The Portuguese press is being unanimously critical of the government’s new austerity measures this Tuesday, especially the proposal to lower companies’ welfare contributions while raising those of workers, listing the largest companies which stand to save millions with the measure. The controversial issue is causing widespread discontent.
«Cut to Single Social Tax only helps one tenth of SMEs», reports Público, as the government’s proposal to cut employers’ contributions to Social Security (the so-called TSU or Single Social Tax) will not have the desired effect on lowering unemployment. The daily also adds that with no corrective measures the lowest salaries will be the most affected by the increase of workers’ welfare contributions. Prime Minister Passos Coelho is facing widespread criticism for the new austerity measures, including from within his own PSD party.
Correio da Manhã
«Rich bosses make €100m in profits», writes Correio da Manhã, listing some of Portugal’s richest CEOs, claiming that companies such as Sonae, Jerónimo Martins, EDP, Mota-Engil and BCP will be gaining with the government’s lowering of companies’ obligatory contributions to Social Security while increasing those of workers. The newspaper also addresses a letter to the prime minister, claiming the Portuguese should serve as guinea pigs for experimental “economic therapies”.
Diário de Notícias
«Big companies to profit €800m with cut to TSU», discloses Diário de Notícias, also about the government’s controversial measure to lower companies’ contributions to Social Security in a bid to help curb unemployment, while raising workers’ contributions from 11% to 18%.
The daily also reveals the government is planning a mini reshuffle after the 2013 state budget is approved in parliament (late November, early December) with some ministers being instructed to release their secretaries of state. A reshuffle of the cabinet may occur in 2013.
Jornal de Notícias
«0.1% of companies gain €800m with salary cuts», writes Jornal de Notícias, about the repercussions the government’s measure of lowering companies’s contributions to Social Security while increasing those of workers will have on the earnings of large businesses. According to the daily, retail conglomerate Sonae will save €20m, BCP bank €18.9m and electricity utility EDP €10.5m.
«Rebellion in PSD against government», writes i, as some prominent members of the government’s senior partner PSD party, including its youth wing and workers’ association have expressed their dismay and opposition to Prime Minister Passos Coelho’s new austerity measures, claiming that confidence between the government and public opinion has deteriorated.
«A more severe troika toughens assessment of Portuguese government», reveals Diário Económico, writing that the fifth mission of assessment of Portugal’s bailout programme was the toughest so far, with the international lenders criticising the government’s deficit slippage and delays with the structural reforms. Minister of Finance Vítor Gaspar will be presenting the results of the assessment this Tuesday at 3pm.
Jornal de Negócios
«Hike in contributions penalises lowest salaries», reports financial daily Jornal de Negócios, revealing that analysts claim these measures undermine the so-called troika’s programme and affect millions of workers while companies listed in PSI-20, the stock market index of the 20 largest companies that trade on Lisbon’s stock exchange, will save €100m.
«We trust this troika», writes A Bola, about three of the most prominent members of Portugal’s national football team, including player Cristiano Ronaldo and coach Paulo Bento, as the team gets ready to face Azerbaijan this Tuesday for the FIFA 2014 World Cup.
«Give at least another 7 per cent», reports Record, as the sports daily calls out to the Portuguese squad ahead of its qualifying match with Azerbaijan for the FIFA 2014 World Cup.
«Post-Hulk dragons still a favourite», writes O Jogo, about how FC Porto’s performance is being perceived after the transfer of Brazilian player Hulk to Russian side Zenit St Petersburg.