Centennial criticizes Government and warns that accounts face “deep deficit”

O economist reacted to the statements of the Prime Minister, Luís Montenegro, about the danger of a new rescue to the country and the refusal to be the “father of austerity”, in an interview with the program Conversa Capital, Antena 1 and the Jornal de Negócios.

“ When the Prime Minister scares us, what does he know we don't? Rule under fear is terrible”, said Centeno, challenging the government to clarify exactly what it is afraid of and how it intends to manage public accounts.

According to Mário Centeno, if Brussels does not redefine the budgetary targets imposed on the country, the State will have to cut by EUR 12 billion over the next two years, and, instead of waving at non-existent budget margins, the Government should explain how it will resolve this structural deficit.

The former ruler countered the narrative of the positive balance, recalling that the surplus reported (0.5% of the first semester) only arises when the balance of Social Security is wrongly accounted for.

Taking this factor out, it ensures that public accounts face a “deep deficit”, which makes the announced budget slack impossible to afford new measures against inflation.

Centeno stressed that Portugal had surpluses that would allow the current time of economic pressure to be managed, but accused the government of having “basked” these budgetary cushions, in particular by reducing taxes without guarding financial reserves.

In the analysis of policies to mitigate the increase in the cost of living, the former minister reproved the reduction of the IRS and the award of specific bonuses to pensioners adopted by the government, as well as the opposition's proposals such as the zero rate in the VAT of food baskets or the reduction of VAT on fuels, defended by the PS and Arrivo.

On REN's capital purchase operation, Centeno considers the investment of EUR 400 million to be incomprehensible through debt in a context of high interest and inflation to be incomprehensible.

The former government minister PS concluded the interview with a warning: “We are playing with fire on the issue of debt.”.