Over the weekend
Expresso
«OECD sounds warning on drastic reduction of the state», wrote weekly Expresso on Saturday, as the Organisation for Economic Co-operation and Development (OECD) released a document warning that downsizing and a lack of incentives could affect the functioning of Portugal’s public administration, while also defending lower income and corporate tax rates.
Monday
Público
«Paulo Portas’ insistence makes surcharge on pensions optional», reveals Público, as although the so-called troika of international lenders – which has completed work on Portugal’s latest bailout assessment – wanted the measure to be obligatory, the minister of state and foreign affairs called for it to be replaced by an “optional” measure which will be applied if the government fails to find an alternative.
Correio da Manhã
«Cavaco imposes agreement on government», reports Correio da Manhã, as the Portuguese president warned that the country should not give up in its efforts, stating that without a budget the country would have no credit, the economy would not grow and unemployment would continue to rise.
Diário de Notícias
«Passos and Portas secure coalition until October», writes Diário de Notícias, as the PSD/CDS-PP coalition came close to falling apart during an extraordinary cabinet meeting on Sunday over the issue of a new surcharge on pensions, but will secure the agreement until local elections take place in October. According to the daily, the government decided to replace an “obligatory” tax on pensions with a “temporary” one which will only be written into the 2014 state budget and applied if they fail to come up with another solution.
Jornal de Notícias
«Portas gives in to tax on pensions», reports Jornal de Notícias, as during the extraordinary cabinet meeting the minister of state and foreign affairs and leader of junior coalition partner CDS-PP gave in to the proposition to further tax pensions, but the new surcharge will only be applied if the government is unable to come up with an alternative. According to the daily, Paulo Portas had previously made it clear that he would not let the measure be approved by the government.
i
«Government “hung by a thread”», reveals i, as the PSD/CDS-PP coalition came close to falling apart during the extraordinary cabinet meeting held on Sunday, with Prime Minister Passos Coelho and CDS leader and Minister of State and Foreign Affairs Paulo Portas at loggerheads over the introduction of a new surcharge on pensions. According to the paper, after some uncertainty the new tax on pensions will no longer be an obligatory condition for the the troika of international lenders to approve the country’s next tranche.
Diário Económico
«OECD approves cuts to pensions for public servants», writes Diário Económico, as a new report released by the Organisation for Economic Co-operation and Development (OECD) points out several measures that Portugal should apply in its state reform, including lowering compensation for dismissals, lowering income and corporate taxes, and increasing property and environmental taxes.
Jornal de Negócios
«Listed companies export one third of dividends», reports Jornal de Negócios, as the largest companies listed on the Portuguese stock exchange will be paying over €1.7bn in profits to their shareholders. According to the financial daily, over one third of this sum will be going abroad, reflecting the increasing weight of international investors in the Portuguese stock market.
A Bola
«Urgent to react», writes A Bola, as FC Porto beat Benfica 2-1 at home on Saturday.
Record
«Inácio tries to convince Jesualdo», reveals Record, as the next manager for Sporting Lisbon, Augusto Inácio, will meet this week with outgoing manager Jesualdo Ferreira in a bid to secure a smooth transition before the next round of the Portuguese League.
O Jogo
«Benfica only wanted to defend», writes O Jogo, quoting FC Porto President Pinto da Costa after his team beat Benfica 2-1 on Saturday, adding that the Portuguese League title will be decided on Sunday.