Lisbon, Sept. 17, 2026 (Lusa) - The prime minister stated on Thursday that Portugal is «on track for its fourth consecutive surplus» and argued that balanced public finances «are the best guarantee» of medium and long-term sustainability.
Luís Montenegro took part today in the opening of the European conference on the German economy (organised by the Portuguese-German Chamber of Commerce and Industry) in Lisbon, which was also attended by the minister of the economy and territorial cohesion, Manuel Castro Almeida.
«We are on track for our fourth consecutive fiscal surplus,» said the prime minister, a week after the minister of finance had assured that the aim would be to achieve at least a balanced budget by the end of the year.
Speaking to an audience of around 250 participants, Montenegro highlighted that, immediately following this conference, he would chair the Cabinet, which is set to approve «the fifth reduction in personal income tax», as already announced last week.
«This is the fifth time in 2.5 years that we have lowered taxes on earned income, particularly for the middle class,» he said.
Speaking to journalists as he left, the prime minister said that he himself would announce the conclusions of the Cabinet meeting, which, in addition to the tax relief and the one-off supplement for pensioners already announced, is expected to approve support for sectors hardest hit by the rise in fuel prices.
In his address, he assured that the Government is aware of «the difficulties and the suffering faced by families and businesses» due to the rise in fuel prices, «and, through them, across the entire production chain».
«Despite all this, we are strong,» he assured, highlighting that, despite the circumstances of «this unusual year», Portugal grew by 2.5% in the second quarter, «more than double the average for the European Union and the euro area».
The prime minister added that Portuguese workers saw, on average, «an increase of around 15% in their net income over the years 2024 to 2025».
«15% is not just any figure. It is roughly equivalent to two monthly salaries, two monthly pay packets [at the end of a year]. Sometimes, with certain figures, we are unable to present them in a way that people at home can understand,» he said.
Montenegro argued that balanced public accounts are not merely «a target or a figure»; they mean that the State can finance itself at a lower cost.
«The predictability of our financial health is a credit that enables businesses to have better conditions for investment and allows the State to spend less on interest, leaving more for social policies and more for investment policies,» he said.
Montenegro had begun his speech by quoting, in German, a passage from the writer Goethe, according to which neither knowledge nor will are, in themselves, sufficient.
«We must combine will with the capacity to achieve. And that is what we have been doing in Portugal over the last two and a half years,» he argued.
Speaking before representatives of the German business sector, the prime minister argued that the PSD/CDS-PP Government is «a supporter of hard work and of companies' capacity for investment and wealth creation».
«In the specific case of bilateral relations between Portugal and Germany, we are in a very, very positive phase, but I believe this could be taken even further in the coming years,» he stated, highlighting the country's strategic location and its privileged relationship with other markets in Africa and Latin America.
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