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Portuguese head to the polls in election unlikely to yield stable government

Portuguese head to the polls in election unlikely to yield stable government

The Star17-05-2025

A view shows a billboard of the AD - Coalition PSD/CDS, ahead of Portugal snap elections in Lisbon, Portugal, May 5, 2025. REUTERS/Pedro Nunes/File Photo
LISBON (Reuters) -Millions of Portuguese will cast their ballots on Sunday in a third general election in as many years, though many are bracing for more uncertainty as the vote is unlikely to deliver a stable government.
Sunday's ballot was called just one year into the centre-right minority government's term after Prime Minister Luis Montenegro failed to win parliament's confidence in March in a vote he himself proposed when the opposition questioned his integrity over the dealings of his family's consultancy firm.
Montenegro has denied any wrongdoing and most opinion polls have shown voters dismissing the opposition's criticism.
Polling stations are open from 8 a.m. to 7 p.m. (0700-1800 GMT), with exit polls expected from 8 p.m. (1900 GMT).
The election, also dominated by issues such as housing and immigration, comes after a decade of fragile governments, only one of which has had a parliamentary majority but which still collapsed halfway through its term last year.
Opinion polls show Montenegro's Democratic Alliance (AD) garnering the most votes and probably a few more seats than in the previous election in March 2024, but again no parliamentary majority.
"We can't have elections every year," said 26-year-old bank worker Diogo Lima, adding the AD should be left to govern even if it does not win the election by a significant margin.
AD's perennial rival, the centre-left Socialist Party (PS), was polling around 26%, behind the AD on more than 32%, in Radio Renascenca's 'poll of polls' aggregator.
Political scientist Antonio Costa Pinto said the new parliament would likely be similar to the last, and it was impossible to predict how long the government would last, as it depended on factors ranging from the international situation to the AD's ability to reach deals with other parties.
"The only doubt is whether the AD will form a new minority government ... or whether it will form a post-electoral coalition with IL, even if this coalition does not guarantee an absolute majority," he said, referring to the pro-business Liberal Initiative (IL) party, standing fourth in the polls.
It has some affinities with Montenegro's AD and many analysts see them as natural partners, but IL's polling numbers throughout the campaign have been insufficient for a potential alliance between the two to reach a majority of 116 in the 230-seat parliament, which requires at least 42% of the vote.
Voter turnout is usually low in Portugal, and some political scientists have expressed concern it could be even lower this year due to election fatigue.
The far-right Chega party, with which Montenegro refuses any deals, has been polling in third place on around 18%, similar to its result last year, though last-minute health problems for its charismatic leader Andre Ventura could influence the outcome.
After landing in hospital twice in the past week with an esophageal spasm, he made a surprise appearance at his party's final event on Friday.
(Reporting by Catarina Demony and Sergio Goncalves. Editing by Andrei Khalip and Mark Potter)

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"The devil will be in the details, but the lack of reaction suggests this outcome was fully expected," said Chris Weston, head of research at Pepperstone in Melbourne. "The details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US-produced chips to head east, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported." RESOLVING RESTRICTIONS Lutnick said China's restrictions on exports of rare earth minerals and magnets to the US will be resolved as a "fundamental" part of the framework agreement. "Also, there were a number of measures the United States of America put on when those rare earths were not coming," Lutnick said. "You should expect those to come off, sort of as President Trump said, in a balanced way." 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Customs data published on Monday showed that China's exports to the US plunged 34.5 per cent in May, the sharpest drop since the outbreak of the COVID pandemic. While the impact on US inflation and its jobs market has so far been muted, tariffs have hammered US business and household confidence and the dollar remains under pressure. Lutnick was joined by US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent at the London talks. Bessent departed hours before their conclusion to return to Washington to testify before Congress on Wednesday. China holds a near-monopoly on rare earth magnets, a crucial component in electric vehicle motors, and its decision in April to suspend exports of a wide range of critical minerals and magnets upended global supply chains. In May, the US responded by halting shipments of semiconductor design software and chemicals and aviation equipment, revoking export licences that had been previously issued. Just after the framework deal was announced, a US appeals court allowed Trump's most sweeping tariffs to stay in effect while it reviews a lower court decision blocking them on grounds that they exceeded Trump's legal authority by imposing them. The decision keeps alive a key pressure point on China, Trump's currently suspended 34 per cent "reciprocal" duties that had prompted swift tariff escalation.

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