Popular tabloid Correio da Manhã has honed in on the inconvenient truth overshadowing any and all the government hype over Portugal’s economic future. Inflation is the greatest problem – and it shows no sign of receding anytime soon. Just in pensions next year State spending is likely to be increased by €2 billion (up from this year’s €19 billion). Finance minister Fernando Medina is said to have given various warnings in the Council of Ministers, but the overall feeling in government, says CM, is one of “alarm”.
