Latest news and stories about regulation in finance in Portugal for expats and residents.
Online shoppers across Portugal will face a new two-euro fee on all orders arriving from outside the European Union starting Sunday. The charge applies to each product category regardless of purchase value, targeting high-volume e-commerce platforms such as Temu, Shein, and AliExpress. The levy comes on top of the three-euro customs duty introduced in July for non-EU shipments valued under 150 euros.
Average electricity prices paid by households in Portugal's liberalised energy market have stayed above regulated tariffs since mid-2023, according to the Energy Services Regulatory Authority (Entidade Reguladora dos Serviços Energéticos or ERSE). The price gap between the two markets widened to its highest point in the third quarter of 2024 before narrowing throughout 2025. ERSE monitors consumer tariffs across both systems as households retain the legal right to switch back to regulated supply contracts.
The Energy Services Regulatory Authority (Entidade Reguladora dos Serviços Energéticos or ERSE) is Portugal’s regulator for electricity, gas and fuel markets, responsible for licensing, tariffs and consumer protection. ERSE handles consumer complaints (it received about 80 complaints in the recent Galp case), can investigate billing disputes and impose sanctions, so it’s the authority to contact for unresolved energy issues.
Applications to protect new inventions in Portugal rose by 36.8% during the first nine months of 2026, according to the National Institute of Industrial Property (Instituto Nacional da Propriedade Industrial or INPI). Inventors submitted 1,093 applications between January and September, compared to 799 during the same period in 2025. The agency, which marks its 50th anniversary this year, reported that the growth follows a record total of 1,170 national filings recorded in 2025.
The Portuguese government selected Germany's Lufthansa Group to acquire a minority stake in national airline TAP Air Portugal (Transportes Aéreos Portugueses). Under the privatization plan, Lufthansa will pay €1.2 billion for a 44.9% holding with an option to reach 49.9%, while the Portuguese state retains 50.1% of the shares with 5% reserved for airline workers. Lufthansa stated that the agreement will support TAP's expansion while safeguarding its brand identity and strategic flight routes to North and South America.
Update: Lufthansa to Pay Upfront Deposit for TAP Acquisition
Under the Council of Ministers' (Conselho de Ministros) resolution, Lufthansa must provide bank guarantees and pay an upfront deposit of 2.5%, amounting to up to €30 million, to the Portuguese state this year. Lufthansa Chief Executive Officer Carsten Spohr also confirmed plans to establish Lisbon as a primary European hub for flights to Brazil, routing transit traffic through the Portuguese capital instead of Frankfurt, Zurich, or Munich.
Update: German Union Criticizes Price as Diplomats Back Deal
German pilots' union Vereinigung Cockpit criticized Lufthansa for paying an exceptionally high price for TAP's minority stake, contrasting with Portuguese and German foreign ministers who praised the agreement as a geostrategic success. Portuguese Foreign Minister Paulo Rangel said the partnership strengthens transatlantic connections, particularly to Latin America.
TAP Air Portugal is Portugal’s flag-carrier airline, founded on 14 March 1945 as Transportes Aéreos Portugueses. It began operations in 1946 with Lisbon–Madrid and quickly opened the long “Linha Aérea Imperial” to Angola and Mozambique, symbolically linking mainland Portugal to its overseas territories. TAP entered the jet age in the 1960s, became Europe’s first all‑jet airline in 1967, and rebranded as TAP Air Portugal in 1979. Nationalised after the 1974 Carnation Revolution, it went through cycles of partial privatisation and renationalisation, remaining a strategic state‑controlled company due to its role in connectivity, tourism, exports, and the Portuguese diaspora, especially to Brazil, Africa, and North America. Today TAP operates an all‑Airbus fleet from its Lisbon hub, marketing itself as a bridge between Europe, Africa, and the Americas and as a key economic and symbolic asset for Portugal.
The Council of Ministers (Conselho de Ministros) is Portugal’s national cabinet where the prime minister and ministers meet to approve government decisions, laws and emergency measures. In crises it can decide on declarations such as a state of calamity and the measures that follow; those decisions are then published in the Diário da República. Residents should note that a Council declaration can unlock national aid, resources and civil protection support for affected municipalities.
The Energy Services Regulatory Authority (Entidade Reguladora dos Serviços Energéticos or ERSE) proposed a 1.5% average rate increase for normal low-voltage electricity customers in mainland Portugal's regulated market. The adjustment takes effect in January 2027 and follows an earlier 2.7% rate hike introduced in October. Higher wholesale power prices driven by natural gas costs contributed to the increase, though savings from renewable energy contracts prevented steeper price jumps.
The Energy Services Regulatory Authority (Entidade Reguladora dos Serviços Energéticos or ERSE) is Portugal’s regulator for electricity, gas and fuel markets, responsible for licensing, tariffs and consumer protection. ERSE handles consumer complaints (it received about 80 complaints in the recent Galp case), can investigate billing disputes and impose sanctions, so it’s the authority to contact for unresolved energy issues.
A new government ordinance established maximum rent ceilings under the Simplified Affordable Rental Regime (Regime Simplificado do Arrendamento Acessível). The program grants landlords complete tax exemptions on rental income in exchange for charging below-market rates calculated by the National Statistics Institute (Instituto Nacional de Estatística or INE). The updated framework also removes income eligibility checks for tenants and defines minimum lease contract durations.
The INE housing price index (Índice de Preços da Habitação) tracks changes in residential property transaction prices across Portugal, published quarterly by the National Statistics Institute (INE). It covers both new and existing dwellings and breaks data down by region, property type, and buyer nationality.
The index is a key reference for policymakers debating housing affordability measures, for lenders assessing mortgage risk, and for buyers and investors tracking market trends. It has shown sustained price growth since 2015, with particularly sharp increases in Lisbon, Porto, and the Algarve driven by international demand, tourism, and housing shortages.
Related INE publications include monthly housing transaction data, rental indices, and construction statistics. Together, they provide the most comprehensive picture of Portugal's property market.
Portugal submitted its draft budgetary plan for the 2027 State Budget (Orçamento do Estado) to the European Commission, committing to European Union net spending growth limits. The plan pairs fiscal discipline with higher military investment, aiming to raise defence spending beyond the NATO benchmark of 2% of gross domestic product (Produto Interno Bruto or PIB). The government also stated it will address housing affordability and begin phasing out fossil fuel subsidies.
The privatization of flag carrier TAP Air Portugal will likely not conclude until 2028 due to an estimated 18 to 24 month regulatory review by European Union competition authorities. Finance Minister Joaquim Miranda Sarmento stated that the government will select the winning bidder this month, but revenue from the sale is excluded from the 2027 State Budget (Orçamento do Estado). The minister noted that proceeds from the airline sale will directly reduce public debt rather than alter the operating budget balance.
Joaquim Miranda Sarmento is Portugal's Finance Minister in the AD government led by Luís Montenegro. An economist and professor at ISEG (Lisbon School of Economics & Management), he served as PSD parliamentary group leader before joining the government.
As Finance Minister, he oversees the state budget, tax policy, public debt management, and fiscal relations with the EU. His decisions on tax brackets, IRS withholding tables, housing incentives, and public spending directly affect residents' cost of living and investment climate.
TAP Air Portugal is Portugal’s flag-carrier airline, founded on 14 March 1945 as Transportes Aéreos Portugueses. It began operations in 1946 with Lisbon–Madrid and quickly opened the long “Linha Aérea Imperial” to Angola and Mozambique, symbolically linking mainland Portugal to its overseas territories. TAP entered the jet age in the 1960s, became Europe’s first all‑jet airline in 1967, and rebranded as TAP Air Portugal in 1979. Nationalised after the 1974 Carnation Revolution, it went through cycles of partial privatisation and renationalisation, remaining a strategic state‑controlled company due to its role in connectivity, tourism, exports, and the Portuguese diaspora, especially to Brazil, Africa, and North America. Today TAP operates an all‑Airbus fleet from its Lisbon hub, marketing itself as a bridge between Europe, Africa, and the Americas and as a key economic and symbolic asset for Portugal.
Authorities are investigating a potential misuse of EU financial resources within the country.
The Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários or CMVM) proposed creating individual savings and investment accounts exempt from capital gains taxes after three years. The initiative aligns with the European Union's Savings and Investment Union framework and aims to redirect household bank deposits, which totaled 204.2 billion euros in August, toward financial markets. CMVM plans to target deposits yielding low average interest rates near 1.6%.
The CMVM is Portugal's securities market regulator (Comissão do Mercado de Valores Mobiliários), which supervises stock markets, investment firms and investor protection. The CMVM will shortly present a proposal to the Government for Savings and Investment Accounts (CPI), so investors should follow the proposal for changes to retail investment options.
European Union member states are exploring the possibility of introducing a bloc-wide tax on capital gains from crypto-assets. The proposal is currently being considered as part of negotiations for the next EU multiannual budget to generate new community revenue.
Diesel prices have reached a record average of 2.267 euros per litre, prompting the Minister of Environment and Energy, Maria da Graça Carvalho, to urge citizens to reduce energy consumption. Despite these historic costs, national fuel usage has continued to rise. The political opposition, including the Liberal Initiative (Iniciativa Liberal or IL), is now pressuring the government to fulfill a parliamentary recommendation to lower the tax on petroleum products (Imposto sobre os Produtos Petrolíferos or ISP).
Founded in 2017, the Liberal Initiative advocates for reduced state intervention, tax simplification, labor market liberalization, and secular liberalism under the motto "Less State, More Freedom". The party gained its first parliamentary seat in 2019 and now holds 9 seats. Mariana Leitão, 42, became the party's first female leader in July 2025 after Rui Rocha resigned following disappointing 2025 election results. Leitão previously served as parliamentary leader and has been announced as the party's candidate for the 2026 presidential election. The party explicitly rejects alliances with both far-left and far-right parties, positioning itself as the "only alternative" that won't negotiate with extremes.
The ISP (Imposto sobre Produtos Petrolíferos e Energéticos) is Portugal's excise tax on petroleum and energy products, charged as a fixed amount per liter on petrol, diesel, and other fuels. It is one of the main components of fuel prices at the pump, alongside VAT and the carbon tax (Taxa de Carbono).
The government can adjust ISP rates — temporarily or permanently — to influence fuel prices. Rate cuts are a common policy tool to ease cost-of-living pressures on drivers and transport businesses, though they also reduce government revenue.
For consumers, the ISP is significant because even small changes in the per-liter rate translate into noticeable differences at the pump, particularly for diesel users and commercial transport operators.
The National Communications Authority (Autoridade Nacional de Comunicações or Anacom) has fined the telecommunications operator NOS 350,000 euros for unilaterally changing contract terms. The regulator stated that NOS failed to provide the required 30-day notice before introducing mandatory advertising in automatic TV recordings, a practice that also led to previous fines for Meo and Vodafone.
ANACOM is Portugal's national regulator for communications (Autoridade Nacional de Comunicações). It supervises telecoms, internet, radio and postal services, handles consumer complaints and can fine providers; after Storm Kristin it warned fixed-network problems in affected regions may persist until mid‑June. Those with ongoing phone or internet outages should first report them to their provider and can escalate unresolved complaints to ANACOM.
Portugal has implemented a ban on cash payments or receipts involving amounts of 3,000 euros or more. According to the Bank of Portugal (Banco de Portugal), this restriction applies to both parties in a transaction and cannot be circumvented by splitting payments into smaller installments.
Banco de Portugal is Portugal's central bank, founded in 1846. It is a member of the European System of Central Banks (ESCB) and the Eurosystem, working alongside the European Central Bank (ECB) to implement monetary policy in the euro area.
Its main functions include supervising banks and financial institutions, ensuring financial stability, managing Portugal's gold and foreign currency reserves, and producing economic research and statistics. It also operates the payment systems infrastructure and issues banknotes.
Banco de Portugal is led by a Governor — currently Mário Centeno (since 2020) — who also sits on the ECB's Governing Council. For residents, the central bank matters because it regulates the banks they use, sets macroprudential rules (such as mortgage lending limits), and provides a complaints mechanism for banking disputes.
The Portuguese government has acquired a 13.7% stake in the National Energy Network (Redes Energéticas Nacionais or REN) for 380 million euros. While the government cites national sovereignty and energy security as reasons for the move, critics argue the acquisition signals a return to state capitalism and lacks a clear economic rationale, given that the sector is already strictly regulated.
REN (Rede Eléctrica Nacional) is Portugal's operator for high-voltage electricity transmission and for gas transport infrastructure, responsible for running the transmission grid and keeping the system stable. It also publishes national electricity consumption data and is the main contact in cases of large-scale outages or transmission issues.
The United States has finalized new tariffs ranging from 10% to 12.5% on more than 80 countries, including Portugal. These measures replace a temporary 10% global duty and follow a five-month investigation into supply chain labor practices after previous attempts were blocked by the U.S. Supreme Court.
Parliament has approved a Social Democratic Party (Partido Social Democrata or PSD) initiative to clarify that a reduced 6% value-added tax (Imposto sobre o Valor Acrescentado or IVA) rate applies to urban rehabilitation works. This measure resolves disputes with the Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) regarding the retroactive application of the standard 23% rate.
The Social Democratic Party ('Partido Social Democrata' or 'PSD') is a liberal-conservative political party in Portugal that is the leading partner of the The Democratic Alliance (AD) which is the country's ruling party, with Prime Minister Luís Montenegro.
The Social Democratic Party, despite its name, occupies the centre-right of Portugal's political spectrum. Luís Montenegro, who became Prime Minister in April 2024, leads Portugal's current minority government. The PSD has been one of Portugal's two dominant parties since 1974, having formed nine governments including four with absolute majorities. Montenegro, a former party leader from 1996-1999, was elected with the highest approval rating among party leaders at 10.7 points out of 20.
The Democratic Alliance is a centre-right coalition that includes the smaller CDS – People's Party, a Christian democratic party that has historically been the PSD's coalition partner. Together, they govern without a parliamentary majority, requiring case-by-case support from opposition parties to pass legislation.
European Union ambassadors agreed to extend the current price cap on Russian oil until July 23. The measure prevents a potential price surge for crude oil while the bloc continues negotiations on its 21st package of sanctions against Moscow.
The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) garnished 75,620 salaries and 13,221 pensions in 2025 to recover unpaid tax debts. This coercive collection process saw a 10% increase compared to previous periods, as the government intensifies efforts to ensure compliance with fiscal obligations.
The government has increased the extraordinary discount on the Tax on Petroleum and Energy Products (Imposto sobre os Produtos Petrolíferos e Energéticos or ISP) to 30.34 euros per 1,000 liters for diesel and 35.13 euros for petrol. This temporary reduction aims to offset the impact of rising global oil costs and is funded by returning additional Value Added Tax (Imposto sobre o Valor Acrescentado or IVA) revenue to consumers.
The ISP (Imposto sobre Produtos Petrolíferos e Energéticos) is Portugal's excise tax on petroleum and energy products, charged as a fixed amount per liter on petrol, diesel, and other fuels. It is one of the main components of fuel prices at the pump, alongside VAT and the carbon tax (Taxa de Carbono).
The government can adjust ISP rates — temporarily or permanently — to influence fuel prices. Rate cuts are a common policy tool to ease cost-of-living pressures on drivers and transport businesses, though they also reduce government revenue.
For consumers, the ISP is significant because even small changes in the per-liter rate translate into noticeable differences at the pump, particularly for diesel users and commercial transport operators.
The National Association of Payment and Electronic Money Institutions (Associação Nacional de Instituições de Pagamento e Moeda Eletrónica or ANIPE) has warned that the Portuguese crypto-asset market risks paralysis following the end of the transition period for the European Markets in Crypto-Assets (MiCA) regulation on July 1st. The association has requested urgent clarification from the Bank of Portugal (Banco de Portugal) and the Securities Market Commission (Comissão do Mercado de Valores Mobiliários or CMVM) regarding the status of pending authorization processes.
The CMVM is Portugal's securities market regulator (Comissão do Mercado de Valores Mobiliários), which supervises stock markets, investment firms and investor protection. The CMVM will shortly present a proposal to the Government for Savings and Investment Accounts (CPI), so investors should follow the proposal for changes to retail investment options.
MiCA (Markets in Crypto-Assets) is a comprehensive European Union regulation designed to standardize rules for crypto-asset service providers across all member states. It requires companies to obtain specific authorization to operate, ensuring greater consumer protection and market transparency compared to the previous fragmented national frameworks.
New regulations for online shopping from non-EU platforms come into effect this Wednesday, impacting customs and import procedures.
Starting July 1, new regulations for crypto-assets come into force, granting supervisory powers to the Bank of Portugal (Banco de Portugal) and the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários or CMVM). Companies failing to comply with the new sector duties or operating without authorization face fines of up to five million euros.
Mário José Gomes de Freitas Centeno (born 1966) is Portugal's central bank governor and one of the country's most internationally recognized economic figures. As Finance Minister under António Costa's first PS government, he became known as "Cristiano Ronaldo of European finance" for turning Portugal's deficit into a surplus while reversing austerity.
He was elected president of the Eurogroup (the informal body of euro area finance ministers) in 2018 — the first Portuguese to hold the role. Since becoming Governor of Banco de Portugal in 2020, he sits on the ECB's Governing Council and oversees Portuguese banking supervision and financial stability.
The CMVM is Portugal's securities market regulator (Comissão do Mercado de Valores Mobiliários), which supervises stock markets, investment firms and investor protection. The CMVM will shortly present a proposal to the Government for Savings and Investment Accounts (CPI), so investors should follow the proposal for changes to retail investment options.
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.
VAT is Value Added Tax (Imposto sobre o Valor Acrescentado), a consumption tax charged at each stage of production and sale; the standard mainland rate in Portugal is 23%. Parliamentary proposals to cut VAT on bottled gas from 23% to 6% would directly reduce consumer prices if approved.
António Leitão Amaro is Portugal's Minister of the Presidency (Ministro da Presidência) in the government led by Luís Montenegro. He is a key figure in the Social Democratic Party (Partido Social Democrata or PSD) and often is the government's spokesperson. Those following housing and rental policy should note his role in announcing the June 2024 measures regarding evictions and inheritances.
The Bank of Portugal (Banco de Portugal or BdP) is moving all digital banking complaints to the Electronic Complaints Book (Livro de Reclamações Eletrónico). This change aims to accelerate processing times, with the regulator now requiring financial institutions to respond within 15 days.
President Marcelo Rebelo de Sousa has enacted a government decree extending the credit moratorium for families, companies, and social institutions impacted by recent winter storms. The extension lasts for 12 months, providing financial relief for those struggling with the aftermath of the severe weather. The President stated he will monitor the regulation of this measure to ensure its effectiveness.
Electoral Mandate and Democratic Consensus:
Marcelo Rebelo de Sousa was elected President of Portugal on January 24, 2016, winning 52.0% of the vote in the first round—a decisive victory in a fragmented field. He campaigned as an independent, positioning himself as a unifying figure after years of austerity from Portugal's 2011–14 bailout, promising to repair political divisions and restore national confidence. His campaign emphasized moderation and cross-party consensus, a departure from his decades-long association with the center-right Social Democratic Party (PSD). Upon taking office on March 9, 2016, he suspended his party membership for the duration of his presidency.
His 2021 re-election proved extraordinary: Rebelo de Sousa secured 60.7% of the vote—the third-highest margin in Portuguese presidential electoral history since the 1974 Carnation Revolution. Historically, he became the first candidate ever to win in all 308 municipalities and the vast majority of parishes, ranging from 51.3% in Beja District to 72.16% in Madeira. This unprecedented sweep reflected his broad appeal across social, geographic, and ideological divides.
Constitutional Role and Crisis Leadership:
Portugal operates as a semi-presidential system where the president, while largely ceremonial, exercises meaningful influence over national security, foreign policy, and military affairs as Supreme Commander of the Armed Forces. Rebelo de Sousa leveraged this authority during Portugal's response to the COVID-19 pandemic. In March 2020, he requested parliamentary authorization for a state of emergency—the first nationwide declaration in 46 years of democratic history—to contain the crisis. He voluntarily quarantined after potential COVID-19 exposure in March 2020, and later tested positive in January 2021 while remaining asymptomatic. His measured handling of the pandemic, balancing public health with institutional continuity, contributed to his landslide 2021 re-election.
Diplomatic Engagement and International Presence:
Rebelo de Sousa has conducted extensive state visits representing Portugal's interests across diverse regions: the Vatican, Spain, Mozambique, Morocco, Brazil, Switzerland, Cuba, the United Kingdom, Greece, the United States, and Angola. A notable diplomatic highlight occurred in 2019 when he joined President Emmanuel Macron at the Bastille Day military parade in Paris, representing European military cooperation and the European Intervention Initiative. These engagements positioned Portugal as an active participant in global affairs, particularly regarding colonial history and Atlantic security partnerships.
Colonial Legacy and Historical Accountability:
During his presidency, Rebelo de Sousa has publicly supported making restitution and acknowledging abuses committed during Portugal's colonial history and the country's role in the Atlantic slave trade. This position marked a significant policy shift, as Portugal historically avoided confronting its imperial past compared to other European powers. His stance reflected evolving attitudes within Portuguese society toward historical accountability.
Controversies and Public Criticism:
Rebelo de Sousa's presidency has not been without controversy. In 2023, allegations emerged that he had intervened to expedite treatment for Brazilian twins with Zolgensma, an expensive rare disease medication, raising questions about presidential influence and potential corruption. These claims implicated his son and generated criticism across Portuguese political and media sectors. Additionally, in April 2024, Rebelo de Sousa made controversial remarks comparing the speed of Prime Ministers António Costa and Luís Montenegro using orientalist language that drew public rebuke. In August 2025, he called U.S. President Donald Trump a "Russian asset" at a PSD event, demonstrating his willingness to make provocative foreign policy statements.
Constitutional Constraints and Legacy:
Under Portugal's constitution, Rebelo de Sousa is barred from running for a third consecutive term, meaning his presidency concludes with elections scheduled for January 18, 2026. His decade-long tenure has established him as one of Portugal's most popular recent heads of state, characterized by broad consensus-building and institutional stability. Whether future presidents can replicate his cross-party appeal remains an open question for Portuguese democracy as it enters a new era.
Minister of Finance Joaquim Miranda Sarmento assured that Portugal currently complies with European Union budgetary rules. He stated that the country is not at risk of an excessive deficit procedure, provided that Parliament maintains fiscal responsibility.
Update: Finance Minister admits possibility of small budget deficit
During a parliamentary hearing, Miranda Sarmento acknowledged that Portugal might record a small budget deficit this year. He also reaffirmed the government's priority to pay bonuses to pensioners if fiscal space allows, maintaining the policy implemented over the last two years.
Joaquim Miranda Sarmento is Portugal's Finance Minister in the AD government led by Luís Montenegro. An economist and professor at ISEG (Lisbon School of Economics & Management), he served as PSD parliamentary group leader before joining the government.
As Finance Minister, he oversees the state budget, tax policy, public debt management, and fiscal relations with the EU. His decisions on tax brackets, IRS withholding tables, housing incentives, and public spending directly affect residents' cost of living and investment climate.
The Tax and Customs Authority (Autoridade Tributária e Aduaneira or AT) has issued a warning regarding fraudulent emails and SMS messages currently circulating. These messages impersonate the tax office to trick taxpayers into clicking malicious links designed to steal personal and banking information. The AT reminds the public that it only sends official communications from verified domains.
The European Commission and the European Parliament are preparing a potential response to United States President Donald Trump's threat to impose 25 percent tariffs on European-manufactured cars and trucks. While the Commission stated it is keeping its options open, European officials rejected Trump's accusations that the EU violated a trade deal reached last summer. The German automotive industry has also called for the immediate opening of negotiations to resolve the dispute.
The European Commission has formally denied accusations from United States President Donald Trump that the European Union violated a negotiated trade agreement. In response to Trump's announcement of a 25 percent tariff on EU-manufactured automobiles, the Commission warned that it has options available to protect its interests.
The Bank of Portugal (Banco de Portugal) has clarified that national limits on cash payments remain more restrictive than the new €10,000 ceiling recently approved by the European Union. These tighter domestic rules are maintained as part of the country's efforts to combat money laundering.
Mário José Gomes de Freitas Centeno (born 1966) is Portugal's central bank governor and one of the country's most internationally recognized economic figures. As Finance Minister under António Costa's first PS government, he became known as "Cristiano Ronaldo of European finance" for turning Portugal's deficit into a surplus while reversing austerity.
He was elected president of the Eurogroup (the informal body of euro area finance ministers) in 2018 — the first Portuguese to hold the role. Since becoming Governor of Banco de Portugal in 2020, he sits on the ECB's Governing Council and oversees Portuguese banking supervision and financial stability.
The Banco de Portugal confirmed that its governor, Álvaro Santos Pereira, has sold shares he purchased while in office. The divestment followed contact with the European Central Bank (Banco Central Europeu or BCE), which prohibits such holdings for officials in his position. The governor had previously acquired shares in companies including Galp and Jerónimo Martins.
Álvaro Santos Pereira is a Portuguese economist who served as Minister of Economy from 2011 to 2013. He is a frequent public commentator on economic and public-policy issues and has used X and LinkedIn to call for radical changes to Portugal’s disaster preparedness after recent storms, so residents and policymakers often pay attention to his proposals.
Minister of the Presidency António Leitão Amaro stated that the government intends to reduce state interference in the private sector. The minister argued that the state should focus on providing infrastructure and cutting regulatory burdens to allow companies to innovate and grow.
António Leitão Amaro is Portugal's Minister of the Presidency (Ministro da Presidência) in the government led by Luís Montenegro. He is a key figure in the Social Democratic Party (Partido Social Democrata or PSD) and often is the government's spokesperson. Those following housing and rental policy should note his role in announcing the June 2024 measures regarding evictions and inheritances.
Approximately 7,400 families and companies affected by recent severe weather have joined government-decreed bank moratoriums. Deputy Governor of the Bank of Portugal (Banco de Portugal or BdP) Clara Raposo confirmed that the total credit amount covered by these measures reached 930 million euros by the end of March.
Banco de Portugal is Portugal's central bank, founded in 1846. It is a member of the European System of Central Banks (ESCB) and the Eurosystem, working alongside the European Central Bank (ECB) to implement monetary policy in the euro area.
Its main functions include supervising banks and financial institutions, ensuring financial stability, managing Portugal's gold and foreign currency reserves, and producing economic research and statistics. It also operates the payment systems infrastructure and issues banknotes.
Banco de Portugal is led by a Governor — currently Mário Centeno (since 2020) — who also sits on the ECB's Governing Council. For residents, the central bank matters because it regulates the banks they use, sets macroprudential rules (such as mortgage lending limits), and provides a complaints mechanism for banking disputes.
Prime Minister Luís Montenegro has announced the 'Portugal Energy Resilience' (Portugal Resiliência Energética) support line, a €600 million initiative aimed at companies where energy costs exceed 20% of production expenses. Operationalised by the Portuguese Development Bank (Banco Português de Fomento), the scheme provides state-backed credit to help businesses manage cash flow and operational needs. The announcement coincided with the second anniversary of the current government's term.
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.
The Development Bank in Portugal refers to the state-backed development institution, Banco Português de Fomento (Portuguese Development Bank), which provides financing tools, guarantees and co-investment for strategic public-interest projects. In the housing context it can issue guarantees and support loans for construction or refurbishment of affordable homes and for housing cooperatives, so budgeted sums from the bank directly affect affordable housing schemes.
The government announced it may adjust its response to rising prices if geopolitical tensions in the Middle East continue to impact the cost of living. As an immediate measure, the Ministry of Agriculture plans to reduce the price of agricultural diesel (gasóleo agrícola) by 10 cents per liter whenever price hikes exceed that amount. Residents should monitor upcoming Council of Ministers (Conselho de Ministros) decisions for further measures targeting food and energy costs.
European budgetary rules protect countries that maintain a “budgetary situation close to balance,” meaning a deficit of less than 0.5%, from the opening of an excessive deficit procedure.
The Portuguese Communist Party (Partido Comunista Português or PCP) and the Left Bloc (Bloco de Esquerda or BE) are calling for government regulation and price fixing for fuel and food. Leaders Paulo Raimundo and José Manuel Pureza criticized the “obscene profits” of large companies during a protest in Lisbon, citing speculation linked to Middle East tensions. Consumers should note that these parties are also pushing for an extraordinary tax on large corporate profits.
The Portuguese Communist Party (PCP or Partido Comunista Português) is a Marxist‑Leninist party founded in 1921 out of the revolutionary trade‑union and anarcho‑syndicalist movement, becoming the Portuguese section of the Comintern in 1923. Banned after the 1926 coup, it went underground and became a central force of resistance to the Estado Novo dictatorship, organizing clandestine unions, anti‑fascist struggle and supporting the colonial liberation movements. After the 1974 Carnation Revolution, the PCP was pivotal in land reform, nationalisations and embedding social rights in the 1976 Constitution, especially in the Alentejo and Setúbal regions where it has long been very strong.
Today the PCP is a smaller but still influential party rooted in the CGTP trade‑union confederation and local government, holding a handful of Assembly seats and one MEP in the Left group. It advocates a “patriotic and left‑wing alternative”: defence of workers’ rights, public services and national sovereignty, strong criticism of EU and NATO constraints, and support for socialist countries and anti‑imperialist causes.
José Manuel Pureza is the national coordinator of the Left Bloc (Bloco de Esquerda), the party quoted in the story. In the article he is cited criticizing the president’s stance on the labour package, so his comments reflect the party’s public position on that policy.
Prime Minister Luís Montenegro has promised to use regulatory power to prevent fuel price speculation as costs at some stations again exceed two euros per liter. Energy Minister Maria da Graça Carvalho stated that while the market is tense, Portugal has not yet reached an 'energy emergency' that would trigger more drastic measures. Drivers should note that the government plans to release 10% of strategic oil reserves to help stabilize the market, though taxi federations are already requesting extraordinary support.
Luís Filipe Montenegro Cardoso de Morais Esteves (born February 16, 1973, in Porto) is a Portuguese lawyer and center‑right politician who has served as Prime Minister of Portugal since April 2, 2024. A long‑time member of the Social Democratic Party (PSD), he is the leading figure of the post‑Troika generation of Portuguese conservatives. Montenegro was elected to the Assembly of the Republic in 2002 for the Aveiro district and remained an MP for 16 years, becoming PSD parliamentary leader from 2011 to 2017 during the bailout and austerity period under Prime Minister Pedro Passos Coelho. He was a prominent defender of strict austerity measures, arguing in 2014 that “the life of the people is no better, but the life of the country is a lot better,” a phrase that has followed his public image since. After an unsuccessful leadership bid against Rui Rio in 2020, Montenegro won the PSD leadership in 2022. He then forged the centre‑right Democratic Alliance (PSD–CDS‑PP and allies), which won a plurality of seats in the 2024 legislative election. Refusing to partner with the far‑right Chega, which he has called “often xenophobic, racist, populist and excessively demagogic,” he formed a minority government as head of the XXIV Constitutional Government on April 2, 2024. His first government fell in March 2025 after a no‑confidence vote linked to a conflict‑of‑interest affair, but fresh elections saw the Democratic Alliance increase its seat share, allowing Montenegro to return as prime minister leading the XXV Constitutional Government. His importance to Portugal lies in attempting to re‑center the traditional centre‑right after the crisis years, defending liberal‑conservative economics and EU alignment while drawing a sharp line against formal cooperation with the radical right, thus shaping how Portuguese democracy manages its new multi‑party era.
Maria da Graça Carvalho (born 1955) is a Portuguese engineer and politician serving as Minister of Environment and Energy in the AD government. She holds a PhD in mechanical engineering and had a distinguished academic career at Instituto Superior Técnico, specializing in energy systems and building physics.
She served as a Member of the European Parliament (2009–2024), where she focused on research policy, innovation funding (Horizon 2020/Europe), and energy policy. Before entering politics, she was a scientific advisor to European Commission President José Manuel Barroso.
As Environment Minister, she oversees Portugal's energy transition, renewable energy expansion, water resources management, climate adaptation, and environmental regulation — portfolios that are central to issues like wildfire prevention, coastal erosion, and meeting EU climate targets.
