At the exit of the Belém Cultural Center in Lisbon, upon being questioned by journalists about NATO defense investment commitments, President Marcelo Rebelo de Sousa focused on the immediate goal of achieving 2% of Portugal’s GDP by the end of this year, asserting that it is “achievable.”
“Note that a reduction in IRS has just been announced, among other social measures, which means there is a budget, and therefore a financial climate, that allows us to look at social realities and economic stimulation while also meeting the 2% target,” he stated.
Asked about the reduction of IRS rates up to the eighth tier proposed by the Government, the head of state emphasized that “it was an electoral commitment” of the AD (PSD/CDS-PP).
“The Government committed, the Portuguese voted for it, and therefore it will fulfill this electoral commitment from the last legislative elections. The experience we have, particularly with regard to what happened in previous years, is that a judicious management, with the financial capacity to do so, can yield beneficial effects next year,” he remarked.
The President highlighted that “there are structural funds, which so far have an execution rate around 8 billion euros” from the Recovery and Resilience Plan (PRR), and that the seventh financing tranche “will reach up to 13 billion euros.”
“The implementation scheme, involving various state-linked structures, is a scheme that I believe will allow for quicker deployment with more lead time, and with a projection at the end of this year, but especially next year,” he continued.
According to Marcelo Rebelo de Sousa, “the year of great challenge is next year.”
“Then the issue becomes another, transitioning to Portugal 2030. It’s another mechanism of European funds, which is more delayed, has a longer deadline, but also has less attractive conditions, because the entry of European funds is not at 100%, it’s less,” he mentioned.
“Therefore, I would say that the combination of all this is feasible, but the test year at the end of this year is very important, yet the test year will be 2026,” he reiterated.
