Luis Montenegro Named Portugal's Prime Minister

After eight years of Socialist rule in Portugal, Luis Montenegro, leader of the centre-right Democratic Alliance (AD), has been appointed as the new prime minister. However, his minority government faces challenges due to his refusal to ally with the far-right Chega party.

Fragile Minority Government

Montenegro’s appointment marks the return of a centre-right leader to the prime minister’s office after more than eight years.
Despite his party’s victory in the recent election, the AD falls short of a majority in the parliament, with only 80 out of 230 seats.
Montenegro’s rejection of a coalition with the far-right Chega party leaves his government in a fragile position, necessitating negotiations with other parties for legislative support.

Challenges and Opposition

Both the Chega party and the Socialists have stated their non-opposition to Montenegro’s ascension but are prepared to oppose his legislative agenda.
Montenegro’s criticism of Chega as racist and xenophobic complicates potential alliances, requiring him to navigate delicate negotiations in parliament.

Montenegro’s Agenda and Leadership

Montenegro aims to implement policies differing from nearly a decade of centre-left governance, focusing on tax cuts and supporting the private sector.
As a lawyer from Porto, Montenegro brings an everyman persona to leadership, having previously served as president of the Social Democratic party.

Immediate Tests and Future Prospects

Montenegro’s immediate challenge lies in passing the 2025 budget, crucial for the stability of his government.
Opposition leader Pedro Nuno Santos promises a strong opposition, potentially complicating Montenegro’s legislative efforts.
However, there’s a possibility of modest support from the Socialists for amendments to the 2024 budget, indicating a potential avenue for cooperation amidst political differences.

Background and Resignation of António Costa

Montenegro’s rise comes amidst a backdrop of voter discontent over corruption, low wages, housing costs, and anti-establishment sentiment fueled by the Chega party.
António Costa, the outgoing prime minister, resigned over allegations of corruption and influence peddling, although he denies any wrongdoing and has not been formally charged.