The conviction of the President is that the macroeconomic framework
of the government is outdated
and "is no longer plausible to keep to the numbers".
That is indeed the diagnosis that the President has heard from economists,
financial experts and entrepreneurs,
who in private, was consulted and received,
in the presidential palace,
says the Express Newspaper.
The Belém Palace expects an amending budget,
says the headline in today´s Express Newspaper.
According to the weekly, Marcelo Rebelo de Sousa,
thinks the evolution of the economy is hopelessly contradicting
the predictions of the socialist government,
and advised the prime minister, not to deny the evidence
and, given the inflexibility of António Costa to review, for now,
any forecasts or speech, decided to start distancing himself publicly
from the Government, in economic matters.
The conviction of the President is that,
the macroeconomic framework of the government is outdated
and "is no longer plausible to maintain the numbers".
All the experts helped to consolidate the president´s opinion:
as much as the government strives to cut back on spending,
there is an economic tragedy, on the horizon,
compounded by the external environment,
that will compromise all the forecasts of the government,
and "Costa will be forced into presenting an amending budget ".
At least, the government won´t be free from a "mix of additional measures"
according to information given to the Express.
At issue, is Brussels´ requirement for a deficit of 2.3 for this year,
which, according to Brussels´ forecasts,
imply a correction of between 600 and 800 million euros.
Last Thursday, João Duque said to the Economic Newspaper that:
"We will have to grow at 2.1% per quarter,
between now and the end of the year."
"Either the marxist-socialist government corrects the accounts on their own,
or they will be forced by Brussels to do so in July,"
is the anticipated panorama within the presidential circle,
according to the Express Newspaper.
It was in this context that the President realized
that there were only two options:
either wait for July to deliver a devastating speech to the government
or start leaving alerts, making room for the prime minister himself
to reset his course.
Marcelo chose the latter.
Also to the Economic Newspaper, Luís Marques Mendes,
former leader of the PSD and considered close to Marcelo
and SIC TV commentator said "The weak point is the economy.
Here, things are not going well.
The growth is less than expected, there is NO investment,
exports have decelerated and the international confidence image,
to attract investors, is very weak.
The external environment is, of course adverse.
But the lack of prudence and the absence of reforms,
do not help the general economic environment.
Proven proof is that,
in the economy,
there are no miracles "
On the one hand, António Costa claims a matter of faith
- he still doesn´t give the war of numbers as lost;
but on the other hand, is concerned that,
by anticipating any bad result, this would upset the markets
and Europe itself,
at a time when the threat of sanctions for non-compliance deficit,
continues to be a very real possibility,
says the ExpressNewspaper.
Marcelo has been giving tips to the PM
on how to begin to reverse his speech
by making reference to the unfavorable external environment,
particularly with regard to exports,
which could provide valuable support.
With the harmful international scene,
domestic consumption is still one of the few signs of hope for Marcelo.
The Express Newspaper reports conversations in the presidential palace
on the public management of economic evolution,
but that NO agreement were reached.
There were times when the Prime Minister were sensitive
to the arguments of the President,
but in public the country continued to hear the PM say,
that there is no plan B or any additional measures.
Marcelo did not ask for a plan B,
but argues that all plans should be considered
and there should be made provision for readjustments.
And before it's too late,
the president decided to distance himself
in public speeches from the PM´s position.
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