Portugal PM Pushes Labor Reforms to Drive Growth
Prime Minister Luis Montenegro is advocating for more flexible labor laws to increase Portugal's annual economic growth to 4 percent. The proposed reforms include easing outsourcing limits and introducing time-bank arrangements to attract foreign investment after a decline in 2025.
Prime Minister Luis Montenegro is pushing to loosen labour laws in Portugal to accelerate annual economic growth to 4%. The minority centre-right government aims to secure parliamentary approval for the reform package within the coming weeks. The move seeks to reverse a 34% decline in foreign direct investment to €8.5 billion in 2025 by making the nation more competitive for global capital.
### Overcoming Rigid Labour Constraints Portugal currently ranks as the 38th most rigid labour market out of 39 OECD countries. Montenegro told a business conference in Braga on Tuesday midday that these restrictions prevent the nation from capitalising on its sound public finances and stable location. He argued that current laws trap the economy at growth rates between 1.5% and 2%.
