The Draghi Report's ambitions force Europe to confront uncomfortable realities: it is falling significantly behind global competitors. The analysis argues that the ‘race’ has been underway for years and that closing the gap requires urgent, active policy choices — including structural reforms, targeted investment and a renewed focus on competitiveness across the single market.

U.S. President Donald Trump announced tariffs on eight European countries tied to a dispute over Greenland, prompting President of the European Council, António Costa, and EU ambassadors to meet urgently on Sunday and leaders to promise a coordinated response. Brussels and several national leaders warned the measures threaten transatlantic relations; the European Parliament has signalled it will not advance a pending EU–US trade deal while tensions escalate. The political uncertainty could stall trade policy and affect exporters and markets; business owners and exporters should monitor developments closely.

Update: Multiple outlets (RTP, POLITICO Europe, ECO) report French President Emmanuel Macron pressed EU leaders to activate the bloc’s anti‑coercion instrument if Washington imposes the threatened surtaxes; the tool would require a qualified majority of member states to be deployed and is meant as a legal-political deterrent. Markets, exporters and import‑dependent businesses should monitor diplomatic developments and any concrete EU measures that could affect trade flows.

Portugal faces a mixed outcome from the EU–Mercosur trade agreement. Export-oriented sectors such as wine, olive oil and cheese see expanded market access to Argentina, Brazil, Paraguay and Uruguay as growth opportunities, while domestic meat and rice producers fear increased competition, downward price pressure and quota-driven market disruption. The deal thus creates winners and losers within Portugal’s agricultural and food industries, highlighting the need for safeguards, support measures and sectoral adaptation strategies.

Update: The trade agreement between the European Union and Mercosur is due to be signed this Saturday. The impending signature has intensified debate in Portugal: wine, olive oil and cheese sectors are positioning to capture growth in the four South American markets, while meat and rice producers renew warnings about heightened competition, downward price pressure and quota effects. Stakeholders are pressing for concrete safeguards, transitional support and clear implementation timetables to mitigate adjustment costs and protect sensitive domestic producers.

A press roundup reporting an increase in foreign doctors in Portugal — though not being brought into the SNS (Portuguese National Health Service) — and coverage that Spain is acting as a stumbling block to Mário Centeno’s prospects at the European Central Bank (ECB).

Portuguese Prime Minister António Costa defended the EU–Mercosur agreement as a historic deal and rejected European criticism as based on a “totally wrong perception”. Costa framed the pact as both a trade and an investment agreement, arguing it does not simply favour Europe. His remarks come after the 27 EU member states reached a qualified majority to approve the accord; Brazil’s president Jair Bolsonaro? No — the content states Brazil’s president Luiz Inácio Lula da Silva will not attend the signing ceremony in Paraguay as the long-delayed pact moves into the ratification phase in Europe.

Update: Diário de Notícias reports that António Costa will attend the signing ceremony in Asunción and reiterated that concerns about farmers’ opposition are misplaced, saying the agreement includes safeguards for European agriculture.

Update 2: Additional coverage quotes Costa saying criticisms rest on a “completely wrong perception” and using the image of the EU and Mercosur “building bridges” rather than raising barriers; RTP and Expresso note he continues to portray the pact as both trade and investment, emphasising expected benefits for Portuguese exporters.

The EU–Mercosur agreement will create clear winners and losers in agriculture: EU wine and olive oil producers stand to gain improved access and competitive opportunities, while beef, rice, sugar and honey are likely to face the greatest pressure from increased imports and tariff concessions. Farmers warn of 'unfair competition' and say small family farms risk bankruptcy unless safeguard clauses are rigorously enforced, with transparent monitoring, clear trigger mechanisms and targeted support measures. The agreement therefore raises political and policy questions about enforcement, compensation and the protection of vulnerable rural sectors.

With the Eurogroup set to choose the ECB vice-president on Monday, former Portuguese central bank governor Mário Centeno—one of two front-runners—says there remains a lack of alignment among major EU countries. Speaking to PÚBLICO, Centeno urges reaffirmation of the reasons for his candidacy and signals that political negotiations, policy priorities and regulatory direction will be decisive in the appointment. The comments frame the contest as both a balance-of-power and policy-choice moment for the ECB’s future leadership.

New proposals would create a two-tier EU that allows states to obtain membership while curbing some voting or decision-making rights. Supporters argue the model eases enlargement and protects institutional efficiency, while critics — including prospective members — say it risks unequal treatment, weakened solidarity and long-term fragmentation of the Union.

European Commission President Ursula von der Leyen has called for the Council of the EU to rapidly approve Portugal’s defence spending plan that would unlock about €5.8 billion in favourable loans after a preliminary Brussels approval under the SAFE framework. Coverage notes the funds are earmarked to strengthen national defence capabilities and will move to the Council for formal sign‑off. The approval would accelerate procurement and investment in defence-related projects; contractors and regions expected to host works should watch for tender and consultation notices.

The Recuperar Portugal mission structure said the eighth payment request under the Recovery and Resilience Plan (PRR) — submitted to Brussels in November 2025 — is expected to be paid in February. The announcement gives a tentative timeline for a tranche of EU funds that support national investments under the PRR framework. Project managers and local authorities awaiting PRR cashflows should note the projected month and prepare for administrative steps tied to the payment.

Multiple outlets report that detections of irregular entries into the European Union fell in 2025 to their lowest level since 2021, marking a significant decline in recorded arrivals. Coverage is largely descriptive and does not yet draw a single cause; analysts may point to shifting routes, enforcement changes or seasonal factors. Migrant communities, NGOs and organisations offering legal aid should monitor follow-up reports and policy responses.

European Commissioner for Defence and Space Andrius Kubilius conducted his first official visit to Portugal, meeting Defence Minister Nuno Melo and Education Minister Fernando Alexandre to discuss defence and space policy. He signalled that SAFE funds could reach the Portuguese government in the coming weeks or months, prompting analytical questions about budget timing, allocation between defence and civil space programmes, and coordination between national ministries and EU institutions. The visit underlined the need for clear planning to integrate incoming EU funding with Portugal’s defence and space policy priorities.

The EU's Entry-Exit System will require more non-EU nationals entering Schengen to provide extra personal data at arrival and departure; outlets say more than a third of non-EU arrivals will be affected. The change may alter arrival procedures at airports and could lengthen border checks for some travellers. Non-EU expats and visitors should check ID and documentation requirements ahead of travel and expect possible longer processing at Portuguese airports.

The European Commission president will sign the EU–Mercosur trade agreement on Saturday, 17 January, the EU confirmed. The deal is expected to lower trade barriers between the EU and South American Mercosur countries; coverage focuses on the formal signature rather than implementation details. For expats in Portugal, the immediate effect will be minimal day-to-day, but the agreement could influence prices, imports and export opportunities over time.

During a tense election campaign swing through Ovar, São João da Madeira and Lamego, AD-backed candidate Marques Mendes publicly challenged Health Minister Ana Paula Martins to “show up and explain” mounting problems in the National Health Service, notably failings in emergency departments. Mendes, accompanied by two ministers and supported at events by Porto mayor Rui Moreira, pressed for direct public explanations as the health portfolio becomes a campaign battleground; the minister already has a public engagement scheduled. Elsewhere on the campaign trail, André Ventura “survived” an incident in Aveiro—famously described as a "chuva de cavacas"—and later thanked supporters in Viseu's so-called “Cavaquistão,” underscoring how confrontational moments and popular gestures are shaping voter perceptions. The episodes highlight healthcare policy and political accountability as central issues in the race and illustrate how personalised campaign incidents are influencing public debate.

European Commission President Ursula von der Leyen will travel to New Delhi at the end of January for the EU–India summit with the explicit aim of finalising a long‑sought EU–India trade agreement. Having concluded the Mercosur talks, von der Leyen says the Commission is working intensively to wrap up negotiations, a move with significant economic and geopolitical implications for EU trade policy and relations with India.

Forty years after accession, Henrique Burnay assesses whether the original expectations of political stability, economic convergence and stronger international standing have been realised. He argues that while membership delivered important structural gains — market access, institutional stability and funding — unfulfilled promises remain in terms of full economic convergence, social cohesion and consistent EU foreign and defence policy. The conversation lays out short- and long-term scenarios, highlighting the need for renewed domestic reform, clearer European-level strategic choices and pragmatic adaptations if the Union is to meet citizens’ expectations in the coming decades.

A new IPPS/ISCTE opinion poll finds that almost half of Portuguese expect 2026 to bring continuity at the national level, with a majority forecasting political stability next year. Respondents were asked about expectations for their families, the nation and the international situation: while domestic outlooks skew towards stability and steady consumption confidence, many express concern about a possible deterioration in international affairs. The results highlight a cautious public mood—optimistic about internal political continuity but wary of external risks.