“The Public Finance Council is backing the Socialist Party when it stated months ago that the Government was failing in all its budget forecasts,” said José Luís Carneiro to journalists regarding the economic growth revision to 1.9% this year.
The Socialist secretary-general spoke following a meeting with João Vieira Lopes, president of the Portuguese Confederation of Trade and Services, in Lisbon.
For the PS leader, the “Government’s economic policy is failing in all its variables,” citing economic growth, public investment levels, high household debt in Portugal, and inflation.
“We warned at the appropriate time, we will now await the State Budget proposal to see the terms in which the Government presents the economic forecasts,” he said.
José Luís Carneiro expressed concerns that the asset disposal announced last week by the Government “should not serve to predict revenue that might not be realized but is used for budget formulation.”
“This asset disposal was a mistake because it could have addressed housing needs, particularly in Lisbon. It’s a political error, but we hope it is not a strategy to forecast revenue from asset disposal to cover budget revenue sources, enabling investments that might not happen if the disposal doesn’t occur as anticipated,” he warned.
When asked if he had any indication of the Government’s intentions, the socialist leader replied that it was his interpretation “of this unforeseen decision.”
“Simultaneously, based on revenue forecasts, I believe there might already be difficulties in securing funding sources for a budget forecast that might rely on asset disposal to support those potential budgetary options,” he explained.
The Public Finance Council (CFP) predicts the Portuguese economy to grow by 1.9% this year and 1.8% in 2026, a downward revision from the projections in April due to lower public investment and exports.
This year’s forecast falls below the Government’s estimate, which in the 2025 State Budget had slated a growth of 2.1%, revised to 2.4% in the report submitted to Brussels in April.
The State announced last week it will dispose of nine public properties and make 14 sites available through a public-private partnership at a ceremony in Lisbon, marking an official financing agreement with the European Investment Bank (EIB).
After the agreement signing, Infrastructure and Housing Minister Miguel Pinto Luz detailed the nine buildings, “some historic,” to be disposed of by the State, including the former headquarters of the Council of Ministers, where the government symbolically reconvened to discuss and approve housing measures.
