And now inflation? How far will the rate hike that plagues the Portuguese portfolio go? In March, it reached 5.3%, the highest in nearly three decades of democracy. Purchasing power will disappear month after month and as the war in Europe escalates.
Measures will be taken to affect these impacts and the government program will naturally have to undergo adjustments. The touches – some announced on Thursday and Friday by the government in parliament – cannot come all at once, after all, political and economic uncertainty will require a kind of navigation in sight. But you have to prevent so you don’t have to cure.
If private individuals are worried about escalating inflation, employers are no less. As a confederation of business companies, from all sectoral areas, they have already expressed their concern with the macroeconomic framework. If it wasn’t already favorable.
The measures of knowledge measures by the prime minister go in the direction of somewhat lesser the contagion effect caused by the Russian invasion. But will they be enough? I doubt. The escalation of the war has no end in sight and the aftershocks of the earthquake will continue to shake the Portuguese lands and beyond. In Germany, for example, Europe’s driving economy and with which we maintain a strong commercial relationship, inflation has already skyrocketed to 7.3% and this is already the highest figure for 40 years.
Here, the government announced measures to reduce renewable taxes for food, support for reducing taxes on farmers and investments in renewable energy. But the effect of these measures against the evaporation of real purchasing power will not be felt even tomorrow. The “irritating optimist” (expression by Marcelo Rebelo de Sousa) referring to a merely momentary reflection. Really be over-optimistic – maybe I wish not. The variation may not recover acceptable values for an indefinite period and it will be necessary to act today, so as not to have to bail out the economy tomorrow.