Portugal pushes Prestação Social Única reform as parties negotiate terms

The Portuguese government’s plan to merge 13 non‑contributory benefits into a single Prestação Social Única (PSU) has moved forward after the Socialist Party (PS) reached an agreement with the executive. The deal removes the mandatory social‑work requirement and the proposed whistle‑blower channel, opening the way for the country to access “hundreds of millions of euros” of EU recovery funds. The Social Democratic Party (PSD) and the CDS‑PP have added amendments, including a two‑year legal‑residence condition for non‑EU nationals seeking the benefit, and have called for a gradual increase in the tax deduction for families with three or more children. The far‑right Chega party, led by André Ventura, continues to oppose the proposal, demanding a five‑year contribution period and stricter eligibility rules. The International Monetary Fund, in its annual Article IV review, welcomed the PSU as a simplification of the welfare system but warned that recent housing‑guarantee schemes for young buyers have amplified market imbalances. PS secretary‑general José Luís Carneiro criticised the government for lacking an economic agenda and warned of declining international competitiveness. Parliamentary debate on the draft law continues, with the final vote pending.