Ter-Minassian denounces “setbacks” in reforms in Portugal

The chief economist that coordinated FMI intervention in Portugal in 1983 considers that the progress of structural reforms in Portugal fell short of expectations. According to Teresa Ter-Minassian, in an interview to LUSA, there were setbacks, namely regarding the flexibility of salary negotiations in the labour market.

“It would be desirable more flexibility in negotiating salaries to reflect the differences in productivity and the companies’ conditions in the various sectors of the economy”, Ter-Minassian stated, adding that it would be desirable to increase competitiveness in some sectors, like services.

For the former chief economist, it is also necessary to make the processes of insolvency and liquidation of companies easier and to promote innovation, especially in technological sectors, by consolidating synergies between universities and the industry.

“The government should focus on promoting private investment through tax and regulatory reforms instead of subsidising less efficient companies, including state-owned companies”. Ter-Minassian added: “the country is clearly benefitting from the currently positive hiatus between GDP growth rate and the average real cost of public debt”.