Portugal’s Minister for State Reform, Gonçalo Matias, has reaffirmed that the ongoing restructuring of the country’s public administration will involve “no layoffs” and “no salary cuts.”
Speaking before Parliament’s Committee on State Reform and Local Government, Matias stressed that the reforms aim to free up resources for economic growth, rather than impose austerity measures.
“There will be no dismissals in this process and there will be no pay cuts,” he stated, adding that the government’s savings will come primarily from “reducing the hierarchical chain” and streamlining leadership positions within the state.
The minister explained that the reform seeks to create a leaner, more efficient administration, focusing on eliminating redundant management structures. He noted that “tens of millions of euros” in public assets would be freed up as part of the relocation of government ministries to the new Campos XXI complex.
Matias also announced that the first phase of the State Reform is now complete, with work already underway on several “level two” initiatives.
“We consider the first stage of the reform concluded,” he told lawmakers, stating that the ministry is already moving forward with several next-level projects, such as improving service delivery at Citizen Shops.
He reiterated that by the end of the first half of next year, all planned reforms should be completed across government ministries.
The minister also highlighted the creation of ARTE — the Agency for Technological Reform, which replaces the former AMA (Agency for Administrative Modernisation) and will hold cross-cutting powers across the public administration.
Praising the appointment of Manuel Dias as the agency’s new Chief Technology Officer, Matias said Dias “fully meets the desired profile,” combining deep knowledge of public administration with technological expertise.
The minister used the hearing to emphasise the importance of valuing, attracting and retaining public sector workers, noting that Portugal’s public administration currently employs around 760,000 people, two-thirds of whom are over 45.
“This is not a challenge of dismissals,” Matias said. “It is a challenge of attracting and retaining talent, enhancing digital skills, rejuvenating the public sector, and valuing public administration.”
