Corruption and Collapse in Portugal… Again

March 24th, 2025

Sahana Srikanth

After just 50 years of practicing democracy, Portugal’s government collapsed. When Prime Minister Luis Montenegro lost a confidence vote in Parliament, it wasn’t just a loss of his party’s support - it marked Portugal’s worst spell of political instability.

Political instability is no stranger to Portugal. Portuguese snap elections in March were preceded by months of voter anxiety, concerns from inaccurate voting, and a lack of clear majority party support. The country has already had two snap elections over the past three years, and former Prime Minister Costa had resigned over accusations of corruption. Now, it seems that recent history is repeating itself - both with snap elections, and corruption.

In late February of 2025, Prime Minister Luis Montenegro was accused of conflicts of interest regarding his family law firm. Yet, Montenegro denied such allegations, proceeding to announce that his cabinet would hold an extraordinary meeting to assess the matter. Suspicions of illicit activity emerged when news revealed that Montenegro’s firm was receiving payments from a company that has a major gambling concession granted by the government. This led opposition Socialist leader Pedro Nuno Santos to accuse Montenegro of acquiring funding from companies, and triggered many other opposition members to accuse Montenegro of indirectly enriching himself while serving atop the country’s executive branch.

His company, Spinumviva, received sizable sums from clients Montenegro had secured even after he was elected Social Democratic Party (PSD) president, and the company's incomes included €4,500 (£3,800) a month from hotels and casino groups. Beyond financial corruption, Montenegro’s firm is under scrutiny for service corruption too. Montenegro claims that his firm provides consultancy services relating to data privacy laws, but even the Bar Association is looking into whether the company is illicitly offering services that only lawyers may offer.

To cover up suspicion, Montenegro’s cabinet has quite obviously been attempting to appear functional, approving a multitude of new financial initiatives to prove their work for the citizens of Portugal. The reason? To maintain their ground support in the wake of Montenegro’s greatest threat: snap elections.

Montenegro submitted himself to the confidence vote, though he told reporters the government “tried everything right up to the last minute to avoid snap elections”. Montenegro stated that he took the confidence vote to clear his name and “dispel uncertainty,” but he remained unprepared when the aforementioned opposition parties directly teamed up to dismantle his regime. Indeed, it worked. The confidence vote was certainly not close, as with a 142-88 no abstention vote, opposition lawmakers swiftly ousted Montenegro's administration. Late Thursday, Montenegro dissolved parliament.

Montenegro's administration now assumes a caretaker role, as Portuguese President Marcelo Rebelo de Sousa has called snap elections for May 18. Previously, Montenegro’s coalition won elections in 2024, but were only 2 seats ahead of the opposition Socialists. The support for either party is bound to decline, especially given that around 37% of citizens blame the incumbent government and the opposition for the political impasse. Whether the polls will reflect this distrust in 2 months remains to be seen.

Ultimately, as Portugal braces for yet another election, the political landscape remains as fractured as ever. Corruption allegations, snap elections, and low governmental faith, have left citizens disillusioned. Now, many are questioning whether any party can provide lasting stability to Portugal. Montenegro’s downfall is just the latest chapter in a democracy still struggling to find its footing after half a century. Portugal stands at a crossroads—one that could either restore trust in its institutions or deepen the crisis that has defined its politics for years.