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(Bloomberg) — Portugal is holding early parliamentary elections on Sunday, offering a chance for a far-right party to raise its presence in parliament and upset the country\u2019s two larger traditional centrist powers.<\/p>\n
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The election follows the sudden resignation of Socialist Prime Minister Antonio Costa late last year. Now, under a new leader, the Socialists are trying to extend their eight years in power, while a center-right coalition led by the PSD, or Social Democratic Party, is pushing to return to government. The growing third force is Chega, or \u201cEnough,\u201d a far-right party founded in 2019.<\/p>\n
Voting began at 8 a.m. and exit polls will be released at 8 p.m. in Lisbon. Voter turnout reached about 25% at noon in Lisbon, compared with 23% at the same time on the 2022 election day, according to government data.<\/p>\n
Next month is the 50th anniversary of the Carnation Revolution, a military coup that ended more than four decades of dictatorship. Since the transition to democracy, the PSD and the Socialists have been dominant in politics.<\/p>\n
If neither the Socialists or the center-right coalition win an absolute majority, Portugal could end up with a minority government reliant on the support of smaller parties, who may seek concessions in return for backing key measures such as the budget.<\/p>\n
Campaign Issues<\/p>\n
During the election campaign, the two main parties pushed policy pledges to attract voters frustrated with issues such as low wages, high taxes and a lack of affordable housing.<\/p>\n
The Socialist program includes lower income taxes for the middle class and young people, and increasing the minimum wage. It also aims to keep cutting the debt ratio.<\/p>\n
Portugal\u2019s debt burden ballooned during the euro-area debt crisis, when the country needed a bailout. The debt ratio has since been on a downward trajectory, apart from the impact of the 2020 pandemic, and dropped below 100% last year for the first time since 2009.<\/p>\n
The AD alliance wants to gradually reduce the corporate tax rate to 15% from 21%. It also plans to lower income taxes as well as taxes on house purchases for young people. Like the Socialists, it forecasts that debt will decline under its plans.<\/p>\n
Chega, led by Andre Ventura, is hoping to make ground with voters weary of the two bigger parties, particularly in the wake of multiple corruption scandals. Costa resigned amid a probe into the possible illegal influencing of government officials in relation to planning for major projects.<\/p>\n
Political Leaders<\/p>\n
The right-of-center AD coalition is made up of the PSD and the smaller CDS-PP. Its leader, Luis Montenegro, 51, is a lawyer who\u2019s headed PSD since July 2022. He was parliamentary party leader from 2011 to 2017, a period that included the years when his party was in government implementing the bailout program.<\/p>\n
The Socialists\u2019 new leader is 46-year-old Pedro Nuno Santos. An economist and former infrastructure and housing minister, he\u2019s often linked to the left-most wing of the party. As secretary of state for parliamentary affairs from 2015 to 2019, Santos was the link between the minority Socialist government and the far-left parties backing it. That experience could be useful if the Socialists need support again after the March 10 election.<\/p>\n
As the far right grows in influence across Europe, Ventura is pushing for his Chega party to join that trend. But his most likely ally, the center-right alliance, doesn\u2019t appear interested in bringing him on board. Montenegro has so far ruled out a deal with Chega after the election.<\/p>\n
(Updates to add voter turnout figures in third paragraph.)<\/p>\n
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