Finance Minister Fernando Medina has the unenviable task of drawing up next year's State Budget

Inflation to push pensions spending up by €2 billion in 2023

Popular tabloid Correio da Manhã has honed in on the inconvenient truth overshadowing any and all the government hype over Portugal’s economic future. Inflation is the greatest problem – and it shows no sign of receding anytime soon. Just in pensions next year State spending is likely to be increased by €2 billion (up from this year’s €19 billion). Finance minister Fernando Medina is said to have given various warnings in the Council of Ministers, but the overall feeling in government, says CM, is one of “alarm”.