Montenegro Announces New 'Return Law' for Immigrants as Government Pushes Reform Blitz

Prime Minister Luis Montenegro used Wednesday's parliamentary debate to announce that the Council of Ministers will approve a new "return law" for immigrants on Thursday, part of what he described as the government's "transformative agenda" spanning four major structural reforms.

The announcement came alongside renewed commitments to overhaul Portugal's labour code, accelerate housing construction, and eliminate the prior approval requirement from the Court of Auditors for certain public spending. Montenegro challenged opposition parties to resist what he called "the voices of immobility that echo through the political-media bubble" and support the package of changes.

What the Return Law Means

While full details of the return law are expected when the Council of Ministers meets Thursday, the legislation is understood to create a more structured legal framework for the repatriation of irregular migrants. Portugal has long struggled with a growing backlog of immigration cases at AIMA, the agency responsible for processing residency applications, and the government has signalled it wants to draw a clearer line between legal and irregular immigration.

For the hundreds of thousands of immigrants who hold valid residency permits or are navigating the legal system, the practical impact remains to be seen. The government has been careful to frame its immigration stance as pro-legal migration while cracking down on irregular channels, but advocacy groups have expressed concern that enforcement measures could inadvertently affect people whose cases are delayed through no fault of their own.

Labour Reform: Portugal's Rigidity Problem

Montenegro also used the debate to push back against criticism of the government's proposed labour code changes. Portugal currently ranks as the 37th most rigid labour market among 39 OECD members, a position the Prime Minister argued was holding back investment, talent retention, and wage growth.

"It is possible to have more flexible legislation without harming the essential rights of workers," Montenegro told parliament, adding that negotiations with social partners are ongoing and that the revised proposal is "practically new" compared to the initial draft that drew union opposition.

The labour reform is especially relevant for Portugal's growing community of foreign professionals and entrepreneurs, many of whom operate in sectors like technology and services where contract flexibility directly affects hiring decisions. Portugal's rigid dismissal rules and overtime regulations have long been cited by business groups as obstacles to scaling operations domestically.

A Calculated Political Gamble

By bundling immigration enforcement, labour flexibility, housing construction, and public spending reform into a single narrative, Montenegro is attempting to present the AD government as a modernising force willing to take on entrenched interests. The strategy carries political risks: unions have already signalled opposition to the labour changes, left-wing parties are wary of the immigration crackdown, and the housing crisis remains far from resolved despite government assurances.

Parliament will ultimately decide the fate of the labour reform, and Montenegro's challenge to other parties to join the effort suggests he is not yet confident of securing the votes needed without broader support. With municipal elections on the horizon and public frustration over the cost of living still running high, the coming weeks will test whether this reform blitz is a genuine turning point or a political gambit that stalls in committee.