LISBON (Reuters) – Portugal’s rightist Democratic Alliance (AD) emerged victorious in Sunday’s election by a narrow margin, with hopes that its proposed tax cuts and wage increases will be too appealing for the far-right Chega party to resist, allowing the AD to govern without making any deals with the populists.
Chega saw a significant increase in its parliamentary seats, quadrupling to 48, securing third place behind the AD and the incumbent Socialists.
Despite Chega leader Andre Ventura interpreting the results as a signal that Portugal desires his party to be part of an AD government, the centre-right alliance has firmly rejected any formal agreements with Chega for governance.
“Our focus is on the 1.1 million citizens who voted for Chega… Let’s implement policies that will help regain the trust of these 1.1 million unhappy Portuguese voters,” stated Miguel Pinto Luz, Vice-President of the Social Democratic Party (PSD), the leading party in the AD, speaking to Publico newspaper.
Proposed policies include reductions in income tax, higher pensions, and increased wages for police officers and teachers, which will be presented to all opposition parties, including Chega, to consider. The aim is to test whether they are willing to risk disappointing their supporters by rejecting the policies.
Addressing Ventura’s statements earlier in the week, PSD General Secretary Hugo Soares told Reuters that the party’s stance remained unchanged, emphasizing that there would be no parliamentary agreement with Chega, as reiterated multiple times before.
A potential alliance between the Socialists and Chega to oust the AD could lead to reputational damage for both parties and may not be welcomed by the Portuguese populace, who do not wish for frequent elections, having experienced two early elections in the past two years.
During the election campaign, PSD and AD leader Luis Montenegro outlined priorities including an emergency plan to enhance the healthcare system, along with meeting the demands of police officers and teachers as immediate steps if he were to become prime minister.
Financial analyst Filipe Garcia projected that the AD, inheriting a 2023 budget surplus of around 1% from the Socialists, should be able to implement these measures gradually without jeopardizing their ability to govern or straining public finances.
However, Marina Costa Lobo, from the Institute of Social Sciences, warned that fragmented agreements may not guarantee stability, especially considering the unpredictable behavior of Chega.
Reporting by Catarina Demony and Sergio Goncalves; Additional reporting by Patricia Rua; Editing by Aislinn Laing, Andrei Khalip and Bill Berkrot
