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That warning was seen as an attempt to chivvy the parties into trying to reach a deal, right up until the vote. But the Communists in particular appear to have been convinced by waning poll numbers that they need a period in full-blown opposition to rebuild. A sign of that is that unions with close links to the party have called strikes in recent days demanding better pay and benefits for public sector workers. Before announcing elections, the president first consulted the parties and then his Council of State.

However, his move has prompted worries in some quarters that the required two-month break ahead of a vote could hamper Portugal's full use of European Union post-pandemic funds, despite having been the first member state to secure approval for its Recovery and Resilience Plan.

To avoid an election, he believes the president could have pressed for another government to be formed, or even appointed a technocrat-led government as in Italy. Analysts agree that the far-right Chega party stands to secure several seats in new elections.

Chega won its first seat in and campaigns on an anti-corruption platform but also against alleged misdeeds of minority groups such as Roma. Other right-of-centre politicians could soon be forced to decide whether to do deals with the party.

Other commentators are pleased the people will now have their say, even if voters themselves may not be happy with the upheaval as the economy and health system are only gradually emerging from the Covid pandemic.

Friday, Toggle navigation. Home World. Portugal's president to dissolve parliament; snap election looms. Font Size: Print. Font Size:. Share this story. The rejection of the bill effectively ended six years of relative stability under Socialist Prime Minister Antonio Costa. Earlier on Wednesday, Economy Minister Pedro Siza Vieira told Reuters a snap election seemed the best option for ending the stalemate, and would not undermine the government's commitment to meeting fiscal targets or growth prospects.

But analysts say an election alone might not solve the political impasse because it may be difficult for any single party or known alliance to achieve a stable majority of seats in parliament. The Socialists' left-wing allies, who rejected the budget along with all right-wing parties, are polling in single digits and are likely to lose seats, while far-right Chega could emerge as the third-strongest party.



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