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...).
Monday, 29 July 2013
Friday, 26 July 2013
I agree with António Barreto
I think I already said it, and I will say it again - António Barreto is a rare wise voice in Portuguese politics. And the way he clearly states that politicians think that the party is more important than the country and that has terrible costs should be at the core of the political discussions in Portugal - the fact that politicians will simply brush aside his comments is just another side of how corrupt parties have became.
Wednesday, 5 June 2013
Movimento Revolução Branca
They came to my (and I think almost everyone's) attention a couple of months ago when they blocked a number of candidates to mayor positions, based on a possible Constitutional infringement. They blocked them on the Courts, independently of political affiliations. And that was a very good sign.
Now, they are asking for the Portuguese society involvement, in bringing to light possible violations of public management or of citizens rights. They aim to make sure citizens are respected, holding politicians and public entities responsible for the Laws they break. And I can just applaud this.
Only 40%
There are around 4464000 workers in the Portuguese economy versus a population of 11000000. Does anyone think that this is sustainable? We need to steam growth back to reduce unemployment, but also to increase retirement age. It is simple - 40% cannot support 100%. Never!
Sunday, 7 April 2013
A good measure
Italy's decision to boost their payment terms to improve cash-flow in the economy is a good step - a very good one. Many people claim Southern European economies need subsidies and stimulus packages, but a first step should actually be to clean debts that are paid 1 year later than agreed. The only problem - it deepens the Government's cash flow crisis...
Saturday, 6 April 2013
I always said the way was to cut headcount
Portugal's Constitutional Court (that acts like a Supreme Court, ensuring Constitution is respected in all legal decisions in the country and legislative documents) has been clear - cutting public administration wages is not the way. Something that I fully agree, as it is a downgrading of capabilities at State level - it is not motivating, it just pushes out of the door the best talent there is in the State bureaucracy,... For me, the solution has always been to implement a meritocracy system in public administration (including performance evaluation, of course) and ensure that the worst performing talent is cut. I believe that a significant part of the solution of the solution for the budgetary crisis in Portugal is public spending cut through simplification (and thus headcount, as I am saying here) and tax softening, to ensure economic growth.
Tuesday, 2 April 2013
70% of Portuguese electric power was generated by renewable sources
And that's good news - especially for a country that has a serious issue on its foreign oil dependence. For me, renewable sources are a key strategic bet. I have previously criticized the ones who decided not to pursue it as vigorously as before - and I hold my ground. I only think the below article misses the link to foreign accounts impact.
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