The Central Committee assessed the national situation and analysed the preparatory work for the PCP’s National Conference “Taking the initiative, strengthening the Party, responding to new demands” to be held on November 12 and 13.

As regards the Country, we have to stress the worrying evolution of its economic and social situation and the worsening of its main problems.

The escalation in the prices of essential goods, together with the continued increase in interest rates, is leading to an accelerated worsening of the living conditions of the workers and people in general.

With the increase in the cost of living growing for more than a year, the country has witnessed the government's complete inertia, for months deaf to the need to prevent and timely programme the implementation of extraordinary measures in defence of the living conditions of the workers and people, like those that the PCP presented and demanded to control prices and restore purchasing power.

We are now faced with an annual inflation rate exceeding double digits, 10.2%, and with a brutal increase in social inequalities and poverty that has seen a significant increase in the last two years.

Turning a deaf ear to solutions, they claimed from the top of their pretentious authority and undisguised partiality that this was a passing thing, while the unbridled speculation promoted by economic groups ran wild, sometimes in the shadow of the epidemic, sometimes under cover of war and sanctions amassing billions.

Faced with this evolution, the Country has long demanded the measures that this difficult situation requires.

Measures that seriously address the problems and not measures like those put forward by the government, which evade the essential, not only the full restoration of the purchasing power already lost of wages and pensions, but also a fight against price speculation.

Emergency measures and solutions that ensure the development of the Country that are not seen, either in the proposal for the State Budget for 2023 presented by the PS government, or in the Agreement on Social Dialogue, recently signed between the government, large employers' confederations and UGT, or in the agreement signed for the Public Administration.

What can be seen with increasing clarity, due to the action of its ongoing policy of reducing family incomes, in a context of continuous interest rate increases, combined with its budgetary restriction policy dictated by the dictatorship of the deficit and the accelerated reduction of the debt, is the risk of quickly throwing the Country into an economic recession and an even deeper degradation of peoples’ lives.

As regards the so-called Agreement on Incomes, and in clear articulation with all the orientation that presides over the preparation of the Budget, this reflects the class nature of the PS government increasingly leaning to the right. The commitments expressed in relation to wages are a deceit in the current framework of maintaining the grievous norms of the Labour Code that block collective bargaining.

Regarding the State Budget proposal, this is a proposal that does not guarantee the answer to the most immediate economic and social problems, heightens inequalities and injustices, evades the fight against the main national structural deficits, worsens external dependence and the Country's vulnerability.

It is a proposal for a State Budget in which the options of the PS reveal a huge disregard for the problems of the workers and people, in contrast to the advantages, privileges and tax benefits granted to economic groups, in the neglect of the productive sectors and MSMEs, in shrinking investment and public services, from the NHS to the Public Schools, and without fundamental answers to the problems of housing, the rights of children and parents and of culture.

A proposal that heightens fiscal injustice, refusing measures that have long been justified to unburden labour income, and deepens the policy of real devaluation of wages, careers and professions in the Public Administration. A path that continues regarding pensions, with the cut in their update provided for by Law and which will lead to their devaluation and loss of purchasing power.

As already stated, the PCP is opposed to this Budget proposal and will intervene when dealing with specifics with solutions and proposals to respond to the concrete problems that affect the workers, the people and the Country.

Solutions and proposals for a general increase in wages and pensions that ensure the restoration and valorisation of the purchasing power of workers and pensioners with the reversal of the cut in pensions imposed by the government. The PCP proposes to increase pensions without cuts in relation to the law in force, with an increase of at least 50 euros.

Proposals for fixing or price caps on essential goods. To defend investment in the public offer of housing, a brake on the increase in rents and costs with housing credit. To strengthen the capacity of public services and constitutionally enshrined social rights, especially in healthcare, to hire and retain healthcare professionals in the NHS.

Proposals in the field of taxes, among which we will table in terms of the Income Tax with the updating of the brackets according to inflation, with the increase of the value of the specific deduction. Universal application of the reduced VAT rate of 6% on electricity, natural and cylinder gas and the application of the intermediate rate of 13% on telecommunications.

Among many others, we will put forward the reinforcement of the progressivity of the Corporate Tax, assuming a cut in the taxation of MSMEs and the increase on the profits of economic groups and the effective taxation of profits made through speculation.

Portugal needs another alternative policy, capable of paving the way to the solution of national problems.

Problems that do not find an answer and solution, as in the past, in the right-wing policy, now carried out by the PS government and, in terms of its strategic options, in clear convergence with the reactionary and retrograde projects of PSD, CDS, Chega and IL to serve the interests of economic groups.

In view of the current situation, we have to stress the importance of the struggle of the workers and of the anti-monopoly classes and strata in defence of their living conditions. The countless actions, initiatives and struggles developed in recent months have to be valorised and reaffirmed the need to put forward workers’ claims in the private and public sectors.

The Central Committee evaluated the work of preparing and electing delegates to the National Conference and notes the wide and committed debate carried out by the party collective across the country, in an atmosphere of unity and cohesion, and the important contributions to enrich the analyses and guidelines that will come out of the Conference.

A wide debate that confirms, in essential aspects, the analysis included in the Draft Resolution of the Conference, namely regarding the main lines of taking political initiative to solve the most pressing problems faced by the Portuguese workers and people, among them those aimed at:

Taking the initiative for a general increase in wages, assumed as a national emergency in the private sector and in the Public Administration, with a significant increase in the average salary and the increase of the National Minimum Wage.

Taking the initiative in promoting the rights of children and parents. Rights that right-wing policies deny, hampering the full development of children and further increasing the demographic deficit.

Taking the initiative for valorising pensions and for the right to age with quality of life.

Taking the initiative in defending and valorising the social functions of the State and public services. All public services must be defended, but in healthcare, education and social security this is particularly urgent.

Taking the initiative in defence of culture by valuing the rights of artists and professionals of the sector and by increasing public investment with the goal of allocating 1% of the Budget for culture.

Taking the initiative for the valorisation of national production. An option that requires diversifying productive activity and economic relations and replacing imports by national production. Regain public control over strategic companies and sectors.

Taking the initiative in defence of the environment and for access to water, which is a right and should not be a business.

Taking the initiative for the right to housing, mobility and public transport.

Taking the initiative in defending the democratic regime and April values. From the outset exercising the rights achieved, denouncing the right-wing policies, fighting the reactionary offensive, dismantling the dictatorship of the single thought, fighting racism and xenophobia, fascistic hate and all kinds of discrimination.

A Conference that, as proposed and projected, will contribute to giving a confident perspective of the future to the struggle of the PCP and the struggle of the workers and our people, for a better life and for the development of the Country.

Finally, ladies and gentlemen of the media, as my Party has already publicly pointed out, I would like to reaffirm viva voce that, after my own assessment, resulting from a reflection on my health conditions and the demands corresponding to the responsibilities I hold as General Secretary of the PCP, I placed the issue of my substitution from these functions, while remaining a member of the Central Committee.

Following the question raised and its understanding by the PCP's Leadership Bodies, there began a due consultation and conclusion with a view to my substitution. For this purpose, a meeting of the Central Committee of the PCP is scheduled for November 12, after the first day of the proceedings of the National Conference, where a proposal will be presented for the election of my comrade Paulo Raimundo for this role.

Paulo Raimundo is a comrade of a younger generation, with a life path marked by a diversified experience, with capacity, insertion in the party collective, prepared for a responsibility that associates the public dimension with connection, contact and identification with the workers and the popular masses, with the work of the Party, its organisations and militants.

The PCP is equipped with an alternative programme for the Country. It holds a project and objectives that constitute an instrument for the struggle and mobilisation of all those who aspire to a better life. It is with confidence that we face the future of our Party, of our struggle and work in defence of the interests of the workers, of our people and of our Country.