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From reducing the cost of living to the SNS: Key points of the PS proposals

Despite having held ‘mini-general assemblies’ to gather inputs from socialists, former government officials, independents, and the civil society, the Secretary-General of the Socialist Party (PS), Pedro Nuno Santos, unveiled this afternoon the electoral program with which PS will contest the early legislative elections on May 18.

Seeking to provide “a new push for Portugal,” the PS’s strategy focused on keeping what they described as “a solid foundation” of the program crafted just over a year ago. The program was updated and includes 10 proposals across five priorities.

Without reversing the current government’s key measures, the PS leader prioritized reducing the cost of living, addressing the national challenge of housing, establishing a “universal, strong, and resilient” National Health Service (SNS), advocating for “less working time, more salaries,” and supporting young families.

Taxes

PS plans to implement a permanent zero VAT on a basket of food items, monitored continuously to ensure that the distribution’s profit margins do not undermine consumer gains.

Another measure involves reducing taxes in the energy sector, offering a reduced VAT rate of 6% on electricity for families with a contracted capacity of up to 6.9 kVA.

The party also proposes fixing the price of bottled gas, based on a proposal from the Energy Services Regulatory Authority (ERSE), which would periodically reassess the price cap.

PS aims to reduce the Single Circulation Tax (IUC) by at least 20% for medium-cylinder vehicles registered after July 1, 2007.

It also intends to create a ‘zero year’ for the Youth IRS, allowing young people entering the job market in the second semester to immediately benefit from the regime without losing the first year of exemption.

For businesses, PS seeks to “further selectivity in reducing corporate tax (IRC), favoring a tax reduction for those who reinvest their profits and increase wages.”

Salaries and Work

Along the lines of their 2024 legislative program, PS renews its goal for the national minimum wage: increasing it by at least 60 euros per year to reach a minimum of 1,100 euros by 2029.

The party also aims to increase the average salary by at least 5% annually, targeting 2,000 euros by 2029.

These wage objectives would be discussed in the Social Concertation, along with a proposal to gradually reduce the workweek from the current 40 hours to 37.5 hours.

PS also proposes extending parental leave periods, without specifying the duration, and extending breastfeeding or lactation allowances to aid in balancing the phased return to work.

Support and Social Security

PS intends to create a “savings program,” where the state would grant 500 euros in savings certificates to all children born from 2025 onwards.

The party aims to increase the child allowance by 50% for children aged three to six, implemented through two 25% hikes—one in 2026 and another in 2028.

Advocating for a “strong, equitable, and sustainable public social security system,” the socialists pledge to “reject any attempts at full or partial privatization of the pension system” and “ensure full compliance each year with the legislation’s pension update formula.”

Health

PS proposes including dental and mental health care as basic services of the National Health Service (SNS).

The party plans to establish 350 dental offices across all municipalities in the country, a career path for dentists within the SNS, and to hire 300 psychologists by the end of 2026.

Among SNS’s new capabilities, PS plans to create a program for the free distribution of eyeglasses to children from low-income families and ensure that palliative care becomes a mandatory service.

Focusing on a “universal, strong, and resilient SNS,” there is a commitment to establishing a “permanent care network within primary health care” and implementing housing support for doctors who agree to relocate to under-staffed health centers.

The party also seeks to “promote the autonomy of Local Health Units (ULS) in replacing health professionals and hiring according to the annual human resources plan” and to allocate “2% of state budget funds for health towards health promotion and disease prevention activities in 2026, with a 1% growth per year until reaching 5% in 2029.”

Housing

Identified as the “greatest national challenge,” PS proposes addressing the housing crisis by reinforcing public housing stock, particularly utilizing a portion of Caixa Geral de Depósitos’ dividends in a state account capable of financing municipal construction of public housing.

PS seeks to “reestablish a set of minimum regulation rules for local accommodation” and “review the rent update formula, including wage trends as update criteria in years of inflation above 2%.”

Another promise is to extend rent support to all families with high financial commitments, including the middle class.

Education

PS proposes “implementing free preschool education for children from the age of three,” utilizing not only the public network but also “the voluntary sector and the private sector.”

The party promises to “increase the attractiveness of the teaching career’s start” and ensure temporary and extraordinary support for commuting for all teachers, regardless of their school’s designation as deprived or not.

In higher education, PS wants to “gradually reduce undergraduate tuition fees, aiming for full elimination within a decade.”

Immigration

Aiming for “full integration,” PS plans to create “an additional channel for integrating foreign workers already in the country legally, granting them a new residence permit for certain short-term visa holders.”

For immigrants with job search visas, PS suggests they be served at the Institute of Employment and Vocational Training (IEFP) within 30 days of entry into the national territory.

Justice and Security

PS advocates for “a more efficient, transparent, and accessible justice system,” with measures such as “reviewing rules on process connection to avoid ‘mega-trials.'”

PS aims to “reassess which cases should retain suspensive effects and which should be processed as merely devolutive, ensuring swift proceedings.”

In internal security, the party intends to “implement a proximity policing strategy” with enhanced funding.

PS promises “to initiate negotiations with trade unions and professional associations representing security forces, as part of a comprehensive structural career review plan for salary enhancement.”

Defense

PS argues for “increased defense investment” but notes this “should not weaken the social state,” without setting specific GDP investment targets.

The party commits to “adopting a new National Strategic Defense Concept” and “launching a Mobilizing Agenda to boost Portugal’s industrial capability in the defense sector, involving industry, universities, research centers, and business associations.”

PS also pledges to “continue contributing bilaterally and multilaterally to Ukraine’s defense” and initiate “immediate recognition of the State of Palestine.”

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