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Luís Aguiar-Conraria discusses the viability of the 2025 State Budget negotiations on SIC Notícias
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Tuesday, 1.10.2024
On September 30, 2024, SIC Notícias promoted a debate on the negotiations surrounding the State Budget (SB) for 2025, with the participation of several speakers, including Professor
Luís Aguiar-Conraria
, professor at the Department of Economics of the School of Economics and Management of the University of Minho (EEG).
During the debate, Aguiar-Conraria critically analyzed the main proposals and stalemates between the PS and the government regarding tax issues, namely the IRC and the young IRS.
Luís Aguiar-Conraria believes there is room for negotiations on IRC, as both the PS and the government are open to reducing rates. He stresses that an agreement is crucial for Portugal's fiscal competitiveness but warns that long-term budgetary stability is essential if investors are not to be driven away.
Aguiar-Conraria harshly criticized the young IRS, calling the proposal “nonsense.” He argues that the Portuguese tax system is already fragmented, with different regimes for various groups, and that the youth IRS would worsen this situation. The professor sees this point as negotiable between the PS and the government but argues that the proposal needs to be rethought to avoid ineffective policies.
Finally, Luís Aguiar-Conraria expressed concern about the growing role of Chega in the negotiations, saying that he “doesn't want to see the country depend” on this party. He argued that the major parties must reach an agreement to prevent the far right from gaining more influence. In addition, the professor warned that early elections would be more damaging to the country than a budget in twelfths, especially for implementing the Recovery and Resilience Plan (PRR).
Luís Aguiar-Conraria is President of the School of Economics and Management at the University of Minho and a full Professor in the Department of Economics at the same school.
He has a PhD in Economics from Cornell University, a Master's in Economics from the University of Porto, and a degree in Economics from the University of Coimbra. Previously, He was Director of the Economics Department and Vice-President for Research and Internationalization at the School of Economics and Management.
In 2011, he was awarded the Gulbenkian Prize for the Internationalization of the Social Sciences. In 2010 and 2013, he received the EEG/UMinho Research Merit Award. He has received several FCT grants for various projects. The last one he received was for a project on “Voting rules and electoral distortions,” for which he is the principal investigator and has received €95,000 in funding over three years.
You can watch the debate in full at
https://shorturl.at/JhJWK
.
Gabinete de Comunicação
Escola de Economia e Gestão
Universidade do Minho
Telefone: 253 604541
Email:
gci@eeg.uminho.pt
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