The PM oversaw the transition of the Portugal into a democracy known as the Processo Revolucionário Em Curso or the Ongoing Revolutionary Process.

Emboldened by this, the Prime Minister proceeded to nationalize all Portuguese-owned capital in the banking, insurance, petrochemical, fertilizer, tobacco, cement, and wood pulp sectors of the economy, as well as the Portuguese iron and steel company, major breweries, large shipping lines, most public transport, two of the three principal shipyards, core companies of the Companhia União Fabril (CUF) conglomerate, radio and TV networks (except that of the Roman Catholic Church), and important companies in the glass, mining, fishing, and agricultural sectors.

The tone of this speech raised doubts about his sanity and two weeks later, amid a growing threat of civil war, President Francisco da Costa Gomes dismissed Gonçalves.

[8] After his tenure as Prime Minister, Gonçalves retired from politics and would occasionally attend rallies in support of movements from the left.

[9] Vasco dos Santos Gonçalves died on 11 June 2005 at the age of 84 after drowning in his brother's swimming pool due to cardiac complications.