Wednesday, 7 October 2026

Prime Minister Luís Montenegro rejected calls from the Socialist Party (Partido Socialista or PS) to cancel an agreement with Chega on tenant regulations ahead of the State Budget (Orçamento do Estado) vote. Montenegro stated that negotiations with Chega over housing rules remain separate from budget talks and affirmed that the opposition cannot dictate government dialogue. Socialist leaders had warned that concessions to Chega could jeopardize support for the budget.

The Socialist Party (Partido Socialista or PS) confirmed it will abstain during the parliamentary vote on the 2027 State Budget (Orçamento do Estado), allowing the bill to pass. Socialist parliamentary leader André Moz Caldas said the party wants to prevent a political crisis and ensure the state avoids operating under emergency monthly twelfths (duodécimos) in January 2027. The leadership stated it would only change its stance if unexpected measures appear in the final proposal.

Minister of Education Fernando Alexandre said recent declines in Portuguese student scores on the international PISA exam stem from early smartphone use and social media habits. Alexandre also stated that previous administrations reduced educational standards by devaluing external exams and standardized tests. With national reading results falling to 2006 levels, the government plans to restrict smartphone access during school hours and introduce new diagnostic evaluations.

A five-day cabin crew strike at easyJet led to the cancellation of 370 flights in Portugal, according to the National Union of Civil Aviation Flight Personnel (Sindicato Nacional do Pessoal de Voo da Aviação Civil or SNPVAC). Union president Ricardo Penarroias reported 100% staff participation at Portuguese bases, resulting in an overall cancellation rate of approximately 90%. easyJet grounded 343 flights prior to the walkout and cancelled 30 more while the strike was underway.

Portuguese schools received 380 new student registrations in the first week of October, with foreign pupils accounting for 73% of the total, according to Minister of Education Fernando Alexandre. Speaking in parliament, Fernando Alexandre said public services are coping with the demand and noted that late enrolments occur every year. The minister also reported that 1,301 teaching schedules remain unfilled across the country, with 40% of full-year openings located in Greater Lisbon and the Setúbal peninsula.

Prime Minister Luís Montenegro addressed the European Parliament in Strasbourg to advocate for Portugal's priorities in the upcoming European Union multiannual budget. Montenegro pushed back against calls from larger member states for spending cuts, arguing that cohesion funds must remain protected. The negotiations coincide with European Council President António Costa's goal to finalize the financial framework by the end of the year.

Update: Montenegro Backs António Costa and Warns of Living Costs

During his address in Strasbourg, Prime Minister Luís Montenegro also expressed support for António Costa to remain as European Council President to ensure institutional stability. Montenegro called for coordinated European Union measures to address housing shortages and rising living costs, warning that economic hardship risks driving voters toward far-right populism.

A proposed reduction in personal income tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) rates up to the sixth tax bracket will cost roughly €400 million without affecting the 2027 State Budget (Orçamento do Estado). The government structured the tax cuts so the treasury absorbs the cost during 2026 by adjusting withholding tax (retenção na fonte) tables for November and December salaries. Parliament is scheduled to debate the measure this week.

Portugal has raised €104.7 million through cultural investment residency permits (visto gold) since introducing the option in 2020. United States citizens represent the largest group of investors using the scheme, followed by Russian applicants. However, the cultural heritage agency Museums and Monuments of Portugal (Museus e Monumentos de Portugal) confirmed it recently rejected €2.25 million in proposed investments from Russian nationals.

The government met with the Trade Union Federation of Public Administration (Federação dos Sindicatos da Administração Pública or FESAP) to open negotiations on civil service pay for 2027. FESAP secretary-general José Abraão asked the government to exceed the multi-year agreement, which currently schedules salary increases between 2.3% and 6.5%. The government did not commit to higher pay rises, postponing decisions until after discussions on the State Budget (Orçamento do Estado).

Chega leader André Ventura accused the President of the Assembly of the Republic (Assembleia da República), José Pedro Aguiar-Branco, of blocking a parliamentary inquiry into Judicial Police (Polícia Judiciária or PJ) national director Luís Neves. Ventura announced that Chega will demand an urgent parliamentary debate regarding the decision. Aguiar-Branco cited an informal cross-party understanding that limits the number of simultaneous inquiry commissions in parliament.

The European Parliament LGBTIQ+ Intergroup urged Portuguese authorities not to roll back legal protections for transgender and intersex individuals in the civil registry (registo civil). Left Bloc (Bloco de Esquerda) MEP Catarina Martins backed the call, pointing to existing protections established under 2018 legislation. Lawmakers expressed concern that proposed revisions could weaken guarantees regarding gender self-determination.

The National Authority of Medicines and Health Products (Autoridade Nacional do Medicamento e Produtos de Saúde or Infarmed) banned the export of 52 medicines to safeguard supplies in Portuguese pharmacies. The restriction covers pain relievers, antibiotics, antidepressants, and treatments prescribed for cancer care. The measure took effect immediately to ensure domestic access amid international supply chain pressures.

The Automobile Association of Portugal (Associação Automóvel de Portugal or ACAP) presented a proposal to phase out the vehicle tax (Imposto Sobre Veículos or ISV) over ten years until its complete elimination in 2036. Prepared in a study by EY, the plan suggests reducing the purchase levy by 10% annually while offsetting lost revenue through increases in the annual single circulation tax (Imposto Único de Circulação or IUC). The proposal seeks to modernize automobile taxation and reduce upfront costs for car buyers.

Fully electric passenger vehicles overtook hybrid sales for the first time in Portugal, capturing nearly half of all light passenger car registrations in September. Diesel sales dropped below 3% of the new car market as consumers continued shifting toward zero-emission options. Portugal now counts roughly 300,000 electric passenger vehicles on its roads.