A decline in the debt ratio of 3.3 percentage points this year and 2.4 points in 2026 has been projected.
Finance Minister Joaquim Miranda Sarmento asserted during the budget presentation at the Ministry of Finance in Lisbon that these figures reflect “the effort the country has been making since the sovereign debt crisis,” emphasizing the necessity of continued efforts.
“At this stage, with economic growth and full employment, it is essential to continue reducing debt by three or four percentage points per year,” reiterated the minister, highlighting the importance of shielding the “country from external shocks and vulnerabilities that may arise in the markets, especially with several European countries experiencing rising public debt.”
Miranda Sarmento further emphasized that this approach significantly contributes to the improvement of ratings, investor confidence, and the ability of the Republic as well as banks, families, and companies to “secure financing at increasingly lower spreads.”
