Minister rules out structural Social Security reform ‘during current legislature’

Minister of Labour (and the wealthiest member of government, in her own right) Maria do Rosário Palma Ramalho recalled that the government’s programme does not provide for “the structural reform of the Social Security system,” but acknowledged that “it may be beneficial to introduce one mechanism or another.”

The Minister of Labour reiterated yesterday, in response to Socialist MP Ana Paula Bernardo, that a “structural” reform of the Social Security system is off the table during the current legislative term, but admitted that “complementary measures to improve the future of new pensioners” could be introduced.

In other words, a structural reform is not on the government’s immediate horizon, but the aim is to “gradually introduce the topic, while proceeding with due caution,” she added.

In response to Liberal Initiative MP and party leader Mariana Leitão, Palma Ramalho indicated that the government “will be open to considering the proposals” included in the final report of the working group established to study the sustainability of the Social Security system, as well as proposals put forward by political parties on matters related to “supplementary schemes” that could “improve the future of new pensioners.”

Nevertheless, the minister urged caution and indicated that it would be advisable to wait for the conclusions set out in the report by the working group led by economist Jorge Bravo.

The minister reiterated that she expects to receive the final report “in the coming days” and said it will first undergo an “internal review” before being presented to social partners and members of parliament.

“And then, in the end, we will publish it on the website, just as the Green Paper report is published today,” she said, assuring that the process will be transparent.

On the need to commission a new study when the well-known Green Paper on the sustainability of the Social Security system, requested by the government of António Costa, already existed, Palma Ramalho argued that the Green Paper “painted a rosy future, whereas the Court of Auditors’ report did not.”

“Therefore, we requested another analysis because this is a complex issue”. The government also means take into account recommendations already made by several institutions – including the European Commission, the IMF*, and the OECD.

*The IMF only very recently told Portugal that low pensions and those paid out to widows/ widowers were “overly generous”.

Finally, responding to criticism from Socialist MP Miguel Cabrita regarding the appointment of economist and professor Jorge Bravo to coordinate the working group, the minister replied that “the government chooses whomever it wants.”

Source: Diário de Notícias/ Lusa

Natasha Donn

Journalist for the Portugal Resident.