“Political and media pressure is exerted on the control and not on the mechanisms that should facilitate the execution of the PRR. The PRR operational team has an excessive burden of monitoring reports, for a multitude of bodies and entities. Everyone is concerned with control, when they should strive to create conditions for the acceleration and execution of the PRR. Furthermore, this program purged any investment in ports. It has a strong component in the expansion of the metro and has another 520 million in road accessibilities, these are well established, as they link to areas of business location and missing links.” This was José Eduardo Carvalho's opinion conveyed to the participants in the final session of the 24th congress of the Portuguese Logistics Association, which took place in Lisbon, on October 12th.
For the president of the AIP, “the PRR was a stimulus program to fight a recession caused by the epidemic. The pandemic has passed. We are in the ascending phase of the economic cycle, and at the moment, due to the low level of execution that the program has, it will help to fight a probable recession that will be caused by the energy crisis and inflation”.
Regarding the recently signed agreement to improve income, wages and competitiveness, the president of the AIP was peremptory: “the gains in the cause that we had in the IRC in the signed agreement had as compensation a commitment to a salary increase of 20 percent and a reduction in the salary range within the company. Reducing the corporate income tax, which is a legitimate requirement, is offset by a 20 percent wage shock over four years. The only certainty we have at the moment is the uncertainty and volatility of the economic situation. In the next four years, there will be a difficulty in accommodating in operating margins, the increase in remuneration, energy, distribution costs and financial costs”.
For José Eduardo Carvalho, “a great flag of the agreement signed is to say that salaries will have a weight of 48 percent in GDP, but no one cares to verify that we are the 10th country in the OECD with the highest tax burden on the average salary . The big concern should be to reduce the tax burden on labour,” he said.
According to José Eduardo Carvalho, labor productivity in Portugal is lower than in 1995: “Right now we have lower productivity than the European average, but being lower than in 1995 should set all the alarm bells ringing. I believe that there are many people who hope that with the application of the decent work agenda, with the four-day week and with telework, productivity problems will be solved. Not my opinion,” he signed.
For the president of AIP, “dimension is the great Achilles heel of the Portuguese business fabric and economy. The country will not come out of the current situation with just 6643 medium-sized companies. Nobody can grow, have an exporting profile, innovate and be competitive, productive with the current average size. Public policy does little for this, it does not finance mergers or acquisitions, and the corporate culture is also resistant to these movements”, he concluded.