Public safety, housing and employment, along with higher net income and functional public services, are areas where the new government needs to respond to citizens' expectations. But the long term also needs to be addressed.
In the aftermath of the legislative elections, some parties still haven’t grasped that the forced left-versus-right dichotomy no longer reflects voters’ reality. The various parties that have made this ideological struggle their banner together received less than 10% of the vote in this election. Today, in Portugal and across Europe, the political fight is between democratic and social parties that believe in the European Union, in liberal democracy, in the rule of law, in a free but regulated market, and in a public sector that provides essential services, and on the other side, anti-system populist forces with authoritarian, anti-democratic, anti-European instincts, who believe in a strong state that controls both citizens and companies, a state that ends up being controlled by the elites who seek to gain power.
In a democracy, the choice between these two models should be obvious, but unfortunately, populist parties have been more direct in responding to people’s fears and concerns, using effective messaging despite lacking real substance or concrete proposals. That political battle is currently being won by populists in America and in many Middle Eastern and Asian countries. But Europe still stands as a stronghold of liberal democracies and must continue to prove that its model is the one most capable of bringing prosperity. In Portugal, the democratic and social center still received more than two-thirds of the vote. That support must be honored by ensuring our political and economic system, as well as the state, can effectively meet the widespread concerns of the population. That means governing well.
But governing well in a modern democracy is very difficult. It’s difficult because good policies take many years to produce beneficial effects, and their success lies in the details of policy design and the quality of execution, not in big slogans. But the pressure of the media and social networks reduces everything to a short-term soundbite and the issue of the day. Who wants to discuss the details of pension system sustainability when they can watch a live ambulance chase taking a politician to the hospital after a meltdown? This kind of media spectacle turns reality into a constantly reenacted reality show, where the best performers win out over the best leaders.
That’s why governing well today cannot be an ideological exercise disconnected from citizens’ real lives. It must be a pragmatic exercise, balancing short- and long-term goals, building future prosperity while also responding to people’s immediate concerns. That brings us to Portugal’s current situation. With a Prime Minister appointed last Thursday, a new government is expected to be announced this week. What should its priorities be?
The central priority must be economic growth, particularly through increased productivity. But that cannot happen unless Portugal is able to attract more productive investment. Foreign direct investment, certainly, not just to buy housing, but to generate permanent jobs and greater economic activity in areas where Portugal can add value, such as the entrepreneurship ecosystem, research and innovation, multinational competence centers, clean energy production, the ability to drive the sustainability transition, and digitalization. Also needed is private investment from large and mid-sized national companies that lead in key sectors like health, retail, telecommunications, value-added services, industry and tourism, agriculture, food production and forestry. These companies should be supported because, in today’s global context of fragmented economic and political blocs, national decision-making hubs and local businesses will play an increasingly foundational role in each country’s economy. This is not so much about giving more support, but about removing constraints, reducing fees and accelerating licensing. In other words, eliminating the barriers that limit companies’ capacity and willingness to invest.
Focusing on growth also requires public investment in key areas that modernize the state and its infrastructure, without forgetting education and science, which bring long-term benefits. But it also requires public investment in a major immediate priority: the construction of affordable housing, directly addressing one of the population’s most urgent needs.
Another top priority is regulating immigration and ensuring the proper integration of immigrant, a growing concern among citizens. Immigration has been the main driver of the Portuguese economy in recent years, with employment hitting record highs quarter after quarter, generating social security surpluses and fueling the growth of key sectors in our economy. We are well positioned to continue attracting global talent and qualified young professionals, as well as labor for essential sectors like tourism, construction, industry and agriculture. But we need to define a smart immigration model, one that attracts those who most benefit our economy and society and who are culturally closer to us, while also promoting the linguistic and cultural inclusion of everyone else. At the same time, law enforcement must be empowered to crack down hard on the organized crime networks that often emerge following strong waves of immigration. These networks can be a major threat to citizens’ safety, creating a sense of fear and distorting public perception of the enormous value that immigration brings to Portugal.
Security, housing and employment, with higher net income and functional public services, are areas where the new government must respond to citizens’ expectations. But the long term must also be addressed. In recent years, Portugal has developed clear and cross-cutting national strategies in key areas for the country, such as water as a strategic resource, the digitalization of society and public administration, investment in railways, and improvements to urban mobility. These strategic agendas must be implemented. When it comes to demographics, one priority should be a policy to promote families and support larger families through tax and education measures. We need to increase the birth rate to secure the country’s long-term viability, even if the effects will only be felt down the line.
As a final note, another key investment is in continued workforce qualification and the promotion of lifelong learning. I’m pleased to highlight that Portugal has distinguished itself in executive management training since 2007, when CATÓLICA-LISBON became the first Portuguese school to be featured in the global executive education ranking, a position it held for 18 consecutive years. The 2025 ranking was released today and includes five Portuguese schools among the global rankings, with CATÓLICA-LISBON ranked 34th in the world for customized programs for companies and 37th globally in open-enrollment programs, based on the average of the past three years. Portugal can and should make a strong commitment to the science and education sector, which helps boost productivity and attract talent to our country.
Filipe Santos, Dean da CATÓLICA-LISBON