Montenegro tells European Parliament Portugal will be "intransigent" on budget cuts
Portugal's Prime Minister Luís Montenegro warned that his government will be "intransigent" in defending cohesion funds as European Union leaders negotiate the bloc's next seven-year budget, telling lawmakers in Estrasburgo that the contribution debate should be held "without dogmas and without tabus" — and without the rebate mechanisms that benefit the largest net contributors.
Speaking at the European Parliament on Tuesday morning, Montenegro addressed the chamber as part of the "Isto é a Europa" debate series, an initiative launched by Parliament President Roberta Metsola in January 2022 to allow heads of state and government to share their vision for Europe's future. The speech was delivered at 10h30 local time, after a meeting with Metsola.
Budget negotiations reach critical phase
The address comes at a decisive moment in negotiations for the next Quadro Financeiro Plurianual (QFP) — the EU's long-term budget for 2028-2034. European Council President António Costa has said he hopes to close the negotiations by the end of the year.
Ireland, which holds the rotating presidency of the Council this semester, is expected to present its negotiating proposal by the end of this week. EU leaders will then debate the proposal at a summit in Bruxelas next week.
Montenegro's address comes one week before that summit, with Portugal and 16 other member states pushing back against demands from the so-called "frugal" countries for cuts of "hundreds of thousands of millions of euros".
Portugal's proportional contribution exceeds the "frugals"
In his speech, Montenegro argued that Portugal's contribution to the EU budget, when measured as a proportion of gross domestic product, exceeds that of the self-described "frugal" nations — Germany, Denmark, the Netherlands, Austria, Finland and Sweden.
"Giving 10 from 100 is much more than giving 50 from 1,000," Montenegro said, drawing applause from some MEPs. He called for contributions to be measured by proportional effort rather than absolute figures.
The prime minister also pushed back against framing the budget debate as a "competition of beggars" — his phrase for what some have characterised as requests for funds.
"Portugal views the QFP as an opportunity to deepen a social and economic project that stems from a single market only possible and viable with innovation and solidarity between all member states and all regions," he said.
Cohesion and agriculture "essential" for convergence
Montenegro insisted that the next budget must finance "new priorities" — he named defence and competitiveness — but "without undermining policies that remain essential" for convergence across Europe.
"Europe will only have greater competitiveness if it ensures cohesion: social, territorial and economic cohesion," Montenegro told journalists before his speech. "Therefore, we will be intransigent in our participation to obtain respect for what is in the treaties on this aspect."
Last week, Montenegro signed a joint letter with 16 other EU heads of state and government calling for the next budget to preserve both cohesion policy and the Política Agrícola Comum (PAC), warning that cuts would weaken public support for the EU.
That letter responded to an earlier missive from Germany, Denmark, the Netherlands, Austria, Finland and Sweden — the largest net contributors to the EU budget — demanding significant cuts.
Rebates challenged as outdated
Montenegro also challenged the system of rebates — discounts that the largest contributors receive on their national contributions — asking: "What sense does a mechanism like rebates make today?"
He argued that such mechanisms were "conceived for other times and other realities" and should not be perpetuated. The question drew further applause from the chamber.
On migration, Montenegro suggested that Portugal's approach — which he described as "responsible control combined with humanist integration" — could benefit Europe more broadly.
Ultraperipheral regions defended
The prime minister defended dedicated funding for Europe's ultraperipheral regions — for Portugal, the autonomous regions of the Açores and Madeira — telling MEPs these territories "are a guarantee of depth and strategic autonomy" and hold "increased importance" for the EU's global standing.
In September, Portugal, Spain and France sent a joint letter to the European Commission President and Ireland's Prime Minister calling for adequate, specific funding for ultraperipheral regions in the next QFP, citing the permanent constraints recognised by Article 349 of the Treaty on the Functioning of the European Union.
Montenegro also warned that failing to resolve Europeans' concrete problems opens the door to demagoguery, populism and extremism.
After addressing the hemicycle, Montenegro had lunch with Portugal's 21 MEPs before returning to Lisboa.
