António Costa, who was speaking in Lisbon at a confer-ence organised by Lusa, stressed that the budget “is particularly ambitious” both for the “broad parliamentary consensus that it has mobilised” and for the “green light” it was given by “demanding” European Union institutions.
“Many would say, many said, many foresaw” that such a consensus domestically and at the European level would be “impossible”, Costa said, noting that the budget ended up being completed. It is, he added, to be implemented with a view to continuing rigour in public finances but also restoring the incomes of households, so contributing to the re-launchi of growth.
“This effort [to narrow the deficit] only makes sense and will be successful if we have the audacity to look at and attack the structural problems that have affected our economy’s development,” the prime minister said.
The theme of the Lusa conference, which ran throughout the day at the Calouste Gulbenkian Foundation, was “Portugal between rigour and audacity” - a theme that Costa chose upon to describe his government’s political approach.
“In all the decisive moments of our history we were able to turn the page,” he said. “We have always managed to combine rigour with audacity. This is another of the decisive moments of our history in which we must know what to do.”
The “therapy” applied to the country during the economic adjustment programme that came with its Euro-Zone bailout was, he argued, too focussed “on macroeconomic data” and failed to touch areas such as professional qualifications, business innovation and non-tax business costs.
After January’s presidential elections and with no further polls scheduled for now, Costa said, the country has a “good opportunity” to reflect on its structural problems.