This perspective on the evolution of pensions in the coming year was passed on by António Costa at a CNN Portugal conference, which included a special broadcast of the program “The Principle of Uncertainty”.

Asked by journalist Carlos Andrade about his executive's budgetary strategy to respond to the phenomena of rising inflation and interest rates, António Costa maintained that, in the last six years, from a political point of view, "it became clear that the Government has a conservative logic in budget management”.

“The government always prepares for the worst, always hoping for the best – and so far it has gone well. But if the interest rate goes up, we know that interest rate spending will surely increase,” he pointed out.

Inflation forecasts

Regarding forecasts regarding inflation, the prime minister said that, as a result of this upward trend, next year “the increase in pensions will be historic”.

“There is not the slightest doubt that we will comply with the formula that has existed since the 2007 reform. Laws exist to be complied with”, stressed António Costa, with former Social Democrat leader Pacheco Pereira and Socialist and ex-minister Alexandra Leitão.

According to the leader of the executive, this law “means that, for the year, there will be a historic increase in the value of pensions”.

“An increase due to the combination of registering an abnormally high growth rate this year, largely due to the comparative effect of last year and a historical increase, also very significant in the inflation rate”, he justified.

“These two combined effects will generate a large increase in retirement pensions next year. This is data that we know,” added the prime minister.