Portuguese parties clash over cost of living debates

Political parties in Portugal are clashing over the timing and nature of parliamentary debates regarding the rising cost of living. The Socialist Party (PS) has requested an urgent debate in the Assembly of the Republic for this coming Friday to pressure the government to address rising fuel, food, and housing costs.

While both the PS and the Chega party advocate for reducing VAT on fuel and implementing zero VAT on essential food items, they remain misaligned on implementation. Chega has proposed a legislative project to reduce fuel VAT from 23% to 13% for at least one year. In contrast, the PS is pushing for resolution projects that recommend temporary reductions subject to monthly evaluations.

André Ventura of Chega criticized the PS approach, suggesting their resolutions are merely recommendations that allow the government to act at its own discretion. Conversely, PS parliamentary leader Eurico Brilhante Dias argued that Chega’s proposals only take effect in January 2027, stating that “the Portuguese will not hold out until January.”