Let’s make Portugal grow – O Jornal Económico
Every now and then, the theme that all policy makers talk about, and often some without concrete ideas of the goals, is how to take advantage of the new financial instruments that will be available, the Recovery and Resilience Plan (PRR) and the new package of funds of funds the Portugal 2030. In fact, making good use of these external aids, what Portugal needs to have is in the performance of our economy, relevant growth and improving our exclusion, especially after the pandemic shock
The importance of a more robust and competitive economy for the future of the Portuguese is evident. Too obvious for their discussion to become a weapon of political party pitch or electoral quarrel. Not finding consensus in this is the fight for the future of all of us.
Portugal is recovering from the COVID-19 effects, but continues to grow anemically. The increase in GDP that is now taking place is, for the time being, directly related to the recovery from the negative “tumble” of the tragic year of 2020 and to the development of labor-intensive sectors such as real estate, whose contribution to the improvement of the labor market no one can underestimate. It was decisive for not losing wages, for reducing the unemployment rate, for creating jobs, in short, for “holding the boat”.
However, there is still a long way to go to accommodate the necessary growth, which is absolutely strategic for the Portuguese and for the national economy. There are other industries in which it is necessary to invest and a lot of talent to discover, which only with public measures and taking advantage of the necessary funds to encourage investment and production can an opportunity to contribute to an effective, more sustainable economy.
Because we must not forget that the “little bit” that we are growing is still a result of the sacrifice and effort of the Portuguese, which, in addition to the effects of the pandemic, is still crushed by a brutal tax burden that accumulates records year after year. In 2020, the weight of taxes and social contributions was 34.8% of GDP, a new record, having been above the average for all OECD countries, which was 33.5%. We must not forget that, without wealth, there cannot be, from a public as well as a private point of view, an increase in the lowest wages, which should make us so ashamed. Unfortunately, on this theme, demagoguery prevails and, today, what we are talking about is the increase only by decree of the minimum wage, or the salaries of those who are already more backward, state employees, such as public technical staff, judges and prosecutors of the Republic (above the Prime Minister’s salary) and not those who live on just over 500 euros a month, that is one in four of the Portuguese currently working.
All in all, the wage growth agenda is not associated with the wealth that is produced, nor with the correction of wage asymmetries, nor with the fight against poverty. It is, rather, an electoral agenda, built to serve the party programs for the legislative ones, essentially of the party that has been ruling Portugal on the left.
Freeing the economy from bureaucracy and the tax burden, investing in the creation of wealth, abolishing poverty and offering fair and decent rewards to the Portuguese, this is an agenda for the coming years. But to start already in January with a new Government for Portugal to the Center and that it is no longer… the same!
Because, with Dr. António Costa’s promises, the people are fed up, time is pressing and Portugal cannot wait.