Governor of Banco de Portugal worried about the increase in civil servants – Politics
The governor of Banco de Portugal said this Friday that the country cannot sustain the trajectory of public debt in recent years and expressed concern about the dynamics of job growth in the public sector.
On average, from 2015, from 2015, public employment, next 2020, and the employee, next, of 19 thousand rhythms, there is a number that exceeded 19,000. in the years of the crisis, that is, there was an increase in average terms of public growth.
According to the governor, there are dynamics of public employment growth that is understood by the pandemic, but “there are other crises that, if maintained, will have consequences for the sustainability of public finances that should make us think”.
At the end of March, there were 741,288 public administration workers, 2.2% more than in the same period in 2021, the highest figure since 2011, according to data released this month by the Directorate-General for Administration and Public Employment (DGAEP). ) .
Also in his speech at the conference of the Order of Economists, the governor of Banco de Portugal (former Minister of Finance of the PS Governments of António Costa) focused a lot on public debt, stating that it has followed a path of sustainability that “is not can lose”.
“Today we are seen and translated at the level of the systemic stress indicator differently from the sustainability of the euro and some countries in particular. which have improved significantly in recent years”, said Centeno.
The most responsible for the sustainability indicators of public debt is maturity and that a medium and long-term maturity for Portugal’s central response date has increased “systematically since 2016”, the conjunctures that are volatility.
“This is a short-term change of 20 years that could reach a change of 15 years, the highest value in the last decade.”
Márioeno also said that “the return to more surpluses must be resolved” and Cento thought that this is a “condition to sustain what is not a public condition to sustain public energy as a percentage of sustainable GDP”.
The economist said that the ‘spread’ of Portuguese public debt over 10 years vis-à-vis Germany has been stable since 2019 (with the exception of the beginning of the pandemic crisis) and “much lower levels compared to when the process of reducing the debt ratio began” , in 2016 and early 2017″.
“It is a very positive trajectory that we cannot let go of”, he stressed.
At the same conference, organized by the Order of Economists, the Minister of Finance, Fernando Medina, said that it is necessary to accelerate the increase in the public debt, because only in this way can the Portuguese economy, and families, and guarantee room for maneuver for the future.
According to the Minister of Finance, “even in a year in which budgetary rules are suspended”, the Government is reducing public debt and even accelerating this objective.
“In a context of surveying companies sworn and in a way that does not protect our companies to an oath and in a way that does not protect our companies from a judgment and because it is better than taking care of earnings that selects recruitment in the interest rules that the Republic is obliged to an exam, because it is better to take care of the gains that will be selected in relation to the interest that the Republic is obliged to accept, because from then on, in a chain, and families are without a financial system linked to this index”, said Fernando Medina.
Public debt from the perspective of Maastri, which accounts for less than quarter 0% of Gross Domestic Product (GDP) in the first quarter of this year, 4 percentage points compared to the end of the previous second, according to data released by the Bank of Portugal this month.
For this year, according to the State Budget proposal (OE2022), the deficit is calculated at 1.9% of Gross Domestic Product (GDP) and the public debt at 120.7% of GDP.