Another negotiating, folkloric and tragic process has come to an end - the negotiation of the State Budget for 2021.
Almost all parties presented hundreds of proposals, in what can be characterized as an authentic negotiating fair. What is certain is that when a country needs this type of negotiations, its management has its days numbered.
One of the tragic moments occurred with the approval of the proposal that puts a brake on the transfer of 476 million euros from the Resolution Fund to Novo Banco. It is not a matter of making a judgment as to whether this amount can be spent in other areas or saved, after all this will be a deficit budget. It is the country's credibility.
The negotiation around this dossier, mixed with the theater of deputies elected by Madeira, now approved, now unsuccessful, should sound the warning signals to any investor. We find ourselves in sight navigation where no one will be to assume consequences!
Stability and confidence are the pillar for attracting national and foreign investment, and for creating long-term wealth.
The media coverage that is taking place in the trivialization of the approval of an instrument of a country's policy, such as the State Budget (OE), discredits the document, the political actors and its execution. You cannot ask for a serious investment commitment, or from companies in developed jurisdictions, when contracts signed with the State are likely to be changed or simply canceled.
This OE does not fulfill another investment promise that had been announced numerous times - the new Lisbon airport. Wrapped in controversy, and announced by the Government and the ANA concessionaire, this is an example of the uncertainty created by the absence of firm and irrevocable decisions.
The type of policy that is being practiced, blind and short-term, will have consequences for the potential growth of the Portuguese economy and the ability to attract value added companies, mainly in the area of services and infrastructure.
In the meantime, a task force to boost the Portuguese capital market, something that the OE does not refer to. The loss of dynamism in the market is based on the absence of tax incentives, the culture of transparency, the protection of investors and with the signs of the government, which, by encouraging the nationalization of private companies, signals that this will be another commission to comply European calendars and guidelines.
The yield to populism, evident in the disparity between the public and private sectors, ends up creating a country and two societies.
The author writes according to the old spelling.