Portugal Risks Political Crisis Without Budget Deal: President

Lisbon: Portugal risks a “political and economic crisis” if the government cannot resolve an impasse over next year’s budget, President Marcelo Rebelo de Sousa warned on Monday.

Prime Minister Luis Montenegro’s centre-right government lacks a majority in parliament, and must thus broker a deal with either the socialist opposition or the far-right Chega party to get the budget through the chamber.

“If there is no budget there will be a political and economic crisis,” de Sousa told the press.

Montenegro’s administration, which came to power after elections last March, has to present the budget for 2025 on October 10.

Should the budget fail to pass, the president did not confirm whether he would dissolve parliament and call new elections.

After accusing each other of being unwilling to reach a budget agreement, Montenegro and Socialist Party leader Pedro Nuno Santos are scheduled to meet on Friday.

“There will only be elections if the government and the president so wish,” Santos said.

While Santos said the socialists were ready to negotiate, he demanded the government abandon tax breaks for companies and young skilled workers.

The far-right Chega, which strengthened its position in the March elections with 18 percent of the vote, said it will not take part in the negotiations.

“Chega is not taking part in this spectacle because we understood from the very beginning that the government in truth does not want to negotiate with anyone,” its leader Andre Ventura said on Monday.