Portugal, aid package for families launched

The Portuguese government has launched a € 2.4 billion package to alleviate the pressure on households caused by rising inflation and energy costs. The incentive package provides for the reduction of VAT on electricity from 13% to 6% from October at least until the end of 2023, a one-off payment of 125 euros for each citizen who earns up to 2,700 euros per month and an extraordinary contribution of 50 euro for each dependent child up to 24 years old. Retirees will receive a one-time payment of 50% of their monthly allowance which in 2023 will be increased to + 4.4%. The prices of passes for public transport and trains will be frozen next year while the increase in rents will be limited to 2%. Some measures already in place, including fuel discounts and the suspension of the carbon tax, will remain in effect until the end of the year. Prime Minister Antonio Costa said the measures will not jeopardize his government’s goals, such as strengthening the health system and reducing public debt. The measures, however, have been met with criticism from the opposition that speaks of “late” interventions and “crumbs” to citizens with interventions “far below the extraordinary income” recorded in recent months.