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Put debt below 100% of GDP? "It was clearly a political objective"
The goal of setting the public debt ratio to a value below 100% of GDP was political, said today the former minister Fernando Medina, pointing out the impact of this goal on the financing capacity of the country and the economy.
© Lusa
Economia Fernando Medina
"The determination to have a debt below 100% was clearly a political objective, which I consider to be of the utmost importance", said Fernando Medina, who is being heard today in the Budget, Finance and Public Administration Committee on the reduction of public debt in 2023, after the Budget Support Technical Unit considered that the reduction was "artificial".
Answering questions from the leader of the Left Bloc, Mariana Mortágua, the former Minister of Finance stressed that it was the achievement of this objective that allowed Portugal to be removed from the list of the most indebted European countries, having a positive impact on the 'rating' and on the conditions of indebtedness, in addition to protecting the country against more adverse conditions.
Mariana Mortágua regretted that the focus on achieving this political objective of reducing debt had diverted the focus from increasing public sector salaries and responding to demands such as the recovery of full-time for MPs, noting the PS's change of position on this matter.
A point that was also made by the leader of the PCP parliamentary group, Paula Santos, who argued that debt reduction should be done with economic growth and not by diverting resources.
Fernando Medina said, however, that he had not changed his position, recalling that the Government of which he was a part had an understanding that the freezing time of the 'troika' period could only be recovered if there was capacity to do so for all workers. "And there was no capacity for this totality and there is not", he said.
In this context, he specified, his position has not changed: "Our positions have not ceased to be what they are. What has changed is that the leader of the PS has a different opinion", he said, recalling that this difference is clearly assumed and that he supports it.
Read Also: Águas de Portugal? "Not approving the capital increase is the correct decision" (Portuguese version)
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