Parliament debates the "State of the Nation"

Negotiations for the State Budget 2025 dominated the debate.

The first State of the Nation debate, which typically closes the political year before the summer holidays, led by Luís Montenegro as PM took place on Wednesday.

In addition to analysis of the Government’s first 100 days, the debate also provided the parting shot for the negotiations on the State Budget for 2025 - since the Government needs support for either the Socialists or Chega to get it approved (and might fall if negotiations fail - that’s what happened in 2019).

Already the Government has scheduled meetings for Friday with opposition parties to discuss the budget. The Left Bloc’s (BE) coordinator, Mariana Mortágua, even joked that this debate was the trailer for State Budget’s debate in two months time.

Nonetheless, Luís Montenegro opened the debate on the offensive, accusing the opposition of “disloyalty” for wanting to “govern against the program” of the Government.

He said that four conclusions can be drawn from the Government’s first 100 days: “the nation is undergoing transformation”; the nation lives with confidence; the nation “has and will continue to have” a “program of change”; and “there is a lot of confusion in the opposition”.

Montenegro recovered a phrase from former Prime Minister António Costa to say that it is fulfilling the commitments it made when it took office.

"Word given, word honored", in the IRS reduction, payment to suppliers, execution of European funds, in negotiations with teachers and security forces, in youth housing, and in local accommodation, he pointed out.

And speaking of António Costa, Luís Montenegro didn’t fail to highlight the support that he gave to the former PM in his candidature to the Presidency of the European Council, “despite being a socialist” and having been his “opponent”, a statement that incited cheers from Chega's bench.

Arrogance

Afterwards, the Socialist Party leader, Pedro Nuno Santos, accused the Government of "arrogance" and of "inheriting" the work done by the previous Executive.

He said that if Luís Montenegro's Government wants to avoid elections, he should be willing to "seriously negotiate" the budget.

However, he opened a small window of opportunity for the Government to approve its budget by admitting to negotiate the corporate income tax (IRC), a red line for the Socialists.

Later, on the sidelines of the debate, Pedro Nuno Santos stated that it cannot be inferred from his words that this means that the PS will simply accept that the Government withdraw the measure. However, he also refused to clarify whether the Socialists are available for an intermediate solution, based on criteria or compensation.

“I’m not going to make this negotiation in the media,” he said. “We will wait calmly [for Friday’s meeting]. If the Government wants to ensure viability conditions for its budget it has to have a different attitude”, he added.

Responding to the PS leader's challenge, even during the debate, Luís Montenegro stated that he has “every availability to discuss strategic solutions for Portugal”, as long as they are framed in the Executive's program, and accused the oppositions, “namely the PS”, of if they claim to be available to negotiate, but then are “intransigent”.

In the counterattack, Pedro Nuno Santos warned that “it is practically impossible for the PS to make a budget viable that is an exclusive translation of a Government program” that does not have the support of his party.