The European Commission has confirmed that as far as it is concerned the plan to close half of Portugal’s Finanças offices will be completed by the end of May, but the unions disagree and the Minister is undecided.
The Commission reported that "the plan to shut down 50 % of local Finanças services will be announced at the 12th review" of the adjustment programme. This will be the last review the Troika looks over Portugal’s financial performance and assesses its ability to repay the €72 billion borrowed in the bailout process.
This will be the last review where the Troika looks over Portugal’s financial performance and assesses its ability to repay the €72 billion borrowed in the bailout process.
The European Commission’s report on the earlier 11th review was released today, and stated, "The authorities are committed to identifying and publishing in the 12th review a list of local services that will terminate at the end of May 2014," including tax offices.
The closure of local Finanças offices has been an unpopular part of the Tax Administration’s reform agenda since the start of the adjustment programme but has suffered several setbacks amid union unrest and local protest.
The IMF chipped in with its report which confirmed that the closures had been agreed in the 11th review, reiterating that "50% of the local Finanças offices will be closed at the end of May 2014."
Following the IMF report, the Minister for Regional Development, Poiares Maduro, said that the reference to the date of the end of May for the closures was not binding and that everything was still under discussion.
Maduro added that the end of May deadline had only to do with the fact that this is the end date of the adjustment programme, "This requirement was included in the original memorandum of understanding by the previous government so there is nothing new here."
The European Commission in today’s report pointed out that Portugal is one of the EU countries with the highest per capita number of local services - 34 per million population compared with an average of 17 per million across the 27 European nations.
The Union of Tax Workers already has announced to Parliament that it will deliver a petition with over 40,000 signatures against the closure of these Finanças offices.
In this example of 'agreements with lenders vs real life' it remains to be seen if Portugal will close any tax offices at all once the Troika leaves town in May.
