IMF says “populist temptations” are already coming up with the elections – publico

IMF says "populist temptations" are already coming up with the elections – publico

                 

                         
                     

                         

                 

 
                         

The International Monetary Fund (IMF) is concerned with the effect that the next parliamentary elections will have on the pace of implementation of structural reforms in Portugal, giving the example of what already has been happening since the end of the Troika program.

                     

                         In the report which reflects the results of the first troika of post-program monitoring carried out late last year, the IMF believes that the country is essential to accelerate the pace at which performs structural reforms, notably in the labor market and product markets as the energy. However, says that this may prove a difficult challenge with the approach of the elections.

“As we have seen over the last six months, the pre-election period does not facilitate the release of ambitious initiatives reforms, it is expected that the temptation for populist policies go, “said the IMF in the report

In the document, the IMF. – repeating what had already been done by the European Commission – shows his disappointment about what happened to this level after the country’s troika of departure, saying that “in recent months reform efforts in the labor market and in the energy sector appear to have been caught.” The rise in the minimum wage, rising energy prices, the postponement of changes in highly regulated professions and changes in the law of the lease are given as examples.

Top Lall, the head of the IMF mission Portugal, did not, at the reporting press conference to clarify what he meant by populism. He only said that for the future, “the reform process in Portugal has to be done for many years, regardless of who is in government.”

The Government’s response to these accusations IMF begin soon in documents released Friday by the IMF. In a letter signed by the Director of the Fund representing the group of countries is included Portugal (and Italy and Greece), it is said that “the repeated suggestion that the election cycle is affecting the reform process is inappropriate.” “The elections are a feature of democratic regimes and should not be presented as disruptive events for reform processes,” says the letter sent to the IMF by Carlo Cottarelli, the Executive Director for Portugal and his advisor, Inês Lopes.

In addition, as they did for the European Commission, government officials also argue that there was a slowdown in the pace of reforms, which continue to be carried out and to have a positive effect on the economy.