Confinement will have huge cost to the economy but there is now more support – Costa

Confinement will have huge cost to the economy but there is now more support - Costa

The Prime Minister assumed today that the general confinement will have "an enormous cost" for the economy, he noted that European funds will still take time to arrive, but he defended that there is now a better support system.

"It is premature to make estimates on the economic impact, but it will certainly be quite relevant", declared António Costa at the press conference that took place after the Council of Ministers approved the framework of the country's general confinement measures, with effect from 00 : 00 on Friday.

According to the prime minister, since September 15, the Government has been "shaping" measures to contain activity to combat the spread of the new coronavirus – a model that he said was based on the evolution of the epidemic of 19.

"When I said before Christmas that I would not hesitate to apply the handbrake if necessary, we applied the handbrake right after New Year's Eve. We are all aware that general confinement has enormous economic costs for companies, for companies families and for the State and for the whole social sector ", he said.

However, according to António Costa, "the cost of human life is priceless and Portugal has reached a point where it is not possible to hesitate in relation to what has to be done", which is why one will have to take "a step back and adopt containment measures ".

"We know that we have a State Budget for 2021 that provides a set of tools that help protect families, the culture sector and businesses in a better way than the measures that were available last March," claimed the Prime Minister. minister.

António Costa also said that "it was very important" that there was a general agreement in the European Union on the recovery fund, "but unfortunately it is also known that the moment when transfers to Portugal begin is still far away".

"We still lack all the Member States of the European Union to approve the decision authorizing the European Union to increase its own revenue. We have yet to conclude negotiations on the regulation of the recovery fund to be approved by the European Parliament – and ours presidency is committed to quickly conclude these negotiations, "he said.

Then, according to the executive's leader, it is still necessary to conclude the negotiations of each national recovery plan with the European Commission as soon as possible.

"But it is not because European funds are not available that we have not already taken the necessary measures to halt the growth of the pandemic, to support health professionals and, above all, to save lives," he added.


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