New Government Unveiled in Portugal: Navigating Political and Economic Challenges Ahead

After being asked by the President of the Republic to form a Government, Luis Montenegro returned to the Belém Palace to present his chosen team. The meeting with the Head of State was brief, but soon after, the list of names was made public. Montenegro selected a team with political weight to navigate the uncertain and unstable days ahead, given the parliamentary challenges he faces.

Two key figures in the Government will be MEP Paulo Rangel, who will be in charge of Foreign Affairs, and Joaquim Miranda Sarmiento, who will serve as the Minister of Finance. Both have held significant positions within the Social Democratic Party (PSD) and will play vital roles in economic management and international relations during these turbulent times. Other members of the Cabinet include Miguel Pinto Luz, who will oversee Infrastructure and Housing, sensitive areas of focus based on current national needs.

Miranda Sarmiento will inherit a favorable budget surplus, allowing the new team to address demands from professional groups seeking salary improvements. The new Government faces the challenge of governing partly through decree due to its parliamentary weakness and must carefully navigate its decisions. The appointment of Nuno Melo to the Defense portfolio represents a step toward solidifying alliances within the coalition that led Montenegro to victory in the elections. With seven women holding ministerial positions, gender parity is maintained, albeit with a decrease from the previous socialist Government. Montenegro’s decision to exclude the far-right party Chega has strained relations, as the party’s leader, André Ventura, has challenged Montenegro’s leadership.

As Montenegro’s Government prepares to take office, it will face pressure from various sources to deliver on key issues such as salary improvements and public spending. The European and Madeira elections will be crucial tests for this new administration as it navigates a complex political landscape while striving to meet