Ruling party tops Portugal polls marked by far-right surge

Democratic Alliance party leader and Portuguese Prime Minister Luis Montenegro (C) celebrates his victory during the election night in Lisbon early on May 19, 2025. (AFP)
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Updated 19 May 2025
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Ruling party tops Portugal polls marked by far-right surge

  • Near complete official results showed PM Montenegro’s Democratic Alliance (AD) captured 32.7 percent of the vote
  • AD gets 89 of parliament's 230 seats, which is short of the 116 seats required for a ruling majority

LISBON: Portugal’s incumbent center-right party won the most seats in the country’s third general election in three years on Sunday but again fell short of a parliamentary majority, while support for the far-right Chega rose.
The outcome threatens to extend political instability in the NATO and European Union member state as the bloc faces growing global trade tensions and works to strengthen its defenses.
Near complete official results showed that Prime Minister Luis Montenegro’s Democratic Alliance (AD) captured 32.7 percent of the vote in Sunday’s poll with the Socialist Party (PS) and Chega virtually tied in second place.
That would boost the AD’s seat tally in the 230-seat parliament to 89, short of the 116 seats required for a ruling majority.
The Socialists had 23.4 percent, their worst result in decades, trailed closely by Chega (“Enough“) with 22.6 percent wich would give each party 58 seats.
Even with the backing of upstart business-friendly party Liberal Initiative (IL) which won nine seats, the AD would still need the support of Chega to reach a majority to pass legislation.
But Montenegro, 52, a lawyer by profession, has refused any alliance with Chega, saying it is “unreliable” and “not suited to governing.”
“It is not clear that there will be increased governability following these results,” University of Lisbon political scientist Marina Costa Lobo told AFP, calling Chega “the big winner of the night.”

Support for Chega has grown in every general election since the party was founded in 2019 by Andre Ventura, a former trainee priest who later became a television football commentator.
It won 1.3 percent of the vote in a general election in 2019, the year it was founded, giving it a seat in parliament — the first time a far-right party had won representation in Portugal’s parliament since a coup in 1974 toppled a decades-long rightist dictatorship.
Chega became the third-largest force in parliament in the next general election in 2022 and quadrupled its parliamentary seats last year to 50, cementing its place in Portugal’s political landscape.
Like other far-right parties that have gained ground across Europe, Chega has tapped into hostility to immigration and concerns over crime.
There are still four seats left to be assigned representing Portuguese who live abroad, but those results will not be known for days.
Sunday’s election was triggered after Montenegro lost a parliamentary vote of confidence in March after less than a year in power.
He called for the vote following allegations of conflicts of interest related to his family’s consultancy business, which has several clients holding government contracts.

Montenegro denied any wrongdoing, saying he was not involved in the day-to-day operations of the firm.
The AD formed a minority government after the last election. It passed a budget that raises pensions and public sector wages, and slashes income taxes for young people, because the PS abstained in key votes in parliament.
But relations between the two main parties soured after the confidence vote, and it is unclear if a weakened PS will be willing to allow the center-right to govern this time around.
Socialist leader Pedro Nuno Santos, a 48-year-old economist, had accused Montenegro of engineering the election “to avoid explaining himself” about the firm’s activities to a parliamentary enquiry.
After the results were announced, he said he would call an internal party election to pick a new leader.
Montenegro has criticized the immigration policies of the previous Socialist government, accusing it of leaving Portugal in “bedlam.”
Under the Socialist Party, Portugal became one of Europe’s most open countries for immigrants.
Between 2017 and 2024, the number of foreigners living in Portugal quadrupled, reaching about 15 percent of the total population.
Montenegro has since toughened immigration policy, and during the campaign his government announced the expulsion of some 18,000 irregular migrants, leading critics to accuse it of pandering to far-right voters.
 


Britain needs ‘AI stress tests’ for financial services, lawmakers say

Updated 20 January 2026
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Britain needs ‘AI stress tests’ for financial services, lawmakers say

  • Lawmakers urge AI-specific stress tests for financial firms

LONDON: Britain’s financial watchdogs are not doing enough to stop artificial ​intelligence from harming consumers or destabilising markets, a cross-party group of lawmakers said on Tuesday, urging regulators to move away from what it called a “wait and see” approach.
In a report on AI in financial services, the Treasury Committee said the Financial Conduct Authority and the Bank of England should start running AI-specific stress tests to help firms prepare for market shocks triggered by automated systems.
The committee also called on the FCA to ‌publish detailed guidance ‌by the end of 2026 on how ‌consumer ⁠protection ​rules apply to ‌AI, and on the extent to which senior managers should be expected to understand the systems they oversee.
“Based on the evidence I’ve seen, I do not feel confident that our financial system is prepared if there was a major AI-related incident and that is worrying,” committee chair Meg Hillier said in a statement.

TECHNOLOGY CARRIES ‘SIGNIFICANT RISKS’

A race among banks to adopt agentic AI, which ⁠unlike generative AI can make decisions and take autonomous action, runs new risks for retail customers, the ‌FCA told Reuters late last year.
About three-quarters ‍of UK financial firms now use ‍AI. Companies are deploying the technology across core functions, from processing insurance claims ‍to performing credit assessments.
While the report acknowledged the benefits of AI, it warned the technology also carried “significant risks” including opaque credit decisions, the potential exclusion of vulnerable consumers through algorithmic tailoring, fraud, and the spread of unregulated financial advice through AI chatbots.
Experts ​contributing to the report also highlighted threats to financial stability, pointing to the reliance on a small group of US tech ⁠giants for AI and cloud services. Some also noted that AI-driven trading systems may amplify herding behavior in markets, risking a financial crisis in a worst-case scenario.
An FCA spokesperson said the regulator welcomed the focus on AI and would review the report. The regulator has previously indicated it does not favor AI-specific rules due to the pace of technological change.
The BoE did not respond to a request for comment.
Hillier told Reuters that increasingly sophisticated forms of generative AI were influencing financial decisions. “If something has gone wrong in the system, that could have a very big impact on the consumer,” she said.
Separately, Britain’s finance ‌ministry appointed Starling Bank CIO Harriet Rees and Lloyds Banking Group ‘s Rohit Dhawan as “AI Champions” to help steer AI adoption in financial services.