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Presidential powers include appointing the Prime Minister, as advised by the Parliament which elects the Prime Minister, and the Council of Ministers, named by the Prime Minister. Some other major powers include dismissing the Government, dissolving the Parliament, and declaring war or peace. These have several constitutional restrictions, namely the need to previously consult the presidential advisory body. This is the Council of State, composed of six senior civilian officers, all former presidents elected since 1976, and ten citizens, five chosen by the President and other five by the Parliament. The most commonly used power is that of approving or vetoing any legislation.

Portugal was a strong advocate of independence for East Timor, a former Portuguese colony, and has committed troops and money to East Timor, in close cooperation with the United States, Asian allies, and the United Nations.

Portugal has been inhabited for at least 500,000 years, first by Neanderthals and then by modern humans coming from Africa less than 100,000 years ago.

Continental Portugal is split in two by its main river, the Tagus (Tejo). To the north the landscape is mountainous in the interior areas with plateaus, cut by four breakings lines that allow the development of relevant agricultural areas. Portugal's highest point, however, is Mount Pico (2351m) in the Azores.

From the 16th century, Portugal gradually saw its wealth decreasing. Even if Portugal was officially an autonomous state, the country was a Spanish puppet and Portuguese colonies were attacked by Spain's opponents, especially the Dutch and English.

The first documented invasion occurred long before the birth of Christ, when the Ophis with other tribes entered the Iberian Peninsula and instaled in the best lands of the Oestreminis, near the Douro and Tagus Rivers. Later the territory has been conquered or settled by numerous civilizations. Celts, Greeks, Iberians and Lusitanians to name some. The Phoenicians also settled in that part of the peninsula and had great influence on the Lusitanians, especially on their religion, culture and language. The Lusitanians are seen as the proto-Portuguese.

Portugal has a territorial dispute with Spain. By the Vienna Treaty of 1815, Spain agreed to return Olivença (Olivenza in Spanish) to Portugal, but this agreement was never met. Portugal has periodically reasserted its claim to the territory. This issue has been discussed at the Portuguese Parliament as recently as 2004. In accordance with international law, Olivença is still considered to be Portuguese territory, despite being under Spanish administration since 1801.

Prime Minister José Sócrates was sworn in by President Jorge Sampaio on March 12. To many's suprise, Sócrates formed a cabinet made up of roughly half senior members of the Socialist Party and half independents, among whom are Diogo Freitas do Amaral, founder of the rightist Partido Popular and the current Minister of Foreign Affairs.