MATOSINHOS, Portugal – Matosinhos Mayor Luísa Salgueiro has warned that municipalities across Portugal have been “seriously harmed” by delays in government decisions, particularly in housing, education and decentralization.

Salgueiro made the remarks after announcing that Matosinhos plans to seek a €40 million loan to finance the construction of 500 affordable rental homes.

Matosinhos Refuses to Wait

According to Salgueiro, municipalities cannot indefinitely wait for decisions from Portugal’s PSD/CDS-PP government.

She argued that the national government remains behind schedule in several areas involving local authorities. Housing represents one of the most pressing issues.

Matosinhos therefore plans to move ahead with its own investment instead of waiting for national measures.

“We do not have Matosinhos’ housing problem solved,” Salgueiro said, adding that the municipality has reached a point where it must either wait or act. The city has chosen to act.

€40 Million Loan for 500 Homes

Matosinhos plans to borrow €40 million from the banking sector to develop 500 affordable rental homes on municipal land.

More than 200 of those homes fall under the responsibility of Portugal’s Institute for Housing and Urban Rehabilitation, known as IHRU.

The municipality expects to recover more than €20 million corresponding to the national government’s 60% share of the relevant investment. It then plans to redirect those recovered funds toward other projects.

One development will specifically target young people aged 35 and under, who often struggle to secure independent housing.

Salgueiro expects the new homes to become available within approximately three to four years.

Government Accused of Falling Behind on Housing

Salgueiro said housing construction ultimately remains a responsibility of the national government.

She argued that Portugal should already have launched a new housing strategy as projects financed through the Recovery and Resilience Plan (PRR) approach completion.

However, she said key decisions and resources have not arrived quickly enough.

The mayor also pointed to Portugal’s constitutional recognition of the right to adequate housing, arguing that the country still faces significant challenges in fulfilling that commitment.

Education Funding Also Raises Concerns

Housing is not the only issue behind Salgueiro’s criticism.

She also highlighted delays involving the transfer of school management and renovation responsibilities to municipalities.

According to Salgueiro, the process is around three years behind schedule. Municipalities should already be carrying out renovation work, but authorities have yet to assess some applications.

She also pointed to funding shortfalls connected with decentralization and said the monitoring commission responsible for the process is not functioning as expected.

Matosinhos Pushes Ahead With Investment

Matosinhos has already completed the housing projects it undertook under the PRR, delivering more than 500 newly built or renovated homes, according to Salgueiro.

However, the municipality says demand remains high.

Besides the 500 planned affordable rental properties, Matosinhos intends to use the new financing to renovate seven housing complexes covering 1,173 homes that were not included in the PRR.

Currently, public housing represents around 6% of Matosinhos’ housing stock, compared with a national average of approximately 3%. The municipality manages more than 4,800 public homes housing around 10,500 people.

The dispute highlights a broader challenge for Portugal: municipalities increasingly face pressure to respond quickly to housing and infrastructure needs while arguing that national funding and decisions have not kept pace.