Portugal PM to submit to confidence motion over family firm, election possible

Portugal's prime minister said on Wednesday he would submit his year-old minority government to a confidence motion, a move which could end with its dismissal if the two main opposition parties vote to reject it, as they have indicated.

At the centre of the political crisis that could trigger a third snap election since 2022 is a consultancy firm owned by Prime Minister Luis Montenegro's family, which has made contracts with private companies that the opposition says have benefitted the premier.

Montenegro has denied any conflict of interest.

"The country needs political clarification and this is the moment... The country cannot remain a prisoner of selfishness and tactics on the part of the opposition," Montenegro told parliament, adding that while a new election was not what Portugal needed, his party was ready to go to the polls.

It was not immediately clear when parliament would vote on the confidence motion.

The main opposition Socialists and far-right party Chega, which together have more than half of all parliamentary seats, have said they will reject the confidence motion.

Such an outcome, according to the constitution, would require the government's dismissal, although since the restoration of democracy in 1974, only one out of 11 such motions has been rejected by Portugal's parliament, in 1977.

If Montenegro loses the confidence vote, some political analysts expect President Marcelo Rebelo de Sousa to dissolve parliament and call an early election.

Montenegro's party has said he would lead it in any new election.

The centre-right coalition has 80 seats in the 230-seat parliament. The Socialists have 78 and Chega 50.

LEGAL WRANGLE

Montenegro founded data protection consultancy Spinumviva in 2021 when he had no political job.

The following year, he was elected leader of the centre-right Social Democratic Party and left the management and ownership of the company, whose annual revenue peaked at 415,000 euros ($431,558) in 2022, to his wife and sons.

The opposition said that since Montenegro is married and assets acquired after marriage, under Portuguese law, always belong to the couple, the transfer of ownership to his wife is invalid.

Based on this argument, Socialist leader Pedro Nuno Santos has accused Montenegro of "receiving payments from companies while he was prime minister" for several months.

Montenegro denied any wrongdoing or ethical shortcoming and said his income and all assets were included in the declarations of interests he submitted when he became prime minister.

His wife's ownership has since been transferred to their sons.