The portuguese sparweg

Portugal wants to increase the top tax rate, tax profits and militar expenses short

The Socialist Government in Portugal must also save in the face of its debt and the high budget deficit (also revolve over Portugal of the bankruptcy?To). The government has her on Monday "Stability and growth plan" (PEC) introduced. Significantly different, the savings planes of Lisbon differ from those as they were transferred from the neighbor Spain or Greece to Brussel. Instead of raising the VAT, Portugal plans to raise the peak rate, a taxation of borsenewen and a shortage of rusts.

The socialist minority government of Minister Prosident Jose Socrates wants to rotate on the control screw to increase government revenues and reduce the budget deficit. But the socialists in Portugal put on a completely different point than the comrades do in Spain and Greece. While Madrid and Athens set 2%, especially on the increase in VAT, SOCRATES envisages the top tax rate of 42% to 45% of the income, which is over 150.000 EURO.

How many of the targeted maws should also be limited until 2013. Thus, the peak earners will be stronger at the cost of crisis ruling. The socialists in Spain and Greece, on the other hand, meet with the lifts of VAT and excise duty on gasoline, tobacco, etc. especially those who have little money available. In Portugal, 20% taxes will be charged at the afterth-boron profit, the government suggests. In addition, she also wants to start the red pencil at the rusts. They should even be grouped by 40% in the next four years.

Otherwise, the good savings efforts can be found in Portugal. The salary of the state employees who were already frozen in 2009 should also be reduced real in the coming three years, the impacts should be below the inflation rate until 2013. In addition, only every second vacant body will be re-occupied in the public service to reduce the personnel costs of the state of currently over 11% in gross national product (GDP) to 2013 to below 10%.

The construction of the fast train ride between Lisbon, Porto and the Spanish Vigo wants to postpone the government for two years, other planned investments should be completely eliminated. The regional and local governments were allowed to make new debts only in emergency and exceptional cases and no new debt in 2013. Only 0.5% of the economic output should be reduced to social ies. Above all, the purchase of unemployment benefit in the crisis is to be omitted again.

The government ames that there are also six billion euros from the privatization of state companies to the state treasury. Overall, at a low economic growth, it hopes between 0.7% in the current year, which is to increase slowly to 1.7% by 2013, to can print the budget deficit by 2013 under the three percent limit provided by the EU Stability Pact by the EU Stability Pact. "The public investments reached their highlight in 2009 with the economic programs, over the next few years they are now slowly reduced", said the Finance Minister Fernando Teixeira dos Santos. In 2010, the deficit should first be reduced by 1% to 8.3%. In 2011, it should then be 6.6%, in 2012 a total of 4.7% are sought to end up 2.8% in 2013.

Unlike Spain and Greece, which has already been placed under forced administration of the EU, the Portuguese government wants to discuss the measures first with the unions and in parliament before the austerity plan must be submitted to the EU of the EU to the end of Marz. So will be shown on Friday in Parliament, which remains abysed by the planned mails. Then it is decided on the budget in which the shorts of personnel costs are incorporated.

Especially the left block criticizes the planned measures violently. The economist and boss of Bloco de Esquerda speaks of one "terrorist attack" on the welfare state in a country with very low worthwhile. In addition to the wage rash, Francisco Anacleto Louca is convicted above all the planned privatizations. The left will never plan to agree to privatize companies with strategic importance that are profitable and generate revenue for the state. Among them are the rough energy supplier EDP, the Olfirma Galp or the Post (CTT).

However, the left block welcomes the planned increase in the top tax rate and taxes on enchanting gains. However, Louca believes that socialists (PS) to get a majority of other fires, ultimately, will, for example, be tailored to the profits on borsa profits to 20%. For a long time, the left block for a long time, but the PS had always set itself against. Already this week the PS with the Social Democratic Party (PSD), which is rather Christian democratic, and the right-wing populist folk party (CDs) against this maaking, says Louca before.

Austerity plan from Lisbon are more realistic than the Spanish or Greek

Greece wants to reduce the deficit in 2010 by 4% to 8.7% with the rating agencies, which is pressed by the government of rating agencies and the EU. Spain also wants to reduce much stronger than Portugal from a good 12% to less than 10% to comply with the stability criteria by 2013. Already mathematically this is a fairly doubtful undertaking ("Club Med"-States in the Zwickmuhle).

And unlike in Portugal, tax threats in Greece and Spain will have a clear negative impact on private consumption. In addition, the economic programs in Portugal were significantly more successful than, for example, in Spain. The country could safeguard the recession in the second quarter of 2009. Although Spain turns out a lower total debt as Portugal, but the country is still in the recession and must continue to spend a lot of money with nearly 20% more than twice as high as in the neighboring country, even extremely much money.

The planned tax threats and savings records in Greece and Spain will make the two economies still hard to create and ensure that the planned budget goals are rising in the distance. Experts see the Draconian fires occur that, for example, economic performance in Greece 2010 could break up to 5%. Accordingly, the economic decline, if weaker, continued in 2011. This was driven to enormous tax loss and in turn have a negative impact on the budget deficit. As under such prerequisites, the country should meet the EU stability criteria by 2012, is in the stars. In Spain, that is probably not much different because here the extremely high unemployment is aggravating.

The rating agencies, however, does not seem to please the course with which the deficit wants to reduce in Portugal. Obviously, you’d like to see it when you tried to get the aircraft the aircraft, as you need in Spain. Did not give you that in the past week, a massive 24-hour strike organized in public service against the austerity plan. Thus, the Fitch Director of Paul Rawkins criticized the allegedly inaccurate efforts to the occasion of the budget deficit of the country. Therefore, Fitch is observing its rating for Portugal and noticed that it will be further downstairs it.

It is already clear, Portugal has no problems to place new government bonds. A ten-year government bond in a high of three billion euros could be easily placed last week. A for this Wednesday falling emission was already clearly considered.

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