U.S. Dollar Gains as Euro Falls on European Inflation Data
On Tuesday, the U.S. dollar strengthened against major peers, while the euro fell following slower-than-expected inflation in Europe. Market movements...
As Portugal heads to the polls on Sunday for its third general election in just over three years, the country braces for another fragmented parliament. Opinion polls suggest no party is likely to secure an outright majority.
Portugal is once again approaching a key political moment as voters head to the polls on Sunday to elect a new parliament. This will be the country’s third general election since 2022 and could lead to the formation of another minority government.
At the center of the race is the Democratic Alliance (AD), led by caretaker Prime Minister Luis Montenegro, whose Social Democratic Party (PSD) governs in coalition with the conservative CDS-PP. Montenegro, 52, is seeking a renewed mandate after his minority government lost a parliamentary confidence vote earlier this year over questions about his family's business dealings. He has denied any wrongdoing, and recent polling suggests his popularity remains strong. The AD continues to champion middle-class tax cuts, immigration controls, and solutions to the country’s worsening housing crisis.
The Socialist Party (PS), the other dominant force in Portuguese politics, is led by Pedro Nuno Santos, a 48-year-old economist and former minister. Santos took over the PS in late 2023 following the resignation of former Prime Minister António Costa amid an ongoing investigation into investment project management - though no charges have been filed. The PS, while critical of Montenegro’s leadership, has also shown a willingness to cooperate in the past, enabling the AD’s 2023 budget before voting to topple the government earlier this year.
Both AD and PS, despite their ideological differences, have historically focused on fiscal discipline and reducing national debt - stances praised by the EU and global markets alike.
The rise of Chega ("Enough"), led by populist André Ventura, remains one of the most significant political shifts in recent years. Founded in 2019, the anti-establishment party has surged into third place, with 50 seats won in 2024. Its platform centers on hardline immigration policies, tough-on-crime proposals, and fierce criticism of the political status quo. While polling has plateaued around 18%, Chega remains a potential kingmaker. However, Montenegro has repeatedly ruled out any coalition with Ventura’s party, maintaining a firm "no means no" stance.
Smaller parties are also expected to influence the post-election landscape:
- The Liberal Initiative, a pro-business party polling at around 6%, could join a center-right coalition but would not offer enough support to ensure a stable majority.
- Livre, a progressive party polling ahead of its leftist peers, may gain additional seats after a strong showing in 2024.
- The Communist Party and Left Bloc, once major voices on the left, are projected to continue their decline, polling at 3% or less.
- The PAN (People, Animals, Nature) party may again secure just one seat.
Germany’s foreign intelligence service secretly monitored the telephone communications of former U.S. President Barack Obama for several years, including calls made aboard Air Force One, according to an investigation by the German newspaper Die Zeit.
Israeli media report that Israeli Prime Minister Benjamin Netanyahu chaired a lengthy security meeting that reportedly focused on the country’s regional threats, including Gaza, Lebanon, and Iran.
U.S. President Donald Trump said on Sunday (4 January) that the United States could carry out further military action in Venezuela following the capture of President Nicolás Maduro. Speaking to reporters aboard Air Force One, he said Washington now effectively controls the country.
At the end of last year, U.S. President Donald Trump was reported to have raised the Azerbaijan–Armenia peace agenda during a conversation with Israel’s prime minister, warning that if peace were not achieved, Washington could raise tariffs on both countries by 100 percent.
President Ilham Aliyev said 2025 has politically closed the Armenia-Azerbaijan conflict, as a Trump-era reset in U.S. ties, new transport corridors and a push into AI, renewables and defence production reshape Azerbaijan’s priorities.
U.S. President Donald Trump and his team are actively exploring options to acquire Greenland, with discussions including the potential use of the U.S. military, which is "always an option," according to a statement from the White House on Tuesday.
Leaders from the U.S. and European countries moved closer to finalising legally binding security guarantees for Ukraine following a “Coalition of the Willing” meeting in Paris on Sunday.
At least four people were killed and several others injured on Tuesday during fighting in Aleppo, northern Syria, state media reported. The government and the Kurdish-led Syrian Democratic Forces (SDF) are trading blame for the violence.
Ukrainian President Volodymyr Zelenskyy, French President Emmanuel Macron, and British Prime Minister Keir Starmer signed a declaration of intent on Tuesday outlining the future deployment of multinational forces in Ukraine.
The United States has presented Israel and Syria with a proposal for a security agreement that would establish a joint economic zone along the border, Axios reported on Tuesday.
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