COVID pandemic as well as the 'economic and social crisis', Sousa claimed that the budget would have been important. 

The snap elections took place during the time when Prime Minister António Costa's government had political stability. Even though the Socialist Party of Costa lacks the majority in parliament, yet, he has remained in power for the past six years. The Socialists had signed deals with left-wing parties following the 2015 election to ensure the approval of essential laws. 

After the 2019 election, however, there were no formal agreements conducted, thus the administration had to rely on case-by-case discussions. But, the Budget Bill vote, which was conducted on 27 October rejecting the Portugal 2022 budget, ended the increasingly tense agreement. 

President' warning was unheard by the parties

Despite the earlier warning of the President that if the budget was denied, he would dissolve parliament, the Communist Party supported the broader Left Bloc in voting against it, instead of abstaining itself as it was during the previous two years. On 27 October, the Anti-Capitalist Self Bloc (BE) and the Old Guard Communist Party (PCP) colluded with the minority Socialist Party administration to oppose the budget plan. In addition to it, Marcelo Rebelo de Sousa has first contacted the parties, then his Council of State, before declaring the elections. 

However, some fractions of the administration are concerned about the President's decision as the minimum two-month gap before a vote may prevent Portugal from fully utilising European Union post-pandemic money, regardless of the fact that Portugal was the first member state to receive authorisation for its Recovery and Resilience Plan.

Portugal 2022 budget

Meanwhile, the Budget bill was denied by the parliament by a vote of 117 to 108, with five absentees. Following this, Prime Minister Antonio Costa further stated that he would not quit and that he would go to whatever length to ensure that the budget proposal was implemented. The leader emphasised that economic reform was the administration's top priority and that a "political crisis" was the last thing Portugal needed. 

Portugal 2022 budget recommended tax cuts for the middle class. It also called for increased public-sector investments to help the country recover from the COVID-induced economic downturn. Costa also suggested decreasing the deficit to 3.2% of GDP from 4.3% in 2021, but opponents of the plan claimed he ignored the situation of workers in the nation, as well as social security spending.  

(Image: AP)