Government and Chega reach partial PSU deal but fail to break labor reform deadlock
A meeting between Prime Minister Luís Montenegro and Chega leader André Ventura produced a partial agreement on the Single Social Benefit, sending it to committee without a vote, but left the labor reform package deadlocked over retirement age and vacation days.
Social benefit bill headed to committee
The government and Chega reached a partial agreement on the Single Social Benefit (PSU), allowing the bill to proceed to the 10th parliamentary committee without a general vote. Chega's André Ventura said the Social Democratic Party (PSD) accepted six of his party's seven demands. The remaining sticking point is the exclusion of immigrants who have never contributed to social security from receiving the benefit. Ventura insisted Chega will not abandon this principle.
Whoever comes from abroad, without ever having contributed to Portugal, cannot receive subsidies in Portugal.
Prime Minister Montenegro, speaking at the National Agriculture Fair in Santarém, acknowledged that more work is needed to secure final approval. The PSU is intended to simplify the benefit system, reduce bureaucracy and fraud, and concentrate resources on those in greatest need. Its passage is required for Portugal to unlock a €620 million tranche from the EU's Recovery and Resilience Plan (PRR).
Labor reform deadlock
No agreement was reached on labor legislation. Major points of discord remain the lowering of the retirement age (a Chega proposal to allow retirement at 65 or after 40 years of contributions) and the restoration of vacation days that were cut under Troika measures. Ventura stated that if the government does not change its position, Chega will vote against the reform.
If everything stays as it is, if there are no changes from the government on essential issues, Chega will not support this labor reform.
Montenegro admitted that divergences are "significant" but emphasized that contacts will continue until the parliamentary debate and vote, scheduled for 18 and 19 June respectively.
What is required is humility and the capacity for democratic dialogue.
Timeline ahead
The PSU bill will be debated in parliament on 12 June but will go directly to the specialty committee without a general vote. The committee has one week to resolve the immigration restriction issue. The labor reform faces debate on 18 June and a general vote on 19 June.
- Meeting between Montenegro and Ventura; partial PSU deal agrees to committee referral without a general vote; labor reform deadlock confirmed
- PSU bill debated in parliament; descends to 10th committee without a general vote
- Labor reform debate in parliament
- Scheduled general vote on labor reform
