tag:blogger.com,1999:blog-3120478448417742445.post8641464945799604610..comments2024-03-24T06:35:14.281+00:00Comments on The Portuguese Economy: Summer, World Cup or both?Editorhttp://www.blogger.com/profile/16779405217168307855noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3120478448417742445.post-89400176276160353502010-06-30T18:17:25.400+01:002010-06-30T18:17:25.400+01:00I totally agree with Pedro Pita Barros' commen...I totally agree with Pedro Pita Barros' comments on<br />(i) the importance of a new financial product stimulating the allocation of medium-term domestic savings to portuguese public debt; and<br />(ii) the importance of confirming whether the government will (not) be able to arbitrage with foreign interest rates;<br /><br />Indeed, part of my post of June the 1st included idea (i), under the name of a putative "virtuous forced saving":<br />"has the Portuguese government done everything to its reach in order to contain the indebtedness of Portuguese entities? I do not think so. <br />Public expenditure should be significantly reduced, which I haven't seen so far (at least compared with Ireland and Spain's immediate measures). And -- a crucial 'and', for me -- renewed incentives for residents to hold public debt should be created. The Portuguese twin deficits will only be tackled if and when the Government actually stops spending inefficiently and sucking resources from the public to finance that spending; and when it creates virtuous 'forced savings', instead of the vicious ones that have been recently implemented (increased taxes)."Manuel Mota Freitas Martinshttps://www.blogger.com/profile/09540588427021304323noreply@blogger.com