Prime Minister argues for strong capital markets
Portugal’s Prime Minster, Luís Montenegro defended the essential role of the capital markets in financing Portuguese companies as a secure destination for family savings on Capital Markets Day earlier this month.
He said it was “worthwhile believing in Portugal” and that it could sustain business and entrepreneurial activities”.
Portugal’s “political, economic, financial, and social stability were assets as were the capital markets that could “take advantage of the country’s image and the way it was being sold as a country that was “changing and gaining value.”
Although the Prime Minister highlighted the contribution of the capital markets to the national economy, namely as an alternative to financing companies and a savings instrument, Luís Montenegro regretted the waste of investments in competing commercial blocks of the European Union.
“Europe cannot continue to watch impassively and calmly as financial resources are channelled to other capital markets, particularly the American one, because that is a mistake on two counts”, he said.
“Not only do we not make the most of the potential financing of our economy but we leave it to our competitors to take advantage.
“We therefore lose competitiveness twice. (Capital markets) help governments to make good decisions, quickly, to achieve so many goals that have been on paper for so many years, so that we can have sufficient agility in strengthening our financial instruments and the best economic performance through them,” said the Prime Minister.
Luís Montenegro also guaranteed the government’s commitment to improving the conditions for investment attraction conditions.
And despite the uncertain international context, the Portuguese economy had shown signs of showing positive and clear signals in terms of growth, with 2.3% foreseen in 2026, and with an expectation of a 0.1% surplus by the end of next year.
“Despite all the warnings and opinions to the contrary, we will surprise again and overcome this resistance in terms of optimism. Following this path, which combines economic growth and financial sustainability, we will continue to reduce the burden of our public debt, which has shown a remarkable performance,” said Luís Montenegro.
Looking back to 15 years ago, “Portugal’s profound financial crisis had led to a very high debt of 134.01% of GDP. For 2026, the government foresees it down to 88% of GDP which showed a “remarkable effort”.
The government’s priority, he said, was to maintain security levels while reducing income and corporate tax as a central policy.
“For us, tax policy is not an instrument of financial policy. “Tax revenues are important for State financial management, but the way they are designed is an instrument of economic policy and social justice.
“We want it to be a factor of stability and predictability. We shouldn’t do what has been done for a long time, practically changing the taxes every year in the State Budget Law”, he said in a nod to the complaints from investors that Portugal. had chopped and changed its taxes so often in the past.
Prime Minister, Luís Montenegro, addresses Portugal Capital Markets Day Conference 2025, in Lisboa, 12 de novembro de 2025. ANTÓNIO COTRIM/LUSA
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