Portuguese Government Says It’s Awaiting Opposition’s Budget Proposals

By Joao Lima

September 11, 2024 at 12:54PM EDT

Luis Montenegro, Portugal's prime minister, speaks during his inauguration ceremony at Ajuda Palace in Lisbon, Portugal, on Tuesday, April 2, 2024. Montenegro called on opposition lawmakers to be open to discussions with his center-right minority government, which needs to find backing from other parties to get budgets approved. (Zed Jameson/Bloomberg)

(Bloomberg) -- Portugal’s minority government is awaiting proposals from the opposition Socialists as part of negotiations to get the 2025 budget approved in parliament, Presidency Minister Antonio Leitao Amaro said.

The government remains available for talks with different parties, Leitao Amaro said at a press conference in Lisbon on Wednesday.

The budget, due to be presented in October, may be a key test for Prime Minister Luis Montenegro’s minority administration, which took office in April after the center-right AD coalition’s narrow election win over the Socialists. The premier needs to find backing from other parties to get approval for budgets and other measures, and may have to compromise on key policies such as tax cuts to pass legislation.

The Socialists have just two fewer seats in parliament than the AD coalition.

The government has said it aims to post budget surpluses of about 0.2% to 0.3% of gross domestic product in the next four years, and forecasts economic growth of about 2% in 2024 and 2025.