The Portuguese President Jorge Sampaio has begun moves to dissolve parliament and call an election after deciding Prime Minister Pedro Santana Lopes could no longer continue in the job.
The move came in the wake of a top minister's resignation, budget problems, poor polls, a negative assessment of the country's economic outlook from a credit rating agency, and accusations of government interference with the media.
"The president informed me of his decision to start the steps leading to a dissolution of parliament," Santana Lopes said after a 40-minute meeting with Sampaio.
A presidential palace source said Sampaio believed Santana Lopes lacked "the indispensable political conditions" needed to lead the nation of 10 million people.
An election is likely in February 2005 even though Santana Lopes, who became prime minister four months ago when his predecessor Jose Durao Barroso became head of the European Commission, said there were "no reasons for this dissolution."
Santana Lopes's Social Democrats badly trail the opposition Socialists in opinion polls. The Socialists, headed by the telegenic Jose Socrates, were backed by almost half of voters compared with 32.4 percent for the Social Democrats in a Marktest poll released Friday.
When Barroso resigned, rival party leaders called at the time for elections. Sampaio let Santana Lopes take over the government, but warned that he must maintain stability in such areas as foreign affairs and finances.
The prospect of elections raises questions about the future of reforms launched by Barroso to streamline the economy. They include pension system changes and measures to fight tax fraud.
The latest crisis came to a head with the resignation of sports minister Henrique Chaves Sunday after only four days in office. He cited a "serious inversion of loyalty and truth" by the prime minister.
Chaves's resignation had prompted Sampaio to act, the presidential source said.