Portugal may face early elections after budget proposal fails in parliament

After weeks of negotiations, the moderate Socialists were deserted by their hard-left allies from the Communist party and the Left Bloc. The Socialists hold 108 of the 230-seat parliament and were relying on support of the Communists and the Left Bloc. With 117 votes against, 108 in favour and five abstentions, lawmakers rejected the State Budget – something that had never happened before in Portugal.

According to the Communists and Left Bloc, Costa was too focused on deficit cuts, and had ignored their demands for more worker protections, social security improvements and more public investment in the health service. They therefore blocked the budget proposal, writes the German broadcaster Deutsche Welle.

The Portuguese president, Marcelo Rebelo de Sousa, warned that he would call an early election if parliament did not approve next year’s government spending plan. The current four-year term is due in 2023.

In a reaction, Costa took full responsibility. “The Government leaves this vote with a clear conscience and a head held high”, he told reporters when leaving the parliament. “We will never turn our backs on our responsibilities and our duties towards the Portuguese” he said, according to Portuguese public broadcaster RTP.

Costa says that it is now up to the President of the Republic to assess this situation and take the decisions he sees fit. “We will be here to do whatever results from the decision of the President of the Republic. That includes going to elections if that is his decision”, he concludes.