By Sergio Goncalves and Miguel Pereira
LISBON, Oct 27 (Reuters) - Thousands rallied outside Portugal's parliament in Lisbon on Tuesday to protest against a deepening housing crisis and recent police operations against housing activists, while lawmakers debated the government's draft budget for 2027.
Portugal faces one of Europe's most acute home affordability crises, with prices more than doubling since 2017 and new-lease rents nearly doubling, hitting young people hardest, as wages have not kept up.
Tuesday's protest followed baton-charging police operations to dismantle tent camps set up by housing activists in Lisbon and Porto on Sunday, sparking allegations of excessive force.
Rally organisers said several thousand people packed the area. Police gave no crowd estimate.
The Portuguese protests echo recent demonstrations in Spain and elsewhere across Europe over housing shortages and surging rents.
Erica Rodrigues, 39, an actress, said the crisis affects young people and older generations because the "cost of living in Portugal is very high for what people earn. It is unbearable."
"My congratulations to this government for the clown show it has put on in recent times. It has done a terrible job," she said.
Protesters demanded the minority centre-right government scrap a bill that would speed up evictions and end rent caps on new leases, which passed a first reading with the far-right Chega party abstaining.
Joao Martins, 39, unemployed, said protesters were "fighting for decent and affordable housing for everyone" and for a "state budget that genuinely reflects the interests of the majority of the population, rather than just a few privileged people".
He said they were also demonstrating "for the right to protest, which has been seriously threatened in recent days".
Portugal's internal affairs watchdog, the IGAI, opened an inquiry into the police operations, while prosecutors launched a separate investigation into officers' conduct.
Police reported 11 minor injuries, including 3 officers, in the two operations on Sunday, while activist group Casa para Viver (Homes to Live) said 60 were hurt.
Speaking in parliament on Tuesday, Prime Minister Luis Montenegro said police acted in line with the principles of "necessity, proportionality and adequacy".
(Reporting by Sergio Goncalves and Miguel Pereira; Editing by Sonali Paul)
