Portugal's Socialist Party Abstains on 2026 Budget to Maintain Stability

Portugal's opposition Socialist Party (PS) has announced its decision to abstain from voting on the center-right minority government's 2026 budget proposal, a move that is expected to facilitate the budget's passage during its first reading scheduled for October 28.

PS leader José Luís Carneiro stated on October 15, 2025, that the party "will not be a factor in political instability and will be a firm, but also constructive and responsible opposition." He emphasized the PS's commitment to political stability, indicating that the party would maintain its abstention unless significant alterations are made to the bill during parliamentary review.

The PS's abstention allows the ruling coalition, which holds 91 seats in the 230-seat parliament, to approve the budget without needing support from the far-right Chega party, which has 60 seats. Chega leader André Ventura criticized the Socialists' move as political maneuvering.

The 2026 budget projects 2.3% economic growth and a small surplus for the fourth consecutive year, supported by tax cuts for businesses and lower-income households. The final vote on the budget is scheduled for November 27.

In the May 2025 snap parliamentary elections, the center-right Democratic Alliance (AD), led by Prime Minister Luís Montenegro, won 31.2% of the vote, securing 86 out of 230 seats. The far-right Chega party made significant gains, obtaining 22.6% of the vote and 58 seats, equaling the Socialist Party's count. The Socialist Party suffered a major defeat, losing 20 seats and dropping to 23.4% of the vote. This outcome left the AD as a minority government, necessitating strategic alliances and decisions to ensure governance.

This is not the first time the Socialist Party has abstained from a budget vote to ensure political stability. In 2024, the PS abstained from voting on the 2025 state budget, allowing the center-right government to pass the budget without support from other parties. This move was also aimed at avoiding a political crisis and potential new elections.

The Socialist Party's abstention can be seen as a strategic decision to prevent further political instability and to avoid giving the far-right Chega party more influence in the budget approval process. By abstaining, the PS positions itself as a responsible opposition party, potentially aiming to regain voter trust after its significant losses in the recent elections.

The 2026 budget includes several key measures:

• Economic Projections: The budget forecasts a 2.3% economic growth and a small surplus for the fourth consecutive year.

• Tax Policies: The budget includes tax cuts for businesses and lower-income households.

• Parliamentary Composition: The ruling coalition holds 91 seats in the 230-seat parliament, while Chega has 60 seats, and the Socialist Party has 58 seats.

The Socialist Party's decision to abstain from the budget vote reflects a strategic move to maintain political stability in Portugal. By abstaining, the PS avoids triggering another snap election, which could lead to further political fragmentation and voter fatigue. This approach may also be aimed at preventing the far-right Chega party from gaining more influence, as their support is not required for the budget's passage. However, this decision has drawn criticism from Chega's leader, André Ventura, who labeled the move as political maneuvering.

The final vote on the budget is scheduled for November 27, and the political landscape in Portugal remains dynamic as parties navigate the complexities of governance in a fragmented parliament.