By: Hanna Urfjell Pedersen, Johanne Hanghøj Jørgensen and Theis Nielsen
November 29th, 2023: In a dramatic display of dissent, hundreds of protesters gathered outside the Assembly of the Republic in Lisbon, Portugal, today. The reason behind the public display of dissent was the parliamentary session in which the MPs would cast their final vote on the proposed state budget for 2024. And while the socialist government has hailed the proposal as being “beneficial to the Portuguese people,” all other political parties have been outspokenly opposed to it, with MP Mariana Mortagua from the Left Bloc calling the proposal “arrogant and unimproved.”
The proposed 2024 state budget comes just after Portuguese Prime Minister Antonio Costa’s resignation earlier this month. Costa, who is currently under investigation for alleged corruption, has won three consecutive terms as prime minister, and with him stepping down, the approval of a new state budget will be his final official duty. Costa also announced that he would not be running in any forthcoming elections, bringing his more than 25 years in politics to a dramatic end.
In his presentation of the budget, Costa stressed that the Portuguese people would see an, “improvement in wages, an end to the non-residential tax regime and a solution to the housing crisis,” but the main measures presented in the budget might paint a different picture.
Notably, the absence of any rent-control measures this year stands out, with the government instead opting to raise the deductible amount for rent in the personal income tax (IRS) to €600. This decision leaves many questioning the proposal’s effectiveness, as the anticipated rise in rent for January 2024, currently looms at 6.94%.
The guarantee of an improvement in wages had many Portuguese workers feeling hopeful for the state budget. However, only civil servants will receive a pay raise of roughly 3.8%. The more than 4.9 million other Portuguese workers, of which one-third earn only the minimum wage, will not benefit from any improvements. The General Confederation of Portuguese Workers (CGTP), who organized the protest, regards this as one of the main points of criticism on the state budget:
“We live in a country with very low wages, and it’s a big problem. That’s why our main demand is a significant increase to the minimum wage, 15% and nothing less,” said Dr Tiago Cunha, Economist and spokesperson for the CGTP.
While the proposal might be considered controversial, with almost everyone being opposed to it, the socialist government currently holds the majority in parliament, meaning the state budget for 2024 most likely will be approved. However, that hasn’t deterred the many protesters from showing up today and voicing their opinion.
“There’s nothing for us in the budget. The government isn’t actually giving us anything other than promises,” said Manuel Arrais, a former paratrooper in the Portuguese Air Force.
If you want to hear more from the protesters watch the video below where we report live from the protest.
Later that day the socialist parliamentary majority got the state budget bill for 2024 approved. And while the bill was voted against by the PSD (Social Democratic Party), right-wing populist Chega Party, the Liberal Initiative Party, the Communist Party (PCP) and the Left Bloc (BE), meaning only the socialists voted for it. Prime Minister Antonio Costa stressed that “in 2024, the Portuguese will have a budget that “protects the future.”