Overview
- The Democratic Alliance (AD) won 89 of 230 parliamentary seats in Portugal’s snap election, falling short of a majority for stable governance.
- The far-right Chega party achieved its best result to date, securing 58 seats and 22.6% of the vote, positioning itself as a key power broker.
- The Socialist Party suffered heavy losses, dropping from 78 to 58 seats, prompting leader Pedro Nuno Santos to resign immediately after the results.
- Prime Minister Luis Montenegro has ruled out a formal coalition with Chega but has initiated exploratory talks to secure legislative support for his minority government.
- Political instability continues to pose risks to reforms, EU fund deployment, and major projects like lithium mining and TAP airline privatization.