Even latest announcement on tax cuts “at risk”
The first 100 days of Portugal’s minority right-of-centre coalition government have been marked by many announcements – including the decision on the location of the future Lisbon airport and an agreement with some teachers’ unions on pay – and many changes in top administrative positions, writes Lusa.
On Wednesday, Luís Montenegro’s AD (Democratic Alliance) government, partnered with the CDS-PP people’s party, will complete its first 100 days in office. The PM will be in Washington D.C. on the day, along with his ministers for defence and foreign affairs, for a key NATO summit.
So what has been achieved, beyond the several “packages” and “agendas” announced for areas ranging from housing to corruption, immigration, health, public administration and the economy? As Lusa explains, “not all of them have yet been translated into legislative initiatives, prompting criticism from the opposition at an alleged lack of materialisation and timing.
“The first decision of Portugal’s 24th constitutional government was admittedly symbolic: a change of the official logo used in the executive’s communication, restoring elements such as the traditional armillary sphere with ‘quinas’ (five shields) and castles, which had been eliminated in the previous tweak.
“In the following weeks, the government approved statutes aimed at beneficiaries of the Solidarity Supplement for the Elderly – who are now exempt from payment of prescription medicines, with their monthly benefit also increased by €50 and any income of their children eliminated as an exclusion factor.
“On May 14, it announced the first decision that it said had been coordinated with the main opposition party, the Socialist Party (PS): to build Lisbon’s future international airport in Alcochete, on the south bank of the Tejo river, to be named after national poet, Luís de Camões.
“Since then, several packages of measures have been presented and approved, such as the “Tens futuro em Portugal” (You have a future in Portugal) programme; “Construir Portugal” (Build Portugal, on housing), the “Plano de Emergência e Transformação na Saúde” (Health Emergency and Transformation Plan), the “Plano de Acção para Migração” (Action Plan for Migration), the “Plan +Aulas +Successo” (+Classes + Success) to prevent students from missing classes for long periods in the next school year, the “Agenda Anti-Corrupção” (Anti-Corruption Agenda), the first phase of the reform of the civil service, and, last week, a set of 60 measures “to accelerate” the economy, including the promised four-percentage-point cut in corporate income tax over the course of the current parliament (passage of which through parliament has already been called into question).
Of the 20 measures that form part of the corruption package, no legislation has yet emerged; the debate will have to take in a parliamentary committee proposed by the PSD and CDS-PP.
It is mainly in the areas of taxation, housing and young people that the government has sought to legislate in the last three months. After its proposal to lower personal income tax (IRS) was ‘altered by parliament’ – a replacement text approved with AD MPs voting against – the executive opted to present legislative authorisations in cases where it cannot decide by statute.
Of eight bills that the government submitted to parliament by last Friday, three were in the form of authorisations to allow the executive to legislate on IMT (property purchase tax) and IMI (property municipal property tax) exemptions for young people, to repeal the extraordinary contribution levied on short-term rentals – with these two pieces of legislation already approved – and limit IRS for young people to a maximum rate of 15%.
On May 21, the government reached an agreement with seven teachers’ unions for the reinstatement of frozen service time and, at the beginning of June, with the main union for court employees.
Negotiations with police officers could be in jeopardy after the prime minister said that he is unwilling to increase the amount on offer for the monthly risk supplement demanded by unions, of €300, to be phased in over several years.
Indeed, today Mr Montenegro reiterated his position, saying he would rather “go away” than be forced to make financial commitments that would compromise everything his government stands for.
The first 100 days have also seen changes among top civil servants, with the dismissal of the executive director of the National Health Service (SNS), Fernando Araújo, and the president of the Social Security Institute, Ana Vasques, as well as of Ana Jorge, the former head of Santa Casa da Misericórdia de Lisboa, the country’s largest welfare organisation; the national director of the PSP, José Barros Correia, and the entire board of the Agency for Administrative Modernisation.
The prime minister has rejected suggestions that the government is carrying out “a purge with partisan criteria” and responded to opposition criticisms by citing what he said were “reams of dismissals” when the previous, Socialist government took power eight years ago.
In these 100 days of the country’s new government, the secretary of state for transport, Cristina Dias, has also been attacked by the opposition for having received €80,000 compensation to leave state rail operator CP and then join a regulatory body on twice her previous salary, the very next day.
Source material: LUSA
