Prime Minister argues that with austerity would lower growth than the present – Jornal de Negócios – Portugal

“If the line of austerity we pursued to increase taxes, cut wages, to increase VAT, certainly we would still have less growth than we have at this time.”

This is how António Costa , Prime Minister commented on the data from the National Statistics Institute, which has revised upwards the growth of gross domestic product from 0.8% to 0.9% in the second quarter compared to the same period of 2015.

the prime minister was optimistic – although mentioning the difficulties markets “very important” for national exports – although the new annual growth is half the 1.8% target that the Government has set to GDP this year.

in contrast to the “austerity” that attaches to the previous coalition government PSD and CDS, the socialist Antonio Costa stressed , in remarks broadcast by RTP3, that is needed ” accelerate the factors contributing to the growth of the economy, “speaking in” replacement income “in implementing the program to Capitalize companies and” accelerating the implementation of EU funds “.

the PSD reacted to data, the voice of Maria Luís Albuquerque, arguing that it is talking about “facts and figures” and “ is undeniable that this model is leading to stagnating economy.” But the CDS, the leader Asuncion Ridges, argued that the “small correction” by the INE does not take the country “c very anemic rowth for what would be needed and what was promised by the same government.”

Deficit “comfortably below 2.5%

In their replies to journalists, transmitted by RTP3, António Costa insisted that there are no problems in budget execution so far and that compliance with the deficit is not in question.

“the goal we have in the deficit (…) [is] 2.5% and today we can say that we have a comfortably deficit below 2.5%, “the Prime Minister insisting on the number that has been enunciated.

 

At this time, the recapitalization of Caixa Geral de Depósitos, of 5,160 million euros, which involves the mobilization of 2,700 million new state, will not go into deficit. However, European statistical rules may cause the accumulated losses by CGD in recent years (between 2013 and 2015), corresponding to 0.6% of GDP, are incorporated in the deficit.