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Archived: Lunch with the Minister of Finance – The Portuguese Response to Current Economic Challenges

The Portuguese Response to Current Economic Challenges

Lunch with Dr. Fernando Medina – Minister of Finance

On the 13th of July, took place the Lunch “The Portuguese Response to Current Economic Challenges”, with Dr. Fernando Medina –  Minister of Finance,

The lunch was supported by Accenture, Boyden, Caixa Geral de Depósitos, Deloitte and Morais Leitão, Galvão Teles, Soares da Silva & Associados.

On the occasion, the welcome was given by António Martins da Costa, President of AmCham, followed by lunch.

After lunch, the Minister of Finance began his intervention, followed by a Q&A moment.

Politics doesn’t have to be a permanent exercise in excitement. A “boring”, safe and predictable policy has its advantages

Takeaways

  • We live in times marked by a set of conditions and contradictions that demand the ability to manage with flexibility, vision and determination. They require the ability to make an adequate analysis of the variables that are on the table, and a quick response.
  • By the end of this year, Portugal should reach a public deficit below that of Germany and the Netherlands.
  • The most striking features that will affect the 2023 financial year: some blocking forces on the level of economic growth, namely the lack of a glimpse of the end of the Ukrainian war and the delicate situation in the eastern and central European countries, with a feeling of profound existential threat, which, for example, stops the level of investment seen in Germany.
  • Three forces that have revealed themselves in Portugal as having an impact on economic growth and as opportunities for the future, let us take advantage of them: tourism; the energy sector and the bet made on renewable energies, and the Asian policy of the “covid 0”, which has led to the search for shorter and safer supply chains, instead of the movement that happened with globalization.
  • They can expect, in terms of public finances, stability and continuity with the commitment of the stability pact (deficit below 3% even if we are not currently obliged to do so). Don’t expect big announcements, but a prudent attitude. Playing defense to protect what is a great asset that Portugal has conquered.
  • At the end of 2022, the Portuguese public debt will fall significantly, and in 2023 it should be closer to the Spanish debt, with the objective for the end of this legislature being to resolve what is our Achilles heel, in order to be in a more protected position and with room for maneuver to be able to choose the best public policies at any given moment.
  • On the issue of taxation of extraordinary profits: prudence and the search for balances that allow for social cohesion and a fair and balanced distribution of the costs of this process.
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