In a historic announcement, the President of Portugal, Marcelo Rebelo de Sousa issued the Presidential Decree 12-A/2024, dissolving the Portuguese Parliament. In the same decree, the President officialised the date for the upcoming snap election: 10th of March of 2024. This critical development follows the resignation of Prime Minister António Costa.
The decree, signed by the President today, the 15th of January, already published in Diário da República (Portugal Gazette), is effective immediately. This marks the 9th parliamentary dissolution since the democratic revolution of the 25th of April 1974, highlighting the severity of this political shift.
This is not the first time the President has decided against the Socialist Party (PS). Back in August of 2023, the President exercised his veto on the Housing Bill (Pacote Mais Habitação), to express his discontent, claiming that the proposed strategy would not effectively curb escalating Real Estate speculation and soaring rental costs in the country. Following due diligence, the Bill returned to the Parliament for a fresh round of revisions, though was ultimately reapproved without any further changes. The Bill was formally issued in October of 2023, marking the end of Real Estate purchases as an eligible option for the Portugal Golden Visa.
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After the Prime Minister resigned on the 7th of November, the President convened with political parties and social partners on the 8th of November, and the opinion of the Council of State on the 9th of November.
The President justified the dissolution as a “personal decision”, highlighting the unique nature of the 2022 snap election, which had resulted in an overwhelming majority for PS. Marcelo Rebelo de Sousa argued against forming a new government with the same majority but a different Prime Minister, due to the necessity for political and personal legitimacy through the popular vote, rejecting PS’s alternative proposal of nominating a new Prime Minister.
This announcement marks a critical juncture for Portugal's political landscape. The forthcoming snap elections on the 10th of March will undoubtedly shape the future of the country.
This decree does not impact any of Portugal's Residency by Investment Programmes. Instead, it addresses internal political stability issues. Following the Prime Minister's resignation on November 7th, 2023, Portugal has witnessed a rise in rumours and political polarisation. The prospect of new elections emerges as a potential resolution to these internal conflicts.
For instance, on the 5th of January 2024, the Parliament approved amendments to the Portuguese Nationality law, allowing the 5-year countdown to Citizenship to commence from the date of the Residency Application, as opposed to the current law that starts counting from the issuance of the first Residency Permit. These changes coincide with the introduction of the "Nationality Platform" by the IRN (Institute of Registries and Notaries) in December 2023. This online service aims to streamline the Citizenship application process in Portugal, revealing the country’s commitment to its foreign residents.
As the country navigates these uncharted waters, stay tuned to our Portugal Homes news for more in-depth coverage and analysis of Portugal's evolving political scenario.
