Portugal is affiliated with many organizations and a founding member of several. They include the Organization of Economic Cooperation and Development (OECD), the International Monetary Fund (IMF), the North Atlantic Treaty Organization (NATO) and the European Free Trade Association (EFTA).

Portugal joined the European Union in 1986 and today is one of its 26 members. In 1991 Portugal joined the European Monetary Union and eight years later the escudo, its sole currency, was replaced with the euro.

A democratic republic, Portugal's citizens elect a president every five years. The President is also commander in chief of the armed forces and among other duties, it's his job to declare war or peace. Portugal has a prime minsiter and a unicameral Parliment consisting of 230 deputies.