Less than a year after coming into power, Portugal’s Prime Minister Luís Montenegro’s centre-right minority government has come under intense pressure and appeared to be heading for new elections.
Allegations of conflict of interests tied to Montenegro’s family-owned data protection consultancy, Spinumviva, have spiralled into a broader political crisis.
The controversy began in February when the newspaper Correio da Manhã published an article about the family business, which was owned at the time by the PM’s children and wife.
Montenegro, who assumed leadership of the Social Democratic Party (PSD) in 2022 and became Prime Minister following the March 2024 election, has maintained that he transferred control of the firm to his relatives upon taking party leadership, distancing himself from its operations.
Despite that, there were concerns about potential conflicts of interest and compliance with regulations on incompatibilities and restrictions for public and political officeholders.
On March 1, it was reported that the hotel and casino company Solverde had an agreement to pay Spinumviva €4,500 per month, since 2021, for the provision of services.
Spinumviva then disclosed the names of several customers. In total, the company received €9,000 per month from five clients, most connected to one family.
The financial report revealed that only 11 per cent of the revenue from services provided by Spinumviva was paid to the external collaborators who performed the work, while a significant portion went to consultants and fees.
Also on March 1, Montenegro gave some clarification and said he would launch a motion of confidence over the issue. Two prior motions, one from the Communist Party and one from the populist Chega party, had failed.
Montenegro called for a confidence vote in parliament on March 11, to “dispel uncertainty” about his government’s mandate.
He admitted that “early elections are not desirable” but would be “a necessary evil to avoid the degradation of institutions and the loss of political stability”.
The PM claimed it was his responsibility “to prevent Portugal from being a country shrouded in mud”.
Pedro Nuno Santos, leader of the Socialist Party (PS), confirmed the party would vote against the motion of confidence and accused Montenegro of preferring elections to facing a commission of inquiry.
He said Montenegro’s defence was “ridiculous, because the one who created the mud was Luís Montenegro. Luís Montenegro is in the mud, he dragged the PSD and his government into the mud and now he wants to throw the country into the mud”.
“We have to stop victimising, take responsibility, because what we need is a prime minister with courage, with frankness, with transparency and not someone who always hides behind others, who holds everyone accountable and reveals that he has not yet realised that we unfortunately are in this situation because of him and no one else”, Santos said.
André Ventura, leader of the right-wing Chega party, also accused the PM of having announced a motion of confidence in the government for “fear of scrutiny”. He said his party would never “give him any vote of confidence”.
When Montenegro won the elections less than a year ago, he chose not to work with Chega, forcing him to form a minority government with the Conservative People’s Party (CDS), holding only 80 seats in the 230-seat legislature and relying on external support.
The PS and Chega together have 128 seats, enough to bring down the government in a vote of confidence, something both parties have signalled they were willing to do.
If that happens on March 11, President Marcelo Rebelo de Sousa would have to dissolve parliament and call a snap election.
Montenegro came into power after then Socialist prime minister António Costa was forced to resign in November 2023 amid a corruption probe into lithium mining and “green” hydrogen projects.
Costa went on to become President of the European Council in December last year.
