President of the CIP says that the 4.7% increase in salaries foreseen in social consultation will only be possible with “new measures”
Defender of a tax cut in Portugal, in a country where companies and society live “in economic asphyxiation”, the president of the CIP – Confederação Empresarial de Portugal puts the 4.7% increase in salaries – foreseen as a reference in the social consultation agreement signed at the beginning of the month – dependent on “new measures”.
In an interview with Antena 1 and Jornal de Negócios, on the program “Conversa Capital”, which airs this SundayArmindo Monteiro reaffirmed that the productivity benchmark for salary increases to be 4.7% would imply that the Portuguese economy would grow by 3.2% in 2025. Which will not happen.
“We have to be able to present and materialize new measures so that growth is greater than 3.2%, otherwise there will not be this increase in productivity”, he said, adding that a working group has been created that has to present measures that allow this to happen in 45 days. The objective, he explained, is for Portugal to reach 75% of the EU’s average productivity during this legislature, a significant jump compared to the current 66%.
As for the 2025 State Budget proposal, presented this Thursday, I would like it to have gone further, “because the country needs an economic transformation”. But “it is a possible Budget”, given the circumstances in which it is being negotiated, he said.
“More important than the intensity of the measures is the direction”, he highlights. “And this Budget goes in the right direction… It’s the beginning of the path”, he adds.
Armindo Monteiro criticizes what he considers to be the excessive tax burden in Portugal, stating that the taxes we have had in recent years have served to fill the coffers of the “State” and “not the pockets of the Portuguese”.
“Some parties understand that being against the reduction of taxes on companies and being against the recovery of the economy has electoral rewards. This generates perplexity”, he emphasizes. And he argues that this is not the feeling of the country and that this is a way of doing politics disconnected from reality. Asked if he was talking about the PS, he said: “I’m referring to the main opposition party.”
Rates in a rich country, in a poor country and likely salary increases
He also considers that Portugal is the target of “fiscal suffocation”, with “high rates for low incomes”, and this applies to both companies and families. “We have a maximum rate starting at R$80,000”, he highlights. To point out: “We have tax rates from a rich country to a poor country.”
Also businessman Armindo Monteiro criticizes the rise in spending, a trend that has been accentuated. “This Budget makes an additional R$10 billion available for expenditure. It’s a lot and it’s been increasing every year. We are looking at an increasingly spending State.” And he adds: “I never see less spending.” “We are better served [em serviços públicos]? I don’t think so…”, he says.
