Portugal approves €2.4bn more to ease strain of rising costs

Madrid, Sept. 6, (dpa/GNA) - Portugal’s government has agreed on a €2.4 billion ($2.4 billion) package to relieve the strain of inflation and the energy crisis. 

The measures in the “family first” package were approved at a Council of Ministers meeting and bring the total amount allocated by the state to support families this year to around €4 billion, Prime Minister Antonio Costa said Monday evening. 

Measures to help businesses are expected to follow. 

The relief package includes reducing value-added tax on electricity from 13% to 6% from October until at least the end of 2023, a one-off payment of €125 for every citizen earning up to €2,700 per month, and an extraordinary payment of €50 for every dependent child up to age 24. 

Pensioners will get a one-time payment of 50% of their monthly allocation. 

Pensions will also be raised in the coming year by up to 4.4%. Season ticket prices for public transport and trains will be frozen next year. 

Rent increases will be capped at 2%. 

Some measures already in place, including fuel discounts and the suspension of the carbon tax, will stay in place until the end of the year. 

Costa said the measures would not jeopardize his government’s goals, such as strengthening the healthcare system and reducing public debt. In the country of 10.3 million inhabitants, people are being hit very hard by the effects of the Ukraine war, he said. 

GNA