The general lines of the State Budget proposal were presented on Monday to the parties with parliamentary representation (PS, PSD, Chega, Iniciativa Liberal, Bloco de Esquerda and PCP) and to the sole deputies of the PAN and Livre by the Ministers of Finance, Fernando Medina, and Deputy and Parliamentary Affairs, Ana Catarina Mendes.

Contrary to usual, members of the Government did not make statements to journalists at the end of the round with the parties, but the Liberal Initiative made it known that the socialist executive already projects an inflation rate of 4% for this year, more than the 2.9% provided for in the Stability Programme.

The PSD even said that this year there will be “covered austerity” with salary increases not offsetting the rise in inflation.

The PS replied that introducing immediate salary compensation could generate an “inflationary spiral” and that the solution is to control prices to protect family incomes.