Brussels, April 9, 2026 (Lusa) - The European commissioner for the economy said on Thursday that Portugal has "some leeway" to address the crisis in the Middle East but acknowledged impacts on fuel prices and purchasing power.
"Portugal generally has a solid budgetary position, with a budget surplus last year.
Therefore, some leeway may exist," Valdis Dombrovskis told a European Parliament committee hearing in Brussels.
However, he said that measures adopted in the country and across the European Union (EU) to address the economic impacts of the war in Iran should be "temporary and targeted, to increase efficiency and mitigate the budgetary impact".
He said that "the first channel through which the energy crisis or supply disruptions are felt is through energy and fuel prices, and then those impacts spread to the general economy."
"Whenever we face a period of high inflation, it negatively affects purchasing power," he said, calling for measures such as tax reductions to "reduce inflation as quickly as possible."
Dombrovskis was responding to Catarina Martins, an MEP for Portugal's Left Bloc.
On Thursday, Martins said "the cost of living reached a record this week" as "the essential goods basket in Portugal had never been so expensive" and "some people cannot afford car fuel."
A European Commission scenario analysis shows that, with a short energy crisis, EU growth could be 0.2 to 0.4 percentage points below the autumn economic forecasts released in November 2025.
Inflation could rise by up to one percentage point.
If energy supply disruptions prove more prolonged or severe, Brussels expects a greater impact, with growth potentially falling by 0.4 to 0.6 percentage points and inflation increasing by 1.1 to 1.5 percentage points in 2026 and 2027.
The European Commission will assess the budgetary impacts in the economic forecasts it releases on 21 May and in the European Semester spring package published on 3 June.
The conflict started on 28 February 2026, when the United States and Israel attacked Iran, which retaliated with missiles and drones and a partial blockade of the Strait of Hormuz, a major oil route.
The blockade caused oil and gas prices to spike, creating volatility in energy markets.
Global economic effects include inflationary pressure, increased transport and logistics costs and financial market instability.
After over a month of conflict, the provisional ceasefire announced on Wednesday brought some relief, but geopolitical uncertainty and impacts on supply chains and energy prices should persist.
ANE/LYT // ADB.
Lusa
