Portugal’s Social Democratic Party (PSD), led by Prime Minister Luís Montenegro, has commenced its 43rd Congress in Anadia, Aveiro. The meeting follows a significant setback for the government, as a key labor reform package was rejected by the Chega party. The government had deemed the proposed legislation crucial for its agenda. The rejection throws the future of labor reforms into uncertainty and presents a challenge to the PSD-led government. The congress will likely address the party’s strategy following this parliamentary defeat and outline future policy directions. Prime Minister Montenegro is expected to deliver a keynote address outlining the party’s response to the situation. The outcome of the congress is being closely watched for indications of potential shifts in government policy or coalition strategies.