Portugal's Government Falls After Confidence Vote Loss

Prime Minister Luís Montenegro's minority government collapses over corruption allegations, leading to anticipated May elections.

Prime Minister Luís Montenegro lost a confidence vote in Portugal's parliament with 144 votes against and 88 in favor, ending his minority government after less than a year in office.
The controversy centered on allegations of a conflict of interest involving a family-owned company, which reportedly benefited from government-linked contracts.
President Marcelo Rebelo de Sousa is expected to dissolve parliament and call for new elections, likely on May 11 or May 18, marking the third national election in Portugal since 2022.
Montenegro, who denies any wrongdoing, has announced plans to run again despite the scandal and political uncertainty surrounding his party's prospects.
The political instability raises concerns about potential economic impacts, including delays in key projects like the privatization of the airline TAP, which has attracted interest from Lufthansa.