As the government’s council of ministers discusses ways of meeting 2015’s 2.5% deficit target, ministers are reported to be falling out over strategy.
Justice Minister Paula Teixeira da Cruz remains “inflexible” in her defence of pensions, reports Correio da Manhã – preferring cuts in the energy sector or in contracts with insurance companies, banks, mobile phone operators and companies performing services for borough councils. Her attitude is backed by Environment Minister Jorge Moreira da Silva.
Economy Minister Pires de Lima, however, disagrees with both – and he is reported to be against any reduction yet in the new levies of income tax.
Nonetheless, Pires de Lima is a key voice in the movement to reduce IVA in restaurants from its current 23% to 13%.
Reporting on behind-the-scenes’ “progress” in the ongoing council, CM reveals ministers are putting together a dossier on fiscal relief.
“There is a willingness to reflect on it,” a source told the newspaper. Officially, however, the government has refuted this claim.
Government divided over “new cuts”
