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The article refutes its own premise: Net spending cuts, rather than stimulus: “Mr. Costa made up for the givebacks with cuts in infrastructure and other spendi
by Empact 8y ago
The article refutes its own premise:
Net spending cuts, rather than stimulus:
“Mr. Costa made up for the givebacks with cuts in infrastructure and other spending, whittling the annual budget deficit to less than 1 percent of its gross domestic product, compared with 4.4 percent when he took office. The government is on track to achieve a surplus by 2020, a year ahead of schedule, ending a quarter-century of deficits.”
Growth is slowing, minimum wage is lowest in the eurozone:
“Growth is cooling from 2.7 percent last year, as Mr. Costa keeps public investment at a 40-year low to cut the deficit. While he restored public sector salaries to previous levels, they have barely budged since before the crisis. And the minimum wage of 580 euros a month, although up, remains one of the lowest in the eurozone.”
Gov cutting taxes as well:
“To cement the growth cycle, the government is putting what little investment it makes into targeted initiatives like tax breaks for foreign companies and training for the unemployed.”
- choteck 8y agoWell, the article is just stating the truth, that is the deficit is going down mainly because public investment in that last few years is being almost null (mainly in infrastructure) and now Portugal can go to the markets after seeing removed the "trash" title from the public debt. (Not) The only problem is that a big part of Portugal's infrastructure is starting to be outdated and should have have been renewed. The actual government is mainly taking advantage of tourism growth and the stimulus from the Central European Bank (https://www.ft.com/content/7514a734-6fbe-11e8-92d3-6c13e5c92914 https://www.ft.com/content/7514a734-6fbe-11e8-92d3-6c13e5c92...) and is selling the recent growth as being a consequence from their measures of lowering taxes (which is not exactly true, also - https://www.pordata.pt/Portugal/Receitas+fiscais+do+Estado+total+e+por+alguns+tipos+de+impostos-2765 https://www.pordata.pt/Portugal/Receitas+fiscais+do+Estado+t..., and yeah I know that if more people have a job more the total amount of taxes collected is higher) and others. Being a Portuguese living in Portugal, it is obvious that the economy is improving but that improvement is not sustainable IMHO.
- hn_throwaway_99 8y ago> The only problem is that a big part of Portugal's infrastructure is starting to be outdated and should have have been renewed. Meh, you should see the sad state of affairs in the US.