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Portuguese Parliament Blocks Labour Market Overhaul

A rare alliance between the far-right Chega party and the centre-left Socialists effectively killed the government's flagship labour reform on Friday. The vote leaves the centre-right minority administration struggling to push through its ambitious agenda, which aimed to rewrite over 100 articles of the country's existing labour code.

Portuguese Parliament Blocks Labour Market Overhaul

The government framed the proposed changes as a necessary lever to catalyze productivity and stimulate economic growth. However, the legislation faced immediate resistance from trade unions, who contended the reforms were skewed heavily toward employer interests at the expense of established worker protections. This friction manifested in two separate general strikes over the last six months, signaling deep-seated public opposition to the cabinet's proposals. By consolidating their votes, the opposition parties have effectively halted the government's attempt to restructure the regulatory framework governing the national workforce.

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