A Big Minimum Wage Increase? Portugal Prime Minister Introduces New Economic Objectives In Second Term

Portugal Prime Minister Antonio Costa pledged Saturday to raise the country's monthly minimum wage to 750 euros ($830) by 2023, and has made commitments to further expand economic growth, cut debt and achieve greater social justice in his country. Costa, a member of the Socialist Party, won a second term during the Portuguese legislative election earlier this month.

"The government now outlines its goal of reaching the minimum salary of 750 euros in 2023," Costa said at a swearing-in ceremony for Portugal's new government.

The current minimum wage is 600 euros ($664) and is considerably lower than in many European Union countries. Germany has a minimum wage of 1,557 euros ($1,725) per month, while France is at 1,521 euros ($1,685). Luxembourg, one of the richest EU states, has 2,071 euros ($2,294) per month as its minimum wage.

The proposed minimum wage increase would come at a time when Portugal's economy is booming. The country has seen economic growth every year since Costa's first term in 2015, but while the unemployment rate has dropped, many Portuguese workers can find only low-paying temporary jobs. It's these workers who likely would benefit the most from Costa's minimum wage increase.

Costa also has pledged to ease the country's debt burden, with public debt at roughly 120% of GDP. Portugal has managed to cut its fiscal deficit from 11% of GDP in 2011 to just 0.5% in 2018.

Portugal was one of the hardest hit countries during the European debt crisis. The country received a 78 billion euro ($86.4 billion) bailout from the EU and International Monetary Fund (IMF) in 2011.