“PS economic program is confusing, it looks like a Spanish hostel” – Jornal Económico


Will intervene in the presentation of the program of the PSD. As co-author of the macroeconomic framework, can you explain the broad strategic lines for the economy?
The PSD understands that Portugal, being a small open economy integrated in the European space, has to grow via exports and investment, especially from private investment. Within private investment, given corporate leverage, attracting foreign direct investment. The PSD's economic policy has been shaped to increase competitiveness, attract investment and provide companies with conditions to export more. In this sense, we have measures to reduce the tax burden and simplify the tax system for companies, and measures on the non-tax side, reducing context costs, improving vocational training, the justice system, among others.

The bottom line is that the country needs to grow, increase potential growth, which is limited to 1.5% to 2%, needs investment, export capacity, and only this growth can then enable structurally balanced public accounts, a reduction in the tax burden and an improvement in public services.

The PSD wants to reduce the tax burden over the legislature from 34.9% to 33.3% of GDP. Is this possible in a possible global recession?
The international context always has a very significant impact on the evolution of the Portuguese economy and no government is immune to this context. What did we do? We took the invariant policy landscape of the Public Finance Council, modeled our measures from an economic standpoint, to see what the impact on investment and exports would be. In fact, in our macro scenario, therefore, we have real economic growth that is slightly higher than in the stability program.

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