Weekly Geopolitical Report – Political Turmoil in Portugal (November 16, 2015)
by Kaisa Stucke, CFA
Portugal held parliamentary elections on October 4, 2015, in which the incumbent center-right Social Democratic Party received the most votes but fell short of an outright majority. Historically, as part of the Portuguese political process, the country’s president tasks the party that receives the most votes with forming a government. However, in this case, the center-left opposition party and some far-left parties have formed a coalition, together garnering a majority of votes and currently awaiting presidential approval to form a government and take control from the center-right party.
This week, we will look at the current political environment in Portugal. First, we will start with a brief history of Portugal. We will then turn to the economic conditions leading up to the most recent elections and discuss the election results, the change in coalition powers and the possible path of developments going forward. As always, we will conclude with market ramifications.