LUSA 10/07/2026

Lusa - Business News - Portugal: PM will be intransigent in EU budget cuts

Strasbourg, France, Oct. 6, 2026 (Lusa) - Portugal's prime minister has maintained a firm stance, declining to engage in a «begging contest» over the next EU budget, warning that he would be «uncompromising» on cuts to cohesion policy and noted that Portugal contributes more proportionally than the ‘frugal' countries.

Speaking to journalists before addressing the European Parliament in Strasbourg, Luís Montenegro acknowledged that he is «concerned» about the negotiations on the European Union's (EU) next budget, covering the period from 2028 to 2034, and with the need to «ensure that the provisions of the treaties are upheld» regarding cohesion policy, the Common Agricultural Policy (CAP) and support for the outermost regions.

«Europe will only become more competitive if it ensures cohesion: social, territorial and economic cohesion. We will therefore be firm in our efforts to ensure that the provisions of the treaties in this regard are upheld,» he said.

Later, in his speech to MEPs, Luís Montenegro insisted that the next EU budget must fund «new priorities», while also «preserving the policies that remain essential for convergence and for the competitiveness of the whole of Europe».

«Portugal, and I wish to state this here clearly, transparently and directly, views the Multiannual Financial Framework (MFF) as an opportunity to deepen a social and economic project based on an internal market that is only possible and viable through innovation and solidarity amongst all member states and all regions,» he added.

Calling for the debate on the next budget to take place «without dogmas or taboos», Montenegro also pointed out that «Portugal's contribution to the EU budget exceeds that of the so-called ‘frugal' member states», referring to Germany, Denmark, the Netherlands, Austria, Finland and Sweden, when analysed as a proportion of Gross Domestic Product (GDP).

«We must recognise one simple fact, and sometimes simple things are right in front of us yet we do not always see them clearly: giving 10 out of 100 is much more than giving 50 out of 1,000,» he emphasised, to applause from some MEPs.

Montenegro called for member states' contributions to be assessed according to the proportional effort they make, having previously told journalists that the ‘frugal' states, while the largest net contributors, also benefit most from the EU.

«The strongest economies are those that benefit most from the single market. That is also where the foundation of cohesion lies,» he said.

In his speech, Montenegro also defended the importance of preserving funding for the outermost regions, which in Portugal's case are the Azores and Madeira, emphasising that these regions «guarantee strategic depth and autonomy» and are of «greater importance» for the EU's standing in the world.

Whilst calling for the preservation of cohesion policy, the CAP and funding for the outermost regions, the head of government said he agreed that the EU should focus on «new priorities», such as defence or competitiveness, but stressed that, to this end, it is also necessary to find «more revenue», at a time when the ‘frugal' states have spoken out against the creation of new sources of funding for the budget.

Montenegro also said that it was «essential to update mechanisms designed for other times and other realities», referring to the so-called ‘rebates' – the discounts that countries contributing the most to the European budget receive on their respective national contributions.

«What purpose does a mechanism such as rebates serve today? What purpose does it serve, in light of the need to accelerate funding mechanisms that can generate new resources, and in light of the rules governing the functioning of the internal market?», he asked, drawing further applause.

TA/ADB // ADB.

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