EU and Portugal advance major social security reforms

The European Union is advancing major revisions to the coordination rules of national social security systems. The European Parliament approved a text in its first reading on July 7, 2026, which aims to assist individuals living or working in different Member States. Key changes include extending the period during which unemployed persons can export their benefits to another EU country from three to six months, provided they meet specific conditions.

In Portugal, the government is preparing a significant reform through the introduction of the Prestação Social Única (PSU). This new benefit aims to consolidate 13 different social supports—including the Social Insertion Income, old-age social pensions, widowhood and orphanhood pensions, and unemployment subsidies—into a single, unified regime. The goal is to reduce fragmentation, simplify administration, and better link financial aid with professional reintegration and social monitoring for vulnerable populations.