The government will commence a series of meetings on Wednesday at the Assembly of the Republic with political parties to start discussing the State Budget for 2026 (OE2026). What is the current situation?
With negotiations looming, the president of the PSD and Prime Minister, Luís Montenegro, used his closing speech at the 21st edition of the party’s Summer University on Sunday to issue a warning to the opposition. Anticipating a “relatively simple” discussion, he cautioned that the government will not negotiate based on ultimatums or red lines.
“It will be very difficult for the opposition to find arguments to doubt the essence of the State Budget,” he said, defending the rigor of public accounts, and urging not to dramatize the approval of this document as if it were a “matter of life or death.”
Montenegro emphasized that he does not expect “the opposition to applaud the government’s measures” – although he believes the Executive deserves it – and stated, “no one will step down from the opposition because of the Budget” nor will the PSD/CDS-PP majority step down from government.
Specifically regarding the meetings, the Prime Minister expressed the government’s willingness to listen and integrate contributions from the opposition but issued a warning: “Those who focus solely on political play and communication management will fail the country, and people will not forget that,” he said.
He added: the government will not negotiate “based on any ultimatum or red lines,” but “based on moderation and a constructive spirit.”
The PSD president and Prime Minister anticipated today that the next State Budget discussion will be “relatively simple”, but warned the opposition that the government will not negotiate based on ultimatums or red lines.
Lusa | 13:37 – 31/08/2025
What does the opposition say?
On the same day, the Secretary-General of the PS responded to Montenegro and warned the Prime Minister that “people are not red lines,” insisting that the PS opposition to the proposed labor law changes by the government is to defend young people, women, and workers.
“Let it be clear to the Prime Minister: people are not red lines. When we say that the State Budget cannot support labor law changes that jeopardize the youngest, that offend women, that offend the most vulnerable workers, this is not about red lines, this is about defending people’s lives,” said José Luís Carneiro.
José Luís Carneiro further stated that the PS would oppose options that are included in the next Budget that reflect the labor legislation changes the government intends to approve.
“The labor laws have dimensions that seriously offend the youngest, seriously offend working women, offend the family, and offend the most vulnerable workers,” insisted the Secretary-General of the PS.
Reinforcing that “this is not called red lines, this is called social justice, the defense of dignified work and work for those who lack someone to defend them.” “And that is what we are doing,” he emphasized.
José Luís Carneiro said, however, that it is necessary to wait for the budget proposal.
“Because, as we have said many times, we are in favor of political stability, but it is necessary for stability to be based on premises of social justice, dignity of people, and safeguarding values,” he stressed.
Asked about how he might proceed if the proposal to amend the labor law is not withdrawn, the socialist leader said it is necessary to wait “for the steps the government will take.”
“I also understood from the Prime Minister’s words that, despite everything, there was a willingness to meet what the President of the Republic said, which was that the PSD should not forget its matrix. Today, the Prime Minister made a point of saying, several times, that it continued to be the same party. Well, it has to show it in its policies and not just in affirmations. Let’s wait,” stressed José Luís Carneiro.
The Secretary-General of the PS, José Luís Carneiro, said this Sunday that the government committed a “betrayal to voters,” as it has been presenting proposals about which it did not speak during the legislative election campaign.
Daniela Filipe | 19:50 – 31/08/2025
On Monday, the president of Chega, André Ventura, also spoke, considering that this year there are “more favorable conditions” to reach agreements within the framework of the Budget, but warned that it will depend on the government’s attitude.
“I think this year we have more favorable conditions, so to speak, to be able to reach political nature agreements than last year. There is another attitude, at least, there were elements that have already been agreed upon, of a political and fiscal nature,” he stated, considering that, “at this moment, there is a more favorable starting point,” but “that doesn’t always mean there is a more favorable endpoint.”
“Now, it depends on the government’s attitude, whether it really wants to seriously pursue a path of negotiation, work, and building alternatives to what was socialist policy, or if it will pretend to negotiate just to victimize itself again, as it tried to do with the last State Budget, to provoke elections,” he indicated, emphasizing that there are “all the conditions to reach a solution.”
Pointing out that “there are only two possible majorities,” the president of Chega considered it is up to the government to choose between PS or Chega as a preferred partner.
“But I also think we shouldn’t negotiate on top of ultimatums and guns on the table,” he defended, referring that Chega will not “align with tantrums, like the Secretary-General of the PS.”
The president of Chega considered that “Luís Montenegro has already realized that elections might not be very favorable to him” and that “people want politicians to work, not to provoke new elections consecutively.”
The leader of Chega, André Ventura, considered today that this year there are “more favorable conditions” to reach agreements within the State Budget, but warned that it will depend on the government’s attitude.
Lusa | 12:55 – 01/09/2025
It should be noted that the leader of IL, Mariana Leitão, was also confronted with Montenegro’s position and stated that she intends to wait to “see what level of ambition the government will have, especially regarding the reduction of taxes, which is crucial to relieve families and companies, but also in terms of state reform,” which “is essential and must be done.”
The leader of IL advocates for a more agile, more efficient state that does not represent the expenditure it does without providing the proper return to people.”
The Secretary-General of the PCP, Paulo Raimundo, also spoke and highlighted the words of Luís Montenegro, who in his intervention said he is “an instrument of his own policy and that he has to be an instrument to continue, accentuate, and accelerate this government’s policy.”
“A policy of dismantling the National Health Service, the increase in the cost of living, the labor package with the measures that are on the table, a policy that talks in the name of housing needs, but then develops ideas that favor those who brought us here: real estate funds and banks,” he criticized.
Raimundo reiterated that “no one will be fooled” by the meetings starting this week. “No one will be fooled into going there to talk with the government, and let’s see who will accompany the government in this disastrous adventure, with a disastrous policy for the country and each of our lives,” he said.
From the PCP’s side, the government can expect “firm opposition within the forces it has and those it will have to create even more,” he assured.
It’s noteworthy that the meetings will start on Wednesday, September 3, and will continue over the following days. In announcing the meetings, the Minister of Parliamentary Affairs, Carlos Abreu Amorim, clarified that these are not negotiations but rather the start of a “tour with parliamentary groups and single deputies on various issues,” including next year’s budget. Besides the Minister of Finance, the ministers of the Presidency, Economy, Territorial Cohesion, and Parliamentary Affairs will also be present.
The meetings begin at 9:00 a.m. on Wednesday with Chega, followed by Livre at 10:30 a.m. and IL at 12:00 p.m. On Thursday, September 5, the government will meet with the PS at 5:00 p.m., and on the 10th with the PCP at 4:30 p.m.
Related: Montenegro rejects negotiating OE2026 with “ultimatums or red lines”
