Economist Victor Bento sharply criticizes the decision
of the Constitutional Court (TC)
for considering unconstitutional three measures proposed in the state budget.
The president of SIBS said the TC's decision was:
"ideologically marked,"
"pro-tax", "unfavorable to cuts in state spending "
which "narrows the path to our [of Portugal] stay in the euro zone."
In an interview with "Publico" newspaper,
Vítor Bento argues that the decision of the TC shortens
the budget management options of any government.
"The really serious problem is that the decision
considerably narrowed the margin of affirmation
of any other democratic alternatives,
by imposing an ideological limit
to what is politically acceptable in the scheme,
even if you have to change the Constitution,"
says the state counsellor.
Vitor Bento praised the Prime Minister, Passos Coelho´s speach,
which he considered as "very good."
However, the ruling of the TC, the economist says,
will lead to the troika
"to hardening" its position against Portugal,
effectively distancing Portugal from Ireland
and forcing Portugal nearer to the Greek situation.
Vitor Bento says that the Court ruling only leaves three open doors:
"taxes, layoffs or closing of services.
I see no other way. "
Asked whether he thought that raising taxes would be impractical,
Bento replied:" Why? It is not desirable, but it is practical".
He then goes on to justify his theory:
"Decision-makers and institutions are free to make their decisions,
but they have to face the price of their responsibility".
"The TC has implicitly chosen its own fiscal path",
he concludes.
He retorted that it is of the utmost importance that Portugal maintain
its international credibility.
Bento reaffirmed that Portugal is in the middle of an economic turmoil.
The galloping increase in the unemployment rate
leads the state councilor to consider that the "problem is worrisome,"
and assumes that
"there has been errors in the design of adjustment model",
since between the projections and reality for this indicator,
there is an enormous difference.
But let a caveat to the evolution of these numbers:
"I'm not excessly surprised."
Commenting on the reliability of economic forecasts,
Bento says:
"It's not an exact science,
forecasts are an approximate science"
referring that if forecasts would be more precise,
he would be unhappy,
as it would mean
that human nature had lost its freedom of choice
and had become robots.
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