With a growing public debt and deficit in Portugal, how can Portugal´s government fulfill its promises without huge loans?
Kamala Harris in the run for the White House may change life in Portugal and in the Algarve. In order to win the votes from many, Trump-sympathies she may follow a couple of his ideas about restricting imports from China and the EU, for enlarging local production. Also, different from Biden, she may lower, not cutting totally, the support of arms to Israel, which would lower its budget to the arm-industry and then compensate with other local industrial production.
This will result in lower EU-exports, less jobs in Spain, France and Germany, some of our main markets, thus lower purchase power there, and lower exports from us to them. This will bring lower income to our government, at the same time as promises for most public employees to raise expenses. This means it must take more loans from abroad.
As our public debt is already very high, expected to 110%, far from 60% of the GNP recommended by the Maastricht Treaty, interest rates costs will raise to two-three extra billion Euros. On top of three extra billion for raised salaries.
As former Attorney General of California, Harris will probably fight against cartels and unfair use of large corporations in the US. This may bring higher demand for goods and services by Small Enterprises, which raises the purchase power of the middle-high and middle-middle classes. These fellows travel a lot. There is a plan to start direct flights from Chicago or Newark to Faro, as we already have from Toronto and Montreal. If this happens, already late 2024, maybe our hotels and restaurants in the Algarve can keep busy without losses during Winter. We need more and better trained work-force for tourism.
Government talks about a new NHR deal. If a better control of real estate speculation comes thru, we may start selling second homes to those Americans as we do in Lisbon. More jobs in Winter, more dollars, less Euros, good for all of us. We need all unemployed immigrants immediately to go for construction and agriculture! YES, WE CAN - AIMA no more words, WORKS!
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