Montenegro removes systemic risks of financial crises in the EU

O portuguese Prime Minister, Luís Montenegro, today has removed “systemic risks” from financial crises in other Member States of the European Union, but has stressed that Portugal has “moral authority” to demand compliance with budgetary rules.

“There is no point in presenting this drama. We are not in a position to say that there are systemic risks to the financial behaviour of some Member States of the European Union,” said the Head of Government in Parliament today during the preparatory debate of the European Council on 15 and 16.

“ But we have the moral authority to demand from the European Union that commitment to budgetary rules, to financial rules, should be ensured, because we have suffered in the skin what it took to correct a deviation that was taking place about 15 years ago,” he said.

Luís Montenegro responded to Mr Magno from Cávez, who considered that Europe is under “two swords, financial and energy,” and questioned the Prime Minister on the impact of crises in other Member States, particularly in France.

“It’s not just the French example, there are others. There are Member States with very significant debts and also very relevant deficits,” said the Prime Minister.

Montenegro was concerned that “some political actors and parties are defending for Portugal some policies that are being implemented in those countries and that are the origin of the budgetary imbalances that are now being mentioned”.

The leaders of the European Union meet next week in Brussels for a summit at which they will discuss responses to rising cost of living and try to consensualise “the fundamental elements” of the next EU budget (2028-2034).

The next Multiannual Financial Framework (MFF) dominated much of today's debate with the government.

The Prime Minister stated that the Commission's objectives for the next budget are to increase investment in defence, boost economic competitiveness and promote energy transition.

“ Doing it with the same resources is not possible. Of course, adding challenges and perspectives of intervention also presupposes their funding ", commented, responding to the deputy of the PS Eduardo Pinheiro.

Montenegro warned against the possibility of Portugal losing revenue.

“ The only thing that I can say about the proposals that the Commission has put forward is that we must prevent the Member States' contribution, and in the case of Portugal, from no longer, particularly in tax matters, from collecting the tax revenue that is in force today in our country so that it can be channelled directly by the European Union. This happens in several areas of activity. It happens in the digital, it happens in the game, it happens in tobacco ", said.

“ Of course we have this concern, we are available, but to the exact extent that we are not penalized ", warned.