Wednesday, 25 March 2026

Negotiations between the government, the General Workers' Union (União Geral de Trabalhadores or UGT), and employers' associations have ended without an agreement on a new labour package. Despite 52 meetings, parties remain divided on key issues, though some participants suggest there is still room for a deal. The reforms are intended to update employment laws and working conditions across the country. Workers should note that current labour regulations remain in place while discussions continue.

Update: UGT awaits final government proposal before April decision

The UGT is waiting for a final written proposal from the government before its leadership meets on April 9 to decide on the labour package. While the General Confederation of Portuguese Workers (Confederação Geral dos Trabalhadores Portugueses or CGTP) was excluded from the latest meeting, employers' associations have signaled support for long-term salary increases. Negotiators are aiming for a consensus on the Labour Code (Código do Trabalho) shortly after Easter.

The Public Prosecutor's Office (Ministério Público) has charged the Mayor of Oeiras, Isaltino Morais, and 22 other officials with embezzlement (peculato) and abuse of power. The case involves over 150,000 euros spent on 1,441 meals paid for by the municipality between 2017 and 2024, including luxury items like seafood and tobacco. Prosecutors are seeking the return of the funds and the forfeiture of the mayor's mandate, while the Oeiras City Council (Câmara Municipal de Oeiras) refutes the allegations. Oeiras residents should be aware of the potential for leadership changes if the case proceeds to trial.

Update: Details emerge on alleged meal expense embezzlement scheme

New details suggest that local restaurants billed the city council directly for the meals, with payments reportedly made in cash to avoid standard oversight. The scheme allegedly involved costs averaging over 1,200 euros per month, and the list of 23 defendants now includes a current Lisbon city councillor and a former Secretary of State.

Finance Minister Joaquim Miranda Sarmento announced that the 2025 budget surplus (excedente orçamental) will be a “pleasant surprise” when official data is released this Thursday by the National Statistics Institute (Instituto Nacional de Estatística or INE). While the government previously forecast a surplus of 0.3% of GDP, the final figure is expected to be significantly higher. However, officials warned that 2026 may face a deficit due to the economic impact of recent storms and international conflicts. Residents should note that a strong surplus often influences government decisions on tax cuts and public investment.

A new analysis indicates that Portugal is among the Eurozone countries most affected by European Central Bank (Banco Central Europeu) interest rate increases. Because a high proportion of Portuguese mortgages (crédito habitação) have variable rates, rising costs lead to a sharper contraction in household spending compared to other European nations. Economists also warn that the national economy is showing signs of slowing down due to broader European trends and geopolitical tensions. Those with variable-rate mortgages should monitor ECB policy shifts closely for impacts on their monthly budgets.

A judge has suspended the Secretary-General of the Lisbon City Council (Câmara Municipal de Lisboa), Alberto Laplaine Guimarães, as part of “Operation Lumen” (Operação Lúmen). The investigation targets alleged corruption and economic crimes related to municipal contracts for Christmas lighting across several councils. The court also imposed a 100,000 euro bail on a businessman involved and prohibited the defendants from contacting municipal staff. Residents in Lisbon and Alandroal should note the ongoing investigation into local government spending.

Thousands of students marched in Lisbon on National Student Day (Dia Nacional do Estudante) to demand free higher education and more student housing. The protest coincided with comments from Education Minister Fernando Alexandre, who suggested that tuition fees (propinas) should be adjusted for inflation after being frozen for several years. The government has promised 14,000 new beds in student residences by the next academic year to address the housing crisis. Families with university students should be aware of potential cost increases in future state budgets.

National Health Service (SNS) hospitals performed a record 22,000 caesarean sections (cesarianas) in 2025, a 5% increase from the previous year. The highest rates were recorded in the North and Alentejo regions, where a shortage of obstetricians (obstetras) is reportedly influencing clinical decisions. Health officials note that while some cases are medically necessary, the rising trend is a concern for public health standards. Expectant parents using the public system should discuss birth plans with their medical teams early in the pregnancy.

The government plans to install 12 additional average speed cameras (radares de velocidade média) by the end of the year to reduce accident rates. The National Road Safety Authority (Autoridade Nacional de Segurança Rodoviária or ANSR) is currently identifying high-risk locations for the new equipment. Officials also announced plans to use artificial intelligence to improve traffic management and prevent collisions. Drivers should note that these cameras calculate speed over a distance rather than at a single point.

The Intermunicipal Community of the Leiria Region (Comunidade Intermunicipal da Região de Leiria or CIMRL) says that promised government support for storm damage has yet to arrive. The region suffered significant destruction from storms Kristin, Leonardo, and Marta nearly two months ago, affecting infrastructure and drainage networks. Local leaders are calling for higher support rates and faster access to funds from the Recovery and Resilience Plan (Plano de Recuperação e Resiliência or PRR). Residents in the Leiria area should be aware of ongoing efforts to secure funding for local repairs.

Telecom operators Meo and Nos report that fixed network services in areas hit by recent storms are nearly fully restored, with completion expected by April 30. While mobile networks are already back to normal, fixed-line repairs require rebuilding entire sections of infrastructure damaged by the weather. Affected customers are expected to receive automatic credits on their bills for the period they were without service. Residents in storm-affected regions should check their next statements for these adjustments.

Cultural mediators at the Agency for Integration, Migration and Asylum (Agência para a Integração, Migrações e Asilo or AIMA) have scheduled a strike for March 30. The workers are demanding integration into the agency's permanent staff, arguing that they are currently employed under precarious conditions while performing essential roles. Those awaiting residency appointments or integration services should note potential disruptions at AIMA offices on the strike date.

The Tax Authority (Autoridade Tributária e Aduaneira or AT) has ruled that delays in municipal licensing do not justify extending the 36-month deadline for reinvesting capital gains from a primary residence. This means taxpayers who fail to complete a new home purchase within the legal timeframe due to bureaucratic delays will still face Personal Income Tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) on those gains. Tax-paying residents should note that the AT maintains a strict interpretation of the law regardless of external delays.