Portugal Unitary state

Reforms

A large-scale territorial reform is currently being carried out in Portugal in response to cuts in public expenditure brought about by the crisis.

A major reform, which was approved in part by the Parliament in 2012, drew inspiration from the recommendations made by the Troika (European Commission, International Monetary Fund and European Central Bank) to the Portuguese government as steps towards overcoming the country’s financial difficulties. The purpose of this reform is to streamline local governments’ finances and it does not alter the territorial organisation of the country. There are no plans at the moment to establish regions in mainland Portugal.

In addition to instituting wider controls over public finances, this reform sets out to decentralize certain competences in favour of the country’s municipalities, particularly in the areas of public health and healthcare services, management of green spaces and urban planning. It also calls for a decrease in the number of civil parishes, sub-municipal local governments corresponding mostly to villages, with jurisdiction over matters such as education or health at the local level. Of the 4 259 parishes existing at the start of the reform, around 1 500 are to be dissolved, which will result in a drop in the number of local elected representatives.

The Portuguese local administrations now need to tackle the major task of cutting costs at a time when their resources are diminishing, particularly those coming from state transfers. Along these lines, the 23 inter-municipal communities and the two metropolitan areas of Lisbon and Porto have increased their cooperation in order to achieve further economies of scale.

Local self-government in Portugal:

Given the low level of coordination between the government and local governments in Portugal, the new provisions and the withdrawal of state funding could have a negative impact on local self-government. The elimination of some civil parishes, which might put distance between citizens and public services, must also be monitored, particularly in the rural areas.