
Portuguese Prime Minister Luís Montenegro on Saturday reiterated his commitment to fiscal balance, rejecting calls for broader state aid despite rising cost-of-living pressures.
Speaking in Esposende, Montenegro said he would not exchange the country’s sound public finances for “a big announcement of aid” to households and businesses, warning that such a move would risk future austerity measures. “If I traded that for a medal to reward a major aid package today, it would mean sacrifices and cuts later—what the country experienced in the past as austerity policies,” he told reporters. “I will not be the father of austerity. Not in any way.”
The prime minister also addressed fuel price increases, confirming that discounts on the petroleum tax would reach 25 cents per liter starting next Monday, part of a €2.3 billion fiscal support package this year. He dismissed the idea that additional 5- or 10-cent discounts would significantly alter citizens’ lives, emphasizing the need to maintain budget stability. “If we unbalance the accounts, if we are too voluntarist and facilitative, money will become more expensive,” Montenegro said, adding that debt and deficit costs would eventually have to be paid.
Montenegro declined to engage with criticism from former Prime Minister Pedro Passos Coelho, who had urged the government to show more boldness. The prime minister’s stance aligns with his broader rejection of policies that could destabilize public finances, framing his approach as a guard against past economic missteps .
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