PORTUGUESE PUBLIC DEFICIT AT ITS LOWEST IN 45 YEARS

Portugal's public deficit at its lowest point

The government announces a historic result seven months before the legislative elections", underlines the site Eco. Such a low public deficit is a first since the "Carnation Revolution" in 1974.

According to the National Statistics Institute (INE), in 2018, Portugal's public deficit stood at 0.5 % of gross domestic product. Whereas the public accounts imbalance had slipped to 3 % the previous year.

There are two reasons for this improvement, according to the INE. "The increase in tax revenues and the increase in social security contributions, reflecting the evolution of economic activity and employment." On the opposition side, reports Eco, we welcome this result "positive", but the main right-wing parties (PSD and CDS-PP) point out that it was obtained thanks to "maximum taxes and minimum public services".

Tax bludgeoning

Criticism supported by a columnist on the liberal site Observador. According to him, the socialist Prime Minister, António Costa, is disrespecting his voters and political rivals by hiding the fact that the deficit has been reduced thanks to "to the tax bludgeoning that has always existed and to budget cuts in the operation of the social state".

Mário Centeno, President of the Eurogroup and therefore head of the eurozone, has already set the course for 2019: the executive is forecasting a deficit of 0.2 % of GDP. "On the way to zero deficit, taxes and investment will be back on the agenda", announced today Público