Portugal

Portugal falls into the upper-middle ranks (rank 10) in the category of vertical accountability.

The electoral process is generally transparent and nondiscriminatory. Political parties in Portugal must ensure financial transparency by conducting internal audits of their activities and campaign accounts. Party funding and campaign auditing are overseen by the Constitutional Court and another independent body.

There is no legal threshold to enter parliament, but smaller parties polling below 5% typically win seats only in large electoral districts like Lisbon and Porto. The long-stable party system is now seeing changes, with the two mainstream parties showing increasing ideological divergence, as well as with the unprecedented coalition between the PS and left-wing parties in 2015.

The rise of new parties like the populist right-wing Chega has increased polarization and intensified conflicts in the parliament, complicating consensus-building. Laws provide access to official government information with some justified exemptions.

Portugal falls into the lower-middle ranks internationally (rank 18) in the area of diagonal accountability.

Both private and public media operate independently, protected by strong constitutional guarantees of media freedom. The government cannot censor any media, ensuring autonomy. However, challenges for journalists remain, such as the threat of physical intimidation and precarious labor conditions that lead to low incomes and potential self-censorship.

Portugal’s media landscape is diverse, with numerous broadcast networks, radio stations and newspapers. Despite this diversity, investigative journalism is underfunded, and the profession is seen as being unstable.

Associations in Portugal can be established freely without government interference or discrimination. Civil society organizations (CSOs) addressing social welfare and labor issues routinely contribute to policymaking through platforms such as the Economic and Social Council. Environmental CSOs have limited influence on policy formation.

In the area of horizontal accountability, Portugal falls into the lower-middle ranks (rank 20).

The Tribunal de Contas is an independent audit institution, overseeing public sector financial activities. The National Data Protection Commission monitors compliance with the General Data Protection Regulation, with the power to issue fines and prosecute rule-breakers, but is understaffed.

The judiciary operates independently of the executive. This autonomy was particularly evident in a series of post-2022 legal challenges against government actions that led to numerous high-profile resignations, including the prime minister. Civil rights are generally upheld, but some marginalized groups face disproportionate discrimination.

Corruption remains a significant issue. Observers say the government’s anticorruption strategy had not been effectively implemented. Funding for the issue has recently been increased. The parliament has ample powers to monitor the executive and help shape policy, but resource constraints are a persistent hindrance.

Portugal falls into the sample’s middle ranks (rank 17) with regard to coordination.

Formally, two bodies – the Council of Ministers and the regular meetings of the secretaries of state from various ministries – facilitate government coordination. Line minsters forward proposals to the minister of the presidency, followed by discussions on refinement. These proposals then go to the Council of Ministers.

The Ministry of Finance plays a pivotal role in reviewing issues with economic impact. Regularly scheduled and ad hoc meetings between the prime minister’s inner circle and line ministers also play an important coordinating role. Interministerial commissions address a wide array of subjects.

A reform aiming at greater decentralization is underway, in part with the goal of improving the quality of public services and enhancing local governance powers. Financial transfers to municipalities have accordingly been increased.

Portugal performs relatively poorly (rank 24) in the area of consensus-building.

Several professional economic-analysis institutions, both independent and parliamentary, exist as legacies of the country’s financial crisis. The state lacks similar expertise in areas such as agriculture or water management. However, the government has established competence centers for planning, legal issues and digital issues.

Trade unions, business organizations and civil society groups participate in policymaking through the Economic and Social Council (CES). Critics argue that the involvement of business organizations and trade unions is not substantial, and tends to occur after proposals are already formulated.

Social welfare and environmental groups are also represented on the CES. However, the environmental community has only a single seat. The government has boosted its open data efforts in recent years with an action plan and the launch of a public data portal.

Portugal performs relatively poorly (rank 26) in the area of sensemaking.

Strategic foresight capacities are underdeveloped in Portugal’s public administration, with no central government unit tasked with analysis of this kind. A public sector innovation lab is focused on fostering an innovation ecosystem within the public administration, but progress has been slow.

Regulatory impact assessments (RIAs) are not well developed. Stakeholder involvement takes place at a rate lower than the OECD average. An initiative to improve the RIA framework has lost momentum.

Sustainability assessments are not systematically incorporated into environmental impact studies. Ex post assessments are not systematically institutionalized, but a new body has taken on oversight of both ex ante and ex post policy evaluations.

In the category of economic sustainability, Portugal falls into the lower-middle ranks (rank 20).

Portugal has aligned circular economy policies with European guidelines, but implementation has been slow. Realization of a national infrastructure investment plan is behind schedule. The energy system is one of Europe’s most fully decarbonized, with coal use having been phased out by 2022. The target of 80% of energy from renewables may be reached early, by 2026.

Unemployment rates have fallen substantially in recent years, but youth unemployment rates remain problematic. Employment policy focuses especially on this demographic, with mixed success. Structural unemployment is a concern, with educational offerings not well aligned with evolving workforce needs.

Portugal’s income tax system is progressive, but the regressive VAT tax rates are high. While environmental tax revenues are substantial, they mostly come from taxes on oil. Budgetary consolidation has allowed for significant deficit reductions and even a budget surplus in 2023. Overall debt has been reduced to slightly under 100% of GDP.

Portugal falls into the lower-middle ranks internationally (rank 20) in the category of social sustainability.

Student performance in the education system has dropped in recent years. The system is facing a teacher shortage, adversely affecting teaching capacities. Despite recent improvements, education attainment figures remain among the OECD’s lowest.

The risk of poverty remains comparatively high even after social transfers. Rising housing costs have reached a crisis level, stressing many families’ budgets and sharply boosting homelessness rates. The health service is universally accessible with low fees, but spending cutbacks have led to service reductions and longer waiting times.

A gender equality strategy seeks to foster equality, but the gender pay gap is widening. Although the state aims to provide universal access to affordable childcare, available services meet only half the demand. Families receive broad financial support. The country has an exceptionally strong integration program for migrants.

Portugal falls into the sample’s upper-middle ranks (rank 11) in the category of environmental sustainability.

The country has made faster-than-expected strides in decarbonizing its energy systems. It is thus on track to achieve carbon neutrality by 2050, with a Climate Change Performance Index rating above the EU average.

Portugal has aligned its policies with European climate standards, and has developed national and sectoral adaptation strategies to enhance climate resilience. A recent large-scale biodiversity study revealed challenges in achieving Portugal’s biodiversity conservation goals. Issues include poor coordination between sectors and ministries, lack of data access, underfunding, and limited private sector involvement.

The country participates actively in global efforts to address climate change. Its international activities have focused especially on migration and ocean health.