The 1995 Portuguese legislative election took place on 1 October. The election renewed all 230 members of the Assembly of the Republic.

The incumbent prime minister, Aníbal Cavaco Silva, decided not to run for a fourth consecutive term,"Cavaco Silva não se recandidata ao PSD", RTP Arquivo, 23 January 1995. Retrieved 6 September 2020. and the Social Democratic Party choose Fernando Nogueira, one of Cavaco Silva's deputies, as leader and candidate for prime minister at a highly contested and bitter party congress in February 1995.""Big Show PSD": Drama, comédia, suspense - há de tudo em 37 anos de congressos, TSF, 16 February 2018. Retrieved 6 September 2020. But the PSD was weakened by the end of the 10-year cycle of governments led by Cavaco Silva, although during the campaign there was strong speculation that Cavaco Silva would run for the 1996 presidential election, which he ultimately did"Conferência de imprensa de Cavaco Silva", RTP Arquivo, 7 February 1995. Retrieved 6 September 2020. and lost."Cavaco Silva assume a derrota", RTP Arquivo, 15 January 1996. Retrieved 10 March 2026.

The PS easily won the election with 44 percent of the votes, against the 34 percent of the PSD, achieving their first general election victory since 1983 and after a decade in opposition, but missed the absolute majority by just 4 MPs. António Guterres, elected as PS leader three years before, became prime minister. The Social Democratic Party suffered a heavy defeat, losing almost 50 seats and 17 percentage points. This election marked the growing bi-polarization of the Portuguese political map. The two minor parties, the People's Party (CDS–PP) and the Democratic Unity Coalition (CDU) achieved only 15 MPs each, and for the first time ever the CDU failed to win a single district, and saw CDS–PP surpassing them in votes for the first time since 1976.

Although turnout, in percentage points, was lower than the previous election in 1991, almost 6 million voters cast a ballot on election day, the highest figure since 1980. Voter turnout stood at 66.3 percent, the lowest until then.

Background During his third term, Cavaco Silva's government continued the political and economic reforms, as well as infrastructure modernization, that characterized his previous two terms."A "década de betão" do cavaquismo", RTP, 7 March 2016. Retrieved 15 January 2025. However, during 1993, the economy entered a recession, with a sharp increase in unemployment, forcing the government to implement financial restraint measures to control inflation and spending, as well as to prepare the country for the European Single Currency, although growth resumed by early 1995. Recurring scandals involving government members, from accusations of nepotism and gaffes to corruption, as well as news implicating the Prime Minister himself, further eroded the government's position. The relationship between Cavaco Silva and President Mário Soares also suffered a significant deterioration. During this period, and despite having recovered some ground, the PSD was defeated in both the 1993 local elections and the 1994 European elections. Furthermore, just a few days after the 1994 European elections, the government's image was tarnished by the violent clashes and repression against the increase in tolls on the 25th of April Bridge."Bloqueio da ponte. O princípio do fim do cavaquismo foi há 25 anos", Diário de Notícias, 22 July 2019. Retrieved 6 September 2020.

Leadership changes and challenges The four main parties all changed their leaders during the 1991–1995 legislature.

Socialist Party The 1991 general election Socialist defeat, and the scale of it, surprised the party, with António Guterres actually saying "he was in shock"."10 momentos que marcaram a vida do novo secretário-geral da ONU", Jornal Sol, 7 October 2016. Retrieved 6 June 2022. Then PS leader, Jorge Sampaio, faced a lot of criticisms regarding his strategy, but announced he was running for reelection as party leader. He would face António Guterres and Álvaro Beleza."O ano em que (o muito jovem) Álvaro Beleza quis liderar o PS", Observador, 5 October 2015. Retrieved 6 June 2022. A party leadership congress was called for February 1992, however, during the days prior to the start of the congress, Sampaio withdrew from the race and Guterres was easily elected as party leader:"Perdeu PS para Guterres e Beleza ficou com votos do líder no congresso", Jornal de Notícias, 10 September 2021. Retrieved 6 June 2022. The results were the following:

|- style="background-color:#E9E9E9" ! align="center" colspan=2 style="width: 60px"|Candidate ! align="center" style="width: 50px"|Votes ! align="center" style="width: 50px"|%

| align=left | António Guterres | align=right | 1,122 | align=right | 67.3

| align=left | Álvaro Beleza | align=right | 190 | align=right | 11.4

| align=left | Jorge Sampaio | colspan="2" align=center | withdrew |- | colspan=2 align=left | Blank/Invalid ballots | align=right | 354 | align=right | 21.2 |- |- style="background-color:#E9E9E9" | colspan=2 style="text-align:left;" | Turnout | align=right |1,666 | align=center | |- | colspan="4" align=left|Source: Acção Socialista

CDS – People's Party Then CDS leader, Diogo Freitas do Amaral, resigned from the leadership following the party's poor results in the 1991 general election."Demissão de Freitas do Amaral", RTP, 7 October 1991. Retrieved 6 June 2022. A party congress to elect a new leader was called for late March 1992 and 3 candidates were on the ballot: Manuel Monteiro, Basílio Horta, the party's candidate for the 1991 Presidential election and António Lobo Xavier."X Congresso do CDS", RTP, 21 March 1992. Retrieved 6 June 2022. Manuel Monteiro was easily elected as leader:"Manuel Monteiro eleito líder do CDS", RTP, 22 March 1992. Retrieved 6 June 2022.

|- style="background-color:#E9E9E9" ! align="center" colspan=2 style="width: 60px"|Candidate ! align="center" style="width: 50px"|Votes ! align="center" style="width: 50px"|%

| align=left | Manuel Monteiro | align=center | WIN | align=right |

| align=left | Basílio Horta | align=right | | align=right |

| align=left | António Lobo Xavier | align=right | | align=right | |- |- style="background-color:#E9E9E9" | colspan=2 style="text-align:left;" | Turnout | align=right | | align=center | |- | colspan="4" align=left|Source:

Following Monteiro's election as leader, the name "People's Party (PP)" was added to the party's name in 1993,"ACÓRDÃO Nº 282/93", Constitutional Court, 30 March 1995. Retrieved 9 November 2025. and officially approved by party delegates in a party congress two years later, in February 1995."13º Congresso do CDS-PP", RTP Arquivos, 12 February 1995. Retrieved 9 November 2025. Manuel Monteiro's more right-wing and eurosceptic positions, led party founder and former leader Freitas do Amaral to announce his departure from the party in 1992."Morreu Freitas do Amaral - O político do “Percurso singular”", Expresso, 3 October 2019. Retrieved 22 May 2026.

Portuguese Communist Party The historic Portuguese Communist Party leader, Álvaro Cunhal, announced he would step down from the leadership of the party in late 1992."A despedida de um líder que nunca deixou de o ser", Diário de Notícias, 14 June 2005. Retrieved 6 June 2022. Carlos Carvalhas, the party's deputy leader was chosen as Cunhal's successor and was unanimously elected, but Cunhal remained a powerful figure within the party as a new body, the National Council, was created so that Cunhal could lead it."Entrevista a Carlos Carvalhas", RTP, 6 December 1991. Retrieved 6 June 2022.

|- style="background-color:#E9E9E9" ! align="center" colspan=2 style="width: 60px"|Candidate ! align="center" style="width: 50px"|Votes ! align="center" style="width: 50px"|% |- |bgcolor=red| | align=left | Carlos Carvalhas | align=center | | align=right | 100.0 |- |- style="background-color:#E9E9E9" | colspan=2 style="text-align:left;" | Turnout | align=right | | align=center | |- | colspan="4" align=left|Source:

Social Democratic Party After serving nearly 10 years as prime minister, there were doubts if Cavaco Silva would run for another term, thus creating a big "taboo" in Portuguese politics."O grande tabu quebrou-se há 20 anos ", Expresso, 16 February 2015. Retrieved 6 June 2022. Cavaco promised a decision during the spring of 1995, but in January 1995, he announced he would not run for another term as prime minister and PSD leader."Cavaco Silva não se recandidata ao PSD", RTP, 23 January 1995. Retrieved 6 June 2022. This led the PSD to call a congress to elect a new leader. The congress become iconic for how tense and stormy it was, with strong accusations between several party members."OS SEGREDOS E OS NOMES DE UMA NOITE DE TEMPESTADE NO COLISEU", Correio da Manhã, 3 October 2003. Retrieved 6 June 2022. Three candidates announced a run for the leadership: Former defense minister Fernando Nogueira, foreign affairs minister José Manuel Durão Barroso, and former culture secretary Pedro Santana Lopes."Candidatos do PSD em ações de campanha", RTP, 16 February 1995. Retrieved 6 June 2022. Santana Lopes withdrew before the ballot, and Fernando Nogueira narrowly defeated Durão Barroso by just 33 votes. The results were the following:

|- style="background-color:#E9E9E9" ! align="center" colspan=2 style="width: 60px"|Candidate ! align="center" style="width: 50px"|Votes ! align="center" style="width: 50px"|% |- |bgcolor=orange| | align=left | Fernando Nogueira | align=right | 532 | align=right | 51.6 |- |bgcolor=orange| | align=left | José Manuel Durão Barroso | align=right | 499 | align=right | 48.4 |- |bgcolor=orange| | align=left | Pedro Santana Lopes | colspan="2" align=center| withdrew |- |- style="background-color:#E9E9E9" | colspan=2 style="text-align:left;" | Turnout | align=right | 1,031 | align=center | |- | colspan="4" align=left|Source:"XVII Congresso do PSD", RTP, 19 February 1995. Retrieved 6 June 2022."Os congressos quentes do PSD no poder ", Público, 23 March 2012. Retrieved 6 June 2022.

Electoral system The Assembly of the Republic has 230 members elected to four-year terms. Governments do not require absolute majority support of the Assembly to hold office, as even if the number of opposers of government is larger than that of the supporters, the number of opposers still needs to be equal or greater than 116 (absolute majority) for both the Government's Programme to be rejected or for a motion of no confidence to be approved.

The number of seats assigned to each district depends on the district magnitude. The use of the d'Hondt method makes for a higher effective threshold than certain other allocation methods such as the Hare quota or Sainte-Laguë method, which are more generous to small parties.Gallaher, Michael (1992). "Comparing Proportional Representation Electoral Systems: Quotas, Thresholds, Paradoxes and Majorities"

For these elections, and compared with the 1991 elections, the MPs distributed by districts were the following: District Number of MPs Map Lisbon 50 Porto 37 Setúbal 17 Braga 16 Aveiro 14 Leiria, Santarém and Coimbra 10 Viseu 9 Faro 8 Viana do Castelo 6 Azores, Castelo Branco, Madeira and Vila Real 5 Beja, Bragança, Évora and Guarda 4 Portalegre 3 Europe and Outside Europe 2

Parties The table below lists the parties represented in the Assembly of the Republic during the 6th legislature (1991–1995) and that also partook in the election: