There is no joy in having less layoff

The Government spent less than expected on measures to combat the impact of the pandemic, in the case of the simplified layoff

The Government spent less than anticipated on measures to combat the impact of the pandemic, such as the simplified layoff. This news is from the newspaper “Público” and cannot be a reason for rejoicing. This is because of the few measures that benefited companies, that was the most relevant and certainly the one where the Government should have done more. The public deficit for the first semester will have stood at 5,8%, which is a better number than the one anticipated by the Government. But it is not to "throw rockets" because many of the entrepreneurs who did not use the instrument are now going to initiate dismissal processes, and all for the simple fact of not supporting the personnel structure and costs with a little reactive economy. Many sectors are limited in terms of exports or service provision, such as tourism, hospitality, aviation and related. But also in terms of global consumption, there is a retraction, namely in the automotive and equipment sectors. And even with a break that in the eyes of ordinary people seems short, for example a negative growth of 5%, it is enough to put companies below water level. Most companies lost money in the first two quarters and the trend will not improve until the end of the year.
In between, we registered the birth of the Costa e Silva plan with ideas to revitalize the economy, and to paraphrase a gentleman from the old regime we would say that they are not good or original ideas but they are what they are. The strategy is comprehensive, takes national designs into account, environmental aspects and aims to reindustrialize. These are ideas that an entrepreneur who is moderately involved in the economy understands and accepts. We just need to understand how everything will be financed, as we know that banks with a national structure only exist with Caixa and Crédito Agrícola, since BCP and NB have external shareholders. And in today's times with citizens obsessed with the news of the NB and with analyzes of management made from the “middle of the street”, what is perceived is the political struggle between a radical left that blackmails a Government with the non-inclusion of more money in the entity that still has to finance the NB, and the other side that knows that the Resolution Fund will have to pay but does not want to lose votes on a topic that is not to the liking of the contributing voter. It is possible that the next big discussion is to understand to what extent the policy was responsible for the intervention in the former BES and the negative impact on the national industrial fabric of the measure.
At the moment, the most relevant thing is to understand how development plans are financed. The question is how far we will work with a bank subordinated to foreign countries or take on a private bank. The State may or may not use this strategy to continue to nationalize the economy. The role of the development bank will be relevant, as will the future of Caixa, which cannot be just a commercial bank, but will have to support the economy. NB, heir to BES, has the know-how for this role. It is also known that projects cannot only work with debt and it is not enough to make small increases in the NMS, it is necessary to create jobs and consolidate them.


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