“We recommend widespread wage freeze in 2017″ – TVI24

The Forum for Competitiveness weaves several criticisms of the economic strategy of the Government and look at the economic data with pessimism. The note of August situation, in addition to the analysis you do, just even to recommend that the salaries in the private sector do not rise, including the minimum wage.

we recommend that for 2017 there is widespread wage freeze in the private sector, except for promotions, as will the public sector. In particular, one should not raise the minimum wage next year, which is already at worryingly lagged productivity levels, especially hurting workers in weaker position. “

Another “error” is the lowering of VAT in catering, because it says, “did not lead to any reduction in prices.” That is, to the Forum, there will be reflected in higher consumption, nor more jobs.

what are the arguments on the basis of these recommendations? says Forum for Competitivdade the external accounts are “clear deterioration”. Here, the only exception, but “for bad reasons” is the balance of goods and services, but the exports are falling less than imports .

GDP 2nd quarter stabilized, but 73% of the sharp drop (nominal) investment is directly attributable to the Government, by the decline in public investment, the result of a doubly wrong economic strategy: give priority to seek domestic exports; in domestic demand, prefer private consumption to investment. “

Although the deficit had fallen 453 million by July that association believes that budget execution is at levels “worrying, as well as their reliability in merit enough reserves.”

Then, the public debt is rising, “when it should be falling and rates . of Portuguese interest are the only euro zone rose in the last 12 months, “

the rating of Portugal is another concern: with the alerts over a slow GDP growth since allowed by the Minister of Finance , the Forum for Competitiveness states that the risk of the only rating agency gives positive note to Portugal – LRIs – low- power it to trash can sound the alarm in mid-October, “which would have catastrophic consequences, not only economic and financial but also political.” the case, coincide precisely with the presentation of the state budget.

While on the external situation things to appear to be stabilizing after the shock Brexit, is the warning that “the next two months will be especially complicated in political terms, because of the difficulty in approving additional measures for 2016 and negotiate the proposed budget for 2017 “.

the Forum for Competitiveness has existed since 1994 and was created following the proposals in the study” Building the competitive advantages of Portugal, “commissioned by the then Minister of Industry and Energy, Luís Mira Amaral, funded by a group of companies, business associations and other public and private entities and under the direction of Professor Michael Porter.