On Tuesday, the European Commission publishes its opinion on the draft state budget for 2024 (OE2024) as part of the European Semester, after asking the Portuguese authorities to make commitments and ruling out the economic consequences of the political crisis.
Released as part of the autumn package of the European Semester, the annual event to coordinate the European Union’s fiscal policy, Brussels’ views on OE2024 come after the community’s chief executive asked for “commitment” from Portuguese authorities.
“The Portuguese authorities will need a willingness to understand the current situation and plan how they intend to move forward in the budget process,” said the Executive Vice-President of the European Commission with the Economy that Works for People portfolio. “, Valdis Dombrovsky.
Speaking at a press conference in Brussels two weeks ago after a meeting of EU finance ministers, Valdis Dombrovskis said: “We know that there are ways to move forward in budget processes, and in the assessment of these budget plans, even in a crisis. scenario of a planned or unforeseen change of power,” he said.
Last week, European Economic Commissioner Paolo Gentiloni said he did not foresee any impact from Portugal’s political crisis on investment in the country, welcoming the decision to approve OE2024 despite early elections next March.
“I note the fact that, despite the crisis in Portugal, the authorities decided to approve the budget before the elections, and I do not believe that this situation will affect investment in this country,” he said.
Every year, eurozone countries submit draft budget plans to the European Commission, which are then assessed as part of the community’s process for monitoring and coordinating public policies, the European Semester.
In this assessment, Brussels will take into account aspects such as the growth of net primary spending, the withdrawal of energy support measures and public investment.
Portugal presented its 2024 budget plan in Brussels on October 16.
In a draft submitted to the community executive, the government says it has “identified three fundamental priorities: more income, more investment and protecting the future.”
“In the field of income policy, [o documento] includes a significant reduction in personal income tax and provides increases in wages, pensions, social benefits and other direct support. In this area, this is undoubtedly one of the most ambitious budgets in recent years, and a budget that encourages private and public investment, especially in education, health, transport and housing, and stimulates the growth of the business sector, a component necessary for competitiveness and economic sustainability”, it is indicated.
The document also takes into account Portugal’s Recovery and Resilience Plan (PRR), which amounts to 22.2 billion euros, including 5.9 billion in loans.
With 17% completion, Portugal has already received €4.07 billion in grants and €1.07 billion in loans under its PRR.
Author: Lusa
Source: CM Jornal
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