LISBON, March 5 (Reuters) - Portugal's prime minister said on Wednesday he would submit his year-old minority government to a confidence motion, a move that could lead to its dismissal as the two main opposition parties have vowed to reject it.
At the centre of the political crisis that could trigger a third snap election since 2022 is a consultancy firm owned by Prime Minister Luis Montenegro's family, which has made contracts with private companies that the opposition says have benefitted the premier.
Montenegro has denied any conflict of interest.
"The country needs political clarification and this is the moment. ... The country cannot remain a prisoner of selfishness and tactics on the part of the opposition," Montenegro told parliament, adding that while a new election was not what Portugal needed, his party was ready to go to the polls.
"Having an early election would be a necessary evil ... to end the atmosphere of permanent insinuations and intrigues," he told lawmakers debating a no-confidence motion presented by the Communist Party, which parliament was expected to throw out.
It was not immediately clear when parliament would vote on Montenegro's motion, which first needs cabinet approval.
If lawmakers reject it, the government would fall and assume a caretaker role, pending a decision by President Marcelo Rebelo de Sousa on whether to dissolve parliament and call fresh elections, which some analysts consider likely. The president will make a statement later on Wednesday.
Montenegro's party has said he would lead it in any new election.
The main opposition Socialists and far-right party Chega, which together have more than half of all parliamentary seats, said they would reject a motion of confidence.
Such an outcome, according to the constitution, would require the government's dismissal, although since the restoration of democracy in 1974, only one out of 11 such motions has been rejected by Portugal's parliament, in 1977.
"The prime minister knows that the Socialists will reject the confidence motion. The responsibility for the political crisis is yours alone," said Socialist leader Pedro Nuno Santos, asking Montenegro, "Why don't you just resign?"
Portugal, Western Europe's poorest country, is growing faster than most EU members, at around 2% with budget surpluses, but is struggling to contain a housing crisis.
The centre-right coalition has 80 seats in the 230-seat parliament. The Socialists have 78 and Chega 50.