Portugal's ruling Socialists looked set to win the most votes, and possibly an outright majority, in Sunday's parliamentary election, exit polls showed, triggering celebrations in prime minister Antonio Costa's election headquarters.
The result, boosted by a higher than expected turnout despite the coronavirus pandemic, comes as a surprise after the Socialists had lost most of their advantage in recent opinion polls, and could signal a chance for Portugal to have a stable government, contrary to most expectations.
As exit polls came out on TV screens showing the Socialist Party in the 37-42.5 per cent range - well ahead of the main centre-right opposition Social Democrats on 26.7-35 per cent - Socialist supporters at the party headquarters shouted “Victory, victory!”. One woman waving a flag said: "What a relief."
The far-right Chega, on 4.5-8.5 per cent, could emerge as the third-largest parliamentary force, but is closely followed by the moderate Liberal Initiative, according to the polls published by the three main television channels SIC, RTP and TVI.
If the Socialists do not secure an outright majority but come close to the 116 seat threshold, Costa could try to seal a pact for support with two small ecology-minded parties, PAN and Livre.
The vote was called in November after Costa's hard-left Communist and Left Bloc allies joined the right in striking down his minority government's budget. Costa will now get a new chance at forming a government and approving the 2022 spending plan.
The Left Bloc and Communists lost a large share of their votes compared to the previous election in 2019.
A stable government would bode well for Portugal's access to a €16.6 billion package of EU pandemic recovery aid and its success in channelling funds into projects to boost economic growth in western Europe's poorest country.
