Portuguese president warns PM over rift, but avoids crisis

Portugal's President Marcelo Rebelo de Sousa, who has the power to disband parliament, issued a new warning on Thursday to the prime minister after their rift put the country on the verge of a political crisis, but abstained from more drastic action. In a televised address, the president said the Socialist government had work to do to preserve its credibility and he would be more assertive in its relationship with the administration, but stability had to be preserved to help Portuguese cope with high inflation and interest rates.

Portugal's President Marcelo Rebelo de Sousa, who has the power to disband parliament, issued a new warning on Thursday to the prime minister after their rift put the country on the verge of a political crisis, but abstained from more drastic action.

In a televised address, the president said the Socialist government had work to do to preserve its credibility and he would be more assertive in its relationship with the administration, but stability had to be preserved to help Portuguese cope with high inflation and interest rates. Opposition parties on Wednesday called on the president to use his power to dissolve parliament after Costa rejected an offer by Infrastructure Minister Joao Galamba to resign in a deepening scandal around state-owned airline TAP, snubbing Rebelo de Sousa.

The conservative president, who had made clear he wanted Galamba out, said he disagreed with Costa's decision having previously warned that he could disband parliament if the government lost credibility. With growth already slowing down across Europe, a government crisis would also complicate the distribution of vital EU pandemic recovery funds in Portugal.

Costa's Socialists won an outright parliamentary majority in January 2022, but his third government in a row has been plagued by problems.