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Public Finance

CFP Flags the Pension Update Formula as Working in Only 10 of the Last 17 Years — €1.355 Billion in Extraordinary 2025 Top-Ups Underline the Drift From the Legal Mechanism

CFP Flags the Pension Update Formula as Working in Only 10 of the Last 17 Years — €1.355 Billion in Extraordinary 2025 Top-Ups Underline the Drift From the Legal Mechanism

The Conselho das Finanças Públicas (CFP) flags that Portugal's pension-update formula has been applied as the law sets out in only 10 of the past 17 years, with €1.355 billion in extraordinary measures layered on in 2025 alone. The drift is now a structural feature of the pension envelope.
The Portugal Brief
Filipa Calvão Hands Parliament a 'Verdadeiramente Inconstitucional' Parecer on the Tribunal de Contas Reform Bill on Thursday 14 May — Permanent Commission Says the €10 Million Visto Prévio Carve-Out Opens 'Zonas de Vazio' for Corruption

Filipa Calvão Hands Parliament a 'Verdadeiramente Inconstitucional' Parecer on the Tribunal de Contas Reform Bill on Thursday 14 May — Permanent Commission Says the €10 Million Visto Prévio Carve-Out Opens 'Zonas de Vazio' for Corruption

Thursday 14 May 2026: Tribunal de Contas Comissão Permanente parecer brands the Government's TdC reform bill 'verdadeiramente inconstitucional'; the €10 million visto-prévio carve-out halves external control from €10 bn to €5 bn and opens 'zonas de vazio' for corruption. Debate opens 20 May.
The Portugal Brief
IMF Article IV Mission Pushes Lisbon to Reverse the IRS Jovem and the IVA Reduzido on Restaurants — Mission Chief Jean-François Dauphin Flags €693 Million in Lost 2026 Revenue and a 4.2% Inflation Path if the Iran War Drags Into 2027

IMF Article IV Mission Pushes Lisbon to Reverse the IRS Jovem and the IVA Reduzido on Restaurants — Mission Chief Jean-François Dauphin Flags €693 Million in Lost 2026 Revenue and a 4.2% Inflation Path if the Iran War Drags Into 2027

The IMF's 2026 Article IV concluding statement — released Tuesday in Lisbon — recommends Portugal reverse the IRS Jovem and the IVA reduzido on restaurants, replace the fuel-excise cut with targeted support, and link early retirement to the statutory age.
The Portugal Brief
Portugal's Public Debt Climbs Back to 91% of GDP in Q1 2026 — BdP Adds €0.5 Billion in March to €283.2 Billion as the CFP Tells Brussels and Parliament the Government's 2% Growth Forecast Is 'Demasiado Otimista'

Portugal's Public Debt Climbs Back to 91% of GDP in Q1 2026 — BdP Adds €0.5 Billion in March to €283.2 Billion as the CFP Tells Brussels and Parliament the Government's 2% Growth Forecast Is 'Demasiado Otimista'

BdP puts Q1 2026 public debt at 91% of GDP — 1.3 points above end-2025, €283.2 billion. The CFP separately tells Bruxelas and Parliament the 2% 2026 growth forecast is biased upwards versus IMF 1.9% and BdP 1.8%, and that Portugal overshot the 2025 EU expenditure path.
The Portugal Brief