Wednesday 21 November 2012

Clear messages from the IMF to Portugal

- Portugal needs to fight tax evasion - more taxes will be counterproductive, and the focus should now be in ensuring everybody that should be paying taxes is actually doing so.

- We need to cut public expense, focusing on return on investment (results / service versus money that is poured into public administration). In a couple of words, we need to get better service / results with less money (which is possible, given the extremely high level of bureaucracy and corruption of the Portuguese administration).

- We need to simplify the Labor market, turning it more flexible.

And, though I think some of them will be pretty painful, I agree with all of them - I actually think only the ones that don't understand (or don't want to understand because of their own agenda) will be able to deny the need to ensure these 3 big actions are taken.

I would just add my usual point. We also need to come up with a growth strategy - where and how will we grow, so we can start aligning resources behind those growth areas.

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