PCP criticism of PS regarding State Budget and Chega

The Portuguese Communist Party (PCP) held the 50th edition of its Festa do Avante! festival, a political and cultural event featuring various debates, music, and literature activities.

During the event, PCP Secretary-General Paulo Raimundo issued warnings to the Socialist Party (PS) regarding the upcoming State Budget. Raimundo argued that if the PS supports the budget, it would be complicit in right-wing policies and allow parties such as Chega and IL to “continue to deceive the people” or increase political pressure. He characterized the current government's policy as a “disaster” that warrants censure, claiming such support would lead to the dismantling of the National Health Service, attacks on public education, real estate speculation, and cuts to wages and social security.

By October 2026, Raimundo accused the PS of enabling the Chega party to maintain a political ‘mask’ regarding the PSD/CDS government. He suggested that the PS’s decision to support the viability of the 2027 State Budget proposal relieved Chega of the necessity to facilitate the budget, creating a dynamic where the PS supports the government when Chega acts out, while Chega assists when the PS fails. These criticisms followed legislative developments involving agreements between the PSD and Chega regarding urban rental regimes and government approvals of laws related to evictions and rent increases.

Discussions also emerged regarding the tax status of the festival. While questions were raised about potential unique privileges, legal regulations indicate that all Portuguese political parties are exempt from Municipal Property Tax on properties used for political activity and from VAT on goods and services used to disseminate their political identity.