LUSA 10/07/2026

Lusa - Business News - Portugal: PM calls for 'coordinated EU response' to cost of living crisis

Strasbourg, France, Oct. 6, 2026 (Lusa) - Portugal's prime minister has called for a «coordinated response» at the European level to tackle the rising cost of living, arguing that «solving people's practical problems» is the «best way» to promote constructive, evidence-based politics.

In a speech on Tuesday at the plenary session of the European Parliament in Strasbourg, Luís Montenegro emphasised that the «energy crisis caused by international conflicts» in which the European Union is not involved «is having a serious impact on the lives of Europeans».

«Europe's ability to respond can also make a difference. It must make a difference. The time has come for us to unite each member state's efforts, and the time has also come for us to mount a coordinated response at European level,» he urged.

The prime minister insisted, as he had done in his speech at the United Nations General Assembly in New York in September, that the energy crisis caused by the war in Iran is a «form of collective masochism that is harming everyone».

«And as it affects everyone, it is also collectively that we must find solutions, keeping every option on the table, including reflecting on and possibly deciding on the mechanism for setting oil prices on the international market,» he said, reiterating a proposal he had also put forward in New York.

In this speech, Luís Montenegro also addressed the housing crisis, emphasising that the government has been committed to «increasing supply» through measures such as simplifying procedures or reducing construction taxes, and to «supporting demand when the need is pressing», by helping young people buy their first home.

However, on this issue too, the prime minister once again called for a joint response.

«It would be very helpful if, at the European level, we could have a complementary response, obviously whilst respecting national competences, but contributing through procedures, regulation and the mobilisation of funding, so that active housing policies can yield results,» he stated.

Speaking to MEPs, the head of government said the European Union (EU) must be capable of «solving people's practical problems», since this «is the best way to promote and expand democratic values and responsible governance».

«For this reason too, our response should be political, concrete, and felt in the lives of Europeans,» he maintained.

TA/ADB // ADB.

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