What to know about the collapse of Portugal's government

LISBON, Portugal -- Portugal slid back into more political uncertainty Wednesday after the country's third government fell in as many years when Prime Minister Luis Montenegro lost a confidence vote in Parliament.

The demise of the minority government marks the worst spell of political instability in 50 years of Portuguese democracy.

Here's a look at what led up to the vote, and what is next for the European Union country of 10.6 million people:

Montenegro submitted himself to the confidence vote after he was accused of a potential conflict of interest regarding a family law firm. It recently emerged that the firm was receiving payments from a company that has a major gambling concession granted by the government.

Montenegro, who took power less than a year ago, held the confidence vote to “dispel uncertainty." Instead, opposition parties teamed up to topple him.

Portuguese President Marcelo Rebelo de Sousa, who as head of state oversees the transition of power between governments led by prime ministers, is holding talks with the parties that make up the Parliament on Wednesday.

Once those talks are done, the president is expected to formally dissolve the chamber in accordance with constitutional procedures and announce new elections. Many political observers expect to ballot to be set for May.

Montenegro, who has denied wrongdoing, said he will try to regain his post by running again in the snap election.

But he faces hurdles other than the opinion of voters. Opposition parties have demanded more detailed explanations from the conservative leader, and the Socialist Party wants a parliamentary inquiry that would dog the government for months.

As a NATO member, Portugal is in need of strong leadership to help handle the diplomatic crisis unleashed by the United States, which is wavering after decades of solid support for Europe.

The Portuguese administration is also in the process of investing more than 22 billion euros ($24 billion) in EU development funds as it looks to retool its economy.

Another election could potentially provide a new opportunity for Portugal’s far-right Chega (Enough) party to ride the wave of far right success across Europe. Chega finished third in last year’s election in its best ever result after it successfully tapped into voters’ frustration with mainstream politics.

Portugal hasn't experienced such political instability since it adopted a democratic system in the wake of the 1974 Carnation Revolution, which ended a four-decade dictatorship.

Once considered a model of level-headed governance, fragmented politics has led to fragile Portuguese administrations. Back-to-back minority governments have been unable to forge lasting alliances with parties in opposition and have fallen well short of finishing their four-year terms.

Antonio Costa, Montenegro’s predecessor, stunned the nation when he suddenly resigned as prime minister in 2023 after a member of his staff fell under investigation for corruption. Although he was not directly targeted by investigators, Costa immediately stepped down in an act of political responsibility that has earned him praise. Costa has since become president of the European Council.

Some citizens are growing tired of the instability.

“I have a feeling that this idea of having early elections is becoming common and people start to think it is normal. But it is not normal,” said Francisco Ribeiro, a 63-year-old plumber. “Politicians are appearing increasingly as people less honest and this confuses people.”

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Wilson reported from Barcelona, Spain. Barry Hatton in Lisbon contributed.