Brussels report criticizes the Government changes in TAP and public transport – publico

                 

                         
                     

                 

 
 

The European Commission has renewed this Friday some criticism of the Portuguese authorities to decide to revert certain austerity measures.

To Brussels privatization of TAP, as it was planned, as well as transport concessions porto and Lisbon would have allowed the state to save on spending at the same time would improve the conditions for competition in the respective markets.

“privatization processes of TAP and urban transport concessions Lisbon and Porto appear to be receding. Its success would bring savings of public spending and introduce an element of competition in the market, while ensuring better design and closer monitoring of public service obligations, “the European Commission said in a macroeconomic analysis report every parent union.

In the analysis the commission warns of the negative impact that the reversal of privatization may have to budget and asks Lisbon to prepare “concrete plans to make” such an impact. “In order to ensure the financial sustainability of public companies, such decision should entail concrete plans to offset the potential negative budgetary impact,” said Brussels.

The committee also warned of the high level of public and private debt – which make it the most vulnerable national economy. “The general government debt is still very high,” warned the executive.

“While the public debt is considered sustainable on plausible scenarios, their behavior is vulnerable to adverse economic developments,” said the commission, calling for structural reforms to offset this vulnerability.

the reports published Friday are only a regular analysis that Brussels does before making any decisions on the compliance of the economic policies adopted by countries with European recommendations. The report states that this is a “working document of the European Commission’s services,” and not an “official position of the Commission.”

Portugal is currently a category 5 of 6, which requires ” conclusive policies “and specific monitoring. Next month will be known if the Commission considers that Portugal will have made progress in macro economic level or whether it will be high category.