Prime Minister Luís Montenegro has called for a swift resolution to the international tensions driving up oil and fuel prices, describing the situation as “senseless” and warning that rising costs are putting increasing pressure on households and businesses.
Speaking on Sunday at celebrations marking the centenary of São João da Madeira, in the Aveiro district, Montenegro said the international situation was damaging economies and ordinary people, with no one benefiting from the continued instability.
“We must resolve this issue in the coming weeks, in the near future, this senseless situation in which we are harming economies and people in general, from which nobody is benefiting, and break this deadlock,” he said.
The prime minister warned that the effects of rising oil prices were being felt far beyond petrol stations, with higher transport costs pushing up the prices of essential goods.
“Every economy in the world is experiencing some effect from the rise in the price of oil, and consequently, of fuel, and many other products whose prices are rising,” he said.
Montenegro acknowledged that the current international uncertainty was creating particularly difficult conditions for governments and businesses, pointing to geopolitical tensions, political conflicts and trade disputes as additional sources of instability.
He said he had raised these concerns at the United Nations General Assembly and in discussions with European partners.
Portugal must remain resilient
Turning to the domestic situation, Montenegro argued that Portugal was better placed than many countries to withstand external economic pressures because of its financial and political stability.
He highlighted the government’s expectation of a fourth consecutive budget surplus and projected public debt below 85% of GDP next year.
According to the prime minister, these achievements have helped strengthen Portugal’s ability to respond to adverse international conditions.
“We must remain resilient; we must stay strong in the face of difficulty,” he said.
His remarks came just days after the government presented its 2027 State Budget proposal, against a backdrop of international uncertainty and growing concerns over the cost of living.
Montenegro also criticised, without naming anyone, those he accused of seeking to create unnecessary social instability in Portugal.
“It is one thing to talk about problems; it is quite another to want to import instability that has no place here,” he said.
He insisted that Portugal remained a country of “economic, financial, political and social stability”.
Tax cuts and higher wages
The prime minister also defended his government’s economic policies, including reductions in personal income tax, corporation tax and measures aimed at supporting pensioners.
He said the government had reduced taxes on employment income six times, arguing that the changes rewarded work and encouraged economic activity.
Montenegro also highlighted pension increases and improvements to the solidarity supplement for elderly people on low incomes.
Defending cuts to corporation tax, he rejected criticism that the measures primarily benefited wealthier businesses and individuals.
Instead, he argued that lower business taxes would encourage companies to invest, innovate, remain competitive and ultimately pay higher wages.
Drawing on São João da Madeira’s industrial heritage, Montenegro praised the municipality’s workforce and said Portugal’s economic success depended on recognising talent, encouraging enterprise and rewarding hard work.
He concluded by highlighting Portugal’s growing international reputation, saying the country was increasingly recognised for its resilience and ability to overcome adversity.
“Nowhere have I been where Portugal hasn’t been singled out for setting an example,” he said.
Montenegro’s remarks came a day after thousands of people took to the streets in Lisbon, Porto and other Portuguese cities to protest against the rising cost of living and the housing crisis. The demonstrations, organised by the platform “Não Dá Mais Para Viver Assim” (“We Can’t Live Like This Anymore”), called for controls on essential goods and fuel prices, limits on rent increases and greater government action to tackle the housing shortage.