Costa is promising the moon, planets and stars to everyone - but WHERE are the resourses of this fragile economy?

António Costa, the unelected PM of Portugal

In a letter which António Costa sent to the "Sol" newspaper, 

António Costa promised everything to almost everyone. 

Two million pensions will be immediately increased;  

the IRS surcharge will be phased out; 

there would be a gradual increase, of 25% for each quarter, 

of the civil servants´ salaries.

Will Portugal will have resources to boot the bill 

of these increases for a few months, or for a year? 

The answer is probably not.

The minimum wage was increased from 485 euros to 530 euros per month, 

an increase of 9.2%.

 It is unconceivable, however, 

that the productivity of a worker will increase by 9% in one year.  

Soon, the State or the company 

will have to go into debt or bankrupcy.
Companies that fail to pay the minimum wage of 530 € 
will just have to closedown. 
It's that simple! 
Which will obviously create MORE unemployment, 
MORE debt, 
MORE social injustice!

By raising wages, 

there won´t necessarily be a growth in domestic consumption, 

and thus favourable for the economy. 

In part, it could be feasible, but on the other hand, 

part of that income, will only increase imports, 

unbalancing our trade balance, 

and thereby indebting the country even more. 

The only viable solution is to export more, and better.

Just to mentioned one, and only one merit. 

of the governance of Passos Coelho/ Portas, 

it would certainly be the balance of the country's external accounts. 

Today, Portugal exports more capital than it imports. 

Attention, do not to be confused with the state deficit, 

which remains very unbalanced 

(and, thanks to the banks, with a tendency to worsen).

Let´s hope and pray that Centeno, 

the new Finance Minister and his team 

maintain the accounts in balance. 

By the way I just do not believe in financial miracles!