Left approves extra increase in pensions against the Government’s wishes. Enough abstained

With the support of the entire left and Chega’s abstention, the socialist proposal for an extra increase in pensions should even go ahead without the Government’s knowledge.

The debate on the State Budget for 2025 (OE2025) is entering a decisive phase, with votes on the specialty scheduled for this Friday. One of the measures highlighted is the extra increase in pensions up to 1565 euros by 1.25%proposed by the PS.

The socialist proposal must be approved even against the will of the government. With Chega’s abstention and the favorable votes from Bloco de Esquerda, PCP and Livre, the votes against from PSD, Liberal Initiative (IL) and CDS-PP will not be enough to stop the measure. This proposal reflects one of the so-called “negative coalitions”in which the opposition unites to force decisions contrary to what the executive wants.

In reacting to Chega’s abstention from the PS proposal, the PSD parliamentary leader did not spare criticism. “The Socialist Party and Chega have much more in common than they like to show. Because in words, Chega and PS fight each other fiercely in Parliament. But then on voting day, Chega and PS they always get married“, accuses Hugo Soares.

In addition to this proposal, Parliament will debate other initiatives on pensions. Chega proposes a extra 1.5% increasewhile PSD and CDS-PP defend the introduction of an extraordinary variable supplement, based on budget execution. The vote is scheduled for November 26, allowing the Technical Budget Support Unit (UTAO) to assess the financial impact of the measures.

More proposals on the table

Another central issue involves legislative authorizations to change the labor law in public functions, including sickness regimes, mobility, vacations and advance notices of strikes. The opposition rejects what it considers to be a “blank check” to the Government, criticizing the lack of detail in proposals. This point is expected to face strong resistance, including from IL and Chega.

In taxes, the PSD’s proposal to reduce IRC by one percentage point It has already been accepted by the PS and should be approved. Other measures under discussion include the reduction of VAT to the minimum rate on baby food, presented by IL, which could garner transversal support. In the energy sector, IL proposes to guarantee fiscal neutrality in the unfreezing of the carbon tax, suggesting a reduction in the tax on petroleum products (ISP) to compensate for recent increases.

The Government’s intention to gradually limit advertising on RTP has generated opposition and the PS is proposing to introduce a rule that guarantee RTP at least half of the advertising time of private channels, equivalent to the current six minutes per hour. This measure could be approved with the support of Chega and IL, constituting yet another defeat for the Government.

Still within the scope of OE2025, Chega will be able to align with the PS in negotiating an exclusive dedication regime in the SNS, while CDS-PP, PSD and Chega form a common front to lower VAT on bullfighting for the minimum rate.