LISBON (Reuters – Portugal’s Parliament rejected the budget bill for 2022 of the Socialist Minority Government on Wednesday. The hard left sided against the conservative opposition in a move that could trigger snap elections within the next months.

With 5 abstentions, lawmakers voted 117 to108 to reject the bill. It proposed income tax cuts to the middle class as well increased public investment in post-pandemic recovery. The goal was to reduce the deficit from 4.3% to 3.2% by 2021.

Antonio Costa, Prime Minister, was a former hard left allie, along with the Communists, and the Left Bloc. These demands were made by the Communists, and they claim that Costa is not paying enough attention to deficit reductions.

Costa claimed he couldn’t accept destroying his hard-earned international reputation in a nation with the largest public debt burdens and in which there was severe austerity under international bailout 2011-14.

President Marcelo Rebelo de Sousa urged on Monday that without an adequate budget (which heavily depends on EU pandemic relief funds), he could not dissolve Parliament and convene snap elections, two years before schedule.

Costa was responsible for six years of stability and solid economic growth, before last year’s pandemic. He said that he will lead his party during any elections.