Wednesday, June 8, 2011

Portugal asks for a private ECA to control excessive deficit

The responsibility of forming a government in Portugal, Pedro Passos Coelho, wants to create a new independent institution of the Executive to be responsible for overseeing public finances of the state, regions and municipalities. Passos Coelho explains that Portugal needs to be "transparent to the markets" and it announced "the creation of an authority independent from the government budget created by independent institutions in Portugal, which are the Central Bank and the Court of Accounts.

Passos Coelho reiterated that Portugal needs to regain the "market confidence" and this requires "respect all the targets set in the agreement with the European Union (EU) and the International Monetary Fund (IMF)." "We dream of growth when we met all those goals," he said. The first step that proposes Passos Coelho refers to the improvement in exports because "domestic demand will not allow the economic recovery now." And it advocated a cheaper "labor cost for enterprises, especially for exporters." We have no other mechanism, because we are in the euro area, "said Passos Coelho referring to the impossibility of devaluing its currency.

Furthermore, it will be the prime minister of Portugal said that his country should be "more ambitious in terms of privatization, the public media, for example." "We need new rules for Social Security, education and justice. We are very ambitious with regard to these structural reforms, beyond what they expected the deal "with the EU and the IMF.

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