The leaders of IL and Livre faced off today in a pre-campaign debate for the legislative elections on May 18, hosted by CNN Portugal. One of the key topics was the sustainability of Social Security, a subject on which the two leaders had differing opinions.
Rui Rocha argued the need to “provide tools for people, so they can build their own savings, and also allow the companies where they work to enhance these savings through fiscally advantageous investments”.
The IL president criticized Livre’s proposal to grant each newborn a subsidy of five thousand euros, labeling it as “financially irresponsible and socially unjust”.
“It is about reinstating the inheritance tax with certain conditions […]. This sends a very clear message: to those thinking of coming to Portugal, bringing their assets, it says, don’t come; to those who are already here, it suggests they remove their assets because they will be taxed,” he warned, emphasizing that the current “urgency” is to “lower taxes for those suffering in the country.”
The liberal leader accused Livre of targeting the youth by wanting to abolish “a small benefit young people have”, referring to the young IRS scheme.
“Rui, if you want to talk about irresponsibility and adventurism and gifts, then let’s talk not about five thousand euros for those who might need it upon entering adulthood, but about five billion euros. That is, a million times more, to the richest and especially to the wealthiest companies,” replied Livre’s spokesperson.
Rui Tavares claimed that the IRS is “costly for the state” and “only benefits those with the highest salaries.”
“We want to assist all young people, not just those with high incomes”, he stated.
Rui Tavares also criticized the “plan from IL’s Elon Musk department” to cut state expenses or the advocacy for privatizations.
“Then it’s CP out, RTP out, Caixa Geral de Depósitos out,” he mentioned, pointing out that these companies can only be sold once.
“You won’t sell them every year and you won’t recover this money,” said the Livre spokesperson,
Tavares argued that such proposals do not solve Portuguese issues, while Rocha explained that IL’s proposal aims to control state spending by “1% per year, so companies become more competitive, the housing issue begins to be resolved, and families have more money in their pockets.”
Later, the IL president claimed that voting for Livre is “handing the vote to BE and PCP”, asserting that “Livre voted for 95% of the proposals put forward by PCP and 99% of BE’s proposals.”
“Livre, although presenting itself as moderate, is somewhere between the sickle and the hammer”, criticized Rui Rocha.
The IL president maintained that his party has “accurate accounts” while Livre intends to lower taxes without presenting a plan or figures.
Regarding taxes, Livre proposes to “review downward the IRS rates applied to the working and middle classes and, for instance, to freelancers” and reduce VAT on essential goods “if economic growth permits.”
IL prioritizes IRS, CIT, and, for example, VAT in construction.
“We need to wait for macroeconomic data before lowering VAT. We cannot promise the people something and later say, sorry, it isn’t possible due to a recession”, noted Rui Tavares, highlighting “a difference between liberalism and ‘chainsaw-ism’.”
The Livre spokesperson also advocated for “a commitment to equity and investment, discussed annually in the first semester in parliament, visible to all, so that no prime minister, from any party, spends the ‘surplus’ without it being contractually agreed with parliament and the country.”
The IL president also stated he has no regrets about IL running alone in the elections, while Livre’s spokesperson expressed a desire to “raise the bar for good governance in Portugal.”
Concerning the government’s response to the tariffs announced by the United States, both parties were critical, with IL considering the plan “electoralist” and Livre calling it “propaganda.”
