Portugal: Persistent Political Fragmentation Will Test Fiscal and Growth Prospects

Market Consensus Alvise Lennkh-Yunus and Alessandra Poli (Scope Ratings) It is likely that Portugal will face another government in minority after inconclusive parliamentary elections that could complicate policy formulation, including fiscal and economic reforms.Graph 1: Fragmentation of the Portuguese Parliament complicates policy formulation Although Portugal has a history of minority governments and a vote of confidence is not necessary to …