One billion was the amount that Luís Montenegro announced at the Festa do Pontal on August 15, but in the meantime the government announced its plan would be two billion – a “package”, as Luís Marques Mendes has already revealed – know what the Social Democrats will or will not do to beat the parade.
This Friday, PSD parliamentary leader Joaquim Miranda Sarmento announced the contents of the “Social Emergency Plan” that the party plans to discuss (and vote) in plenary once work resumes. The plan is discussed in the form of a draft decision. On Sunday, in Castelo de Vide, it should be the main theme of the speech with which Luís Montenegro will close another edition of the PSD Summer University.
The economic and social consequences of the inflationary crisis caused by the war in Ukraine should, also on Sunday, be an important part of Jerónimo de Sousa’s intervention at the end of the “Avante!” festival. A few days ago, the communist leader said it was “undeniable” that the implementation of emergency measures to reduce the cost of living could no longer be postponed given the deteriorating economic and social situation. The communists are demanding measures from the state to control and fix prices (especially fuel), an immediate increase in the minimum wage to 800 euros and an extraordinary increase in pensions later this year.
The issue of the social emergency thus seems to be dominant at the start of the new political season of 2022-2023, revealing a preliminary discussion of what the confrontation over the state budget for next year could be. The PSD will speak today and Sunday, the PCP will speak on Sunday – and the government has convened an extraordinary council of ministers for Monday, precisely to approve the government plan. The essence of the “orange” plan has been known since Montenegro unveiled it in Pontal (see dimensions at the end of this text).
“It is immoral for the state to demand more taxes and for people to suffer more from rising prices.”
But the party kept other measures secret, so it can say something new today. A source from the Social Democratic Bank told DN that the program essentially aims to redistribute inflation funds that the government has hoarded, with the aim of benefiting retirees, the most underprivileged and the family budget. In the opinion of the Social Democrats, the package of measures presented today will act as a damper for inflation to stop the impulse of price increases, as in the case of gas and electricity.
Montenegro has already said that the PSD’s plan will take advantage of the tax benefits (mainly through VAT) resulting from the price increases, because it is “immoral that the state levies more taxes and people suffer more from the price increases”. He said tax revenues in the first half of the year were “more than five billion more than expected” and “it makes sense that this can be overcome in the second half.” In other words, we live in “a period where people, families, companies, institutions are accumulating more wealth”.
Through João Torres, deputy secretary-general of the PS, the socialists have already practiced the line of attack against the PSD’s plan. “It has in fact a deep fanaticism for the market, a deep fanaticism for the deregulation of the market, losing what is the social doctrine that naturally appeals to all those who are really socialists or social democrats.”
In short: together with the resignation of Marta Temido, the social emergency will dominate the present in the coming weeks.
THE MEASUREMENTS
Financing
One billion euros in tax revenue. The PSD calculates that the price increase at the end of the year will generate four billion euros more tax revenue than originally expected.
Food voucher I
The plan provides for all pensioners and retirees with a pension of up to 1,097 euros from a food voucher of 40 euros/month. Estimated cost of the measure: EUR 368 million.
Food voucher II
In addition to pensioners, those who are active, with an income of less than 1100 euros/month, also receive food stamps. According to Montenegro, the two measures of food stamps will benefit 4.6 million people (half of workers and half of retirees).
IRS discount
Lower the IRS at the fourth, fifth and sixth levels to benefit taxpayers with monthly taxable income between $1100 and $2500.
Child benefits
An additional ten euros per month of child benefit per child or young person, measured with a term of four months and an estimated cost of 40 million euros (ten million euros/month).
IPSS and SME
Support lines for private social solidarity institutions and small and medium-sized enterprises.
Reduction of VAT on energy
Another proposal is to lower the VAT on energy (fuels, electricity and gas) to 6%. Something that a European directive already allows you.
Source: DN
