The future of Socialist Prime Minister Antonio Costa’s government in Portugal became doubtful after parliament voted to reject the 2022 budget on Wednesday. Parliament voted on the budget 117: 108 with five abstentions.
President Marcelo Rebelo de Sousa has said he will call new elections if the budget is not adopted quickly.
Costa leads a minority government, and moderate socialists hold 108 seats in the 230-member legislature. Its fate depends on the support of smaller left-wing parties outside the government. However, in the vote, the left-wing Marxist bloc and the Communist Party voted against the budget, as did the Conservative Social Democratic Party.
Left parties wanted more spending on anti-poverty measures and the health care system, as well as improving labor laws. According to the ruling party, this was not possible in the budget, and they even reached the point of financial feasibility.
The ruling party also said that while it did not want an early election, it had no fear of it. Only general elections will be held in 2023 at the normal rate. If introduced now, the populist right could be the biggest winner: Chega! (Enough!) The Populist Party won 1.3% in the last 2019 elections and won a seat, but by January 2020, their candidate had already won 11.9% in the presidential election.