Portugal Parliament prepares for new session and budget debates

The Portuguese Parliament is set to begin its second legislative session, with key priorities including the 2027 State Budget, a parliamentary inquiry regarding Minister Luís Neves, and the opening of a constitutional revision process.

Prime Minister Luís Montenegro has proposed tax relief for IRS up to the sixth bracket and an extraordinary pension supplement, both totaling 400 million euros. While the Socialist Party (PS) expressed willingness to support the government's budget, they have set conditions, including requiring PS/PSD agreement for constitutional changes and rejecting the privatization of Social Security.

In a separate development, former Prime Minister Pedro Passos Coelho has warned that the government's window for implementing structural reforms is closing. In a preface for an upcoming book, Passos Coelho argued that the administration must address productivity, competitiveness, and state reform rather than focusing on past grievances. He is also coordinating an economic study, ‘Bloqueios versus Reformas: uma visão para Portugal’, which aims to identify obstacles to Portuguese economic growth and is expected to be released by the end of the year.