Portugal — Foundational understanding for the interested immigrant (Part 2)

Luis Almeida Fernandes
4 min readOct 18, 2023

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Part 2 — Current politics

After eight hundred years of monarchy and fifty of dictatorship, on the 25th of April of 1974, the Carnations Revolution happened and Portugal reached its present political form, also called the “Third Republic”. It was as peaceful a revolution as they come, with almost no shots fired. One might more accurately describe it as a collective hurrah towards a long-desired democracy. Nevertheless, the change was radical. Early on, Portugal almost turned communist, with the leftists trying to steer the country away from a parliamentary democracy and towards military revolutionary control. We had six governments in two years, before stabilizing with prime minister Mario Soares in mid-1976. Things were still messy for a while, with many temporary governments and serious economic turmoil, until the constitution was revised in 1982, removing the Revolutionary Council from the political sphere.

Scars from the dictatorship abound. Post-dictatorship Portugal is still suspicious of many forms of authority — church, politicians, police, and to some extent even teachers or parents. Freedom, in particular freedom of speech, is cherished above all else (so the woke culture, while around, is relatively mild and rarely brings successful cancellations). Personal wealth raises a few eyebrows, since rich families before the revolution were usually supportive of the dictatorship and those that became rich since the revolution are generally assumed to have done so by exploiting workers or corrupting politicians.

Since the revolution, Portugal has been an easygoing centrist country for European standards (which means “Bernie-style radical left” for US standards). All education is free, including college. All healthcare is free. Beaches are free and the beer is cheap. The executive power alternates every five to ten years between the inadequately-named PS (Socialist Party), which is center-left, and the cryptically-named PSD (Social Democratic Party), which is center-right. You would be hard-pressed to find meaningful differences between their electoral programs, other than single-digit disagreements on a few tax adjustments and maybe occasional philosophical disagreements on public-private partnerships.

We had good periods. Roughly between 1985 and 1990, under a PSD government, Portugal grew at about 5% per year and joined the European Union. Between 1995 and 2000, under a PS government, Portugal also grew at about 4% per year, in part using European funds. The country was finally catching up with the rest of Europe after the long post-revolution turmoil. Today, we still love dining with our fancy group of EU friends and feel thankful to our German brothers for discretely picking up the tab (although it can be embarrassing when word gets out in public).

We also had rough periods. During the early 2010s, Portugal was one of the PIGS (Portugal, Italy, Greece and Spain). You probably remember this. Our external debt was considered too high and interest rates were escalating creating risk of default. Portugal had to invite the IMF, the European Commission and the European Central Bank (together, the so-called Troika) to take a certain level of punishing economic control in exchange for the much-needed loans. GDP contracted 4% in 2012, causing traumatizing pain. Even today, people shiver when they hear the words “Troika” and “austerity”.

We dislike inequality and, compared with most of the world, don’t have much of it. In 2022, the top 10% of earners made 35% of the national income (compared with 45% in the USA), placing Portugal in the top 25 of the most equal countries on earth, which are all European except for Taiwan. Unfortunately, Portugal is relatively poor. Adjusted GDP per capita is half of that in the USA, placing Portugal in the tail-end of Europe, right behind Poland. The minimum wage is about 800 euro per month and the average wage is 1300 euro per month (both pre-tax). Most people struggle.

While on paper we are Catholic, since 1974 religion became associated with dictatorship. So now we are still catholic, while comparatively progressive. Gays? We love them. Abortion? Sad and divisive, but let’s make it dignified and safe. Weed? Just don’t do hard drugs. Hard drugs? Ok, do them if you must, but just don’t sell them. Heavily armed police? Don’t need them much, since we barely have murders. Military? Also don’t need it — isn’t that what NATO is for? Racism? Many deeply entrenched stereotypes, structural systemic racism, and frequent gaffes; usually not the purposefully mean, outwardly type. Death penalty? No way.

In social matters, Portugal is not too polarized. Sure, the Pope recently organized the World Youth Day in Lisbon, financed by the city, which was not a great secular separation of church and state. But even people that didn’t want it were ok with it. A few shrugged shoulders, some complaints, and at the end of the day let believers believe and we can all be happy.

Overall, as new residents of this mild-mannered and mostly egalitarian country, you are expected to stay away from overt signs of wealth. Get the VW instead of the Porsche. Better yet, take the bus. Avoid talking about how cheap dinner was, since most people might not make that in a week. Keep a low profile. Be modest. Avoid talking about money, unless you are really struggling with not having it. Then, everyone will love you.

(Link to Part 1 — A thousand years of brutal, messy history)

(Link to Part 3 — A few tips for a pleasant stay)

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