Tag Archives: 'troika'
Minister of State and Foreign Affairs Paulo Portas ended up giving in to a measure regarding a new tax on pensions but said it would only be applied if no other alternative was found.
Monday, 13 May: Several newspapers, including weekly “Expresso”, report that the OECD has released a report warning that Portugal should be careful as it pushes on with state reforms, proposing several measures including lower income and corporate tax rates, lower compensation for dismissals, and higher property and environmental tax rates.
The Ministry of Finance said the troika would be in Lisbon “from Tuesday” to assess the latest austerity measures announced by Prime Minister Pedro Passos Coelho Friday.
The government meets in an extraordinary cabinet meeting. Only after specific spending cuts are approved will the troika conclude the seventh assessment of Portugal’s bailout programme and release the next tranche of €2bn.
Wednesday, 24 April: Daily “Público” reports that Portugal’s public deficit in the first quarter of 2013 came in below the limit established in the country’s adjustment programme by the troika of international lenders.
Friday, 19 April: “Diário Económico” reports that out of a total of €800m in cuts to state expenditure announced by the government, the health sector be responsible for slashing €200m, as the government tries to come up with alternatives to the 2013 state budget articles rejected by the Constitutional Court.
The Socialists said “nothing new” had come out of the talks and reiterated their rejection of the centre-right government’s austerity policies.
Thursday, 18 April: “Jornal de Negócios” reports that the government debated new cuts to expenditure for hours in an extraordinary Cabinet Meeting on Wednesday, and will revise all forms of state remunerations including basic pay, bonuses, credit cards, vehicles and rental subsidies.
The former Socialist Prime Minister José Sócrates, who is now a political commentator on state broadcaster RTP, said Europe’s move to extend the deadline for Portugal to pay back its bailout loan was the wrong strategy and pointed out America’s example.
Prime Minister Passos Coelho was hoping that further cuts would earn Portugal more time to pay its bailout loans. Eurozone finance ministers are now likely to agree to extend the deadline for the country to pay back its bailout loan over another seven years.