On November 29, the Portuguese parliament approved the 2025 budget proposal put forward by the minority government, avoiding a political crisis and the need for early elections.
The budget was supported by 80 members of parliament from the center-right coalition. According to the document, economic growth in 2025 is projected to reach 2.1%, with a budget surplus of 0.3% of GDP. The plan also includes tax breaks for young people and salary increases for public sector employees.
Seventy-two MPs, mainly from the right-wing Chega! (“Enough!”) party, voted against the budget. However, the Socialist Party, holding 78 seats, abstained from voting, enabling the ruling parties to secure the necessary majority.
Alexandra Leitão, leader of the Socialist Party’s parliamentary group, stated that her party abstained to prevent another political crisis. She emphasized that the government must stop blaming the opposition for obstructing legislative efforts.
The budget’s approval eased some pressure on the minority government, led by Prime Minister Luís Montenegro of the Social Democratic Party. However, the government still relies on the Socialists’ support to pass key decisions.
Previously, President Marcelo Rebelo de Sousa had warned that failure to reach a budget agreement could lead to a political crisis in the country.
