PSD says that the OECD exposes “the failure of goals”, and the inability reformist Government – the Observer

THE PSD considered that the report presented on Monday by the Organization for Economic Cooperation and Development (OECD) "exposes the failure of the goals of the Government" and the inability to reform the current executive. "The executive and the current majority reject structural reforms, fail goals of growth, increase the public and private debt and move forward with a real project of reversals", are critical of the social-democrats, in their 'newsletter' daily.

For the PSD, the report presented today "advises the Government to continue the reforms initiated by Pedro Passos Coelho", by recalling that the investment in Portugal fell in 2016, after growing in the previous two years, and predicts that unemployment will remain in double-digit during the next few years. "The OECD points out that the positive results from the current flowing from the reforms and the action of the Government PSD/CDS between 2011-2015", advocate the social-democrats.

The secretary-general of the OECD, Angel Gurría, said today that Portugal has made "progress is very impressive", but stressed that "the impetus to reform must continue", that "there are many problems," and there is "too much homework" still to do.

"The impetus reformist Portugal has to continue. There are many problems, there is a lot of work from home. The public debt – but also the private – is very high and the banking sector remains fragile. Productivity continues to be low compared with the OECD average. The low qualifications of the labor force of portugal is not only constrain productivity as an obstacle to the equality of income", he said, in the presentation of the report in Lisbon. To Gurría, "further reforms are needed to boost growth, productivity and ultimately the well-being of the Portuguese population", having identified the "three priority areas" also highlighted in the report – the financial sector, the investment qualifications and the labour market.

Already the Finance minister, Mário Centeno, said that the unemployment rate in the Uk will fall below two digits, contrary to what expected to the OECD.

For the PSD, "the reaction of Mário Centeno is worrying, because it reveals that the Government is not interested or does not have the courage to do what has to be done for Portugal to grow more and better."

"instead of systematically find excuses for their own failures, the minister of Finance, had to justify their own failures, and forecasts", defy the social democrats, while stressing that the latest growth forecasts of the Government are below the 1.6% recorded in 2015.

In the chapter of investment, the PSD points out that the OECD says is "a question that must be addressed with urgency" and challenges the Government to approve the proposal of the reform of the IRC presented by the social-democrats, and that was the target in the past of a consensus with the PS, however broken.

THE OECD says that the investment in Portugal is more than 30% below the level of 2005 and anticipates that the unemployment is going to keep in the two digits in the coming years.

In the report on the evolution of the Portuguese economy, the organization anticipates "an annual growth moderate", 1.2% in 2017, and notes that the private consumption had an important role recently, but "you should lose weight, because job creation is too weak for consumer spending to continue to expand to the current level".

THE OECD’s warning still to postpone a solution to the problem of non-performing loans "is a risky strategy" that compromises the health of the banks, the investment and economic growth, urging the authorities to do more, underlining the fragility of the banking "needs to be resolved as soon as possible to "reduce fiscal risks and to restore the growth of credit".