Overview

• Following Prime Minister Antonio Costa's resignation due to a corruption probe linked to the handling of green energy projects, the President of Portugal, Marcelo Rebelo de Sousa, has dissolved the parliament and announced a snap general election to be held on March 10.
• Despite Costa denying any wrongdoing, the first opinion poll after his resignation demonstrated a slump in support for his Socialist Party (PS) from 25.2% in October to 17.9%, indicating potential difficulties in forming a stable government in the aftermath of the election.
• A rise in support for the far-right party, Chega, has led to speculation about its leader, Andre Ventura, becoming a potential kingmaker for the centre-right opposition Social Democrats (PSD), despite the latter's denial of such plans.
• The corruption probe which led to Costa's downfall involves allegations of influence peddling and misuse of funds in awarding contracts for lithium mining and the development of a green hydrogen plant.
• Polls suggest most Portuguese voters prefer a snap election following Costa's resignation. However, analysts predict prolonged political instability amid an uncertain economic outlook.