Portugal Labor Minister calls for political pact on Social Security reform

Portugal's Minister of Labor, Solidarity, and Social Security, Maria do Rosário Palma Ramalho, has called for a “pact of regime” among political parties to address the future of the country's pension system. Speaking during a parliamentary hearing regarding the 2027 State Budget, the minister emphasized that while parties may not initially agree on specific solutions, there must be a shared understanding of the challenges facing Social Security sustainability.

The minister addressed criticisms from the Liberal Initiative regarding the status of a recent study on the matter, asserting that the report is actively being debated and is “not in a drawer.” Ramalho noted that the government formed an independent working group to deepen previous studies, citing conflicting prior assessments from the Court of Auditors and the European Commission.

While the Prime Minister has expressed a desire for a national consensus, he has also indicated that profound structural changes to the system are unlikely to occur during the current legislature. The minister maintained that the conclusions of the independent working group do not dictate government decisions but serve as a basis for necessary political debate.