PS accuses the European PSD and CDS family of supporting the ECB’s policy of raising interest rates

This Thursday, the PS considered that the increase in interest rates adopted by the European Central Bank (ECB) is counterproductive for families and companies, and accused the “European family” PSD and CDS, PPE, of supporting this policy.

This position was expressed by the president of the PS parliamentary group, Eurico Brillante Diaz, minutes before the ECB officially decided on a tenth consecutive increase in three base rates, this time by 25 basis points, continuing its strategy to curb inflation.

“Inflation continues to fall, but is expected to remain too high for too long. The Governing Council is committed to ensuring that inflation returns to the medium-term target of 2% in a timely manner,” the central bank explained.

In a conversation with reporters, the leader of the PS parliament confirmed his party’s position that the new increase in interest rates is “clearly counterproductive.”

“It punishes families and the expectations of economic agents when we know that this inflation has an energy root. [e] in food,” in particular due to the war in Ukraine, said Eurico Brillante Diaz.

The president of the PS parliamentary group then noted that raising interest rates “has different consequences, since not all EU member states [da União Europeia] “the same structure is presented in relation to mortgage loans.”

“In Portugal, Euribor-indexed variable rates carry significant weight. Unfortunately, in the European Parliament, the Parliamentary Group of the European People’s Party (PPE), which includes PSD and CDS, has been the great defender of this monetary policy. politics, while the Governor of the Bank of Portugal [Mário Centeno]”, an independent organization, has already expressed reservations,” he countered.

However, according to Eurico Brilhante Dias, the Portuguese government “has already stated, by word and on the initiative of the Prime Minister, that such an increase in interest rates is clearly counterproductive and not as effective as it would be in other circumstances, since the rise in inflation originates from the supply side” .

“It’s time to stop raising interest rates. The PS, which is part of the Socialist and Democratic Group in the European Parliament, has already expressed its position and had the opportunity to convey it to the President of the ECB. [Christine Lagarde]. Our position is clear: given the signs of stagnation or decline in gross domestic product (GDP), especially in Germany, now is not the time for the ECB to continue to punish families and companies,” he said.

In this context, the leader of the PS panel emphasized that the ECB “is an independent body, but, depending on the news – and even news about disagreements between the governors [de Estados-membros do euro] with different points of view on this increase – it’s time to stop.”

“I am sorry that the right, the same ones that wanted to apply the recipe for austerity in Portugal, continue to support these kinds of initiatives and these policies” of raising interest rates, he added.