Costa promises to fight price hikes

Costa promises to fight price hikes

“We have to stop inflation and not spread inflation, which creates an inflationary spiral,” Antonio Costa said in his speech at the opening of the meeting of the PS National Committee and devoted mainly to the economic effects of the Russian military invasion of Ukraine.

For more than ten minutes, the socialist leader highlighted the raft of testimonies aimed at containing the increase in energy and agri-food costs approved Friday night at an extraordinary meeting of the Council of Ministers.

At this point, the incumbent Prime Minister rejected the path proposed by some political forces, especially those on the left of the Socialist Party, saying that he would not “initiate the illusion that purchasing power is increasing and that inflation is only combated by rising incomes.”

Remember everyone who lived in the seventies and eighties [das consequências] To respond only with increased income to increase prices. If prices are going up because production costs are going up in energy, then, in this way, we will only increase production costs. Prices will rise and we will fall into the illusion of rising incomes, which will quickly dissipate due to higher inflation.”

Therefore, for Antonio Costa, “it is not this inflationary vortex that his government wants to feed.”

Antonio Costa then sought to ensure that the government did not compromise on the “central aim of improving the incomes” of the Portuguese throughout this legislature.

“We will maintain and follow the income policy strategy included in our programme, starting with negotiating the strategic objective of combating inequality in the context of social counselling. Over the next four years, we must increase the weight of wages in GDP at least to,” he said. The average EU level is 48%, and we will continue the path of increasing the national minimum wage.”

Antonio Costa also confirmed that the budget proposal, which will be presented next week, will keep all the tax relief promises in the IRS for the youth and the middle class, as well as social measures.

“We will work to mitigate the rise in prices, but at the same time we will continue the policy of increasing income,” he declared.

However, according to Antonio Costa, the executive branch will not initiate “mock measures, as these increases are quickly wiped out by inflation.”

He stressed that “we really have to stop inflation and not double it in a whirlpool, in a situation where no one knows how to control it.”