Livre says PS abstention would serve the country poorly as Carneiro moves to secure Budget
The left-wing party Livre has declared that the Socialist Party's plan to abstain on the 2027 State Budget "does not serve the country," as PS leader José Luís Carneiro prepares to formally propose the move to his party's internal bodies. The decision would guarantee passage of the government's budget and deliver political stability to Prime Minister Luís Montenegro's administration.
Carneiro, Secretary-General of the Socialist Party (PS), announced he will ask the party's governing organs to approve an abstention when the budget comes to a vote. The move follows guarantees from Montenegro on four key PS demands: involvement in constitutional revision, protections for current and future pensions, investment commitments beyond the EU's Recovery and Resilience Plan, and support for municipalities recovering from recent storms.
Government welcomes decision as other parties attack
Finance Minister Joaquim Miranda Sarmento called the Socialist position "very positive for the country" because it ensures political stability and budget approval. The budget would otherwise face an uncertain path through the Assembleia da República, Portugal's parliament in Lisbon.
But the PS strategy drew sharp criticism from across the opposition bench. José Manuel Pureza, national coordinator of the Left Bloc (BE), accused the Socialists of handing the government a "blank cheque" through abstention. He suggested many Socialist members would feel uncomfortable supporting a centre-right administration.
"Montenegro smiles at this favour: Chega gives him the rhetoric and the PS gives him the votes," Pureza said.
Paulo Raimundo, Secretary-General of the Portuguese Communist Party (PCP), argued that any party enabling the budget shares responsibility for government policy. He called on PS internal bodies to reject Carneiro's proposal, warning that the decision had "freed Chega" from any obligation to support the budget themselves.
Chega leader claims Socialists "governing together" with centre-right
André Ventura, leader of the right-wing party Chega, said he was not surprised by the PS stance, declaring that the Socialists are "governing together" with the PSD. Ventura accused Carneiro of making the entire budget negotiation "useless" by announcing abstention before seeing the final proposal.
Livre echoed the broader left-wing criticism, arguing the PS approach fails the country. The party, along with BE and PCP, has demanded stronger measures to address Portugal's cost-of-living crisis and deteriorating public services.
Budget faces tight margins and rising fixed costs
The 2027 budget will operate under significant constraints. Finance Minister Miranda Sarmento has flagged a "relatively reduced budget margin" as the government balances public accounts. The forecast surplus stands at just 0.1% to 0.2% of GDP.
Economist António Nogueira Leite warns that rigid expenditure on pensions and public sector salaries will reach approximately €4.8 billion in 2027 before any new measures. Pension increases alone account for roughly €2 billion due to annual indexation updates and demographic pressures.
Miranda Sarmento has cautioned that permanent revenue cuts, such as VAT reductions on fuel or food, could push Portugal back into deficit. The BE has proposed capping fuel prices at 13% VAT while applying zero VAT to essential food items.
What happens next
The PS internal bodies must still approve Carneiro's abstention recommendation. Once formalised, the party's abstention would ensure the OE2027 passes without need for votes from Chega.
For residents, the budget's passage means continued public investment commitments, maintenance of the debt reduction path, and guaranteed pension protections. However, no major tax cuts or new spending programmes are expected given the tight fiscal room.
