The public debt remains at a very high level and the numbers of the proposed state budget presented by the government show that the consolidation effort slowed, postponing the resolution of the problem, argues the head of the IMF mission to Portugal.
In an interview published Monday by the Journal of Business , Subir Lall points out that “the structural primary surplus is reduced next year, and that means that the fiscal consolidation effort has slowed.” Responsible for this this is worrying, given that “the public debt is still very high and should be reduced”
Asked if the government is postponing the problem, Lall replies. “Looking for structural effort that is needed in the medium term, say it is to postpone. “
In an interview, the head of the Fund who has been team in late October and early November in Lisbon to make the first monitoring after the end of the program troika showed surprise for two events:. the collapse of the BES and the decrease in unemployment
Regarding the BES, Subir Lall defended himself when questioned how it was possible to have the BES bankrupt after three years of troika in Portugal. “We are not supervisors and even supervisors can not always detect instances of fraud, if that’s what happened.” Still noted that financial stability “remained safeguarded,” stating that it was for the financing line of troika to capitalize the bank was created.
With respect the labor market, Subir Lall said he still can not realize the extent to which the active employment policies contributed to a reduction in the number of unemployed. “I think anyone even noticed very well how the unemployment rate is dropping,” he said.
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