State’s “financial watchdog” trashes government’s economic calculations

CFP, the council of public finances, has trashed the government’s economic calculations, warning that now is the time for economic stability, not for scaring off investment.

President Teodora Cardoso is already well-known for saying things as they are.

“You ask me if the (government’s) economic strategy is not working,” she answered journalists yesterday. “It’s quite clear that it isn’t.”

The ruling PS are changing taxes “every six months”, she said, which will do nothing to attract investment, or encourage consumers.

“There is something that is very important: fiscal stability,” she stressed – but she stopped short of fuelling fears of a second bailout (click here).

CFP has said that, the way things are going, it doubts the government will meet its 2.5% deficit target agreed with Brussels this year.

The figure is much more likely to be 2.6%, said the panel of experts.

As for growth, the council has reviewed the government’s estimate of 1.8% this year to just 1%.