Socialist Prime Minister Antonio Costa stressed in a press conference that immediate help will be given to families and emergency aid to pensioners.
Portugal’s government on Monday unveiled a package of measures estimated to cost 2.4 billion euros to help households cope with inflation. A reduction in energy taxes is also foreseen.
Socialist Prime Minister Antonio Costa stressed in a press conference that immediate help will be given to families and emergency aid to pensioners.
This particular package of eight measures, dubbed “Families First”, has been estimated at 2.4 billion euros (about 1% of the country’s GDP) and is on top of the 1.6 billion euros disbursed so far this month.
“It’s been 30 years since we’ve seen such a sharp and clear rise in the cost of living,” Costa said, noting that “great care” is needed to avoid fueling a further sharp rise in inflation.
The Costa government intends to give a check of 125 euros per person and an additional 50 euros for each child to Portuguese with gross earnings of up to 2,700 euros per month. Pensioners will receive an allowance equal to half of their monthly pension.
At the same time, the government will ask the parliament to approve the reduction of the VAT on electricity from 13% to 6% and will extend until the end of the year the reduction of the excise tax on fuel.
Antonio Costa also announced for next year a 2% cap on rent increases and a freeze on public transport ticket prices.
In Portugal, the Consumer Price Index rose in August by 9% year-on-year, according to the national statistics authority.
The government is also expected to soon announce relief measures for businesses, in order to cope with the surge in energy costs.
Bank of Portugal Governor Mario Centeno warned on Friday of the risk of inflationary pressures intensifying. Portugal’s GDP remained stagnant in the second quarter of the year (compared to the first quarter of 2022), although it increased by 7.1% year-on-year, while the unemployment rate fell further in July to 5.9%.
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