A draft law was introduced to facilitate a large-scale privatization program for the following five years. It was also in preparation for the single European market by January 1993. The program gave rise to constant labor unrest, and the government agreed with unions in October 1990 to increase wages no more than 13.4 percent, to reduce the workweek from 48 to 44 hours, and to solve labor disputes through negotiations rather than industrial action.
In response to growing concerns over the economy, the government announced a major regional development plan involving the investment of 6,500 million escudos over a six-year period, with part of the funding to be provided by the EC.
In a public referendum, the first of its kind in Portuguese history, voters rejected a proposal to loosen the country's tight restrictions on abortion. However, because voter turnout was less than 50 percent, the referendum was declared null and void.