After PS win, DBRS expects 'more of the same' in Portugal – Jornal Económico

The financial rating agency DBRS anticipates this Monday, in an analysis of the parliamentary elections in Portugal, that António Costa will once again form a governmental solution identical to the one he has established since 2015, and that nothing will change in terms of European budgetary commitments and economic. “Expect more of it,” the note to investors said.

“Without an absolute majority, the PS will probably form a coalition similar to the existing government,” the agency notes, noting that “successive governments” since 2011 have been “successful in adhering to the European Commission's budgetary orthodoxy and in correcting macroeconomic imbalances. of the crisis era in Portugal ”.

DBRS “does not expect that to change” as “the result of the parliamentary elections in Portugal points to a broad continuity of domestic policies”.

While remembering that the current context is different from that of 2015 when the 'contraption' was established – the macroeconomic situation is now 'healthier' and the immediate pressure for new 'remedial measures' is 'less intense' – The rating agency expects the new government to remain “focused” on budget targets, namely in achieving budget surpluses and reducing public debt.

As a new executive will continue to face “market discipline” and EU rules, the note anticipates that the new government will be able to further balance fiscal prudence with parliamentary partners' “probable claims” for more social support and spending. public “Regardless of the emerging coalition, DBRS Morning Star expects broad political continuity from the next government, especially around its commitment to reducing Portugal's high debt. Major political parties appear to be committed to a long-term and sustainable fiscal strategy and compliance with budgetary rules. ”

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