CFP Opinion on the revision of the Fiscal Framework Law

The Committee on Budget, Finance and Public Administration (5th COFAP), in a communication received on 26 February 2026, requested the Portuguese Public Finance Council to “issue written contributions, prior to the presentation of legislative initiatives by the Government and Parliamentary Groups, on the revision of the Fiscal Framework Law”.

The request was made following a motion by the Socialist Party Parliamentary Group addressed to that Committee. The opinion now submitted is attached.

Conclusion of the Opinion “Contributions to the revision of the Fiscal Framework Law”

With this opinion, the CFP aims to make a positive contribution to the ongoing discussion on the Portuguese fiscal system in its regulatory dimension, highlighting the urgency of adopting the new European economic governance framework, approved in 2024, and in particular the need to transpose its new Directive as soon as possible. The changes have been far-reaching, requiring the ‘cleansing’ of the LEO of references, procedures and fiscal rules that are now obsolete. The transposition of the new European framework into domestic law is also an opportunity to strengthen the national framework of fiscal rules, which we believe has become all the more necessary in a context where the new European regulations point towards greater flexibility and discretion in fiscal matters, which nonetheless poses a risk to the preservation of discipline and the long-term sustainability of public finances. It is important that the LEO helps to establish a national culture of fiscal responsibility and rigour, binding all actors and sub-sectors, as we see in the most developed countries in Europe and the world.

Date of last update: 20/03/2026