Portugal plans to boost minimum wage by 25 percent

Portugal’s Socialist government said it plans to increase the minimum wage by 25 percent and would close the country’s last coal-fired power stations during its four-year term.

The Socialist party, led by Prime Minister Antonio Costa, was re-elected on October 6, with a campaign promise to boost disposable income while also protecting public finances.

The government’s website said on Saturday night it would raise the minimum wage every year to reach a cumulated increase of 25 percent in 2023.

The minimum monthly wage is currently set at 700 euros ($775).

The party also plans to reduce public debt — currently the third highest in the eurozone — from 119 percent of gross domestic product to 100 percent.

The plans will be debated in Portugal’s parliament on Wednesday.

As well as committing to close Portugal’s last two coal plants by 2023, the government said it would increase its wind and solar power capabilities.

Costa took office our years ago on a promise to “turn the page on austerity” introduced during Europe’s debt crisis in 2011, when Portugal needed an international bailout.

Under Costa’s watch, the budget deficit fell to nearly zero, the lowest level since Portugal returned to democracy in 1974.