Portugal has badly designed the support against the inflation and energy crisis that was granted in 2022 and will be granted this year: the global support package for households and companies for these two years in question does not respect the so-called “rule of the three T” , notes the Central Bank (ECB) in a study in which it discusses the state budgets of the various countries and the recent warnings from the European Commission (ECB) on budgetary and economic matters.
The rule that the ECB wants to see fulfilled is the rule that state aid packages are designed to be well-targeted, tailored, and temporary. . Only that gives the highest “quality” to budgets in a time of crisis like this, defends the central bank of the 20 euro countries.
The institution led by Christine Lagarde says “it is important” that this rule is verified by the government’s measures not to generate more inflationary pressures, not to destabilize public debt sustainability and to pursue growth-friendly policies.
A document signed this week by ECB economists Johannes Simeon Bischl, Stephan Haroutunian, Sebastian Hauptmeier and Steffen Osterloh, later included in the institution’s new economic bulletin, confirms that Portugal stands out in the European Commission’s recent assessment as the only very highly indebted country that is clearly at risk of non-compliance with European fiscal rules due to energy measures.
Luís Reis Ribeiro is a journalist for Dinheiro Vivo
Source: DN
