Tuesday, 13 October 2026

The Public Security Police (Polícia de Segurança Pública or PSP) and the Porto Municipal Police (Polícia Municipal) cleared an encampment of approximately 50 tents in Praça Dom João I on Monday morning. Activists had occupied the square following a weekend demonstration protesting escalating housing costs and the rising cost of living. The Left Bloc (Bloco de Esquerda) demanded explanations from the Ministry of Internal Administration regarding the legal basis for dismantling the camp.

Update: Housing Activists Sleep Outdoors After Tents Dismantled

Roughly 200 housing activists spent Monday night sleeping in Praça Dom João I despite police removing their tents earlier in the day. The demonstrators vowed to maintain their presence in central Porto until local and national authorities address rising rents and housing scarcity.

The International Monetary Fund (Fundo Monetário Internacional or FMI) revised Portugal's gross domestic product (Produto Interno Bruto or PIB) growth forecast upward to 2.1% for this year and 1.9% for 2027 in its latest World Economic Outlook. However, the projections remain below the government's forecasts presented in the draft 2027 State Budget (Orçamento do Estado). The fund warned of persistent inflation and weaker growth among major European trading partners, complicating government fiscal targets.

Prime Minister and Social Democratic Party (Partido Social Democrata or PSD) leader Luís Montenegro rejected suggestions from former Prime Minister Pedro Passos Coelho to negotiate governing pacts with Chega. Passos Coelho argued that the right-wing majority in parliament should govern together, criticizing Montenegro's refusal to ally with André Ventura's party. Montenegro responded that he does not govern based on “tantrums, obsessions, or complexes” and ruled out binding his administration to Chega.

Former Prime Minister Pedro Passos Coelho stated he may return to politics if the Social Democratic Party (Partido Social Democrata or PSD) fails to enact meaningful structural reforms. Speaking on SIC Notícias, Pedro Passos Coelho argued that Prime Minister Luís Montenegro should have sought a four-year governing agreement with Chega and the Liberal Initiative (Iniciativa Liberal or IL). He also praised Chega leader André Ventura while warning that the current minority administration is moving too slowly on reforms.

Update: Ventura and Government Dismiss Proposed Right-Wing Alliance

Chega leader André Ventura responded that the window for a formal governing agreement has passed, stating that the PSD previously rejected talks though he remains open to cooperation on specific measures. Minister of Infrastructure and Housing Miguel Pinto Luz affirmed that while the government listens to opinions from party elders, it will govern under its own mandate without pursuing an alliance with Chega.

Construction started on Monday on the first section of the high-speed rail line connecting Porto-Campanhã to Oiã in the Aveiro district. Once finished, the route will cut rail travel time between Lisbon and Porto to one hour and 15 minutes. Minister of Infrastructure and Housing (Ministro das Infraestruturas e Habitação) Miguel Pinto Luz called high-speed rail one of the country's largest infrastructure investments of the century, with complete links to Vigo and Madrid planned by 2032 and 2034.

The Judiciary Police (Polícia Judiciária or PJ) seized 3,700 kilograms of cocaine from a high-speed boat intercepted roughly 80 nautical miles south of Faro during an operation named Mare Nostrum. One suspect died and two others were detained after their vessel collided with authorities during a pursuit at sea. The maritime interdiction was conducted jointly with the Portuguese Navy (Marinha Portuguesa), the Maritime Police (Polícia Marítima), and Italian authorities.

German airline Lufthansa submitted an all-cash offer to acquire a 44.9% stake in TAP Air Portugal. The approach differs from rival bidder Air France-KLM, whose proposal included an option for the Portuguese state to swap its TAP holdings for shares in the Franco-Dutch carrier. The government is currently evaluating the competing bids as part of its plan to privatize the national airline.

The National Association of Parish Councils (Associação Nacional de Freguesias or Anafre) announced that parish councils across Portugal will shut down all services on 4 November unless their core demands are met in the 2027 State Budget (Orçamento do Estado). The association is demanding higher funding allocations, full-time employment status for parish leaders, and updated funding transfers. Anafre warned that failure to reach an agreement could lead to the permanent closure of central government counters run by parishes, including Citizen Spaces (Espaços Cidadão) and local social security desks.

The Confederation of Portuguese Business (Confederação Empresarial de Portugal or CIP) said planned defence spending could double the sector's workforce from 40,000 to 80,000 jobs over the next decade. CIP called on the government to ensure domestic companies participate in military contracts as Portugal prepares to invest €10 billion in defence. The business confederation estimated that half of the projected positions would require university degrees.

The Lisbon Metro and the Public Security Police (Polícia de Segurança Pública or PSP) signed an agreement guaranteeing continuous police presence across the underground network. The protocol formalizes the temporary police station at Laranjeiras operating since June. The accord also sets terms for the police unit to return to Marquês de Pombal once ongoing station renovations are finished.

Portuguese energy group Galp announced that its refining margin reached $33.8 per barrel in the third quarter, more than tripling from $9.5 in the same quarter last year. The quarterly margin is the highest recorded in the company's history, up from $16.8 per barrel in the previous quarter. The surge was driven primarily by shifts in international markets and fuel supply tensions related to Middle East conflicts.

The European Parliament's Budgets Committee approved €261.5 million in aid on Monday to support Portugal following extensive damage caused by severe storms in January and February. The funding is intended to help reconstruct public infrastructure and support recovery efforts across affected municipalities. The aid package still requires formal confirmation by both the Council of the European Union and the European Parliament plenary before funds are released.

The Portuguese state injected €136 million into public holding company Parpública ahead of acquiring a larger stake in national energy grid operator Redes Energéticas Nacionais (REN). The capital increase occurred immediately before the presentation of the 2027 State Budget and paved the way to purchase a 5.32% share from insurer Fidelidade. The acquisition will raise total public ownership in REN to 19%.

Three Portuguese business schools placed among the world's top 100 programmes in the 2026 Financial Times Executive MBA ranking. Iscte Executive Education reached 55th place globally, rising 26 spots to lead Portugal's business schools. The joint programme from Católica Lisbon School of Business and Economics and Nova School of Business and Economics, alongside Porto Business School, also maintained places on the global list.