At the Socialist Party (Partido Socialista or PS) congress in Viseu, leader José Luís Carneiro proposed 0% value-added tax (Imposto sobre o Valor Acrescentado or IVA) on essential food and a reduction to 13% for fuel. Meanwhile, former President Aníbal Cavaco Silva criticized the theatrical discourse of Chega and urged Prime Minister Luís Montenegro to maintain distance from the party. Tax-paying residents should note these proposals aim to address the rising cost of living linked to international conflicts.
PS leader proposes tax cuts while Cavaco slams Chega
Context & Explainers

Socialist Party (PS)
- Leader: José Luís Carneiro (since June 2025)
- Ideology: Center-left, Social democracy, pro-Europeanism
Portugal's other traditional major party suffered a historic collapse in the 2025 election, dropping from 78 to 58 seats and falling to third place for the first time in democratic history. The party was led by Pedro Nuno Santos from January 2024 until his resignation following the May 2025 defeat. José Luís Carneiro, a 53-year-old former Minister of Internal Administration known for his moderate positioning within the party, was elected unopposed as the new Secretary-General with 95% of votes in June 2025. The Socialist Party governed Portugal from 2015 to 2024, including an absolute majority from 2022 to 2024 under António Costa, who resigned in November 2023 amid a corruption investigation. The PS previously led the innovative "Geringonça" (contraption) coalition government from 2015-2019, a minority government supported by the Left Bloc and Portuguese Communist Party that reversed austerity measures and presided over economic recovery.
Aníbal Cavaco Silva is a former Prime Minister (1985–1995) and former President of Portugal (2006–2016) from the Social Democratic Party (Partido Social Democrata or PSD). He led the country during its early years in the European Union and is known for his focus on economic stability and modernization. As a senior political figure, he remains influential and recently criticized the lack of credibility in newer political movements like Chega.
Sources (8)
- Carneiro opens PS congress with ultimatum to Montenegro: “It is time we demand that the AD makes up its mind!”Expresso · 11:26pm, 27 Mar 2026
- Counterpoint. Cavaco asks Montenegro for firmness regarding ChegaRTP Notícias · 10:17pm, 27 Mar 2026
- Cavaco attacks Chega's "theatrical discourse of lies"Correio da Manhã · 1:30am, 28 Mar 2026
- Ventura tells Cavaco to "take responsibility"Observador · 12:37am, 28 Mar 2026
- Carneiro demands that Montenegro choose between the far-right and the moderation of the PS: “If the Government chooses winds, it will have storms”Público · 10:06pm, 27 Mar 2026
- Whoever 'copies the far-right ends up devoured by it', says leader of European SocialistsECO · 9:56pm, 27 Mar 2026
- José Luís Carneiro "will try to justify the position of not missing the dialogue with the PSD"CNN Portugal · 9:23pm, 27 Mar 2026
- Carneiro warns Government regarding Constitutional Court election: "You will hear a 'no' if you distort the democratic balance"Dinheiro Vivo · 9:35pm, 27 Mar 2026



