Portugal's Socialist Party Abstains, Eases Passage of 2026 Budget Proposal

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 emphasized the party's commitment to political stability and responsible opposition, stating, "We will not be a factor in political instability and will be a firm, but also constructive and responsible opposition."

This decision follows the PS's decline to third place in the May 2025 snap parliamentary elections, trailing behind the far-right Chega party. By abstaining, the PS enables the ruling coalition, which holds 91 seats in the 230-seat parliament, to approve the budget without negotiating with Chega, which has 60 seats.

Chega leader André Ventura criticized the PS's move as political maneuvering.

The 2026 budget projects a 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.

The PS's abstention reflects a strategic choice to maintain political stability in Portugal. By enabling the budget's passage without direct support, the PS aims to prevent potential political crises that could arise from budgetary deadlock. This move also underscores the party's intent to position itself as a responsible opposition, distancing itself from the far-right Chega party, which has been gaining influence. The decision may influence public perception of the PS as a stabilizing force in Portuguese politics.

In the May 2025 snap parliamentary elections, the PS experienced a significant decline, dropping to third place behind the center-right Democratic Alliance (AD) and the far-right Chega party. The AD, led by Prime Minister Luís Montenegro, secured 86 seats, while Chega obtained 58 seats, equaling the PS's count. This shift marked a notable change in Portugal's political landscape, with the traditional two-party dominance being challenged.

The PS's decision to abstain is not unprecedented. In 2024, the party similarly abstained from voting on the 2025 budget, allowing the center-right government to pass the budget without direct support. This pattern indicates a strategic approach by the PS to maintain political stability while positioning itself as a responsible opposition.

The PS's abstention can be seen as a calculated move to avoid further political instability and potential snap elections, which could be unfavorable given their recent electoral decline. By abstaining, the PS distances itself from the far-right Chega party, preventing the ruling coalition from having to negotiate with Chega, thereby limiting Chega's influence.

This strategic abstention by the PS highlights the evolving dynamics within Portugal's political landscape and the party's efforts to navigate its role as an opposition force while contributing to the country's stability.