A damning IMF report has highlighted the real financial situation in Portugal.
With the highest combined debt levels in the eurozone at over 360pc of GDP, Portugal has “strangulating debt levels, falling job creation and bad loans.”
Today’s report in The Telegraph online states that the IMF is urging more taxes and less public spending to enable the treasury to pay off the country’s debts but does not recognise that the high tax levels are part of the problem, dampening investment and eradicating consumer spending.
With the argument currently raging over fiddled unemployment figures and with an election set for the autumn, party political rhetoric from the ruling coalition is playing down the massive indebtedness of the economy and is focussing on export performance and tourism as centres of excellence despite seemingly healthy percentage improvements being based on low year-on-year figures.
“High government debt coupled with eye-watering corporate sector liabilities should be tackled by mass private sector debt restructuring and the liquidation of "zombie" companies, recommended the International Monetary Fund.”
For the full report, see:
