Finance Minister Fernando Medina today defended the emergency program to help families cope with inflation in the European Parliament, in Brussels, and refuted criticism from MEPs from the PSD and the Left Bloc.
Invited this month to participate in the «economic dialogue» of the cycle of debates promoted by the Economic Committee of the European Parliament, Medina focused its intervention on the package of measures to support household income to mitigate the effects of inflation , estimated at 2,400 million euros in terms of impact on spending, approved on Monday by the Council of Ministers, which was strongly criticized by Portuguese MEPs from opposition parties who are members of this parliamentary committee.
Member of Parliament Lídia Pereira (PSD, European People’s Party) began questioning the minister, pointing out that “a surplus of tax revenues of between 6 and 7 billion euros is expected by the end of the year” and recalling that, under the emergency situation identified by the government and the measures already implemented, about €4 billion is at stake, Medina asked about “what does the government intend to do with €3 billion that it never expected to collect”.
“My question is therefore very simple: what are you going to do with this 3 billion that the government never expected it to have? It should free up resources and in fact it fills the state coffers. First a program of families. Sometimes it seems that the state comes first and families last, because for young people zero, for the middle class less, and for that they will have to pay the same again,” said the deputy.
Lídia Pereira also criticized the support for retirees and retirees, which is “unique, punctual and limited”, which “falls short” compared to what they would be entitled to “with the proper application of the law” and accused the government of “to be deceitful”. those who worked and discounted a lifetime”.
In his response, Medina said he was surprised that the deputy had devoted much of her speech to “criticizing the PSD’s support program”, arguing that this plan of the Social Democrats in the original version was “less than half of the government package” of 2.4 billion euros – as it was about 1 billion -, and, “when news came out” about the lack of ambition of the same, “day after day new measures appeared” to “patch up “an unfortunate program in your design”.
The minister insisted that the emergency package adopted by the government “is a program that responds to needs, is effective in solutions, comprehensive for the public it reaches and is financially responsible”, he recalled the support to families and commented that being “less than zero” is a pity.
With regard to retirees and retirees, he reiterated that “the government is doing what is right and clear”, with “extraordinary support, which is extraordinary, to support the needs of retirees at the moment, because inflation is higher at this time”.
“What we can guarantee – something the PSD cannot, because it has no credibility to guarantee – is that retirees have had a raise in 2022, they have extraordinary support, in 2023 they will have a raise and in 2024 they will have a raise. who make an effort to say the opposite, this is the reality,” he stated.
Shortly afterwards, Fernando Medina was questioned by the other Portuguese MEP from an opposition party parliamentary committee, José Gusmão, of the Bloco de Esquerda/Grupo de Esquerda Unitário, who also criticized the amount of the aid package and the concrete measures for the retirees.
Noting that the state had “more than 5 billion euros in tax revenues”, there were “extraordinary gains in the energy sector, but also a devaluation in the first half of 4.6% of salaries in Portugal”, the blockist deputy emphasized also that what the minister called “the return of the tax effort” of families – “is compensation equivalent to less than 1/7 of the increase in total tax revenue in the first half of this year alone”.
On the other hand, he also noted that regarding pensions, it is “an advance, not a donation, that will be paid in 2023, in 2024, in 2025, in 2026, until the end of these retirees’ lives”.
“The question is, if in a context of record tax revenues, in a context of economic growth, in a context of extraordinary banking profits, the government’s solution to support families is a final cut in pensions, in which this government’s strategy is from the ‘troika’ strategy?” he asked.
In response, the official said that “the difference is so obvious that there would be almost no answer left”, pointing out once again that pensions are increasing every year and as long as this government is in office they will continue to increase.
“What we will not do now is never put the situation we are in a situation where we have to withdraw tomorrow. No, we are not withdrawing, there is no austerity, there is no reduction,” he said.
In his opening speech, Fernando Medina had already reiterated the importance of supporting families in today’s particularly difficult context, stating that “in times like these” the “credibility margin can be used to find the means to finance policies” , but reiterated the need not to jeopardize fiscal capacity in the future.
“We do not know how much longer we will have to deal with the effects of the war, we must maintain our ability to act,” he said, expressing Portugal’s firm commitment to achieve the goals to which it is bound. to confirm again. to be ready for the future.
Source: DN
