Pedro Passos Coelho presents economic reform study and urges Luís Montenegro to act
A new economic report coordinated by former Prime Minister Pedro Passos Coelho identifies low productivity as Portugal's main structural barrier, calling on the current government to implement long-term reforms before European recovery funding concludes.
Diagnostic of economic bottlenecks
The Commercial Association of Porto released the preliminary phase of a study titled "Bloqueios versus Reformas: uma visão para Portugal" on 11 September 2026. Coordinated by former Prime Minister Pedro Passos Coelho, former Socialist lawmaker Sérgio Sousa Pinto, and association president Nuno Botelho, the work investigates the structural causes behind Portugal's slow economic growth. The report notes that the Portuguese economy grew at an annual average of 1.1% between 1999 and the present, representing one of the lowest rates in the European Union. Researchers with scientific backing from the Faculty of Economics and Management at the University of Porto identified weak productivity as the primary impediment to expansion. Recent economic growth in Portugal resulted predominantly from higher employment numbers rather than substantial productivity improvements.
Structural barriers and institutional friction
The diagnostic details widespread barriers across multiple sectors, including deficits in human capital, management quality, corporate scale, and domestic savings. The authors note that the functioning of the state and public institutions acts as a direct drag on investment. Bureaucracy, tax complexity, judicial delays, administrative centralism, and housing shortages restrict resource mobility and business competitiveness. The study also examines the allocation of European Union funds, arguing that evaluations must focus on lasting economic capacity, exports, and innovation rather than mere financial execution figures. Passos Coelho discussed the findings during closed-door sessions with business leaders, journalists, and academics at the Palácio da Bolsa in Porto.
- Release of initial diagnostic on economic bottlenecks at Palácio da Bolsa in Porto
- Scheduled presentation of the book Portugal na Paz dos Bloqueios
- Planned presentation of concrete structural reform proposals
- Final delivery of the reform study to the Government and President of the Republic
Urgency and political warnings
Alongside the study, Passos Coelho addressed the political conditions required for economic change in an eleven-page preface to the forthcoming book "Portugal na Paz dos Bloqueios" by Pedro Gomes Sanches. He cautioned Prime Minister Luís Montenegro that the window to implement structural reforms is narrowing rapidly. Passos Coelho argued that previous governments under António Costa spent eight years mortgaging future support instead of enacting foundational reforms. The former prime minister maintained that narrow parliamentary margins should not serve as an excuse for governmental inertia during the remainder of the legislative cycle.
The watchword will not be so much to resist daily the fragility of parliamentary support, but to turn that fragility into a strength.
Long-term roadmap and upcoming deliverables
Passos Coelho asserted that structural transformation cannot occur within a single term and requires a sustained eight-year horizon to take effect. He stated that the conclusion of Recovery and Resilience Plan funding will intensify the pressure on Portugal to resolve longstanding economic deficiencies. The second phase of the Porto project will define specific policy proposals, implementation schedules, costs, and funding mechanisms across sectors such as healthcare, energy, financial markets, and public administration. The completed document will be formally submitted to Luís Montenegro's government and to President of the Republic António José Seguro at the end of 2026.
A transformative agenda will require two legislatures to materialize, forcing the first to be sufficiently mobilizing and successful to drive the second.
