"It will be necessary to act with humility in serving, with impartiality and perseverance,... with proximity to the Portuguese, which prevents the sense of distance between those who govern and those who are the raison d'être of this government," he added.

Costa, on his part, highlighted in his inauguration speech the achievements of the last four years - the "continuous growth," the lowest deficit rate in the country's recent history, the employment growth and the regaining of credibility at the international level.

Costa acknowledged the difficulties the new government must face ahead.

"Portugal is, hopefully, a total different country from it was four years ago. But governance is even more demanding as the Portuguese demand that we do more and better," he said.

"It's not enough to grow. It is needed at least a decade of economic and social convergence with the EU (European Union). It's not enough to reduce the deficit. It's also needed to cut the public debt to below 100 percent of GDP," said the prime minister, presenting his government as one "for the good times and the bad".

According to Costa, the priority areas for his government in the next four years will be climate change, demographic sustainability, digital transition and fighting inequalities.

He pledged to increase the minimum monthly wage to 750 euros by 2023, and increase the Solidarity Complement for the elderly.

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