As Hurricane Leslie bore down on Portugal over the weekend, our political leaders went into a 12-hour huddle to emerge not only ‘remodelled’ in the wake of the resignation of Defence Minister Azeredo Lopes, but offering “salary increases to everyone”.
The extraordinary council of ministers was ostensibly called to decide on the State Budget for 2019, an important year in that it will see this ‘contraption’ Socialist government – buoyed up by radical left wing parties – go the polls in a bid to stay in power for another four years.
Thus, opponents have long been predicting a ‘populist budget’ and everything points to them being totally correct.
One of the leading measures touted today is “an increase in the salaries of all public sector workers”.
Details however are hazy.
Admits tabloid Correio da Manhã, “the amount of wage growth is not settled”. A study by the finance ministry has to be completed – though everything is pointing to a €10 increase across the board, which would cost the government around €100 million.
Elsewhere, there various other measures are being paraded: the IVA exemption for bullfighting is to be dropped (click here) -seeing the industry pay 13% on all events – early pensions will cease to be gratuitously lopped (click here), pensions generally will increase (by €10 or €6, from January); school manuals will be free (up to 12th year levels), child benefit will increase (for the ages to 2-6), returning emigrés are to be offered tax incentives (click here), the taxes on tobacco, sugar-heavy drinks, plastic bags and online gambling will go up, rates payments will be covered by a new regime (regarding dates due and the possibility of instalments), public transports will become cheaper (click here) and local authorities will be allowed to exceed their budgets if they are building affordable homes.
Other proposals which will now have to be agreed with the various parties that swept this government to power in 2015 include the reduction of IVA payable on electricity, an increase in the charge of plastic bags (from 10 cents to 12), and a reduction in the costs of university education: fees will not be sanctioned beyond 856 euros per year.
The government’s plans will be presented in parliament today and no doubt subjected to intense debate.
Opponents like the centre-right CDS party is likely to be scathing as leader Assunção Cristas is doing everything she can to shine a light on what she feels is a government of incompetence.
Her comments on the ‘remodelled executive’ were that prime minister António Costa “is the one that needs remodelling”.
GOVERNMENT CHANGES
With defence minister Azeredo Lopes finally falling on his sword after months of bewildering allegations over a high-level cover-up about stolen munitions, PM António Costa decided to take the bull by the horns.
He hasn’t simply replaced Lopes, he has shuffled responsibilities round and brought in two ‘surprise new faces’.
Surprise number one is Marta Temido, the choice for the health ministry, up tillnow carried through endless trials by Adalberto Campos Ferreira.
Temido comes with excellent credentials, but absolutely no political experience.
Surprise number two is Graça Fonseca as minister for Culture, mostly because she steps into the top job as the country’s first openly gay minister.
Fonseca is a great friend and supporter of António Costa and leaves her post as secretary of state for the modernisation of administration.
Taking Azeredo Lopes’ old job is economist and a former secretary of state under José Sócrates João Gomes Cravinho.
Say leader writers, his appointment shows there are political dynasties in the Socialist party (Gomes Cravinho’s father João was a former government minister in the Guterres’ years).
And taking on a new responsibility, beyond the environment, is João Pedro Matos Fernandes. His new title is “minister of the environment and energetic transition”.
This sounds hopeful in terms of the country’s position regarding climate change, but we will have to wait (see story to come).
Another ‘surprise’ has come with the substitution of secretary of state for energy, Jorge Seguro Sanches, and of economy minister Manuel Caldeira Cabral.
Labelled “weak” by the populist press, Cabral’s position will now be taken by the PM’s great friend and right-hand man in government Pedro Siza Vieira.
