Costa FT: Budget is a “clear sign” of fiscal responsibility – Jornal de Negócios – Portugal

The budget proposal being prepared and whose draft was released on Friday is “proof” that it is possible to turn the page of austerity and maintaining fiscal discipline, advocates António Costa in an interview with Financial Times published Sunday, January 24. For the Prime Minister it is a document that gives a “clear signal” of fiscal responsibility and constitutes a “strong commitment” to European rules.

“While creating the foundations for more jobs, higher growth and better social protection, this budget will further reduce the deficit than planned in our government program. This demonstrates that we have a strong commitment to fiscal responsibility and compliance with European rules, “says António Costa the trade paper, adding that finding the balance between the demands of Brussels and the commitments made with PCP and the Left Bloc, is a “very demanding exercise.”

The prime minister says that was “weeks intense conversations “with the European Commission which culminated in the decision to submit a budget with a deficit of 2.6% of GDP, a figure two tenths below the 2.8% of GDP foreseen in the Government program. The Executive also promises to lower the structural balance (which discounts the effect of the economic cycle and extraordinary income) by 0.2 points to 1.1% of GDP, which describes itself as “the largest reduction in many years.”

The socialist leader takes advantage of the interview to answer to those who accuse him of being back with the implemented reforms and efforts in the years of the troika, undermining the competitiveness of the economy. The Financial Times explains the increase in the minimum wage, reducing the number of working hours in the state, reducing IRS, the reversal of pay cuts in the civil service and the replacement of holidays.

“It’s completely wrong to think that a European country such as Portugal could be more competitive on the basis of third-world factors of competitiveness. The idea that productivity increases due worked the number of hours gives people the wrong incentive. This has to be achieved by increasing the value the goods and services we produce, “he said, stressing that” the future is not about working longer hours and have less holidays. It’s about securing more investment in education, science, innovation and technology. ”