Portugal’s Socialist Party is bringing together its main leaders today to discuss the position to take in the vote on the State Budget for 2027 (OE2027).
The party’s secretary-general, José Luís Carneiro has already advocated abstention – despite considering the document presented by the government a “bad Budget”. He justified the decision weeks ago with the need to avoid a political crisis, and on the basis of four guarantees given by prime minister, Luís Montenegro.
But, since then, much has changed. Polls show voters critical of the PS’ effective ‘green card’ to the government, while the issue of housing has reached boiling point.
For now, the PS National Political Commission will analyse the budget proposal at a meeting preceded by a meeting of the National Secretariat, according to official party information released by Lusa.
The position advocated by Carneiro has already received explicit support in the Socialist National Commission, but this Wednesday’s meeting will allow party leaders to discuss how to vote again before the parliamentary debate, says the state news agency.
A “bad Budget” that the PS does not want to reject
José Luís Carneiro has sought to distinguish opposition to the government from the responsibility to ensure political stability.
At the National Commission meeting on October 10, he acknowledged that the socialists’ “deepest convictions” could justify a vote against the budget proposal.
However, he advocated abstention, arguing that the PS opposes the Executive, but not the country.
The Socialist secretary-general believes that, in the face of international uncertainty, parties should avoid a political crisis that jeopardises government stability.
His strategy received the support of the PS National Commission. According to Carlos César, party president, none of the more than 40 participants in that meeting spoke out against the approach proposed by the secretary-general.
The four guarantees that convinced Carneiro
The PS’s willingness to abstain came after Luís Montenegro responded to four conditions set by the socialists.
The first concerns constitutional revision, which Carneiro wants to see conducted with the central participation of the PS and PSD, without an exclusive agreement between the Government and CHEGA.
The second concerns the protection of public Social Security and current and future pensions.
The PS also demanded funding guarantees for investments that are not completed during the implementation of the Recovery and Resilience Plan (PRR).
The fourth condition involves support for families, businesses and local authorities affected by the storms, with the aim of ensuring that the commitments made by the government have funding.
In previous statements to ECO and RTP, Carneiro considered the prime minister’s responses positive – although he stressed the importance of the commitments actually being fulfilled.
Fuel, electricity and food: PS promises changes
Despite being willing to allow the Budget to pass, José Luís Carneiro intends to present amendment proposals during the detailed discussion.
The stated aim is to respond to the rising cost of living, particularly the costs faced by families for fuel, gas, electricity and essential food items.
The Socialist leader believes that the government’s proposal does not adequately address the pressure on Portuguese people’s incomes.
Even so, he guaranteed that the amendments will be presented without compromising the balance of public finances.
This will be one of the main political challenges for the PS: allowing the document to be approved and, at the same time, seeking to introduce measures that distinguish it from the Executive’s economic choices.
When will the Budget be voted on?
The general debate and vote are scheduled for next week, Tuesday and Wednesday (October 27 and 28).
Detailed discussion is expected to take place from October 29, continuing into November, with the final overall vote scheduled for November 24.
The Socialist abstention could be decisive for the approval of the document, in a parliament where the government does not have an absolute majority. Today’s meeting will therefore serve to consolidate the PS’s political position before the parliamentary vote and prepare the Socialist intervention in the detailed discussion phase.
In the words of Executive Digest, “Carneiro is seeking to maintain a delicate balance: politically rejecting the government’s choices, but preventing the opposition from turning into a political crisis” that would, ultimately, help no-one (polls suggest even with new elections, the parliamentary mix would be hard-pressed to bring a political majority).
Source: Executive Digest/ Lusa