The Secretary-General of the PS stated on Thursday, alongside the Prime Minister, that the upcoming State Budget should not reflect changes to labor law, affect the National Health Service (SNS), or Social Security, and should “safeguard the legacy of balanced accounts.”
Speaking to journalists after a meeting with the Prime Minister at the official residence in São Bento, José Luís Carneiro noted that “conditions must be respected by the Government” such as the “guarantee that the Budget does not support any measures or budgetary norms that jeopardize the protection of labor rights’ dignity.”
“Labor matters should be handled in the appropriate context,” he asserted, emphasizing that a priority for the Socialist Party is the “protection of young people, families, working women, and the most vulnerable.”
Regarding the health law, the PS leader argues that “at no time” should the State Budget “be used to normatively address issues that deserve to be discussed in the proper context” and that it is important to maintain a National Health Service that is “tendentially free, of quality, accessible, predictable, and secure.”
In the context of Social Security, Carneiro explained that, for the socialists, it is “unacceptable” for the State Budget to “be used to undermine fundamental assumptions of a public Social Security that protects those in need of careful attention.”
“From our point of view, the State Budget should strictly be a tool of budgetary exercise, that is, for the execution of revenue and expenditure,” he stated, stressing that there is a “legacy” that must be preserved and that stems from socialist governments, which is “balanced accounts.”
“Our primary objective is to contribute to political stability, which is what our citizens, companies, economy, and living conditions demand,” he continued, noting that for this, “the Government must ensure that matters such as labor laws, the review of the SNS’s foundational law, Social Security issues, and fiscal policy are addressed outside the scope of the Budget.”
José Luís Carneiro informed journalists that the Prime Minister, Luís Montenegro, “will reflect on the conditions” presented to him and “will respond at the time of the budget presentation or, if he chooses, earlier.”
When asked if the continuation of talks depends on exclusive negotiations — after Chega was already received on Wednesday — the PS leader stated that “this is not about negotiations, it’s about conditions” that the executive may or may not accept.
“The Government doesn’t have to do so; it may choose to establish its political majority with other parties, but it won’t be with the Socialist Party,” he added.
When pressed by journalists if he would continue to discuss the document alongside Chega, José Luís Carneiro preferred to turn the question around.
“If the Prime Minister responds positively to these issues I raised, it will be clear who he wants to establish dialogue with for budget feasibility and political stability,” he said.
José Luís Carneiro was also questioned if it would suffice for the matters he outlined to be excluded from OE2026 for the PS to abstain, but he deferred the answer to the time of the document presentation.
“When the Government presents its State Budget proposal, we will decide on the assessment of that same proposal when it is presented,” he pointed out, yet reiterating that “there are conditions” before the party proceeds to that stage.
In addition to the issues he wants outside the budgetary scope, José Luís Carneiro argued that the document must “safeguard the legacy of balanced accounts,” which he deems belonging to PS governments.
According to the PS leader, the Prime Minister only confirmed that the proposals regarding corporate tax will be addressed outside the Budget, as happened last year, and will refer other publicly announced proposals by the socialists, like the creation of a coordination unit for hospital emergencies, to sectoral analysis.
This was the last of three meetings of Luís Montenegro with party leaders regarding the OE 2026. The head of the Executive began this round of meetings on Wednesday by receiving the leader of Chega and the leader of the Liberal Initiative.
At the end of the meeting, André Ventura stated that a “path of responsibility” and “positive dialogue” is beginning for next year’s State Budget, but no agreement has yet been reached with the Government.
Mariana Leitão from IL explained that she intends for next year’s State Budget to foresee measures to encourage construction and provide more housing, like the reduction of VAT, and also the reduction of public spending.
The Liberal Initiative (IL) wants the State Budget for the next year to include measures to encourage construction and make more housing available, such as lowering VAT and also reducing public expenditure.
[Updated at 18:40]
