What Happened: Portugal's ruling Socialist Party has won parliamentary elections, winning 36.5 percent of the vote to expand its share of seats in the parliament, Deutsche Welle reported Oct. 7. Party leader and Prime Minister Antonio Costa has already said he's planning to form another minority government.
Why It Matters: Although the Socialist Party managed to consolidate its position as Portugal's strongest party, the fragmented result means forming a new government coalition could take weeks.
Background: The Portuguese government has been successful in stabilizing the country's economy, balancing its budget and reducing unemployment while maintaining political stability amid a rise of populism in other European countries. However, Portugal's economic growth rate has been declining significantly, and additional austerity measures could result in renewed uncertainty.
- As Expected, EU Elections Result in a Fragmented Parliament (May 28, 2019)
- European Parliament Elections Mark the End of EU Legislative Consensus (May 22, 2019)
- Political Risk Is on the Rise in Europe. Here's Why. (April 25, 2019)