Prime Minister Montenegro Vows No More State Bailouts for Struggling Companies in Portugal

Prime Minister's Assurance on Business Support

In a recent statement, Prime Minister Montenegro addressed concerns raised by the leader of the Socialist Party (PS) regarding the financial struggles of many companies in Portugal. He firmly declared, "We will not create more Efacec in Portugal", emphasizing that this is a golden rule of his government.

Rising Unemployment and Business Closures

Montenegro's assurance came in response to Pedro Nuno Santos, who highlighted the alarming trend of 400 collective dismissals, resulting in over 5,500 workers losing their jobs, particularly in the textile sector and amidst threats to the automotive industry.

Addressing Industry Challenges

"It is evident that we are concerned when there are layoffs and companies closing down," Montenegro acknowledged, reiterating the government's commitment to monitor and support businesses facing challenges. He specifically pointed out that the difficulties in the textile industry are not due to a lack of innovation or qualified workforce, but rather a decline in market demand.

Montenegro assured that the government will accompany businesses and provide targeted support to help them navigate the market's challenges. However, he reiterated his stance, "We will not create more Efacec in Portugal", distancing his administration from past government policies that may have relied on state bailouts.

Conclusion

In essence, Montenegro's message is clear: while the government will support companies, it will not resort to creating more financial dependencies, marking a significant shift in Portugal's economic policy.