Paulo Fernandes – the man tasked with coordinating reconstruction of the central region following massive destruction caused by last month’s storms – has conceded that he is worried about the collateral effects of the war ongoing in the Middle East.
Echoing fears coming from other quarters, Fernandes accepts that rising oil prices will have a knock-on effect “in areas and materials for reconstruction”.
The “inflationary tendency” will affect everything that needs to be done – and could be yet another obstacle to recovery.
“This (the war/ rising oil prices) is obviously not good news for what is an enormous necessity (for the country) to concentrate resources”, he told a press conference in Leiria today that included justice minister Rita Alarcão Júdice and Leiria mayor, Gonçalo Lopes.
Lopes had already predicted that the conflict “will naturally have consequences on the world economy” and that of Europe – suggesting “countries like Portugal will face increased problems”.
The mayor, who has shown himself to be a plain speaker since his municipality was practically torn asunder by Storm Kristin on January 28, forecast “quite uncertain times ahead”, which could “translate into a large escalation of inflated prices, which could in turn contribute to a setback” in the future prospects of the region, and “especially for the poorest areas of Europe”.
Predictions of a new recession have long overshadowed economic forecasts, but now they are much more ‘in the picture’ as ‘middle powers’ are seemingly being sucked into a conflict that appears to have very little in the way of ‘constructive ambitions’ behind it.
CNN in updates today has referred to the fact that initial justifications for the combined U.S./ Israeli attack on Iran have repeatedly changed, accusing the United States’ administration of “shifting the goalposts and contradicting itself since the start of the operation.”
Today is the fourth day of operation ‘Epic Fury’, and already France, United Kingdom and Gulf countries are becoming increasingly involved.
Source material: LUSA
