Everybody knows that the Portuguese economy is choked by high taxes and that is one of the reasons for its slow recovery (by the way, don't dare to think that is the only one...). And a main reason for that is exactly the high level of unproductive bureaucracy and Government footprint in it. But the Passos Coelho Government has been extremely passive and slow at tackling the problem - it should have been one of its first measures, when it still had the voters confidence (and especially since it is known that budget cuts and simplification efforts take at least 1 year to be reflected in sovereign accounting). Additionally, doing it only now is submitting the Portuguese economy to another shock and stretch. But lets not try to dodge the obvious - the Portuguese economy needs to simplify its public administration, severely cutting unproductive expense, redirecting public investment to strategic areas (though nobody knows what they are; another major failure...) and lowering taxes. That is the only way to generate growth and employment (though we would face a short term shock on this area, as we would have thousands of public servants unemployed - and that is a problem on its own, that could have been minimized if this had been done 3 years ago, as it should...).
skip to main |
skip to sidebar
"This is where I want to seriously comment on the news that are coming on the press, about the World, but primarily about Portugal. Don’t doubt, this will be about politics, economics and society. And, especially, about my personal views on those."
Posts
No comments:
Post a Comment