Friday, 12 June 2026

The Lisbon Metro will extend its operating hours until 3:00 AM on the night of June 12 to accommodate crowds celebrating the Santo António festivities. The city is hosting various events, including traditional weddings and the Popular Marches (Marchas Populares), to honor the patron saint of Lisbon. Officials warn that while service is extended, connections to other transport networks are not guaranteed after the final metro departures.

The European Central Bank (Banco Central Europeu or BCE) has increased key interest rates by 0.25%, a move economists warn will lead to higher home loan repayments. Meanwhile, the International Monetary Fund (Fundo Monetário Internacional or FMI) has lowered growth forecasts for the Eurozone while raising inflation expectations. Officials advise a cautious approach to financial decision-making as the international economic crisis continues.

The National Emergency and Civil Protection Authority (Autoridade Nacional de Emergência e Proteção Civil or ANEPC) has issued a high-to-maximum wildfire warning for most of the country. Hot weather and strong winds are complicating firefighting efforts, including an ongoing blaze in Terras de Bouro that has burned for over 24 hours. Authorities have prohibited extensive burning and the use of certain agricultural machinery in critical zones.

The government has extended the deadline until December 31, 2026, for municipalities with over 1,000 local accommodation (Alojamento Local or AL) units to establish specific activity regulations. This exceptional measure allows local authorities more time to manage the density of short-term rentals. Recent data indicates that Porto currently has the highest concentration of these units per square kilometer in the country.

Prime Minister Luís Montenegro and Chega leader André Ventura met this Thursday to discuss the proposed Single Social Benefit (Prestação Social Única or PSU) and labour legislation. Ventura announced that the PSU proposal will move to the committee stage without a general parliamentary vote, following government concessions on several party demands. However, significant disagreements remain regarding the government's broader labour reform package.

The European Central Bank (Banco Central Europeu or BCE) is widely expected to increase its benchmark interest rate by 0.25 percentage points to 2.25% during its meeting this Thursday. Economists and investors anticipate the move as a measure to curb inflation, which the central bank aims to stabilize at 2%.

Update: Finance Minister disagrees with ECB interest rate hike

The ECB confirmed the 0.25 percentage point increase to 2.25% on Thursday, citing inflationary pressures from the ongoing conflict in the Middle East. Portuguese Finance Minister Joaquim Miranda Sarmento stated he respects the decision but disagrees with the move, arguing that the current economic crisis differs from 2022 and that the hike was not necessary.

The government has appointed former PSD deputy Luís Leite Ramos to lead the newly created agency for the Portugal Transformation, Recovery and Resilience (Portugal Transformação, Recuperação e Resiliência or PTRR) plan. The PTRR is a nine-year, 22.6 billion euro investment program designed to improve national infrastructure and increase resilience against climate-related disasters like the floods and storms experienced earlier in 2026.

Portugal will activate the European Union's budgetary safeguard clause to temporarily cover additional energy-related costs caused by the current international crisis. Finance Minister Joaquim Miranda Sarmento confirmed the move, noting that Brussels has authorized the exemption to prevent energy spending from being classified as a breach of EU fiscal rules.

The Public Security Police (Polícia de Segurança Pública or PSP) arrested eight suspects in Portimão this week in connection with multiple theft offenses. During the operation, officers recovered three stolen vehicles and seized over 1,000 liters of fuel in Olhão and Tavira.

The government has launched a new 10 million euro incentive program for the acquisition of zero-emission vehicles. Applications for the scheme, which also provides support for installing charging points, opened this Thursday and will remain available until July 27 or until the allocated funds are exhausted.

The government has approved a new law to amend the Value Added Tax (Imposto sobre o Valor Acrescentado or IVA) code specifically for the fuel sector. Minister of the Presidency António Leitão Amaro stated the changes aim to curb significant tax fraud by altering how the system functions.

President of the Republic António José Seguro has returned a decree to Parliament that sought to prohibit the display of ideological, partisan, or associative flags on public buildings. The bill, which had been approved in April with support from the PSD, Chega, and CDS-PP, was sent back without promulgation. The President's specific reasoning for the veto will be disclosed following a formal reading in the Assembly of the Republic.

The Portuguese national team secured a 2-1 victory against Nigeria in their final preparation match at the Dr. Magalhães Pessoa Stadium in Leiria. Goals from Pedro Neto and Francisco Conceição helped the squad, led by coach Roberto Martínez, finalize their preparations before heading to the 2026 FIFA World Cup in the United States.

The government's proposed labour package, submitted to the Assembly of the Republic by Minister Maria do Rosário da Palma Ramalho, is facing significant criticism for its perceived lack of dialogue with unions and the digital sector. Chega leader André Ventura has expressed openness to negotiation but threatened to vote against the proposal in the upcoming general debate.