Portugal's EU presidency to focus on social justice

Portuguese Prime Minister Antonio Costa aims to work on policy fields that have been overshadowed by the coronavirus pandemic and Brexit. He also wants enhanced relations with India.

Portuguese Prime Minister Antonio Costa and Foreign Minister Augusto Santos Silva will be relieved that a new EU budget and post-Brexit deal were adopted in Brussels before their country assumed the Council of the European Union presidency in January. This allows Portugal to focus for the six-month term on issues that have received scant attention of late: making the EU more resilient to crises, more environmentally friendly and more socially just. In addition, Portugal wants to boost the bloc's international standing.

"We hope to quickly implement the new budget and coronavirus payouts," says Silva. Portugal itself, like many other member states, is desperate to receive its share of the €750 billion ($919 billion) coronavirus relief package. Some €26 billion will go to the country to tackle pandemic-related problems and help stimulate the economy.

Domestic challenges

Portugal's minority Socialist Party (PS) government will need this payout to continue its agenda of social welfare reforms, with the PS reliant on the parliamentary support of either the Portuguese Communist Party (PCP) or Left Bloc to push through any legislative measures.

Portugal's unemployment rate has risen to about 9% since the outbreak of the pandemic. Public debt has soared to a record 131% of gross domestic product (GDP). Portugal’s GDP amounts to a mere 80% of the EU average and has fallen a further 9% because of the coronavirus crisis. The country's tourism industry, which was booming, has now lain dormant for months. In 2019, it accounted for 14% of Portuguese GDP.

Forging compromises

The small country in the far west of continental Europe is therefore eager to make the most of its turn at the Council of the European Union presidency.