Until recently, aerospace engineer Pedro Monteiro figured he¡¯d join many of his peers moving from Portugal to its richer European neighbors in the quest for a better-paid job once he completes his master¡¯s degree in Lisbon.

But tax breaks proposed by Portugal¡¯s government for young workers ¡ª up to a temporary 100% income tax exemption in some cases ¡ª plus help with housing are making him think twice.

¡°Previous governments left young people behind,¡± said Monteiro, 23, who is studying engineering and industrial management at the Higher Technical Institute in the Portuguese capital. ¡°The country needs us, and we want to stay, but we need to see signs from the government that they are implementing policies that will help.¡±