Key Benefits:
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PROPOSED LAW NO. 31 /XII
Exhibition of Motives
The present law aims to approve the Grand Options of the Plan for 2012-2015, framed in the
fiscal consolidation strategies, of the strictness of public finances and of
development of the Portuguese society and economy presented in the Programme of the
XIX Constitutional Government, in the Budget Strategy Document released by the
Ministry of Finance on August 31, 2011 and in the State Budget Report
to 2012.
These options aim to realize the commitments of trust and responsibility that the
Government has taken over from the beginning to with the Country, aimed at the structural transformation of the
Portuguese Economy and the prudent conduct of Public Finance policy, without
to discurate the defence and promotion of the policies of Citizenship, Solidarity, Justice and Security,
External and National Defence and the adoption of priority sectoral measures.
The Grand Options of the Plan for 2012-2015 have been submitted to the Council's opinion
Economic and Social, whose observations have been taken into account in the making of the present
version.
Thus:
Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the
Assembly of the Republic the following proposal for a law:
Article 1.
Subject
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The Grand Options of the Plan for 2012-2015, which integrate the measures of
policy and investments that contribute to realizing them.
Article 2.
Strategic framework
The Major Plan Options for 2012-2015 are to be found in the consolidation strategies
budget and development of the Portuguese society and economy presented in the
Programme of the XIX Constitutional Government and the State Budget Report for
2012, incorporated in the Annex to this Law, of which they form an integral part.
Article 3.
Big Plan Options
1-The Major Options of the Plan for 2012-2015 set by the Government at the beginning of the
present legislature are as follows:
a) The Challenge of Change: the structural transformation of the Portuguese Economy;
b) Public Finance and Growth: the budgetary strategy;
c) Citizenship, Solidarity, Justice and Security;
d) Foreign and National Defense Policies;
e) The Challenge of the Future: priority sectoral measures.
2-The investment priorities set out in the Major Plan Options for 2012-
2015 are contemplated and compatibilized in the framework of the State Budget for
2012 and properly articulated with the Economic and Financial Assistance Program
and in particular with the fiscal consolidation measures.
Article 4.
Economic and Financial Assistance Programme
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1-The fulfilment of the objectives and measures provided for in the Assistance Programme
Financial agreed with the European Union and the International Monetary Fund
prevails over any other programmatic objectives or specific measures,
including financial supports, benefits, exemptions or other kind of tax advantages or
screenings whose execution proves impossible until fiscal sustainability
is assured.
2-The Government adopts as a priority principle for the conduct of policies that
no measure with financial implications is decided without an analysis
quantified of their consequences in the short, medium and long term and without the verification
express and unequivocal of its compatibility with the international commitments of the
Portuguese Republic.
Article 5.
Final disposition
It is published in annex to this Law, of which it is an integral part, the document of the
Major Plan Options for 2012 to -2015.
Seen and approved in Council of Ministers of November 9, 2011
The Prime Minister
The Deputy Minister and Parliamentary Affairs
ANNEX
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GREAT PLAN OPTIONS FOR 2012-2015
INDEX
1. Th Option-The Challenge of Change: the structural transformation of the Economy
Portuguese
1.1. Framework
1.1.1. Anaemic economic growth and low productivity
1.1.2. Public Finance on an unsustainable trajectory
1.1.3. The external borrowing of the Portuguese economy
1.2. Structural transformation agenda of the Portuguese economy
1.3. Macroeconomic Scenario
1.3.1. External hypotheses for 2012
1.3.2. Macroeconomic Scenario for 2012
2. Option-Public Finance and Growth: the Budget Strategy
2.1. Introduction
2.2. Public Finance in 2011
2.3. Fiscal Consolidation Strategy
2.3.1. Finance and Public Administration
2.3.2. Social Policis
2.3.3. Economic Functions
2.4. Fiscal Measures for 2012
2.4.1. Enlargement of the Tributtable Base
2.4.2. Strengthening the Combat to Fraud and Tax evasion
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2.4.3. Simplification, Increment of Resource to New Training Technologies and
Guarantees of the Contributors
2.4.4. Consolidation of the Competitiveness Conditions of the Portuguese Economy
2.4.5. Tax on the Income Of Singular Persons
2.4.6. Tax on the Throughput of Collective Persons
2.4.7. Value Added Tax
2.4.8. Excise Taxes
2.4.9. Single Tax of Circulation
2.4.10. Local Taxes
2.4.11. Tax benefits
2.4.12. Combating fraud and tax evasion
2.4.13. Issuance and electronic transmission of invoices
2.4.14. Rights and guarantees of taxpayers
2.5. Implementation of the Budget Framework Act
2.5.1. Presentation
2.5.2. Budgetary rules
2.5.3. Multiannual framework of budget programming
2.5.4. Budget by Programs
2.5.5. Accounting procedures and accountability
2.5.6. Council of Public Finance
2.5.7. Operational issues and timing
3. 10th Option-Citizenship, Solidarity, Justice and Security
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3.1. Internal Administration
3.2. Justice
3.3. Solidarity and Social Security
3.3.1. Social Emergency Programme (PES)
3.3.2. Combating Poverty and Strengthening Inclusion and Social Cohesion
3.3.3. Social Economy
3.3.4. Family and Natality
3.3.5. Promoting the Sustainability of Social Security
3.4. Local Administration and Administrative Reform
3.5. Social Communication
3.6. Gender equality, domestic violence and integration of immigrant populations and the
gypsy communities
3.7. Plan for the Integration of Immigrants and Cigan Communities
3.8. Sport and Youth
4. Option-Foreign and National Defense Policy
4.1. Strengthening the Economic Diplomacy
4.2. Evolving in Bilateral and Multilateral Relations
4.3. Valuing Lusofonia and the Portuguese Communities
4.4. National Defense Policy
5. Th Option-The Challenge of the Future: Priority sectoral measures
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5.1. Economics and Employment
5.1.1. Support for Internationalization and Investment Caption
5.1.2. Revitalization of economic activity
5.1.3. Strategic Program for Entrepreneurship and Innovation
5.1.4. Valorisation of the National Offer and Deepening of the Internal Market, including
Competition
5.1.5. Employment and Labour Market
5.1.6. Regional Development and Community Funds
5.1.7. Transportation, Infrastructure and Communications
5.1.8. Energy market and energy policy
5.1.9. Tourism
5.2. Rental market
5.3. Agriculture and Forests
5.4. Sea
5.5. Environment and Territory Planning
5.6. Health
5.6.1. Strategic objectives
5.6.2. Measures
5.7. Education and Science
5.8. Elementary and Secondary Education and School Administration
5.9. Higher Education
5.10. Science
5.10.1. Scientific Research
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5.10.2. Applied research and technological transfer to the business fabric
5.10.3. Formation of highly skilled resources and increased scientific employment
5.10.4. Independent evaluation of Science policies
5.10.5. Establishment of the National Council of Science and Technology
5.11. Culture
5.11.1. Heritage
5.11.2. Book, Reading and a Politics of Language
5.11.3. Liberating the Arts from the Tutela of the State
5.11.4. Growth of Creative Industries in Digital Environment
5.11.5. An Education for Culture and for Art
5.11.6. Landscape and Culture
5.11.7. Measures
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1. OPTION-THE CHALLENGE OF CHANGE: THE STRUCTURAL TRANSFORMATION OF THE
PORTUGUESE ECONOMY
1.1. Framework
Portugal currently faces one of the biggest economic and financial crises in its
history. The crisis we are experiencing today is the result of the accumulation of imbalances
macro-economic and structural weaknesses for more than a decade. These
imbalances and weaknesses have become visible, in all its extent, in the context of the
global and European crisis, which began in 2007.
The Portuguese economy is one of the most affected by the sovereign crisis of the euro area. The
perception of credit risk relatively to Portuguese debt deteriorated
progressively since the end of 2009, in a frame of increasing fear, on the part of the
international investors, on the sustainability of public finance and the
external borrowing, in association with a low growth of the potential product.
In this way, a significant aggravation of the conditions for financing the
economy, either in terms of cost or access to credit, making the application inadible
of international financial assistance, which came to fruition, finally, in April 2011.
The current difficulties, notwithstanding serious, should be assessed in a perspective
historical. Periods of crisis are part of economic dynamics and typically give way
to transformations that are essential for further progress and advances of economies. Valley
the penalty to be present that in the second half of the twentieth century Portugal was a case of success.
Economic activity grew rapidly and Portugal joined the group of countries
developed, not only in structural change concerning the major
engines of economic growth, as also at the level of education, health and the
social protection.
This capacity for transformation showed that with effort and determination the economy
Portuguese will emerge from the crisis as a different economy. At the end of this process
we will have a more competitive economy, that is, an attractive location to invest,
produce and create employment.
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1.1.1. Anaemic economic growth and low productivity
Portugal has recorded over the last decade low economic growth and a weak
performance with regard to the growth of productivity. In the period 1999-2010, the
GDP grew at an annual average of 1% percent, which comparates with 1.4% percent in the euro area. In this
set of countries, and during the period mentioned above, only Italy verified a
lower growth (Chart 1).
Chart 1. GDP-Portugal and some of its European partners
(2000 = 100)
90
100
110
120
130
140
150
1 9 9 9
2 0 0 0
2 0 0 1
2 0 0 2
2 0 0 3
2 0 0 4
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
Germany Ireland
Greece Spain
France Italy
AE -17 Portugal
Sources: Eurostat and the Ministry of Finance.
The low growth in productivity is particularly worrying once in the
long term, the level of productivity condones the level of real wages and, by
therefore, the level of social welfare. The slowdown in productivity is at large
part explained by the slowdown in the accumulation of capital per worker, in a framework
of a model of ineffective economic development in the investment caption
foreign direct and reluctant to the taking of control positions, by capital
foreign, through the acquisition of positions in listed companies.
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Throughout the 90, the prospect of participation in the euro area and its
further realization, constituted an enlargement of opportunities for the
development of the Portuguese economy, which, to have been well taken advantage of, would
permitted significant gains in the level of efficiency and productivity. On the one hand, the
monetary and financial stability would contribute to favorable financing conditions,
on the other hand, a Largest integration of the goods and services markets and the market of
capitals would generate efficiency gains, creating conditions that would promote growth
economic. However, the full advantage of the benefits of a Largest integration
European would require the adoption of economic policies that would ensure stability
budgetary and financial, on the one hand, and favoured the competition and the opening up of the
economy, on the other.
The option to protect some sectors from the entry of new entrants and to condition the
acquisition and control of companies by foreign capital has translated into the lack of
competition and at low levels of investment and innovation. In terms of affectation of
resources, this approach has favoured the accumulation of capital in the goods and services sector
not transactionable (such as construction and retail).
Comparatively to European partners, Portugal presents various weaknesses in the
conditions it offers for the development of business activity, specifically
at the level of the rigidity and segmentation of the labour market, of the poor functioning of the
system of justice and the low level of qualifications of its human capital. These factors
have debilitated the attractivability of foreign capital and conditioned the
national investment within the country.
1.1.2. Public Finance on an unsustainable trajectory
In the past decade, fiscal policy has been conducted in a reckless manner
Over the past decade, Portugal has followed a reckless fiscal policy that
led the public sector to a situation of excessive borrowing. The worrying
level of public debt however achieved is fundamentally due to accumulation
successive of budget deficits that have resulted in much of a deterioration
structural of public accounts.
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Since the entry into the euro area, Portugal has recorded budget deficits almost always above
of 3% of GDP. In fact, only in 1999 (2.7%), 2000 (2.9%) and 2002 (2.9%) the deficit
budget was below the reference value of 3.0% set out in the Pact of
Stability and Growth, which can only be outdated in exceptional conditions and
in a temporary way (Chart 2). During this period, the budget deficit presented a
average value of 4.6% of GDP.
In the period under review, Portugal was formally subject to the Procedure of Deficits
Excessive for three times. The first episode proceeded between 2002 and 2004. The second
took place between 2005 and 2008. The third, which remains open, began in 2009.
Additionally, Portuguese public finances have never been in a position
superavitary or close to the balance, as provided for in the rules of the Covenant of
Stability and Growth. Thus, the budgetary policy conducted in recent years has led
to which the public debt as a percentage of GDP would evolve from approximately 50% in
1999 to about 93% in 2010.
Chart 2. Défice and public debt
(as a percentage of GDP)
0
10
20
30
40
50
60
70
80
90
100
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2010
Déf ice budget
Public debt-axis dir.
Sources: INE, Bank of Portugal and Ministry of Finance.
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Over the past decade there has also been a strong increment of the weight of the
State in the economy, continuing the growing trend evidenced since the second
half the decade of 80. By way of example, public consumption has increased from about
14% of GDP, in 1985, to levels slightly above 21% in 2010 (Chart 3). Up to
mid-90, personnel expendities made a strong contribution to the
increase in public consumption. Already in the past decade, in large part due to the
leniability of hospitals, social benefits in kind influenced
decisively the upward trend, more than compensating for the decrease in the weight of the
expenses with the staff.
Chart 3. Evolution of Public Consumption
(as a percentage of GDP)
0
2
4
6
8
10
12
14
16
18
20
22
24
1977 1981 1985 1989 1993 1997 2001 2005 2009
Public consumption
Expenses with personnel
Social benefits in kind
Other
Source: INE.
Analyzing the evolution of structural current revenue and primary current expenditure
structural, it is possible to see that the policy followed by Portugal was different from the
generality of the countries of the euro area. From 1999 a to 2008, both variables grew
significantly in Portugal, with particular incidence in expenditure (Chart 4). From this
mode, the structural primary current balance has reduced from 3.3% of GDP in 1999 to 1.8%
in 2008 (Chart 5). In the euro area the revenue remained relatively stable while
the expense verified a significant increase, which translated into a reduction of this balance
from 5.5% of GDP in 1999 to 3.9% in 2008. Portugal thus presented a position of
more fragile public finances than the euro area average at the beginning of the crisis.
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Chart 4. Revenue and Structural Expense
(as a percentage of GDP)
Chart 5. Structural Primary Current Balance
(as a percentage of GDP)
32
34
36
38
40
42
44
46
1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2010
EN-Rec. structural current AE-Rec. structural current
PT-Desp. current prim. structural AE-Desp. current prim. structural
-4
-3
-2
-1
0
1
2
3
4
5
6
1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2010
Portugal Area of the euro
Sources: AMECO and Ministry of Finance.
In 2009, the structural primary current balance underwent a reduction in both Portugal and
in the euro area. Primary current revenue fell by 0.7 p.p. of GDP in Portugal by
opposition to an increase of 1.6 p.p. in European countries. On the expense side checked
an increase of 4.1 p.p. of GDP, in Portugal. In the euro area an increase was observed.
3.3 p.p. In this context, Portugal went on to present a primary current deficit
structural of the public accounts of 3% of GDP. In the whole of the countries in the euro area, the
balance also decreased but remained positive at 2.2% of GDP. In fact, such
performance was only possible as the Majority of the participating countries in the euro area
dispenses with a sufficiently large margin of safety to cushion the effects
of the crisis, without endangering the financial situation of the Public Administrations. By the
contrary, Portugal had no conditions to react to the new context without resulting from it
a serious structural imbalance of public accounts (see Box 1).
Public finances reveal a problem of budgetary discipline
The public sector has been reveining a serious budgetary discipline problem, which it has
fragilised the confidence of economic actors in the performance of public accounts
Portuguese. This lack of discipline contributed to that, between 1999 and 2008, if they were to check
average deviations from the fiscal deficit of 0.8% of GDP in the face of the values set out in the
updates of the Stability and Growth Programs (PEC), for the respective
years in which they were published. Cumulatively, this deviation represented a total of,
approximately, 8% of GDP.
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Similarly, the forecasts for the budget balance were biased optimally
(Chart 6). In effect, the medium-term targets for the budget balance provided for in the
upgrades of the PEC pointed generally to situations close to the balance for the
final period covered by the Program. However, the observed budgetary performance stood
typically short of the set targets, having Portugal successively failed the
compliance with the budgetary adjustments provided for in the different programmes.
Chart 6. Fiscal Balances anticipated and observed
(as a percentage of GDP)
PEC 1999-2002
PEC 2001-2004 PEC 2003-2006
PEC 2005-2009 (June)
PEC 2006-2010
PEC 2010-2013
-12
-10
-8
-6
-4
-2
0
1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2010
Source: INE and Ministry of Finance
Note: The values presented for the forecast correspond to the values that were
reported in the updates of the PEC.
The successive verified deviations suggest that the budgetary rules are not
sufficiently strong to ensure that the defined medium-term targets are
fulfilled. The problem lies mainly at the level of the ability to control the execution
budget and to ensure the realization of the announced fiscal consolidation strategy.
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There is a high level of debt not accounted for in the public accounts
In addition to excessive public borrowing, there is a high level of debt of
public entities and future liabilities of the State that are not reflected in the
accounts of the Public Administrations. From highlighting, on the one hand, the Entrepreneurship Sector of the
State (SEE), excluding the financial sector, strongly loss-making and, on the other, the
Public-Private Partnerships (PPP) involving high future charges.
The SEE, which in the present analysis encompasses all the companies in the Public Sector, has been coming to
accumulate an excessive level of indebtedness, a result of poor performance
financial. At the end of 2010, the total value of its bank debt rounded out the 19% of GDP.
This set of companies presents a fragile financial structure, based on a liability
very high, of about € 62 thousand million, and in a negative equity capital in the order of the
€ 235 million. This fragility situation is a considerable risk to the accounts
public. Refer to, in this respect, the integration of three of the public transport companies
on the perimeter of Public Administrations, in national accounts, with an impact of fence
of 0.4% of GDP in the value of fiscal deficit of 2007 and of 0.5% in 2008, 2009 and 2010.
In addition to this budgetary risk, there is also an effect of crowding-out of the sector
private: the high level of indebtedness of the SEE, specifically among the banks,
absorbs a considerable fraction of the credit that, in this way, cannot be targeted at
private sector, with prominence for SMEs and exporting companies.
To the similarity of other countries, but on an unusual scale, PPPs were a model
widely used in Portugal for the financing of public works, mainly
road, rail and health services infrastructure. In this type of structures
contractual, financing and responsibility for investment and exploitation
incumbent, in whole or in part, to the private partner. The extensive use of this type of
contracts made the value of liabilities for future payments of the state
to private partners represent today about 14% of GDP (considering the value
updated from future cash-flows).
These commitments made increase the pressure on public accounts in the medium
deadline, as the annual disbursement of the state reaches its maximum in 2016 (Chart
7). The title of example of the risk inherent in these operations, refers to the impact on the deficit
budget that revision of the exception of treatment to be given to three contracts involving PPP
had in the budget deficit (in the framework of the April 2011 revision of the first notification
of the Excessive Deficit Procedure, by the INE): 0.1% of GDP in 2009 and
0.5% in 2010.
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Chart 7. Gross Charges with Private Public Partnerships
(as a percentage of GDP)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2011 2016 2021 2026 2031 2036 2041 2046
Road Health
Railway Others
Source: INE and Ministry of Finance
Note: Charges of PPPs at constant prices with VAT
The Portuguese budget process suffers from important weaknesses
The Portuguese budget process presents important weaknesses. In terms
generics, the process is characterized by planning mechanisms assented in a
logic of cash flows, annuality, and absence of focus on the results to be achieved. By
your shift, the mechanisms of control and accountability are very detailed,
based on the legality and regularity of the expenditure, with high bureaucratic burden. The most
important fragilities of the system are the high fragmentation of the budget process, the
absence of the multiannual budget framework to anchor the expenditure and the existence of a
incomplete accounting system (and, in a more generic way, the absence of a system of
performance evaluation support).
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Fragmentation of the budget process
The fragmentation of the budget process manifests itself in two distinct plans. In a
first plan, there is to consider the differences in methodology between the optics of
national and optical accounting of public accounting. The coexistence of these two optics
translates into differences, which in recent years have taken on particular expression, either by
level of the universe of the entities that are part of the public sector or at the level of the
Clearance of revenue and expenditure of the year. These different approaches affect the
transparency of public accounts and hinder budgetary control in "real time".
In a background, there is to consider organic fragmentation within one's own
public accounting. The Central Administration consists of more than 500 entities,
rematches in integrated services (without financial autonomy and financed essentially
by the State Budget) and Autonomos Funds and Services (which are funded by
transfers from the State Budget and by own revenue and detain autonomy
financial). The drafting and implementation of the budget and accountability are not
centralised at the level of the Ministries, which obliges the Ministry of Finance to maintain
several hundred interlocutors, making it difficult to maintain "in real time" a global vision
and budget analytics and preventing effective budgetary control. This situation is
aggravated by the fact of the rules on the drafting and implementation of the budget assented
in excessive detail and complexity.
Absence of a multiannual budget framework
The Stability and Growth Programme (PEC) has been the only instrument of
medium-term budget schedule. The PEC presents the policy intentions
budget of the Government and sets budget targets for a 4-year horizon to a
rather aggregate level. Typically the measures presented to achieve the objectives
defined budgets are insufficiently detailed, timeframe and quantified.
As it is referred to and illustrated in (Chart 6), past experience reveals that the
defined objectives are largely unfulfilled, not having any mechanism
endogenous that allows for the correction of deviations.
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Incomplete accounting system
The available accounting and information systems should be improved in a way that
provide information for good management and effective accountability. The fact that the
information on budget implementation to be still largely based on an optics
of box, prevents timely knowledge of the totality of the commitments made.
By its shift, the complexity and fragmentation of the budget makes it difficult to obtain
consolidated information on the financial position of the public sector.
1.1.3. The external borrowing of the Portuguese economy
The external borrowing of the Portuguese economy has reached very high levels
Portugal has accumulated in the last 10 years a level of borrowing exceptionally
elevated, whether when compared to its recent history, whether when confronted
with its European partners. Gross external debt, an indicator of total debt
from the public sector and the private sector to abroad, increased from about 100% of GDP
in 1999 to 230% of GDP in 2010 (Chart 8). Currently, Portugal is among
the most indebted countries in the euro area (Chart 9).
Chart 8. Portuguese gross external debt (as a percentage of GDP)
Chart 9. Gross external debt in 2010 (as a percentage of GDP )
0
50
100
150
200
250
1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2010
0200400600800 1000 1200 Ireland
The Netherlands
Belgium
Portugal
Austria
France
Finland
Greece
Spain
Germany
Italy
Source: Bank of Portugal Sources: AMECO, Bank of Portugal and IMF
Note: In the case of Ireland the position of external debt refers to June 30, 2010
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Also in net terms, that is, discounting the accumulation of financial assets
external by resident economic actors, is visible the pace of growth of the
external borrowing of the Portuguese economy over the past decade. The position of
international investment has worsened significantly having passed 32% of GDP in
1999 to about 108% in 2010 (Chart 10). In terms of investment position
international, Portugal occupies the most unfavorable position from among the countries in the area of
Euro (Chart 11).
Chart 10. International investment position
(as a percentage of GDP)
Chart 11. International investment position in 2010
(as a percentage of GDP)
-120
-100
-80
-60
-40
-20
0
20
40
1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2010
Public administrations
Financial Sector
Non-Financial and Particular Societies
Monetary Authorities
International investment position
-120 -100 -80 -60 -40 -20 0 40 60 60 Belgium
Germany
The Netherlands
Finland
Austria
France
Italy
Spain
Greece
Ireland
Portugal
Source: Bank of Portugal Sources: AMECO, Bank of Portugal and IMF
Note: In the case of Ireland the international investment position refers to June 30, 2010
The accumulation of debt of the Portuguese economy has resulted from an increase in needs
of funding from the public sector and the non-financial private sector. Given the participation
limited non-financial private sector in the capital market, its needs of
funding were overwhelmingly satisfied by the Portuguese banking system, which by
his turn resorted to the issuance of debt to non-residents. The concentration of a
high level of external indebtedness in the public sector and the banking system, put the
Portuguese economy in a situation that is vulnerable to changes in the conditions of liquidity and
perception of risk in international debt instruments markets.
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The interplay between the risk of sovereign credit and the credit risk of the banking system is
very strong as demonstrated in the current sovereign debt crisis. The deterioration of the
sovereign debt market generates potential losses in the public debt portfolios of the
banks and decreases the value of the collateral and the guarantees of the state held by these. In this
context, deteriorations of the notations of rating of the sovereign debt are often
followed by downward revisions of the rating of the banks, determining a worsening of the
conditions of financing of both sectors. The increase in bank credit risk
it also affects the sovereign risk, specifically by the effects on public finances
of the mechanisms for supporting the stability of the financial system. The management of macro risk-
systemic imposes the need for an increased margin of caution in driving the
budgetary and supervisory policies of the financial system.
Portugal's entry into the euro area has determined a relaxation of the restrictions
of liquidity and an improvement of the financial conditions of the Portuguese
Portugal's entry into the euro area has determined an improvement of the conditions of
financing of the Portuguese economy that went on to benefit from real interest rates more
low and less volatile and access to an expanded overseas financing market
without incurrus at foreign exchange risk. These conditions have been potentiated by an evaluation
relatively benign risk in international markets, and in particular by the reduced
credit risk discrimination between the issuers of euro area countries (Chart
12).
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Chart 12. Government bond yields at 10 years
(differential face to Germany on basis points)
-200
0
200
400
600
800
1000
1200
Ja n
-9 to 9
Ja n
-0 to 0
Ja n
-0 to 1
Ja n
-0 to 2
Ja n
-0 to 3
Ja n
-0 to 4
Ja n
-0 to 5
Ja n
-0 to 6
Ja n
-0 to 7
Ja n
-0 to 8
Ja n
-0 to 9
Ja n
-1 to 0
Greece Ireland
Portugal Spain
Italy Belgium
Netherlands Finland
Austria France
Source: Reuters
In the past decade, the borrowing ratios of private individuals and societies do not
financials recorded sharp increases, located among the highest in the area of the
Euro (Chart 13). In the case of private individuals, the increase in indebtedness was
accompanied by a significant decrease in the rate of savings as a percentage of the
disposable income that went from 10.6% in 2000 to a minimum of 7.0% in 2007.
The indebtedness of private individuals was used mainly for acquisition of own housing,
but also in consumption expenditure. In the case of companies, the composition of the
bank loans suggests a predominance of financing of activities
related to the real estate and services sector.
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Chart 13. Debt of Particulars and Non-Financial Companies
(as a percentage of GDP)
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2010
Particulars (*) Companies not f inanceiras
Source: Bank of Portugal.
Note: (*) Financial Debt.
The expansion of credit to the non-financial private sector was sustained by the system
bank that accepted financing in the wholesale debt markets under conditions
very favorable. This expansion has had implications on the financing structure of the
banking system, with a significant increase in the burden of funding sources more
volatile in total resources. The transformation ratio of deposits to credit
increased, to the average of the Portuguese banking system, to very high values (fence
of 160%), albeit with significant differences between banks.
As of 2008, and in the framework of the global economic and financial crisis, the private sector
has started a rapid and significant adjustment process. The needs of
non-financial private sector financing fell as soon as 2009 to levels
similar to the minimums observed over the last decade, having remained
relatively unchanged at 2010 (Chart 14). For its shift, the financial sector
has increased the financial savings to maximum levels of the last 15 years. In contrast, the
public sector increased substantially the financing needs in 2009,
having virtually nullified the impact of private sector adjustment on needs
of financing the total economy. This way the financing needs
total decreased only very slightly.
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Chart 14. Financing needs by Institutional Sectors
(as a percentage of GDP)
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
14
1 to 9
9 to 5
1 to 9
9 to 6
1 to 9
9 to 7
1 to 9
9 to 8
1 to 9
9 to 9
2 to 0
0 to 0
2 to 0
0 to 1
2 to 0
0 to 2
2 to 0
0 to 3
2 to 0
0 to 4
2 to 0
0 to 5
2 to 0
0 to 6
2 to 0
0 to 7
2 to 0
0 to 8
2 to 0
0 to 9
2 to 0
1 to 0
Total Economy Private Sector Non-Financial Sector
Financial Societies Public Administration
Source: Bank of Portugal
The vulnerabilities associated with high external indebtedness have proved in the
framework of the sovereign debt crisis
The risks of excessive borrowing by the Portuguese economy have materialized
recently in the framework of the sovereign debt crisis started in the autumn of 2009. The
assessment of the Portuguese sovereign risk was becoming progressively more unfavorable,
which has put strong pressures on the costs of financing the public sector and on
the financing of the banking system, culminating in the loss of access to finance
external under normal market conditions. The State has replaced external funding
by funding from residents, above all from the Portuguese banking system. By
Their turn, banks went on to resort extensively to the financing along the
Eurosystem and have made it significantly more restrictive the conditions for granting
credit to the economy. The aggravation of financial constraint has come to expose the weaknesses
associated with excessive borrowing of the various economic sectors and made
imperative the start of a process of deleveraging the Portuguese economy.
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The high level of accumulative external debt poses a major challenge in terms of
financing of the Portuguese economy in a framework in which private lenders do not
residents reveal a limited appetite for debt instruments issued by entities
national. In this way, and in prospective terms, it is critical to promote the
diversification of the sources of financing of the Portuguese economy. Specifically is
crucial to replace debt instruments by investment of non-residents in the capital of
companies located in Portugal.
1.2. Structural transformation agenda of the Portuguese economy
The Budget Strategy Document (DEO) presented by the Ministry of Finance
on August 31, 2011 defined the broad lines of fiscal consolidation in the medium
term of the Portuguese economy, including a public finance scenario for the
next four years, compatible with the objectives set out in the Assistance Program
Economic and Financial (PAEF) agreed with the European Commission (EC), Fund
International Monetary (IMF) and European Central Bank (ECB). The elaboration of the
document as well as the date of its publication is part of the structural conditionality of the
memorandum of economic and financial policies of the PAEF. As of next year, the
document, revised on the grounds of recent internal and external developments, will be part
member of the Stability and Growth Programme to be presented by the end of
April 2012, in the framework of the European Semester.
The Government is proposing to present, at the same time with the State Budget 2012,
a strategy of implementing the new procedures of the Framework Act
Budget (LEO). Such a strategy will determine that the multiannual budget framework for the
Central administration provided for LEO to be presented simultaneously with the PEC,
allowing for an integration of the two documents from 2012.
Decisive aspect for the success of the structural adjustment agenda now described says
respect to the financing of the Portuguese economy. As noted above,
Portugal has accumulated in recent years a level of borrowing exceptionally
high. Such a fact, coupled with other macroeconomic imbalances, weaknesses
structural and low performance in economic growth are at the base of the
difficult situation facing the economy at present, specifically in relation to access
to the funding.
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The process of deleveraging the Portuguese economy is thus inevitable and desirable,
having already started more clearly in the private sector. However, if on the one hand this
process is desirable, on the other hand it matters to ensure that it develops in a way
ordeira does not call into question the financing of the economy-largely channeled
by the banking sector-, and the structural transformation agenda based on the promotion of the
private initiative and the activity of Portuguese companies in a competitive environment.
It becomes thus crucial to promote a balanced deleveraging process and orb
of the banking sector, capable of eliminating the current financing imbalances in a manner
permanent. The definition by the banks of midterm plans that allow
securing a stable market financing position represents a first step
of course in this sense. According to the PAEF, the said funding plans will be
reviewed periodically in such a way as to ensure, in particular, their compatibility with the
macroeconomic framework including in the part that stems from the midterm scenario
term in public finance. In this framework, it is to highlight the need for
to ensure coordination between the revision of the financing plans of the banking sector and
the de-leveraging plan of the State Entrepreneurship Sector, to be implemented a lot
short term having on the basis of a significant reduction in the cost structure of companies
public. It is promoted, in this way, the release of bank credit currently allocated to the
public sector for the most productive sectors of the economy, with special focus on the
exporter sector that is expected to be the main driver of growth in the economy
Portuguese in the nearest years.
Additionally, this transformation agenda includes the structural transformation of the
State, which is an essential condition for the sustainability of the adjustment of administrations
public. In that sense, measures will be adopted that introduce improvements to the
operation of the public administration, specifically by way of the elimination of
redundant activities and the simplification and reorganisation of services. In this context,
control mechanisms on the creation and operation of all the
public entities, including public companies, foundations and associations. The shape and the
foundation of public intervention will be systematically reassessed. It will proceed to the
extinction of public entities.
The financial and managerial responsibility of the autonomous regions and municipalities will also be
strengthened. At the level of the budget process, procedures will be introduced that
simplify the process of drafting and implementing the budget and which strengthen the
risk control mechanisms on the evolution of public finances. These measures,
inspired by international best practices, they are found to be further developed.
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The transformation agenda also involves the adoption of an ambitious programme of
structural reforms, oriented towards modernization and the strengthening of competitiveness of the
Portuguese economy.
The privatization program is, in this context, a key pillar, framing itself in the
goals of reducing the state's weight in the economy and deepening integration
European, specifically by way of opening up the capital of companies to investment
foreign. Foreign direct investment and taking of shareholdings by no
residents in Portuguese companies are vehicles that allow access to finance
external without incurryborrowing in additional borrowing and that, in the medium and long term,
will lead to an increase in competition and efficiency.
Additionally, although market conditions could come to be more favorable, the
true is that the companies that are expected to privatize, tend to have a behavior
less volatile than the generality of listed companies. Add to this that, in a
context of financing difficulties, privatization operations tend to be more
successful that the public debt issuance operations, at the same time as
allow for the reduction of the stock of that debt.
In terms of privatization will be met what is outlined in the Government's programme,
being that by the end of 2011, the State's shareholdings will be divested in EDP, REN and
GALP. Still in this scope, it is recalled that they have already been eliminated the golden shares and all the
other rights established by Law or in the by-laws of listed companies that
confirm special rights to the State.
Increased competition will be further strengthened with the adoption of a new project of the
Competition law that clearly separating the procedure from the application of the rules of the
competition from criminal procedures, in harmonisation with the legal framework of
competition from the European Union. Changes to the regulatory framework will be further analyzed
in the direction of strengthening the independence of regulators.
Another key aspect of the Government's strategy is the planned changes in the framework
of regulated services and occupations, with the aim of increasing the competition within
of these professions. It will be, in particular, a review of the number of occupations
regulated and liberalized access to the exercise of these professions by professionals
qualified and established in the European Union.
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The reform of the judicial system is admittedly urgent for the proper functioning of the
economy, given that without it many of the reforms planned in the other sectors will not see the
its fully realized effect. By the end of 2011 an assessment will be completed which aims to
speed up the procedures of the courts and improve their efficiency and will be also
enhanced the alternative dispute resolution framework to facilitate the out-of-court settlement.
It is also intended to put in place a more sustainable and transparent budget for
the judicial system.
Finally, measures will be adopted that promote the proper functioning of the market of
work, giving you a m aior flexibility, with the aim of reducing the risk of
long-term unemployment and favoring job creation.
The success of this deep transformation agenda of the Portuguese economy requires the
effort and the mobilization of all Portuguese. This will be the way to a new cycle
of prosperity, growth and job creation.
Box 1. The deterioration of the budgetary situation of 2009
In 2009 a the situation of Portuguese public finances verified a steep
aggravation, and a substantial increase in the budget deficit and the
ratio of public debt. The deficit increased from 3.5% of GDP in 2008 to 10.1% in
2009 and the government debt ratio verified an extra 11.4 p.p. to 83% of the GDP in the
end of 2009.
From highlighting that the State Budget for 2009 provided for a value for the deficit of 2.2%
of GDP, which was successively revised upscale in the following months: in January of
2009 for 3.9% in the update of the Stability and Growth Programme, in May
2009 to 5.9% in the Budget Policy Guidance Report, having been
confirmed in the notification under the Excessive Deficit Procedure (PDE);
in November 2009 was revised to 8% as announced by the Government; and, in
January 2010, to 9.3% in the State Budget Report for 2010. Finally,
in the framework of the March 2011 notification of the PDE was ascertained an effective deficit of
10.1% of GDP. In this way, the fiscal deficit of 2009 recorded a deviation from 7.9 p.p.
of GDP in the face of the initially budgeted. It is pointed out that in the reporting of the PDE, the
perimeter of consolidation of Public Administrations has been extended, going on to include the
transport area companies (REFER, Metro de Lisboa and Metro do Porto) which
CHAIR OF THE COUNCIL OF MINISTERS
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contributed 0.5 p.p. of GDP for the worsening fiscal deficit and with 6.5 p.p.
of GDP for the increase in the ratio of public debt.
This sharp deterioration reflected not only the unfavorable effect on the accounts
public of the contraction of economic activity but mainly the deliberate adoption of
a discretionary expansionary policy of stimulation of economic activity.
The Portuguese economy experienced a strong recession in 2009, having the GDP verified
a contraction of 2.5% on an annual average. This deterioration in economic activity does not
had been anticipated in the macroeconomic scenario underlying the State Budget
for 2009, which it pointed to for an expansion of GDP of 0.6%. According to
estimates available, taking into account the methodology standard of decomposition of the balance
budget, the cyclical component contributed in -1.1 p.p of GDP to the variation
observed in the budget balance in 2009 (Table 1).
Table 1-Main Budgetary Indicators
(as a percentage of GDP)
2007 2008 2009
Variation
2009-2008
Global balance -3.1 -3.5 -10.1 -6.6
Cyclic component 0.8 0.5 -0.6 -1.1
Temporary measures 0.1 1.1 0.0 -1.1
Structural balance -4.1 -5.1 -9.5 -4.4
Interest expense (PDE) 2.9 3.0 2.9 -0.1
Structural primary balance -1.1 -2.1 -6.6 -4.5
Source: INE and Ministry of Finance
The worsening of the budget balance was essentially of a structural nature, the
total structural deficit increased by 4.4 p.p. of GDP. Note, however, that by the
characteristics of the recession, in particular by the effect of deflation that was recorded in 2009,
this value may be overestimated.
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The option for an expansionary orientation of fiscal policy took place soon in
mid-2008 with the decline in the standard VAT rate from 21 to 20%, the majoration of the
deduction on IRS of housing expenses, the reduction of IRC for SMEs and the
adoption of measures to strengthen social supports to combat poverty and support the
family.
This expansionary orientation was subsequently strengthened at the end of 2008, in the frame
in the European Economic Recovery Plan agreed in December 2008 by the
European Council. This plan provided for the coordinated adoption of stimulus measures to the
search, while taking into attention the budgetary specificities of each state-
member. The implementation of these measures should comply with the requirements of the Covenant of
Stability and Growth in such a way as not to compromise the sustainability of finance
public from the different countries. This programme contemplated measures of character
temporary and which should strengthen the structural reforms laid down in the Strategy of
Lisbon for Growth and Employment, totaling a package of 200 thousand million
Euros, 1.5% percent of the GDP of the European Union.
In this context, Portugal has adopted a budget stimulus package-called the
Initiative for Investment and Employment-in an amount of EUR 2040 million,
1.2% of GDP, being a third coming from community funding and the rest
supported by the national budget, redeparting the latter by two thirds by way of the
increase in expenditure and one third through decreased revenue. The initiative
substantiated itself in:
• Increase in public investment, specifically at the level of modernization of the
schools, supports for projects in the area of renewable energy and infrastructure of
energy transport and support for the realization of investment in band networks
wide of new generation;
• Support for business and export, in particular by way of the creation of lines of
credit to SMEs, lines and mechanisms of export support credit insurance,
support for external promotion, reduction of VAT refund threshold and reduction of
special payment on account;
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• Support for employment and social protection, in particular through the reduction of
contributions to Social Security and payment to employing entities for
support the maintenance of employment and the hiring of unemployed and rising
of social support for the unemployed.
The aggravation of the budget balance was higher than the total effect of the measures referred to
previously. This is justified by the fact that other measures have been taken
over time. For example the updating of the salaries of the civil service in
2.9%, considerably above the verified inflation.
1.3. Macroeconomic Scenario
1.3.1. External hypotheses for 2012
The outlook for the years 2011 and 2012 point to a GDP growth
world in the order of the 4%, in real average terms, representing a downward revision
in the face of the forecasts previously released by the International Institutions, which has in
account for the context and risks described above (v. 1.1.3.).
In this framework, a slowdown in external demand is anticipated for next year
relevante1 for Portugal and a decrease in short-term interest rates. Anticipate,
likewise, a decrease in the price of oil and an appreciation of the euro against the dollar.
The table below summarizes the external hypotheses underlying the macroeconomic scenario.
1 relevant external search: calculation made by the MF based on the forecasts of the real growth of imports from our major weight-weighted trading partners that these countries represent in our exports. They were considered the following countries: Spain (26.5%); Germany (13.3%); France (12.4%); Angola (8.1%); United Kingdom (5.6%); Italy (3.8%); the Netherlands (3.7%); United States (3.6%); Belgium (2.4%); Sweden (1.2%); Brazil (1%), and China (0.8%), which account for more than 80% of our exports.
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Table 1. International Framework-Main Hypotheses
Growth of relevant external demand (%) MF 7.9 5.4 4.8
Brent Oil Price (US$/bbl) NYMEX 80.2 111.7 108.6
Short term interest rate (annual average,%) (a) BdP 0.8 1.3 1.0
Long term interest rate (annual average,%) (b) PAEF 5.3 6.4 5.0
EUR/USD exchange rate (annual average) ECB 1.33 1.40 1.39
Source 2010 2011 (p) 2012 (p)
Note: (p) forecast. (a) Euribor at 3 months; (b) Treasury obligations to 10 years.
1.3.2. Macroeconomic Scenario for 2012
The macroeconomic scenario points to a breakdown of GDP of 1.9% in 2011 and 2.8% in
2012, coupled with a strong reduction in domestic demand to which it is mitigated by input
expected positive from the net external demand-the following table presents the estimates
for 2011 and the forecasts for 2012. Table 2. Key Indicators
(rate of change,%)
GDP and Components of Expense (in real terms)
GDP 1.4 -1.9 -2.8
Private Consumption 2.3 -3.5 -4.8
Public consumption 1.3 -5.2 -6.2
Investment (FBCF) -4.9 -10.6 -9.5
Exports of Bens and Services 8.8 6.7 4.8
Imports of Bens and Services 5.1 -4.5 -4.3
Evolution of Prices
Deflator of GDP 1.1 1.0 1.7
IPC 1.4 3.5 3.1
Evolution of the Labour Market
Employment -1.5 -1.5 -1.0
Rate of Unemployment (%) 10.8 12.5 13.4
Apparent productivity of work 2.9 -0.3 -1.8
Balance of Current and Capital Balances (in% of GDP)
Net needs f inanciation face to the outside -8.4 -6.7 -2.5
-Balance of Current Balance -9.7 -7.9 -3.9
of which Balance of Bens Balance -10.0 -8.4 -5.5
-Balance of Capital Balance 1.4 1.2 1.4
2010 2011 (p) 2012 (p)
Note: (p) forecast.
Sources: INE and Ministry of Finance.
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This steeper break of the product in 2012, in the face of the presented in the Document of
Budgetary strategy, results from the additional measures taken in the framework of the current
state budget proposal for 2012 to meet the agreed targets in the
economic and financial assistance program (PAEF) to Portugal, to which they translate,
with greater reflection, in private consumption, following the reduction in yield
available either by the way of the tax increase or by the reduction of nominal wages
in the public function.
Additionally, the scenario has underlying the expected positive effect that the increase in
hours worked in the private sector exerts on exports and on investment and
by that way about the product.
With respect to private consumption, and fruit of an adjustment of the consumption pattern
of households, with special focus on durable goods (whose consumption increased
significantly in 2010), an already significant break is expected in 2011, but even more
accentuated in 2012. This year, the expected break (-4.8%) is a result of either the increase
expected from prices by tax (increase in indirect taxes), either by reduction of the
disposable income of households (demand effect).
In turn, effect of the fiscal consolidation measures that have been being adopted
by the Government, is expected to break down public consumption in 5.2% and 6.2% in 2011 and 2012,
respectively.
Exports of goods and services are expected to present favourable behaviour,
despite slowing down in the face of previous years, fruit of the slowdown in demand
relevant external. The growth of exports, associated with the expected reduction in
imports (in 4.5% and 4.3%, in 2011 and 2012, respectively) should be reflected in a
more intense reduction of the trade balance deficit in the two years. Refirs, however,
that the forecast now presented benefits equally from the effect of the increase measure of the
hours worked by the route of reduction of wage costs.
For gross fixed capital formation is predicted to be a significant break, as a result of
most demanding conditions of private sector financing and, also, the outlook
less optimistic of entrepreneurs as to the evolution of the economy. For this contraction
will also contribute to the decrease in the planned public investment for the two years.
However, despite the expected reduction, it is estimated that business investment will come to a
a minor break as a result of the aforementioned measure relative to the hours worked.
Additionally, it is expected, still, that the financing needs of the economy if
reduce, benefiting from the reduction of the trade deficit that more than compensates for the
anticipated worsening of the primary balance of income deficit.
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Inflation in 2011 is expected to rise to 3.5% percent, slowing to 3.1% percent next year.
In 2012, part of the increase in inflation is directly related to the tax effect
(alteration of some goods and services from reduced VAT rates to normal, or from
intermediate to normal). Naturally, the mechanical effect of this measure would be
substantially higher than the current expected rate of inflation. However, it wants the effect
contraction in demand, wants the expected effect on wage costs, mitigate the said
effect caused directly by the increase in taxes.
The unemployment rate is expected to continue to worsen next year as a result of the
more negative behavior of the economic cycle.
Chart 15. Contributions to the Variation in Volume of GDP (percentage points)
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
2009 2010 (e) 2011 (p) 2012 (p)
Private Consumption Public Consumption
Investment Net External Demand
GDP Note: (e) estimated; (p) forecast.
Sources: INE and Ministry of Finance.
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2-2. TH OPTION-PUBLIC FINANCE AND GROWTH: THE BUDGET STRATEGY
2.1. Introduction
Having as a basis the budgetary outlook for 2011 and the current framework
macrofinancial, the Government proposes the priority implementation of a set of measures of
fiscal consolidation with a view to ensuring the sustainability of public accounts in a
Context of large demand, control of expenditure in all areas of the Administration
Public, strict monitoring of budgetary risks and compliance with limits
defined in the Economic and Financial Assistance Program (PAEF).
The proposed and summarized measures in the table below focus largely on the
public expenditure (more than 2/ to 3) having inherent cross-cutting cuts to all Administration
Public, including public institutes, Local and Regional Administration and Business Sector
of the State. Meeting the target for the deficit in 2012 makes it also necessary
to make an adjustment by the tax route, as already provided for in the programme itself.
The PAEF imposes a limit on the budget deficit of Public Administrations, in a
national accounting optics, from 7,645 billion in 2012 (equivalent to 4.5%
of GDP), the fulfillment of which is a necessary condition to guarantee the associated disbursements
to the Programme and, therefore, to prevent the interruption of financing of the economy
Portuguese.
To achieve such a goal, an effort of fiscal consolidation with measures is imposed.
that totals an expected impact on the order of the 6% of GDP when compared to a
scenario of the invariant policies, i.e., about 2.4 p.p. above the forecast in the PAEF. The strategy
of fiscal consolidation thus incorporates expenditure containment measures that go
in addition to those included in the PAEF in a permanent way to compensate for the deviation from
budget implementation verified, essentially, in the first half of 2011.
Part of this deviation was already explained in the Budget Strategy Document,
in particular with regard to expenditure on staff, intermediate consumption,
non-tax revenue, to the inclusion of effects of a temporary nature, as is the assumption of the
debt of two companies of the Autonomous region of Madeira and the operation related to the
privatization of the BPN, as well as the measures included in the Budget for 2011 whose
impact was overestimated or whose implementation has come to demonstrate impossible.
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The technical work underlying the preparation of the State Budget proposal for
2012 allowed to obtain significantly more detailed information for 2011 regarding
all entities included in the perimeter of the Public Administrations. As far as it is concerned,
in particular, to the State Corporate Sector and the Local Administration referred to
information revealed the existence of deviations in the first half higher than those reported
in the Budget Strategy Document.
The deviations found and the target set for 2012, thus, justify the level of
ambition of the proposed measures.
In effect, a measure such as the suspension of holiday and Christmas subsidies to the
servers of the State is dictated by the urgent need to correct imbalances
budgetary and the profound aggravation of public finances, and is only justified by being
absolutely necessary to ensure the very demanding goals to which Portugal is
bound and to preserve the maintenance and sustainability of the Social State and ensure the
financing of the Portuguese economy.
Table 3. OE 2012 and PAEF Budget Consolidation Measures
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10 ^ 6 euro% GDP
Decrease in Expense 4506 2.7 7460 4.4
Expenditure on staff 740 0.4 2694 1.6
Pay cut in Public Administration in the face of 2011:: 1800 1.1
Freezing of wages in public function 340 0.2 340 0.2
Reduction in the number of civil servants through restrictions in the
admissions in the Central Administration and the Regional and Local Administration,
as well as from sectoral reduction measures of contracted numbers
400 0.2 500 0.3
PREMAC:: 54 to 0.0
Social benefits 1073 0.6 2066 1.2
Cut in pensions in the face of 2011:: 1260.2 0.7
Special contribution applicable to all pensions above 1500 €
with rules similar to the reduction of the salaries of the Administration
Public, in 2011
445 to 0.3::
Suspension of the indexing rule of pensions, excluding the update
of the lowest pensions 628 0.4 628 0.4
Savings in spending on social benefits:: 178 to 0.1
Social benefits in kind 684 0.4 1000 0.6
Reduction of public expenditure on health, in the areas of the medicine,
moderating rates, public health sub-systems, and plans to
restructuring of hospitals
684 0.4 1000 0.6
Intermediate consumption 702 0.4 690 0.4
Measures to streamline services and control of operational costs
in Public Administration 506 0.3 466 0.3
Deepening of the rationalization of the school network and increase in
efficiency in supply 196 0.1 224 0.1
Grants 312 0.2 88 0.1
Cost reduction in the State Corporate Sector and the Services and
Autonomous Funds: review of compensatory damages and the
operating costs
312 0.2 88 0.1
Capital expenditure 846 0.5 923 0.5
Reduction of capital expenditure (including SFAs, SEE and reduction of
transfers to Local and Regional Administration 846 0.5 923 0.5
Increase in Recipe 1535 0.9 2890 1.7
Taxes on production 1085 0.6 2359 1.4
Rationalization of the VAT rate structure, including change in the rate of the
VAT on energy products 410 0.2 2044 1.2
Update of excise taxes 250 0.1 180 0.1
Substantial reduction of exemptions from IMI 250 0.1 50 0.0
Reinforcement of combating fraud and tax evasion 175 0.1 85 0.1
Taxes on income 450 0.3 683 0.4
Review and limitation of tax benefits and deductions, specifically
Headquarters of IRS and IRC 300 0.2 756 0.4
Extraordinary surcharge in IRS headquarters (measure implemented in 2011):: 185 to 0.1
Completion of convergence in the IRS scheme of pensions and income
from work 150 0.1 115 0.1
IRS solidarity surcharge:: 16 to 0.0
Change in the rate of the most-valuable:: 3 to 0.0
Changes to the extent of " Increase from 2.5 p.p. in the IRC rate for profits
above 2 million euros "-the surcharge passes to 3% and the threshold of
profits go down to 1.5 million euros. Additionally, in the case of the
profits above EUR 10 million, the rate to be applied is up to 5%.
:: 187 to 0.1
Combating tax evasion:: 90 to 0.1
Effect on the IRS of the reduction of wages and pensions:: -668.7 to -0.4
Social contributions :: -335 to -0.2
Voluntary restructuring of debts:: 40 to 0.0
Effect on contributory revenue from wage reduction:: -375 to -0.2
Non-tax revenue :: 183 to 0.1
Increase in funding, by the EU, of projects in the area of education:: 154 to 0.1
Other measures:: 29 to 0.0
Total 6041 3.6 10350 6.1
Impact vis-à-vis previous year 5073.0 3.0 9042.3 5.3
PAEF
10 ^ 6 euro% GDP
Budget of the State
20122012
Source: Ministry of Finance.
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The adoption of these measures was still modulated by the concern to prevent a
excessive social burdensome. For family budgets, alternatives of reductions
remunerations that imply a decrease in the amounts that each month they make face
to the expenses of the aggregates would certainly be more penalizing and much more difficult
management. Hence the suspension of holiday and Christmas subsidies is socially more
permissible and less onerous, not moving away from the added value that remunerative stability
monthly provides.
The fact that the Portuguese in the last legislative elections have expressed support
unequivocal to the fulfillment of the objectives assumed in the context of the PAEF, through
a global vote of 80% in the undersigned parties of the EU and IMF agreement,
demonstrates to be aware of the situation of the Country and of the untold need for
strong adjustments to the general level.
It does not ignore the Government that it is a burden that falls directly on the people
with a public employment relationship, not having a universal nature.
But the truth is that while it's being multiple public expense containment measures
adopted by the Government, yet deviations remain with a magnitude that does not
can otherwise be corrected by a cross-sectional measure on such a relevant item
for fiscal consolidation as is the expense of personnel. The alternatives, or are
socially and economically worse or simply are not effective in securing the
needs.
The effort on the revenue side has already reached the limits of the sustainable, and is of the imperious
combination with a sharp effort side of the expense side in its larger segments
expression, that it will be possible to correct the imbalances.
Add that it is not de facto equal to the situation of who has a public employment relationship and
the other workers.
Neither in the qualitative plan of rights and guarantees, which are superior, nor in the plan
quantitative of remunerations, there remain in Portuguese society a differentiation
average remunerative, with some expression, between the public sectors and the private. In a
national emergency context with high level of unemployment, security in the
employment constitutes an invaluable value which, in the weighting of the tuteled goods, if
overlaps with expectations of untouchability of the quantum remunerative, not least
serving that public sector workers benefit on average, when
compared to workers with identical qualifications in the private sector, from
superior retributions.
CHAIR OF THE COUNCIL OF MINISTERS
39
The present option also has the concern to be transversal, covering all but
at the same time ensuring the protection of the most vulnerable. In a situation of crisis and
social emergency it is not possible to exclude any corporates or social group from giving your
contribution to the adjustment. Hence the need for comprehensive measures that have effects
on salaries, pensions and other social benefits as well as raising taxes with
higher incidence on higher incomes and on heritage.
The huge consolidation effort will also be shared by the Entrepreneurship Sector of the
State, the size of which has become unsustainable. The level of borrowing of these companies
constitutes one of the reasons for the burden of the strangulation of credit to the economy. The measures to
apply, being tough for your employees, are indispensable for sustainability
future of public companies and the services they provide.
Finally, and in response to the need to increase the competitiveness of our economy,
enable the increase of the working hours in private companies through the
amendment of labour legislation. This measure replaces the tax devaluation, by contributing
for competitiveness by reducing the unit costs of the work, but without the
additional implications for public accounts that a reduction of the single social rate
would inevitably have. The increase in working hours should allow for the creation of a
additional margin of flexibility for the companies that should use it in a way
smart to improve your competitiveness in such a way that they can have a better
performance.
2.2. Public Finance in 2011
The evolution of public finances in Portugal in 2011 was characterized by the clearance
of successive deviations from the budgetary implementation which, in the absence of measures of
additional compensation, would have compromised compliance with the limit for the deficit of
5.9% of GDP, agreed in the framework of the PAEF. These deviations resulted from the conjugation of the
minor impact of the announced consolidation measures, notably at the level of the
control of expenditure, non-tax revenue developments below expected and the
aggravation of the conditions of financing of the Portuguese economy. These, in turn,
have grown increasingly visible financial imbalances accumulated over the course of
years, with prominence for the accumulation of undeclared debts, anticipation of revenue via
grants and unsustainable investment decisions, in particular those associated with the
transfer of budgetary expenditure to entities outside the sector of Administrations
Public, in the short term, but with extra public charges in the future.
CHAIR OF THE COUNCIL OF MINISTERS
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The Economic and Financial Assistance Program has reseen in high the targets set in the OE2011 for the deficit
The OE 2011 set the target for the deficit of Public Administrations by 2011 in 4.6%
of GDP. Within the framework of the PAEF, this target was revised to 5.9% of GDP. This review in
high in the face of the target set in OE 2011 essentially reflects four factors. In
first place, the explicit inclusion in the perimeter of consolidation of Administrations
Public of four companies from the area of transport and infrastructure (REFER, Metro
Lisbon and Metro do Porto and Estradas de Portugal). Second, the aggravation of the
conditions of financing of the Portuguese economy and the sovereign debt market in
particular, with a considerable increase in the costs of the debt service. In third
place, the less favourable prospects with regard to the macroeconomic scenario. By
last, the budget implementation of the first quarter of the year that pointed to a deviation
in the results of some fiscal consolidation measures, particularly at the level
of the expenses with the staff.
The fiscal consolidation strategy for 2011, established at the PAEF, settled
fundamentally in the need to implement the constant measures of OE 2011 and in the
measures proposed in the update of the PEC presented in March 2011, having not been
defined additional consolidation measures.
The accounts of Public Administrations relating to the first half of 2011 showed a significant deviation in the budget implementation
The Quarterly National Accounts, released by the National Institute of Statistics on the day
September 30, revealed the existence of a very significant budget deficit in the
first half of 2011, from 6,998 million euros (8.3% of GDP). Taking into account the
limit to the 2011 deficit set out in the PAEF, these data come to demonstrate that in the
first half was already used 70% of the limit for the total of the year. To meet the objective
from 2011, in the second half the Public Administrations will only be able to have a balance
negative of EUR 3,070 million, approximately 3.5% of GDP. Table 4 presents
the data from the budget implementation in the first half of 2011 and the planned targets
for the year in the framework of PAEF.
CHAIR OF THE COUNCIL OF MINISTERS
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Table 4. Implementation of the Public Administrations in the 1 th Semester (optics of national accounting)
2011
2010 2011 Rate of
PAEF variation
Rate of
variation
face to 2010
Total revenues 71817 31373 32353 3.1 71258 -0.8
Current revenue 67164 30977 31903 3.0 69093 2.9
Recipe f iscal 38343 17227 17859 3.7 39216 2.3
Taxes on income and heritage 23005 10869 11251 3.5 23673 2.9
Taxes on production and import 15338 6358 6608 3.9 15543 1.3
Social contributions 21166 10096 10221 1.2 21382 1.0
Other current revenue 7654 3653 3823 4.7 8496 11.0
Capital revenue 4653396449 13.4 2165 -53.5
Total expenses 88680 40102 39348 -1.9 81300 -8.3
Primary expense 73746 34562 33227 -3.9 74173 0.6
Expenses with personnel 21093 10491 9845 -6.2 19590 -7.1
Intermediate consumption 8667 3854 3534 -8.3 7278 -16.0
Grants 1193551499 -9.5 1183 -0.8
Social transfers 37884 17411 17240 -1.0 37506 -1.0
Other current transfers 4908 2255 2111 -6.4 3775 -23.1
Interest 5190 2411 3304 37.0 7127 37.3
Capital expenditure 9745 3129 2817 -10.0 4840 -50.3
Gross capital formation f pebble 6197 1906 2017 5.8 4341 -29.9
Other capital expenditure 3548 1222800 -34.6 499 -85.9
Total balance -16 863 -8 729 -6 995 -10 042
2010
million euros
Implementation 1-semester
%
million from
euros%
Sources: INE and Ministry of Finance.
On the revenue side, it matters to highlight that the tax revenue in the first half evidenced
a growth slightly higher than the PAEF estimate for the year, reflecting the
behaviour of taxes on income and on production and import. This
developments largely reflect the effects of the measures approved in mid-2010 and
beginning of 2011, specifically the increase in IRS rates, the IRC surcharge and the
increases in VAT rates, factors that will contribute to the slowdown in revenue
fiscal in the second half of the year.
CHAIR OF THE COUNCIL OF MINISTERS
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In contrast, the other current revenue recorded a low level of implementation. The
receipt of dividends by the state in the first half was about 180
million euros, quite lower than the budgeted value for the year (about 400 million
of euros), reflecting, in particular, the decision not to distribute dividends per part
of CGD. In the case of Autonomos Services and Funds is to mention the low level of
implementation of the fees, emoluments and other own revenue of the Institute of Management
Financial and Infrastructures of Justice, which in the first half of the year stood at about
of EUR 200 million, in the face of a budgeted total of almost EUR 700 million for
the set of the year.
On the expenditure side, the deviation in the budget implementation in the first half resulted
essentially of the items of expenditure on staff, intermediate consumption and expenditure of
capital.
The behaviour of personnel expenditure reflects essentially a decrease
less than the one scheduled in the exit number of the administration workers
central and the impact of promotions in some ministries (Ministry of Administration
Internal and Ministry of National Defence). Significant reductions were expected in the
number of Central Administration personnel, from nearly 4% in 2011 face to the previous year,
and the provisional information made available points to a reduction of less than 1% in the
first semester.
At the level of the intermediate consumes, the deviation in the implementation is explained by the inclusion of the
commissions paid for the international loans (which had not been considered in the
PAEF) and by a lower than expected impact of the sectoral consolidation measures
budget.
The high rate of implementation of capital expenditure in the first half of 2011, reflects the
non-delivery of concessions and heritage sales transactions in the amounts
included in the program (more than 1,300 million euros for the year set), revenues
that, in national accounting, are culled at the capital expenditure. To these values add up
expenses related to the assumption of responsibilities of the business sector of the
Autonomous Region of Madeira (570 million euros).
Part of the implementation gap of the first semester had already been identified in the Budget Strategy Document released in August 2011 in which a broad set of correctional measures were also envisaged. In the Budget Strategy Paper (DEO), released at the end of August 2011,
has been ascertained a deviation from the 2011 target of the PAEF of 1.4 p.p. of GDP (Table 5).
The deviation was calculated by taking into account an estimate for the year 2011 on the basis of
very preliminary information for the Regional and Local Administration (ARL) and for the
public companies in a box optics. Add to the already mentioned related expenses
with the assumption of responsibilities of the business sector of the Autonomous Region of the
Wood, as well as the net impact of the privatization of the BPN to be realized by the end of the
year.
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Table 5. Fiscal deficit 2011: Objective, Deviation, Correction Measures
(% GDP)
DEO-PAEF OE2012-
DEO
OE2012-
PAEF
Goal PAEF 5.9 5.9 5.9
Deviation from budgetary implementation
Recipe f iscal -0.2 0.2 0.0
Non-tax revenue (except transfers of funds pensions) 0.4 0.0 0.4
Primary current expense 0.6 0.0 0.6
Interest 0.0 0.1 0.1
Capital expenditure (excluding "one-off" and grants) 0.0 0.3 0.3
Total 0.8 0.7 1.4
Deviation from the "one-off" expense
Reclassif ications of capital operations 0.3 0.0 0.3
BPN (net impact) 0.2 0.0 0.2
Total 0.5 0.0 0.6
Total deviation before measures correction 1.4 0.7 2.0
Remediation measures
IRS surcharge -0.5 0.0 -0.5
Revision rates VAT -0.1 0.0 -0.1
Grants -0.4 0.5 0.2
Other measures not specif icated
Transfers of pension funds (up to) -0.5 -1.0 -1.6
Total -1.4 -0.6 -2.0 Source: Ministry of Finance.
Considering that a part of the deviation has been due to factors of a temporary nature and given
already having elapsed more than half of the year, the DEO provided that the measures for correcting the
deviation to 2011 were, essentially, of extraordinary nature. The surcharge
extraordinary in IRS headquarters of 3.5% on the taxable income of the year 20112 and the
anticipation, for October 1, 2011, of the revision in the rate of VAT of energy goods
for the normal rate, they would allow to compensate for the deviation by about 0.6 p.p. of the GDP. The
revenue from concessions should also be higher than expected in about 0.4 p.p. of the
GDP and the remaining 0.5 p.p. would be covered by the transfer of pension funds from the
banking sector for the public social security system.
2 This measure will be operationalized by the application of the withholding tax, the title of payment per account, corresponding to 50% of the share of the value due to the Christmas allowance or 13 th month concerning 2011 that exceeds the value of the RMMG.
CHAIR OF THE COUNCIL OF MINISTERS
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The fiscal balance for 2011 underlying OE2012 revealed a further widening of the deviation in the face of the target of PAEF
The outlook for public finances for 2011 underlying OE 2012, which settle in a rather more complete and up-to-date information set,
reveals a further widening of the deviation in the face of the target of PAEF, to 2.0 p.p. of GDP (
QuadrTable 5). Comparatively to the DEO, the deviation increased by 0.6 p.p. of GDP, being
this review explained in almost totality by the updating of the information on the
public companies and the regional and local administration.
On the revenue side, it is to highlight the downward revision, in the face of the DEO, of the revenue estimate
tax as a result, in particular, of the lowest expected revenue from municipalities and,
to a lesser extent, from the state's tax revenue. On the expenditure side, the review is highlighted in
high, in the face of the DEO, of the estimate for the interest paid by the public companies and for the
capital expenditure.
Additionally, and at the level of the correction measures identified in the DEO, there is to be highlighted
a significant downward revision of revenues with grants by the incorporation of
latest information. This review should be compensated by an addition of the
transfers of pension funds.
The recourse to extraordinary recipes, to correct the deviations of 2011 and to guarantee the
compliance with the agreed target for the deficit in the PAEF, requires an additional effort of
structural adjustment in 2012. In effect, only a structural correction of the balance of the
public administrations will ensure a sustained consolidation of public finances.
2.3. Fiscal Consolidation Strategy
The State Budget Bill for 2012 is strongly conditioned by the
need to comply with the commitments made by the Portuguese state in the
Economic and Financial Adjustment Programme (PAEF), which comprises a vast
set of expenditure and fiscal consolidation measures (Table 6), essential for the
pursuit of the imperious objective of reducing the deficit of Public Administrations to
7,645 million euros (4.5% percent of GDP) in 2012. This adjustment effort is crucial for
regain credibility in the internal and external plan, in a macroeconomic context
marked by the reduction of domestic demand, associated either with the deleveraging process
of the private sector or the measures of fiscal consolidation, and by a high degree of
uncertainty with respect to the international framework.
CHAIR OF THE COUNCIL OF MINISTERS
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Table 6. Main Budget Consolidation Measures in 2012 M€ %GDP
1487.6 to 0.9
Human resources 1342.0 0.8
Salary cut (net effect) 1065.0 0.6
Reduction in the number of employees (excluding effect already accounted for in education) 277.0 0.2
Rationalization of resources 145.6 to 0.1
PREMAC 89.0 0.1
Public purchases 40.0 0.0
Other service rationalizations of the AP 16.7 0.0
2803.3 to 1.7
Social Security 1249.4 0.7
Cutting of pensions vis-à-vis 2011 (net effect referring to the Social Security system and CGA) 951.5 0.6
Savings in social benefits 154.9 0.1
Voluntary restructuring of debts 40.0 to 0.0
CGA Measures 23.2 to 0.0
Measures ADSE 79.8 0.0
Education, Science and Higher Education 600.1 0.4
Preschooling, Basic and Secondary Education
Suppression of non-essential offers in Basic Education 102.2 0.1
Rationalization of the school network, specifically the closure of schools of the 1º cycle with a reduced number of pupils and the aggregation of schools
in groupings 54.0 to 0.0
Other measures to streamline resources, particularly as to the number of pupils per class in regular teaching and in courses EFA 87.8 0.1
Higher Education and Science 147.4 to 0.1
Other 208.7 to 0.1
Health 953.8 0.6
Policy of the medicine 173.0 to 0.1
Prescription and monitoring 46.0 to 0.0
Rationalization of resources and control of expenditure 734.8 to 0.4
1038.9 to 0.6
Grants 87.7 to 0.1
Non-fiscal revenue 28.7 0.0
Capital expenditure 922.5 0.5
Reduction of capital expenditure (including sale of real estate) 922.5 0.5
d.q. : Measures of the State Entrepreneurship Sector 438.0 0.3
Transfers to Adm. Regional and Local 175.0 0.1
3711.4 to 2.2
Taxes on production and import 2359.2 1.4
Rationalization of the VAT rate structure, including change in VAT rate on energy products 2044.0 1.2
Update of excise taxes 180.0 0.1
Substantial reduction of exemptions from IMI 50.0 to 0.0
Strengthening the fight against fraud and tax evasion 85.2 0.1
Taxes on income and wealth 1352.2 0.8
Review and limitation of tax benefits and deductions, specifically in IRS and IRC headquarters 756.4 0.4
Extraordinary surcharge in IRS headquarters (measure implemented in 2011) 185.0 0.1
Completion of convergence in the IRS scheme of pensions and labour income 115.0 0.1
IRS solidarity surcharge 16.0 0.0
Change in the rate of the most-valued 3.0 to 0.0
Changes to the measure of "Increase from 2.5 p.p. in the IRC rate for profits above 2 million"-the surcharge passes 3% and the earnings threshold
down to 1.5 million euros. In addition, in the case of profits above EUR 10 million, the rate to be applied is up to 5%. 187.0 to 0.1
Combating tax evasion 89.8 0.1
9041.2 to 5.3
Measures "no policy change" not included in this table 1308.3 0.8
Wage freeze 340.0 0.2
Freezing of pensions 628.0 to 0.4
Military Programming Law 340.3 0.2
Social Policis
Economic Policies
TOTAL
Finance and Public Administration
Fiscal Measures
CHAIR OF THE COUNCIL OF MINISTERS
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Source: Ministry of Finance.
2.3.1. Finance and Public Administration
Reduction of Structures in the Direct and Indirect Administration of the State
The reform of the state organization is a key process in the realization of the
Engagement Efficiency presented in the Program of the XIX Constitutional Government,
being developed in successive and complementary stages, not running into a
limited change to a single moment.
The Central Administration's Reduction and Improvement Plan (PREMAC) corresponded to the
start-up of the reform of the State organisation, in which a reduction should be achieved
of 40% in the macro structures and 27% in the number of leaders, reflected in the new laws
Organic from the Ministries (in preparation). In this context, it should be outdated
significantly the target of reduction of at least 15% structures and leaders
established within the framework of PAEF to Portugal.
Table 7. Evolution of Structures in Result of the Application of PREMAC
Type of Macro-Structure Initial Situation Structures
Extincts
Structures
Maintained
Structures
Created New Situation
Direct Administration 145 66 79 19 98 -47 -32%
Central 102 37 65 19 84 -18
Peripherals 43 29 14 0 14 -29
Indirect Administration
Public Institutes 74 21 53 4 57 -17 -23%
Organic Consultative 122 67 55 2 57 -65 -53%
Other Organisms 18 14 4 1 5 -13 -72%
359168191 26217 -142 -40%
Variation
Table 8. Evolution of Table of Leaders
Leaders
Top
Leaders
Intermediate
Leaders
Top
Leaders
Intermediate
Leaders
Top
Leaders
Intermediate
715 5571 440 4135 -275 -1436
-38% to -26%
6286 4575 -1711
-27%
Initial situation cf.
Organic diplomas Status Final Variation Global
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The reorganization of the Central Administration that will come to fruition, always having on the basis
the assessment of the state's assignments and the sizing of the financial capacities of the
country, will have a significant public expenditure reduction potential, either by the track of reduction
of leaders, either by the route of application of the procedures on the reduction of herds
and, as well, by the reduction of the intermediate consumes and physical spaces that will be obtained
by the elimination of a very significant set of entities from direct administration and
indirect state.
However, the reform objectives of the state organization do not run out in the
results of the PREMAC, which constitutes only the first step towards the reinforcement of the
efficiency of the Public Administration. Its continuity goes through other concrete actions,
to be developed during the year 2012, namely the restructuring of the sector
business of the state; the reform of the local administration; the reorganisation of services
devolved from the central administration; and the evaluation and reorganization of foundations
public, public associations and other public and quasi-public entities. Realisation of Census to Fundaments
The direct and indirect administration of the State, as well as the autonomous regions and the
local authorities, within the scope of the pursuit of their assignments, in the social field and
others, and in the fulfilment of the principle of decentralization, have been resorting with
increasing frequency, during the last few years, to the creation of autonomous funds and services and
to the allocation of heritage and grants to the same, better known by foundations
public (in public law), governed by the respective organic law and by the general legislation
applicable to public institutes, as well as public foundations of private law, created
pursuant to civil law by one or more public legal persons or by persons of that
nature with private legal persons, in which the first, isolated or jointly,
hold a dominant influence on the foundation, and still to private foundations, created
pursuant to civil law by one or more persons of private law or by persons of that
nature with public legal persons who, isolated or jointly, do not hold about
the foundation a dominant influence, or, which does not participate in the creation of the latter,
they still ensure some kind of grant to their functioning.
Thus, taking into consideration that the activity of those types of foundations is found
dependent, to some extent, of the heritage has been allocated to them by the State, regions
autonomous or local authorities and grants awarded by these, it matters to ensure
an effective monitoring of its activity, through the imposition of an obligation
of reporting of a universal and extraordinary character, with the aim of allowing, on the one hand,
an exhaustive and aggregate census of the entities concerned and the level of participation of
public legal persons in their funding and, on the other, the assessment of their
cost / benefit upon verification of the correspondence between your activities and the
purposes that have presided over its creation, as well as its financial viability and
CHAIR OF THE COUNCIL OF MINISTERS
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efficiency in the management of resources allocated to them by the State, autonomous regions and
local authorities.
It is in the phase of legislative approval in the Assembly of the Republic to be carried out
a Census directed at the Fundaments that pursue their ends on national territory, with
a view to the assessment of the respective cost / benefit and its financial viability, having by
basis the presentation of answers to a questionnaire and consequent provision of
information that allows you to analyse your activity, as well as its effective usefulness
to the public money that it benefits from. The said Proposal for a Law determines the application
of a set of preventive measures, with references to the Fundaments of the Census,
which aim to ensure the effective and timely fulfillment of the duty to respond to the
questionnaire and the provision of the information that allows to carry out the assessment
previously referred to. However, the implementation of these preventive measures has been suspended since
the date of the publication of the diploma up to the decision determining its lifting or the
make it final, no longer may this deadline exceed 90 days.
Reduction of Assets
In the framework of the PAEF the State has made a commitment to adopt measures directed at the
Public Administration, with the aim of ensuring that the weight of personnel expenses
in GDP decreases by 2012 and in the following years.
For 2012, at the level of the central administration, the target of annual reduction of herds is to
2% (instead of 1% initially planned), which results from the adjustment required for
compensate for non-compliance with the actual reduction target that had been fixed at
3.6% to 2011.
CHAIR OF THE COUNCIL OF MINISTERS
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Table 9. Employment in Central Administration by Ministries Dec 31-
2010
Jun 30-
2011 (p.) Variation
Organs of Sovereignty and Independent Entits 13550 13398 -1.1%
Presidency of the Council of Ministers 4761 4726 -0.7%
Ministry of Finance 14000 13713 -2.1%
Ministry of Foreign Affairs 3370 3304 -2.0%
Ministry of National Defence 45313 44691 -1.4%
Ministry of Internal Administration 49833 50132 0.6%
Ministry of Justice 16714 16527 -1.1%
Ministry of Economic Affairs and Employment 10778 10574 -1.9%
Min. of the Agric, Sea, Environment and Orden. of the Territory 11095 10903 -1.7%
Ministry of Health 90178 88232 -2.2%
Ministry of Education and Science 238146237532 -0.3%
Ministry of Solidarity and Social Security 14686 14198 -3.3%
Total 512424507930 -0.9% p.: Provisional
Note: Includes workers integrated into entities of a business public nature who
held the public bond to the state; does not include workers with contract
work under the Labour Code.
Sources: DGAEP-BDAP 2005; SIOE (Junho/2011 provisional data); DGAEP/OBSEP.
At the level of the Regional and Local Administration, the targets for reduction of 2% of herds
in 2012 and in the following years implies the consecration of predictions of constraint and control of
admissions, by way of the State Budget Act for 2012, through the necessary
amendments to the Regional Finance Act (Organic Law No. 1/2007 of February 19,
changed by the Organic Law n. º1/2010, of March 29) and to the Local Finance Act (Law No.
2/2007, of January 15), as well as the provisions referring to the regional administration and
venue constants of the Act No. 12-A/2010 of June 30, which approved a set of
additional measures of fiscal consolidation.
To achieve the objectives of reduction at the level of the Central, Regional and Local Administration,
a partial replacement policy of the workers leaving, maintaining, will be adopted
if as a rule the ban on the recruitment of workers without legal relation of
previously constituted employment. Exceptional admission situations, strictly
grounded, go on to be subject to judicious cumulative, applicable requirements of
equal mode to the central, regional and local administration, provided for by the Budget Act of the
State for 2012, as are the existence of relevant public interest in recruitment,
the impossibility of occupancy of the job with recourse to personnel placed in
special mobility and the demonstration of compliance with the minimum 2% reduction of
personnel with a view to the compliance of the PAEF.
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The actual reduction measures will be subject to a judicious evaluation by the
monitoring of compliance of this measure will be guaranteed by a reinforcement of duties of
periodical reporting to invigorate throughout the PAEF, so as to allow a correction
timely deviations and implementation of the necessary changes to the achievement of the result
predicted, articulated with the normal movements of passage to reform. In this respect,
signals the Proposal for Law No 21/2011 on the reformulation of the Information System
of the State Organization (SIOE), which gives fulfillment to the objectives set out by the
Economic and Financial Assistance Programme for Portugal. This determines the obligation to
reporting of information on the causes of the variations in the number of workers of
public entities and the remuneration practiced, on a quarterly basis, for all entities
public classified in the perimeter of public administrations in the optics of the accounts
national (all integrated services, services and autonomous funds, autonomous regions,
local authorities, other entities that integrate the universe of public administrations into
national accounts, as well as to the other public companies).
Further strengthening of admissions control and restrictions on some sectors are expected to be strengthened
specific, such as public higher education institutions and other legal persons
of public law, as well with an additional effort to reduce 10% of military personnel
during the period from 2011 a to 2014 provided for in the PAEF.
It is pointed out that in the concrete case of the control of the number of herds, it is recommended, the
from 2012, a procedure of accountability top/down and sectoral, which assigns a
maximum ceiling for the number of herds in each year condizing with the objectives of
reduction of each ministry.
The reinforcement of the restriction of admissions in the State is also accompanied by the
maintenance of control measures on contracts for the procurement of external services,
to remain, in essence, the regime arising from the State Budget Act for 2011.
The celebration or renewal of contracts for the acquisition of services by organs and services
covered by the Law No. 12-A/2008 of February 27, regardless of the nature of the
counterparty, in particular with respect to contracts for the acquisition of services in the
task and avease modalities and contracts for the acquisition of services whose object is to
technical consultancy, continues to lack the binding prior opinion of the members of the
Government responsible for the areas of Finance and Public Administration.
CHAIR OF THE COUNCIL OF MINISTERS
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Measures to freeze personnel admissions in regional and municipal administrations and public higher education institutions
Once the results of the previously planned measures of control admissions of
personal without bond in regional and local government administrations fell far short of the
expected, evidencing that such measures were ineffective in order to ensure the objectives,
it becomes absolutely necessary to adopt another type of measures, more robustly and
restrictive, although of an exceptional nature, which go through the limitation to the practice of
certain acts by the own organs of those administrations.
Thus, to ensure the goal of staff reduction in regional administrations and
municipal in the terms provided for in the PAEF and having present, on the one hand, the need for
respect the principle of the autonomy of the said administrations and, on the other hand, the
imperious need to strictly comply with international commitments
assumed by the sovereign state, legitimately represented by the Government of the Republic,
a mechanism for control of admissions of personnel without analogous link is established
for all public administrations.
Given that it is the Government of the republic that must respond by compliance with the
commitments made to international partners, becomes absolutely
necessary for that same Government to possess the indispensable legal instruments for
ensure the implementation, by all sectors and administrations, of public policies
determined by the competent organs.
Thus, in the concrete case of the control of admissions of unbonding personnel in the
public administrations, the bad experiences of the past have made jumping to the evidence a
need to strengthen the capacity for control of the public expenditure associated with the
recruitment of personnel and, well, the budgetary balance of the public accounts of all
the sectors by the Government of the Republic.
It is in this context and having present the principle of proportionality, which preview itself
some limitations to the practice of certain acts by the proper organs of the said
administrations, of an exceptional, transitional nature and to the extent strictly necessary
to ensure compliance with the internationally assumed targets by the State
portuguese, promoting the competent amendment to the laws of regional and local finance
(respectively, Organic Law No. 1/2007, of February 19, and Law No. 2/2007, of 15 of
January), which are laws of enhanced value. Thus, it is on the basis of legal habilitation
introduced in those laws that LOE2012 predicts that admissions of staffing without bond
by regional and municipal administrations can only occur in situations
exceptional, verified certain cumulative requirements, and provided that it is obtained
authorization and or opinion favorable by the members of the Government of the republic
responsible for the areas of finance and local administration, in the case of local authorities.
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It is therefore the mechanism that appears liable to allow for effective control of the
admissions in those administrations, which, coupled with the normal outputs of personnel,
by retirement or other legal formal decoupling, will allow to achieve the goal of
annual reduction, of 2%, of the staff in the same administrations, as assumed by the
Portuguese State within the framework of the PAEF.
It is emphasized, once again, that this solution is already a last resort, only
used because the two previous and successively used solutions, manifestly not
lograram to achieve the proposed objectives.
We refer to the constant measures, first, of Article 10 of the Law No. 12-A/2010 of 30
of June, in which it was referred exclusively to the own organs of the administrations
regional and local government control of admissions in those same administrations, without
any intervention by the Government of the Republic which thus stood in a position
practically passive in the face of what was actually passed.
Subsequently, given the manifest ineffectiveness of those measures, the legislator ended up
provide for the excecional intervention of the Government of the republic, more concretely in the case of
local authorities in debt situation and or financial imbalance, making
depend on the admissions of personnel in these authorities of the prior authorization of the members of the
Government of the republic responsible for finance and local authorities. Such is
provided for in Article 43 of Law n 55-A/2010 of December 31. If it is right that, in this
universe, there actually passed to there being an admissions control, already in the case of the remaining
authorities and in the regions the results were not, once again, expected.
Finally, it should be important to mention the control of admissions in higher education institutions
public, in respect of which it proceeds in an analogous manner to the established paras
regional and municipal administrations.
It is thus established an excecional and temporary solution, in which all admissions of
nonbonding personnel can only occur in excecional situations, verified
certain cumulative requirements, and provided that there is authorization from the members of the
Government responsible for the areas of finance and education and science. Also in this case
if it comes to this solution after exhausting the possibility of, with successive solutions
previous, of the less interventional cariz of the Government of the Republic, not to have reached the
expected results. First the general rule for the control of admissions of personnel in the
Central Government of the State fixed in Article 9 of Law No 12-A/2010 of 30 of
June, and subsequently the regime set out in Article 44 of Law No. 55-A/2010, 31 of
December.
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To enable the measure now proposed restriction on recruitment of staff without bond
a change to the regime of higher education institutions (Law No 62/2007,
of September 10), with a balanced solution from the point of view of the autonomy of the
higher education, on the one hand, and from the point of view of safeguarding the budgetary balance
of the public finances of the country, on the other hand. It thus consumes an enabling norm
for the prediction of the freezing in the admissions in those constant institutions of the
LOE2012.
The amount of savings (including the education sector) associated with these measures will be
about 0.3% of GDP.
Temporary disposal of holiday and Christmas allowances
The temporary disposal of holiday and Christmas subsidies is a measure that enrolled
in the context of the national emergency situation in which we find ourselves. The expenses
with staff account for 25% of the primary expenditure (in an optics of national accounts), by the
that its reduction is key to the consolidation of public finances. The logic
underlying the contractual regime of public functionalism has been based on the protection of the
employment, unlike in the private sector, where the reduction of herds can be used
for the adjustment of companies. To prevent a more accelerated reduction of herds in the
Public administrations than the one expected in the coming years and given the
need for consolidation of public accounts in the short term, only a reduction more
significant of the salaries of workers in exercise of public functions ensures
the maintenance of the current level of public employment. In the case of the Corporate Sector of the
State, the unsustainability of its financial situation imposes that it be applied the same
pay cut that to the Public Administration and that, simultaneously, there is
adjustment of the number of herds to reflect adjustments arising from the
restructuring processes.
In this framework, during the duration of the Economic and Financial Assistance Program is
temporarily suspended the payment of holiday and Christmas allowances or any
installments corresponding to the 13 and or 14. months for the persons referred to in paragraph 9
of Article 19 of the Law of OE 2011 (Law No. 55-A/2010 of December 31), whose
monthly basic remuneration is higher than 1000. The remunerations whose value is
higher than the guaranteed monthly minimum consideration (485 euros) but less than 1000 euros,
they shall be subjected subject to a progressive reduction in these benefits:
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Table 10. Progressive Reduction in Remunerations (euros)
Monthly Consideration Reduction final value of 13º/14º month
485.00 0.00 485.00
500.00 29.12 470.88
550.00 126.21 423.79
600.00 223.30 376.70
650.00 320.39 329.61
700.00 417.47 282.53
750.00 514.56 235.44
800.00 611.65 188.35
850.00 708.74 141.26
900.00 805.82 94.18
950.00 902.91 47.09
1000.00 1000.00 0.00
Source: Ministry of Finance.
The value of the reduction is calculated after the application of the remunerative reductions provided for in the
law of OE 2011 (Article 19 of the Law No. 55-A/2010 of December 31).
This measure covers all benefits, regardless of their formal designation,
which, directly or indirectly, are to be repaid to the payment of the subsidies,
specifically for the title of additional to the monthly remuneration. It also covers contracts
of provision of services concluded with natural or legal persons, in the modality of
avickness, with monthly payments throughout the year, plus one or two installments
of equal amount.
The measure applies equally to personnel in the reserve or equated, regardless of the
effectiveness of functions.
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This measure, which will be vigorous during the Economic and Financial Assistance Program,
will allow a net savings of 1065 million euros in 2012.
Maintenance of wage reductions and prohibitions on remunerative valuations applied in 2011
As provided for in the PAEF will be maintained in 2012, in exceptional and transitional title, the
salary reductions approved by the State Budget Act for 2011. These reductions
remunerative are made in a progressive way, by staying free of the people who receive
income equal to or less than EUR 1500.
The prohibitions of valuations or accruals are also maintained in 2012
remunerations, whether they result from change of remunerative or category position,
of the allocation of performance awards or internal mobility mechanisms.
They are found to be covered by these provisions the managers, leaders and employees of
all administrations of the State (central, regional and local), public institutes of
general and special arrangements, of the regional and local business sector, of public entities
business, from the public corporations of mostly public capital, of the Fundations
Public and all public establishments and, still, the military of the Armed Forces
and of the Republican National Guard.
Any of these measures find grounds in the national emergency situation in which
the country finds itself in matter of need for balance of its public accounts,
finding themselves in line, in terms of application temporality, with the measure that
determines the suspension of holiday and Christmas allowances.
Revocation of the right to waiver for a vacation by employees in public functions
The State Budget Act for 2012 proceeds from the repeal, with effect to January, of the
Article 173 (6) of the Working Contract Regime in Public Functions, approved
by Law No. 59/2008 of September 11 and amended by Law No. 3-B/2010 of April 28,
where currently is listed the waiver faculty for the right to vacation. With the revocation of
standard relating to the right to waiver for a vacation, consequently, the right to receive
the remuneration and the respective allowance.
It is estimated that this measure will allow to save approximately 0.2 billion euros in
2012 in the global context of the Central Administration.
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Reduction of the extra paid by supplementary work
The addition to the value of the hourly consideration relating to the payment of work
extraordinary to the Public Administration, provided on a normal day of work, is reduced in
50%, going on to be carried out on the following terms:
25% of the remuneration in the first hour;
37.5% of the remuneration, in the subsequent hours or fractions.
The extraordinary work provided on weekly rest day, compulsory or
complimentary, and on a holiday day, is also reduced by 50%, by passing the right
only an extra 50% of the remuneration for each hour of work carried out.
It is eliminated the right to compensatory rest, save in the situations where it is necessary
ensure the minimum period of daily rest or mandatory weekly rest.
This measure, which will vigorously apply for the Public Administration during the Assistance Program
Economic and Financial, it will allow a saving of 28.5 billion in 2012.
Strengthening mobility mechanisms in the Public Administration
It has prevailed, as a guiding principle, the simplification of mobility mechanisms for
a quick adaptation of organs and services to new assignments and conditioners. This
need is broadened in a framework of deep reorganization of the Administration
Public and of strong restrictions on the admission of new herds.
Simplification of general mobility mechanisms
The State Budget Act for 2012 introduces changes to the mobility regime
general, in the sense of simplifying the definitive consolidation of internal mobility. Passes to be
possible to consolidate internal mobility, in the same category, as long as it gathered the
following conditions: existence of agreement of the source service when such has been
required for the initiation of mobility; the minimum duration of six months in the situation of
internal mobility, or the duration of the experimental period required for the category in
cause if this is superior; the existence of agreement of the worker when such has been
required for the initiation of mobility; and the job-posting occupancy beforehand
existing on the personnel map. In this way, the need for the organ or service of
destination having to create a concursal procedure, with all the administrative burdens
associates, for definitive consolidation of internal mobility situations.
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Strengthening the mechanisms for the reintegration of workers in special mobility situation
Taking into consideration that workers placed in special mobility situation
are experiential and valid resources for the Public Administration, an improvement is introduced
in the articulation of internal mobility with the special mobility, passing the pretion, in the
situations of organ mergers, services and organic units constituting the majority of
situations of reorganization, mechanisms of favouring the reintegration of workers
assents in the following:
a) Passes to exist at a time prior to the placement of workers in situation of
special mobility, in which the application of the rules of mobility is favoured
internal, streamlining the relocation by resource to this modality (which may occur
up to the last moment of the reorganisation process concerned);
b) As a stimulus to the adoption of active behaviours that foster the restart of
functions:
Proceeds to the reduction of the remuneration values earned by workers who are in special mobility situation, from five sixes to two thirds in the phase
of qualification, and from two thirds to half in the compensation phase (calculated on
the monthly basic remuneration held at the home service);
Determines the immediate passage to the situation of leave without pay or unpaid leave of long duration of the workers in mobility situation
special at the unjustified quit-giving of the selection procedure and refusal not
grounded of restart of functions;
Eliminates extraordinary licences for workers in special mobility situation, situation clearly detrimental to the state, as workers
in that situation continue to receive remunerative provision without the
Administration can count on them for the exercise of any acivity;
A set of rules regarding the procedure for recruitment of personnel in special mobility is established, imposing themselves to the organs and services of the Administration
Public that exhausts the possibility of bridging its resource needs
humans by recourse, in the first instance, to the workers in situation of
special mobility.
In parallel, it is established the duty of the mobility-manager entity to take a role
proactive in identifying the most needed competencies profiles and, should the
workers in special mobility status do not possess the appropriate skills
to occupy such jobs, promote the trainings and / or
appropriate requalification. This performance will be mandatory in respect of employees
who have found themselves in the special mobility situation for more than six months.
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Shared services in the Public Administration
Shared services are a key factor in achieving the necessary gains of
efficiency of public services and, simultaneously, an indispensable tool for
cope with the current budgetary pressures. It is intended to ensure public services of
quality based on efficient and applied processes consistently and proactively in the
globality of the public sector.
On the basis of shared services is the idea of enabling organisations to gain from
skills and economies of scale: reduction of costs and provision of high services
quality are achievable through economies of scale, with concentration of
specialized knowledge, usually scarce and expensive.
In the area of the development of the use of shared services in the administration
central, the Government will bet on a strategic vision, extendable to the entire Administration
Public, at the level of financial areas, human resources, information systems and
heritage, implementing, in full, the ongoing projects and evaluating regularly
the possibility of further integration.
It is intended with this strategic vision:
Release the nuclear bodies from supporting activities;
Provide customer-centric services, provided by a specialized unit;
Optimize technological investments and their maintenance;
Increase efficiency;
Improve business and support processes;
Share the benefits by the various agents.
The majority of efficiency gains will be generated by sharing and reusing solutions,
diffusion of good practices and improvement of business processes, drawn to
add value and eliminate redundant or inefficient activities.
In relation to ongoing projects deserve particular emphasis: the GeRFiP (Management of
Financial Resources and logistics of AP), which is already available and in
operation in 65 bodies of the Central Public Administration, belonging to 9
ministries, and in which the very significant enlargement to other bodies is envisaged in the
course of 2012; and the GeRHuP (AP Human Resource Management), which is in
stage of development of the technological solution and whose entry into productive is expected to
april 2012 in 5 pilot bodies of the Ministry of Finance.
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National Public Purchasing System (SNCP) and State Vehicle Park (PVE)
The National System of Public Procurement (SNCP conGreek more than 1,800 entities in a
model in articulation network with the Purchasing Ministerials Units (UMC).
Currently they are enabled to provide goods and provide services to the state more
of 270 economic operators, of which more than 2/3 are SMEs.
The centralised management of the State Vehicle Park (PVE) has allowed in the last two
years a cost savings of approximately 25% and an effective reduction of your
dimension (almost 3% face to 2009).
For the year 2012, four main objectives as to the SNCP have been set:
Progressive Centralization in the SNCP's managing entity of the procurement procedures of the categories of goods and services under Agreement Framework (AQ) 3, well
how from the remaining purchases of goods and services in the UMC;
Achieving more savings, by the largest resource to AQ, by potentiating needs aggregation tools, and by optimizing annual procurement plans and budgets
of the linked ministries and entities (estimated to be around 40 million euros in
2012 and 60 million euros in 2013);
Continued SNCP development through increase in the number of AQ (16 in 2011), its renewals (4 in 2011) and new hiring of goods and services
for the Public Administration. 2 new categories of goods will also be included and
services, taking into account the transversal nature of the expenditure and its importance, well
as by the increase in the level of System comprehensiveness, with the gradual linking of the
Business Sector of the State (SEE);
Development of a technological strategy that allows for the progressive and complete dematerialization of the public contracting cycle, encompassing the entire value chain
of public procurement, improving levels of efficiency and reporting.
How much to PVE is intended:
Potentiate the new AQ of motor vehicles and AOV, or other form of vehicle acquisition financing that proves to be economically more favourable,
which already considers the total life cycle of the vehicle in accordance with the constant standards
of Directive 2009 /33/CE. It is thus intended to promote and stimulate the market of
non-polluting and energy-efficient vehicles, reaching a fleet
progressively cleaner and eco-friendly;
3 Instrument makes it possible to standardise and select the state's suppliers in advance, setting the maximum prices and minimum conditions of service levels with which they undertake, in an operating optics while central to purchasing.
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Maintain a ratio of three vehicles culled to PVE by each new vehicle purchased;
Review the regulation of PVE to promote strict control of vehicle management and the implementation of spending rationalization measures in this
category, namely the increase in the comprehensive PVE, which will be extended to
other entities currently not yet considered, and the progressive linkage of
vehicles of the SEE entities;
Define the posts of public administration with competencies for the use of PVE vehicles, making the process of vehicle allocation more transparent,
gaining greater control over the fleet and enabling the slaughter of the vehicles
surplus and replacement;
Review the models of the vehicles to be purchased and respective purchase values, income values or monthly rental.
Develop the fleet management component, through the centralization of maintenance hiring procedures. It will enable, in this way, a greater
control over the entire life cycle of the vehicle and the reduction of the respective costs of
use.
2.3.2. Social Policis
Social policies are one of the main strands of performance of the Government,
representing approximately 65% of the expenditure of Public Administrations. In this area a
government's priority is to proceed to essential expenditure cuts to ensure the process
of fiscal consolidation, but ensuring an appropriate level of services inherent in the
Social status and the protection of the most disadvantaged. In this way, the Government has gone so far
how much could it, as additional reductions in these areas could have impacts
extremely adverse in the fundamental dimensions of the Social State.
Education
In the area of education, science and higher education is expected to be a reduction in spending on the
amount of 0.4% of GDP. The measures will be transversal to the various areas of acting of the
Ministry: Preschooling, Basic and Secondary Education, Higher Education and Science,
involving rationalization in the use of resources, either in the number of schools or in the
number of teachers hired. However, measures will also be implemented
that promote the enhancement of preschool education as well as the improvement of qualifications in the
various levels of teaching. For more details on the measurements of this area, see the Chapter
IV.12.1.
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Health
Health is an essential area of acting for the Social State, but also one of those that
carries greater weight in the social expenditure of the state. The high amount of
accumulated commitments to third parties significantly condones the current management.
It is intended that the fiscal consolidation measures adopted in this area will act
above all at the level of resource rationalization and expenditure control (see Chapter
IV.11.1). Important measures will still be taken in the area of medicine policy and
of the prescription of medicinal products and monitoring of the processes. In total, these measures
are expected to allow a savings of 0.6% of GDP.
Social Security
During the duration of the Economic and Financial Assistance Program is suspended
temporarily the payment of holiday and Christmas allowances or any benefits
corresponding to the 13. and or 14. months in pensions above 1000. The pensions
whose value is higher than the guaranteed monthly minimum consideration (485 euros) but less than 1000
euros, they become subject to a progressive reduction in these benefits, as exemplified
in Table 11.
Table 11. Progressive Reduction in Pensions
(euros)
Pension
monthly Reduction
Final value of the
13º/14º month
485.00 0.00 485.00
500.00 29.13 470.88
550.00 126.21 423.79
600.00 223.30 376.70
650.00 320.39 329.61
700.00 417.48 282.53
750.00 514.56 235.44
800.00 611.65 188.35
850.00 708.74 141.26
900.00 805.83 94.18
950.00 902.91 47.09
1000.00 1000.00 0.00 Source: Ministry of Finance.
This measure applies to all benefits paid by the CGA, I.P., by the National Centre for
Pensions and, directly or through pension funds held by any
entities and public companies of national, regional or municipal scope.
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In the case of recipients of monthly lifetime grants paid for any of these
services or entities, the measure covers benefits that exceed the 12 tuition.
To this measure adds the extraordinary contribution of solidarity of 10% in pensions
above EUR 5,000, which focuses on the amount exceeding this value.
Still in this area measures are planned at the level of the other social benefits,
particularly the unemployment benefit. The total savings in the area of Security
Social will be 0.7% of GDP.
2.3.3. Economic Functions
Rationalization of the State Entrepreneurship Sector
The reform of the SEE constitutes a central element in fiscal consolidation in 2012 and
focuses on the companies that integrate the perimeter of public administrations and on the
that do not directly affect the deficit of public accounts. Despite the strong impact of the
measures implemented as early as 2011, the high level of cumulative indebtedness of the
generality of companies poses major challenges to the ability to finance the
economy, competing with the private sector in capturing scarce resources.
The restructuring of the SEE will involve an acting in multiple strands, as per
detailed in Chapters III.6 and III.7 and in the sectoral plans. The transversal measures will be
also applied to SEE. The cutting of holiday and Christmas allowances will be applied to the whole
SEE.
In parallel, it is important to promote the strengthening of the governance of the SEE, as a measure also
included in the PAEF and which constitutes a structural element. Will be followed the best
international practices and the exercise will result in a strengthening of the role of financial tutelage in the
management of companies. The plan will be presented by the end of the year 2011.
Within the public companies that integrate the consolidation perimeter of the administration
central, the revision of investment plans, the rationalization of staff tables and
reduction of principal and ancillary pay, and the decrease in the consumes
intermediate allow to achieve an estimated global savings of 438 billion
between 2011 and 2012. The savings hit would be far higher, not the anticipated increase
of financial burden at EUR 378 million, resulting from, the increase in the level of
indebtedness in 2011, whether of the increase in spreads practiced in the new
funding.
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Rationalization of Public Investment
At the level of capital expenditure, it is intended to implement a deep rationalization and
prioritization of public investments. In that sense, a reduction in expenditure is expected
of investment, which is to be, in 2012, and including the effects of SEE, greater than 900
million euros.
The best use of funding opportunities within the framework of the programmes
co-financed by the European Union will make a very significant contribution to the
savings to be achieved.
In this context, it was submitted to the European Commission, in June 2011, a proposal to
technical reprogramming of the QREN having as its aim to intensify the use of the
community funds through the increase in community co-funding rates
practiced either from a reallocation of the appropriations of the different Operational Programs
depending on the respective levels of commitment. This reprogramming, whose approval
by the European Commission is due to occur by the end of October 2011, will allow to reduce the
needs for national public counterpart by about 2,140 million euros in the
period 2012-2015. The annual average savings, transversal to all sectors of the
Public Administration and Corporate Sector of the State, will thus be more than 550 million
of euros in the face of the national public counterpart needs underlying the programming
initial.
This technical reprogramming does not exhaust the possibilities of optimization of the QREN. Thus,
will be prepared, by the end of the year, a new reprogramming, of a strategic character, that
will allow additional savings in national public counterpart. In the framework of the
State budget for 2012, was established as a target for this reprogramming
strategic a savings of at least 100 million euros.
In the framework of the co-financed programmes in the field of agriculture and fisheries, where
highlights, by its relative size, PRODER, will be followed a similar approach.
In this case, the Portuguese authorities are intent on benefiting from the possibility of
majority of the co-funding rate offered to countries with assistance programs
financial. This possibility is found under discussion in the European Union, waiting for
your approval by the end of 2011. Case comes to fruition, the average co-financing rate in the
scope of the PRODER will be increased from 78% to 85%, allowing for a savings of
national public counterpart of EUR 290 million in the period 2012-2015, in the face of the
estimated financing needs for the current cofinancing rate. This
global savings thus corresponds to an average annual reduction of the needs of
funding of the PRODER of 72 million euros.
Finally, and in the framework of the reform of budgetary procedures, the
budgetary circuits of the co-financed programmes with the aim of allowing a
precise mapping between the annual budget and implementation and the multiannual programming.
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2.4. Fiscal Measures for 2012
The State Budget Bill for 2012 is strongly conditioned by the
need to comply with the commitments made by the Portuguese state in the
PAEF, which comprises a broad set of tax measures, essential for the
pursuit of the imperious objective of reducing the deficit of Public Administrations to
7,645 million euros (4.5% percent of GDP) in 2012. This adjustment effort is crucial for
regain credibility in the internal and external plan, in a macroeconomic context
marked by the reduction of domestic demand and by a high degree of uncertainty relatively
to the international framework.
During the present term, the Government shall undertake a reform of the tax system, by
via the simplification of income taxes, reducing the number of scales of the
IRS and privileging social mobility. At the IRC, the reform will have as its objectives to promote
internationalization and increase the competitiveness of Portuguese companies. However,
the need to ensure the correctness of the excessive deficit situation imposes that this be
a budget particularly focussed on the purpose of fiscal consolidation.
The measures of a fiscal nature set out in the State Budget Bill for
2012 settlement in four essential vectors: (i) the enlargement of the taxable base of the
various taxes, in accordance with the commitments made in the PAEF; (ii) the reinforcement
significant from combating fraud and tax evasion; (iii) the simplification, the increment of
recourse to new information technologies in the tax procedure and the guarantees of the
taxpayers; and (iv) the consolidation of a tax framework conducive to competitiveness and the
investment.
2.4.1. Vector 1-Enlargement of the Tributtable Base
The broadening of the tax base of the various taxes constitutes the first vector of the
tax measures set out in the Budget Bill Proposal, in compliance with the
obligations assumed in the PAEF. This enlargement will allow to proceed with the simplification of the law
and promote an equitable allocation of the additional effort of fiscal consolidation by
via fiscal. Thus, progressive global limits are defined for the deductions to the collection (v.g.
health, education and charges with real estate), excluding those with
customary character and those relating to persons with disabilities, attending to the size of the
household through the majoration of the tax deduction by the number of dependents.
As provided for in the PAEF, an extension of the tax base with the
subjecting the tax of various income in kind.
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These measures further concretize the principle of social equity in austerity, through the
fair apportionment of the sacrifices, not burdening Portuguese families with minors
income. In this sense, taxable persons with higher incomes pass through
be subject to an additional rate of solidarity and cease to be able to benefit from the
possibility of deductions to the collection. On the other hand, it widen, for the first time, the application
of the limit of existence to pensioners, the taxpayers of the first two scales
keeps the possibility of benefiting from the deductions to the collection without any limit, it creates
a majoration to the deduction of rent charges for the most deprived families and,
fruit of the renegotiation of the PAEF, the taxation of social benefits is avoided (v.g., allowance
of unemployment, sickness benefit, maternity allowance and paternity, income
insertion social allowances, child allowances) received by the particularly vulnerable groups.
In this framework, companies with higher profits become subject to a fee
additional solidarity of 3% on profits in excess of € 1.5 million and 5% on
earnings above € 10 million. In fulfillment of the PAEF, it is carried out, still at the headquarters of
IRC, to the elimination of all reduced rates, to the revocation of subjective exemptions and to the
restriction of tax benefits.
In VAT office, the exemptions are reduced and a restructuring is carried out and
rationalization of the lists of this tax, with transfer of categories of goods and services
between the different lists, preserving the application of the reduced rate to the basket of goods and
essential services, specifically food products of first need,
pharmaceuticals, pharmaceuticals and transport, and by maintaining the intermediate rate for
sectors of national production such as viniculture, agriculture and fisheries.
In contrast, and as a way to strengthen social policies, it is determined that a
part of the additional VAT revenue generated by this restructuring will be allocated to the
funding of the Social Emergency Program, increasing the resources for the
aid of Portuguese families affected by social exclusion and deficiency.
Finally, in respect of heritage taxes, the temporary exemption from IMI
on real estate for own housing is reduced, but only with effects for the future,
thus preserving the rights acquired and the legitimate expectations of the taxpayers
that currently benefit from this exemption. At the same time, it strengthens the exemption at headquarters
of this tax for low-value buildings held by families of low
income.
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2.4.2. Vector 2-Strengthening the Combat to Fraud and Tax evasion
The second priority vector of the tax part of the present Budget proposal is to strengthen
significant from combating fraud and tax evasion practices as a way to ensure a
fair allocation of the tax effort. The Government will draw up a Strategic Combat Plan
to Fraud and Tax Evasion for the period 2012 a to 2014 so as to combat more
effectively phenomena of tax default, and in particular, the schemes of fraud of
high complexity and the informal economy.
Some of the measures to appear in the Strategic Plan are already included in the Proposal for
State budget for 2012. Out of these measures stands out the aggravation of the
taxation of transfers of income from capital from and with destination to
tax havens, the significant enlargement of the rules of international tax transparency
(rules CFC ) and the relaxation of the rules of use of the general anti-abuse clause by part
of the tax administration to combat aggressive tax planning. Proceeds, still, to the
extension of the expiry and limitation periods for 12 and 15 years, respectively,
when they are in cause undeclared income earned in countries and territories
subject to privileged tax regime.
Simultaneously, the existing criminal framework for tax offences suffers a
significant aggravation through, inter alia, the increase in criminal moldings of the
more serious tax crimes (burla tax, criminal association and qualified tax fraud)
and of the aggravation of fines in the tax counterordinations.
The combating of informality and tax evasion, particularly in the most risky sectors,
will be further strengthened through the introduction of a regime regulating the issuance and
electronic transmission of invoices and other documents with tax relevance (whose
legislative authorization is stated in the OE proposal). This scheme will allow for more control
effective of the incomes of economic operators, constituting an instrument
powerful to fight the shadow economy, broaden the tax base and reduce the
unfair competition. The use of electronic invoicing will be promoted through the
grant of deductions at IRS, IMI or IUC headquarters corresponding to a percentage
of up to 5% of the value of VAT borne in the acquisition of goods or services by consumers
endings.
2.4.3. Vector 3-Simplification, Increment of Resource to New Training Technologies and Guaranteed Contributions
A third vector consists in the simplification and increment of the resource to new technologies
of information in the tax procedure, particularly in the relations of the authority
tax with taxpayers and in the administration and collection of taxes. In this framework,
proceed to the uniformization of procedures and the gradual dematerialization of the
notifications to taxpayers, through the use of the electronic mailbox.
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On the relations between the tax administration and the taxpayers adopt
measures that privilege a preventive attitude and facilitator of compliance with the
tax obligations and voluntary regularisation, by passing the tax administration to inform
the taxpayers of their rights and obligations, as well as to inter-pelt them to proceed
the regularisation of the respective tax situations and thereby take advantage of
exercise the right to the reduction of the fine.
At the level of the taxpayer guarantees, the aggravation of interest is established
indemnity payable by the tax administration in the case of delay in the execution of the
court decisions, it introduces a deadline for the tax refund withheld in
excess, significantly reduces the deadline for the completion of procedures and acts
tributaries, and it becomes mandatory the prior personal citation of the taxpayer in the cases of the
realization of the sale of pawned goods. Finally, within the framework of the prestational scheme of
payment of tax debts dispensing with the obligation of guarantee presentation and widens
the period of payment up to a maximum of 150 benefits, in the frame of compliance with
an economic recovery plan.
2.4.4. Vector 4-Consolidation of the Competitiveness Conditions of the Portuguese Economy
Finally, the fourth vector of fiscal policy that enforms the Budget Proposal is that of the
consolidation of the conditions of competitiveness of the Portuguese economy, through the
maintenance of a favorable tax context that will propitie the investment and creation of
employment.
In this context, consolidates the tax regime of SGPS, which will henpart to be qualified
as a structural in the framework of the Status of Tax Benefits and operationalises the scheme
of the urgent binding information, so as to strengthen the legal certainty of the
investors and thus potentiate the attraction of foreign direct investment in Portugal.
There is still the maintenance and consolidation of support schemes and incentive to the
productive investment, job creation and restructuring and reorganization
business.
In order to favour investment, the reporting deadline for tax losses is increased
from four to five years, as a result of a renegotiation of the PAEF that provided for the
reduction of this term to three years. This measure is of particular importance to the
Portuguese companies, fostering medium-and long-term investment projects and,
to that extent, contributing to the growth of the economy.
Another essential point for the competitiveness of the Portuguese economy is the maintenance of the
reduced rate of VAT for hotel accommodation, thus maintaining the conditions of
competitiveness of the Portuguese tourist sector in the face of competing markets.
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Finally, a special programme is set up for the exporting sector, which will allow
speed up substantially the procedures necessary to obtain the VAT exemption in the
exports and simplify the procedures so as to facilitate indirect exports.
2.4.5. Tax on the Income Of Singular Persons
Maintenance of non-taxation of social benefits
Unlike the one provided for in the PAEF, social benefits (v.g., unemployment benefit,
sickness benefit, maternity and paternity allowance, social income from insertion and
family allowances) will not be subject to taxation in IRS, thus protecting groups
more vulnerable from Portuguese society.
Review of deductions to the collection
In fulfillment of the established in the PAEF, progressive global limits are introduced,
in IRS headquarters, for deductions to the collection of households of the 3, 4, 5 and 6.
yield scales, majorable in 10% by each dependent and with exclusion from those
with customary character and those relating to persons with disabilities. The taxpayers
of the last two income brackets will no longer be able to benefit from deductions to the
collection relating to health expenditure, education, charges with homes and food pensions
and charges with real estate, while the taxpayers of the first two escalations
will continue to be able to enjoy, without limit, these deductions.
Still in respect of the commitments made in the PAEF, the reduction in two is carried out
thirds of the deduction with health expenses, passing the deduction percentage of 30%
for 10%, and a maximum limit is established for this deduction corresponding to 2 times the
value of the IAS. This value is majored in 30% of the IAS, by each dependent, when
there are 3 or more dependents.
As for charges with real estate, it is reduced from 30% to 15% the percentage of
deduction to the collection, excluding still from this deduction the capital depreciation on all the
housing credit contracts and the interest for contracts concluded from 1 of
January 2012, in the terms provided for in the PAEF. On the same terms, it is still predicted to
phase-out of the deductions with interest on contracts concluded by the end of
2011, in four years, and with rents, in six years.
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Creation of the additional rate of solidarity
The taxable persons with higher income belonging to the last step
they will be subject to an additional fee of 2.5% on the respective income
collectable, which will be vigorous in the years 2012 and 2013. In this way, it is called for these
taxpayers an increased contribution to the fiscal consolidation effort.
Increased taxation of the most-valuable mobiliary
The special rate applicable to the most-valued of social parties, other securities and
derivative financial instruments is raised to 21.5%, equating it at the liberatory rate
applicable to interest and dividends.
Convergence of the specific deductions of categories A and H
In fulfillment of the PAEF, the specific deduction of category H (pensions) is reduced to
72% out of 12 times the value of the IAS, concluding the convergence of the specific deduction of this
category with the one established for the income of dependent labour. In this context,
the minimum limit of existence becomes, for the first time, also applicable to the
pensioners, protecting themselves in this way the pensioners with the smallest resources.
Financial transactions with entities subject to a privileged tax regime
Financial transactions with entities subject to a privileged tax regime pass the
be taxed more sharply, passing the income transfers from
capital cities from tax havens, as well as transfers to these territories, the
be subject to an aggravated rate of 30%.
2.4.6. Tax on the Throughput of Collective Persons
Elimination of subjective exemptions and reduced rates
As it follows from the PAEF, it proceeds to the reduction of subjective exemptions at IRC headquarters,
by eliminating in particular the exemptions to attached entities from private institutions of
social solidarity. It is established, still, the elimination of all reduced rates
applicable to companies, specifically the reduced rate of 12.5% constant of the Code of the
IRC, the reduced rates provided for in the interiority scheme, as well as reduced rates
provided for in the Status of Tax Benefits and the Cooperative Tax Statute.
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Deduction of tax damages
Portuguese companies go on to benefit from the extension of the reporting deadline of
damage from four to five years, fruit of the renegotiation of the planned commitment in the
PAEF, thus favoring productive investment and creating conditions for the
enhancement of the competitiveness of companies.
On the other hand, a limitation is introduced to the deduction of tax damages, to which
will correspond to 75% of the taxable profit of the period in which you proceed to the deduction. From this
form, companies that present taxable profits will always be subject to payment
of IRC, yet to detain reportable tax damages from previous years.
Increase in state spill
Companies that present higher profits are subject to aggravated fees at the headquarters of
state spills, thus making an increased contribution to fiscal consolidation.
In effect, companies with profits in excess of € 1.5 million euros pass the
subject to an additional fee of 3% and companies with profits greater than € 10 million
become subject to a 5% fee on the part of the profit exceeding that limit.
Payments to entities subject to a privileged tax regime
Payments effected indirectly to the entities resident outside the territory
portuguese and there subjected to a privileged tax regime become subject to the scheme
of non-deductibility in IRC headquarters, whenever the taxable person has, or should have,
knowledge that such importations had as a destination a tax haven,
assuming the existence of that knowledge whenever there are special relationships.
Simultaneously, the similarity of what succeeding in IRS, a tax rate is introduced
aggravated 30% for transfers of capital income to non-entities
residents subject to a privileged tax regime.
Income imputation of non-resident entities subject to a tax regime
privileged
The international tax transparency regime is the subject of deep reformulation
with a view to covering fiduciary structures created for the detention of assets in
tax havens and to make the fight against fraud and tax evasion more effective.
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In these terms, the taxable persons of IRC who hold or control, direct or
indirectly, even if through mandatary, fiduciary or interposed person,
non-resident entities subject to a privileged tax regime, they become taxed
by the profits generated by these entities.
2.4.7. Value Added Tax
Transfer of goods and services between VAT rates
In fulfillment of the PAEF, a restructuring and rationalization of the lists of the
VAT, avoiding, in this way, the rise of the current tax rates.
In the framework of this restructuring the goods and services that integrate the essential basket
remain subject to the reduced rate. In effect, the food items of the first
need, the public supply of water, medicines, pharmaceuticals and
transport remain at the reduced rate of 6%, as a way of protecting groups
more vulnerable social impacts of the impact of fiscal consolidation measures.
At the same time, a considerable reduction in the scope of the subject goods is effective.
intermediate, ensuring, however, its maintenance for a limited set of
crucial goods for sectors of national production such as viniculture, agriculture and the
fisheries.
Anti-abuse measures
In the transmissions of goods and services between taxable persons with special relationships with each other
rules of determination of the taxable value that force the use of the
market value in these operations, thus combing the artificial pricing
with the aim of obtaining tax advantages in VAT office.
Simplification of VAT refund in exports
Exporting companies have now been able to access a new certification model
(Certificate of Export-CCE), intended to expedite and simplify the
mechanisms for the restitution of VAT in exports.
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VAT restitution to the institutions of social solidarity
The private institutions of social solidarity and the Santa Casa da Misericórdia de Lisboa
they see secured the right to restitution of an amount equivalent to 50% of VAT
supported in the acquisitions of goods or services related to construction, maintenance
and the conservation of real estate used in the pursuit of their social solidarity purposes,
thereby strengthening their role in assisting the most disadvantaged.
2.4.8. Excise Taxes
In the context of excise taxes, and according to the PAEF, it introduces-
whether a scheme for the taxation of electricity for domestic and industrial consumers,
transposing itself to Directive 2003 /96/CE of October 27, 2003, and increase the rates
of the tax on tobacco and Vehicle Tax, aggravating in particular, in this
last case, the taxation on the environmental component of vehicles.
2.4.9. Single Tax of Circulation
The generality of the rates of taxation of vehicles subject to IUC is updated accordingly
with the expected inflation rate, proceeding to a worsening, in 7.5%, of taxation
on the high-cylinder light vehicles, recreational vessels and aircraft of
particular use.
2.4.10. Local Taxes
Municipal tax on real estate
In fulfillment of the PAEF, the minimum and maximum rates of the municipal tax on
real estate are high by 0.1 percentage points, returning to the levels set when
approval of the Code of this tax, in 2003.
Buildings held by entities subject to a privileged tax regime suffer a
aggravation of IMI rate from 5% to 7.5%, also increasing the applicable rate
to the devoluted buildings.
Still under the IMI, the temporary exemption is reduced to three years, restricting itself to
its application to urban buildings intended for own and permanent housing with value
tax equity of not more than € 125000 and taxable persons whose income
coletable is not more than € 153300. This measure has effects only for the future,
thus preserving the rights acquired and the legitimate expectations of the taxpayers
that currently benefit from this exemption. In contrast, the benefits are strengthened.
tax granted to reduced equity buildings held by taxable persons of
low income.
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2.4.11. Tax benefits
Review of tax benefits
In the fulfilment of the international commitments made by the Portuguese State in the
scope of the PAEF, eliminate all IRC tax benefits under the modality of
rate reduction and restrict other tax benefits, particularly those covered
by the expiry clause set out in Article 3 of the Status of Tax Benefits
(EBF).
Complementarily, the tax regime of the managing societies of
social shareholdings (SGPS) and the tax benefits applicable to corporate restructuring,
which by its structural nature cease to be covered by the rule of expiry.
They also extend the tax incentives to job creation, investment
productive and, as well, those aiming to facilitate external financing of the economy
Portuguese.
2.4.12. Combating fraud and tax evasion
Aggravation of penalties for the most serious tax crimes
The crimes of burla tax, criminal association, qualified customs crimes and fraud
qualified they go on to have their criminal moldura aggravated.
In this framework, the maximum prison sentence applicable to the crime of qualified tax fraud (v.g.,
interposition of societies in tax havens to conceal income to the administration
tributary) is aggravated from 5 to 8 years.
On the other hand, who is part of groups, organisations or associations whose purpose or
activity is directed to the practice of tax crimes (v.g., fake invoices) will incur a penalty of
prison from 2 a to 8 years.
Within the framework of the General Regime of Tax Infractions, the aggravation is still carried out
substantial of the fines imposed on customs and tax counterordinations, whose values do not
were updated since the approval of this regime in 2001.
Finally, specific counterordinations are introduced for the lack of presentation of the
documentation relating to transfer prices, for the non-presentation of proof of the
source of income from resident entities in tax havens, as well as
for cases of omission in the information provided by taxable persons in the context of
requests for binding information to the tax administration.
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Relaxation of the implementation of anti-abuse standards
The self-contained and autonomous procedure enshrined in Article 63 of the Code of Procedure and
of the Trial Procedure is significantly relaxed, going on to cover only
the situations of application of the general anti-abuse clause contained in Article 38 (2) of the Law
General Tributary. Within the framework of the changes, there is no longer a deadline
specific to the application of the said clause and potency the respective use, as
instrument to expedite combating fraud and tax evasion of high complexity.
Measures to prevent the abusive use of tax havens
The State Budget proposal for 2012 contains a broad set of measures that
aim to combat the use of sedeed entities in tax havens. From among these
measures highlight the following: i) the aggravation of the criminal offence of tax crimes
more serious; ii) the aggravation of the taxation of transfers of capital income
paid to (or coming from) entities seated in countries or territories and therein subject to a
Privileged tax regime; iii) the increase in taxation on real estate held by those
entities; and iv) the reinforcement of the rules to avoid the deductibility of paid expenses
related to operations with these entities.
In addition, it is anticipated to extend the limitation periods for tax debts (from 8
for 15 years) and of expiry of liquidation (from 4 to 12 years) applicable whenever
are in question tax facts related to the use of countries or territories
subject to a privileged tax regime.
With these measures, accompanied by the strengthening of the mechanisms of exchange of information to
introduce in the Protocols to the Double Taxation Conventions with Switzerland and the
Luxembourg, of the celebration of new Conventions, notably with Hong Kong and
Panama, from the entry into force of the Exchange of Information Exchange Agreements in tax and the
intensification of the control of the tax administration on bank transfers of
funds for tax havens (through the Model 38 declaration), the conditions will be created
for more effective combat for the concealment of income through the use of structures
seated in tax havens.
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Tax regularization of heritage elements placed abroad
The regime of tax regularization of the heritage elements placed abroad
(RERT III) will allow, excecionally, to regularize the situation of the heritage elements
not located in Portugal on December 31, 2010, with no need for your
repatriation. This regime excludes from its scope the situations in which it is already taking place
procedure for the clearance of the taxpayer's tax situation or has been,
meanwhile, triggered criminal or counterordinational procedure covering the
susceptible patrimonial elements of it harness. The taxpayers are expected to present
a statement that includes the irregular elements in irregular situation and proceed to the
payment of a fee of 7.5% on the value of the declared furnishing heritage, to which
corresponds to an aggravation of 50% in the face of the rate applied in the previous regime.
2.4.13. Emission and electrochemical transmission of invoices
In the context of the proposed State Budget Bill for 2012, a
legislative authorization in tax matters authorising the Government to approve a scheme which
regulate the issuance and electronic transmission of invoices and other documents with relevance
tax. This scheme will constitute an additional tool for combating informality
in the sectors of economic activity where there is a higher risk of tax avoidance,
encouraging the demand for issuance of invoices by end consumers through the
possibility of tax deductions of an amount up to 5% of the VAT supported.
2.4.14. Rights and guarantees of taxpayers
In the context of payment in instalments of tax debts, the time limit for payments
prestationals is extended up to a maximum of 150 monthly installments, in the frame of the
compliance with an economic recovery plan, leaving payment on
instalments of being conditional on the presentation of guarantee by the taxpayers.
The regime of binding information with a sense of urgency is strengthened,
operationalizing the procedures for the respective use, in such a way as to constitute
an effective means to strengthen the legal certainty of investors, thereby contributing to
for the creation of a climate more conducive to the attraction of foreign direct investment to
Portugal.
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Taxpayers become entitled to double indemnity interest in the case of no
timely execution of judicial decisions by the tax administration and to be
refunded, within the maximum of one year, of the tax withheld in excess by application
of a Double Taxation Convention or a Directive of the European Union. Finally,
in cases of the realisation of the sale of pawned goods is required to be made prior
personal citation of taxpayers.
2.5. Implementation of the Budget Framework Act
2.5.1. Presentation
The implementation of the standards of the new Budget Framework Act, from the
State budget for 2012, will bring significant changes to the budget process, which
will translate into visible improvements in the area of budgetary transparency and contribute
to significantly alleviate some of the above-identified fragilities.
By virtue of the envisaged Article 2 of the new Law, an approximation of the universe will take place
from public accounting to the universe of national accounting. In effect, the entities
public that, regardless of their nature and form, have been included in the sector
of the Public Administrations in the framework of National Accounts published by the Institute
National Statistics, and referring to the year before that of the tabling of the Budget,
go on to integrate the State Budget, being for the effect equated to Funds and
Autonomous Services. In this context, they integrate the State Budget for 2012, 53
new entities of the 65 included in the sector of Public Administrations of Accounts
Nationals in 2010 (but not in the OE universe), highlighting large companies
public transport sector (Roads of Portugal, REFER, Metro de Lisboa e
Metro of Porto), the School Park, the University Foundations, the various Societies
Polis, the Arsenal of the Alfeite, the Air Means Company, the RTP, the National Theatres and the
Santa Casa da Misericórdia de Lisboa.
As previously referred to, and in the line of best practices and recommendations to
European level, the budgetary architecture underlying the new LEO is based on five elements
key: budgetary rules; multiannual budget framework; budgeting by
programs; heritage accounting; and independent budgetary institutions.
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2.5.2. Budgetary rules
Pursuant to Article 12-C of the LEO, the budget balance, corrected for cyclical effects and
temporary measures, may not be lower than the medium-term target set out in the
scope of the European Union's budgetary supervision procedures. This objective
is currently set at -0.5% of the GDP, in the Portuguese case. Any deviations from this rule
should be corrected in the following years, countering this form the past trend
of systematic accommodations of budgetary deviations. The budget rule applies to
of 2015, owing to the annual reviews of the Stability and Growth Programme a
present in the meantime to provide for the adjustment trajectory compatible with the realization of the
defined objective.
With respect to the budget rule it is necessary:
(i) Define the methodology to be used in determining the structural balance and how to operationalize the mechanism of correction of deviations in the face of the objectives
budgetary;
(ii) Re-evaluate the medium-term target for the budget balance defined in the
scope of the Stability and Growth Pact;
(iii) Define how the transition will be made to the full application of the rule of
budget balance.
2.5.3. Multiannual framework of budget programming
The Government will submit annually to the Assembly of the Republic a proposal for a law with the
multiannual framework of budget programming, which it will define, for the Administration
Central, expenditure limits of the funded by general revenue for the following four years,
in line with the objectives of the Stability and Growth Programme (Article
12.-D of the LEO). Binding limits will be established for each budget programme
for the year with respect to the Budget (year N + 1); for groupings of programmes by
areas of policy intervention for the year N + 2 and for the set of all programs for
the years N + 3 and N + 4.
A multiannual budget framework based on a credible macroeconomic scenario and in
binding limits for large areas of the imprint expenditure on the conduct of policy
budget a medium-term perspetive, countering the bias for a
excessive growth of expenditure inherent in the activity of the public sector. The existence of
a multiannual budget framework still allows the managers of public bodies
know, with a reasonable degree of certainty, the resources with which you will be able to count in a
set of years, contributing in this way to improve their ability to
planning, resource affection and accountability for the results achieved.
To operationalize the multiannual framework of budget programming, it becomes necessary
define:
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(i) The universe of expenditure subject to limits and the nature of these limits (indicative or binding). In particular, it is necessary to answer questions such as: The expenses
that do not depend on the Government's action (for example, the payment of the
financial contribution to the European Union) shall be subject only to limits
indicative? Expenses financed by revenue should be considered
consignothing?
(ii) Proceeds of drafting of the medium-term expenditure and revenue projections, including the elaboration of the underlying macroeconomic scenario, the construction of the
scenario of invariant policies and the assessment of the impacts of new measures of
policy;
(iii) Rules regarding the transition of balances, specifically in respect of consignothing balances or funds to finance investment projects.
The multiannual framework of budget programming will be submitted for the first time to the
Assembly of the Republic in April 2012, concurrently with the presentation of the
Stability and Growth Programme. Once the elaboration of medium projections
deadline is a very complex exercise that requires the development of analytical capacity
and accumulation of experience, the defined expenditure limits will be, in a first phase,
indicative.
2.5.4. Budget by Programs
The State Budget will hend be structured by programs, allowing for a
better perceive of the affective resources to the different public policies (Articles 18 to 20 of the
LEO). A Budget-by-Programs framework, complements the traditional
organic and functional classification of the expenditure with a classification focused on the objectives
of the policies and the results to be achieved.
The formulation of the State Budget by programmes has been already tested in the Budget
relative to 2011 and will be consolidated in 2012. Table 12 elenates the 14 programs
budget that will be vigorous in the State Budget for 2012. Each budget programme
will have a single executor ministry, i.e. there will be no horizontal programmes, reinforcing-
if, in this way, the responsibility of the Ministries for the results achieved. In the
generality of the cases, each Ministry will be responsible for a single program, which
allows for greater flexibility in the implementation of the budget. The Ministry of Education and
Science has chosen to define independent programs for Basic and Secondary Education and
School Administration and for Science and Higher Education. The Ministry of Finance
will also carry out two programmes: Finance and Public Administration and Management of the
Public debt.
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Table 12. OE2012-Budget Programs and Managing Entities
Code of the
Program Ministry Executive Program
001 Organs of Sovereignty General Charges of the State
002 Governance and Culture Presidency of the Council of Ministers
003 Finance and Public Administration Ministry of Finance
004 Management of Public Debt Ministry of Finance
005 External Representation Ministry of Foreign Affairs
006 Defence Ministry of National Defence
007 Internal Security Ministry of Internal Administration
008 Justice Ministry of Justice
009 Economics and Employment Ministry of Economics and Employment
010 Agriculture, Sea and Environment Ministry of Agriculture, Sea, Environment and Territory Planning
011 Health Ministry of Health
012 Basic and Secondary Education and School Administration Ministry of Education and Science
013 Science and Higher Education Ministry of Education and Science
014 Solidarity and Social Security Ministry of Solidarity and Social Security
Source: M inOffice of Finance.
In line with the philosophy behind budgeting by programs, Article 72 para.
of LEO provides for the Government to send to the Assembly of the Republic, by March 31 of the year
following, a report of the implementation of the budget programmes, explaining the results
obtained and the resources used. Since the State Budget for 2012 is the
first to be drawn up and implemented in accordance with the new LEO, this report should be
presented for the first time in March 2013.
The full implementation of a system of budgeting by programs requires:
(i) Set out general guidelines regarding the definition and collection of performance indicators;
(ii) Clarify the articulation of the indicators with the existing performance evaluation systems and, in particular, the SIADAP;
(iii) Clarify the allocation of responsibilities between the Ministry of Finance and the
Sectoral ministries.
2.5.5. Accounting procedures and accountability
The LEO predicts that the accountability by all public entities should be
made on the basis of POCP, with the exception of the entities that apply the System of
Accounting Normalization (SNC) or to draw up their accounts in accordance with
the international accounting standards (Article 11 of the LEO).
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As noted above, the adoption of POCP has been a very time-consuming process,
even though a major progress has been made in recent years. The Government is
committed to completing this important reform of adoption of an accounting
patrimonial by the Public Administration, which will integrate the three strands of accounting-
budget, heritage and analytics-allowing to know with greater rigor the situation
financial of the different public entities, as well as the costs of goods and services
produced.
The adoption of modern management information systems and the use of computer science of
management is a crucial option of the modernization of the budget process. The adoption of these
systems must, also oblige a redesign of processes and procedures
budgetary and accounting. In fact, the current processes and procedures were
drawn about 20 years ago. In this period of time there has been a huge
evolution of management information systems. The gains from the use of these new
systems arise not so much from the adoption of a new technological platform, but from the
redesign of process and procedures that a new technological platform allows.
In Portugal has been followed the route of introduction new information systems without
concomitant alteration of the processes. The absence of this reengineering of processes
budgetary and accounting has consequences for the quality of the information, for the
control and for the costs of implementation. In fact, the management information systems
tend to include processes that reflect international standards, so the abandonment of the
idiosyncrasies nationwide facilitates considerably the transition to information systems
more sophisticated.
This option means an extensive review of current budgetary procedures and
accounting and accountability, either relatively to the form or in respect of
content. In fact, on the one hand, the documentation of accountability is extensive,
confused and often repetitive. On the other hand, the provision of accounts should allow
measure and compare results. These should be compared to the past, with the rest
economy and with other public sectors. These three dimensions of assessment impose that the
process of accountability is stable over time; which use, as much as
possible, principles, methods and valuations identical to those used by the remaining economy;
and that it follows, albeit with possible adaptations to concrete situations, the standards
international accounting.
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In the framework of the technical assistance provided for in the PAEF, it was suggested that the
principles of International Public Sector Accounting Standads (IPSAS) in the presentation of accounts
of the public sector entities. According to the international institutions, the adoption
of these accounting principles would increase transparency in the provision of accounts and the
accountability. However, the reporting of cash-in-the-box information would remain a
important part of the process of accountability due to the need to predict the
needs for treasury and financing in global terms.
One other aspeto referred to in the framework of technical assistance is the need for certification
external of the accounts in the context of the accountability process. This development
will force a significant reformulation of the external evaluation and certification process of the
General account of the State and the accounts of the various public entities.
2.5.6. Council of Public Finance
An independent body will be set up-the Council of Public Finance (CFP)-whose
mission is to pronounce on the budgetary objectives and scenarios, the
sustainability of public accounts and compliance with the rules on balance
budget, the expenditure of the central administration and the indebtedness of the Regions
Autonomous and Local Authorities (Article 12º-I of the LEO).
International experience reveals that the creation of an independent entity of this
nature allows to significantly increase transparency about the situation
budget and public sector patrimonial. The CFP will thus be instrumental to the
improvement of the political decision-making process and thus for the quality of Democracy. Will be
equally fundamental in the recovery of the external credibility of the Country in the face of
international investors.
The Assembly of the Republic adopted the Statutes of the CFP at the end of September 2011. The
appointment of the members of the Superior Council of the CFP will occur before the end of 2011,
being expectable that the Board will start its activity in the first months of 2012. The
members of the Higher Council will be appointed by the Council of Ministers under proposal
joint of the President of the Court of Auditors and the Governor of the Bank of Portugal.
2.5.7. Operational issues and timing
The detailed design of the new budget framework and its progressive implementation
are to be viewed in a project management perspement. In this sense, it will be constituted
a Steering Committee and two Thematic Working Groups (GT). The Steering Committee will
led by the Minister of State and Finance and composed of the Secretaries of State
of the Ministry of Finance, leaders of the Ministry of Finance and external experts,
how to guide and keep up with the work of the Working Groups.
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The GT on the Reformation of the Ministry of Finance will be responsible for the drafting of
a proposal for reform of the Ministry of Finance and implementation timetable. The
GT on Public Expense Control will be responsible for submitting a proposal of
operationalisation of the budgetary rule and the multiannual framework contained in the LEO, including the
calendar of implementation. Working Groups will be composed of technicians from the
Ministry of Finance, and may integrate technicians from other Ministries and other experts
national or international, particularly in the context of technical assistance by the
International Monetary Fund and the European Commission.
The works will have 3 phases. Phase 1 is intended for the design of the solutions to be adopted in the
scope of each area of work and is expected to culminate in the delivery of a proposal of
solution and implementation. In phase 2 decisions will be made as to the solution to
implement. Phase 3, which will be able to behave multiple steps, will be of implementation.
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3-3. TH OPTION-CITIZENSHIP, SOLIDARITY, JUSTICE AND SECURITY
3.1. Internal Administration
The defence of citizens and the maintenance of public order and social peace is one of the pillars
fundamental of the rule of law, as a guarantor of the development of the activity
economic, social and cultural. The reduction of operational complexity and the strengthening of ties
of close proximity between the security forces and civil society constitute the priority of the
Government for the present legislature.
In this context, the primary objective of the Government is to ensure the reorganisation
of the Security Forces and the creation of dynamics of interoperability between the services of the
Ministry of Internal Administration (MAI), eliminating duplication of competences and
redundancy of functions, in a logic of efficiency, effectiveness and increased resilience
organizational.
In line with this objective, a set of strategic measures will be adopted and
long term structural, so as to ensure efficiency gains with priority reflex
in the operational strand, namely:
(A) Promotion of the operative integration of the internal security system;
Enhancing the strengthening of community safety with the involvement of civil society
especially in sensitive urban areas and communities;
Ensure The implementation of a strategic and operational plan for the inter-relationship
between the bodies responsible for the prevention and combating of emergency situations
and Service 112;
Aim The promotion of simplification and rationalization of processes, of the containment of expenditure and
profitability of available resources, which lead to an increase in capacity
operative of the security forces;
The Making of the realization of the reform of the health system of the security forces, ensuring
a quality support to its users and a full capacity utilisation
installed;
Enhancing the strengthening of the state's performance in the area of private security through the
regulation and control of the activity of private actors.
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The realization of these strategic orientations will be achieved through the implementation of
legislative, administrative and operational measures to combat crime, reinforcement
and rationalization of the police herd and improvement of working conditions with an inherent
increased quality of service provided and consequent valorisation of the role and status
of the security forces with the civil society, as well as, the strengthening of the system of the
civil protection and combat claims.
In the framework of the operative integration of internal security systems, the Government
will promote the adoption of operational measures that reduce redundancies and increase the
resilience of the system (information, public safety, criminal investigation, foreigners and
borders and civil protection), through greater integration, especially operational,
of the security forces and services, maintaining the existence of a dual system, in a
more civil strand and in a more militarised strand, in which the areas of
intervention and the respective responsibilities, creating itself during the legislature, a network of
sharing of information and knowledge. Thus, it will promote the rationalization of the
use of existing means with gains in effectiveness in planning and execution of
operations, in which operational, organic and functional coordination will be more enfocated and
directed.
In this framework, it is also intended to create with a view to the increment of security, the inter-
relationship with other areas, as is already the case with Justice and Defence, in a logic
of joint acting that allows for more efficient results, by way of simplification, of the
clarification and coordinated use of means and development of processes
flexible and innovative.
Strengthen and renovate GNR and PSP devices, with the opening of tenders for
admission of elements and the release of human resources from more administrative areas,
judicial and bureaucratic, taking into consideration the situations of reservation and retirement
in order to concentrate the maximum manpower in the operational valencies and the
proximity policing.
The Government will amend the Programming and Facilities Law and Equipment Act of the Forces of
Security, reviewing the provisions and means of financing, implementing a plan a
medium / long term of requalification of the most deprived equipments, having as an end
last the continuous improvement of the working conditions and consequently the improvement of the
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quality of service provided to the citizen. The valorisation of the role and status of the forces of
security with the society are key axes of the political performance of the Government.
Within the framework of the Immigration and Border Control policy, partnerships will be strengthened
international in the area of the management of border flows developing the fight against the
clandestine immigration and the trafficking of human beings. It will also be promoted to strengthen
of relations with the member states of the European Union, especially in decisions that
result from the adjustment of the Schengen Treaty and related purposes.
Regarding the national road safety strategy, the Government will give priority to the
combat road sinister, carrying out the evaluation of the implemented system and
strengthening, in coordination with the institutions of civil society, the bet on prevention and
in the selective surveillance of the most risky behaviours, dedicating special attention to the
sinister claims in urban and the users of two-wheeled vehicles.
The road counter-ordering process will be simplified and streamlined by seeking-
if it creates synergies with other areas that will effect the reduction of procedural times.
In the period 2012-2015, the Government will strengthen the civil protection system
by intensifying the use of operational synergies between responsible ministries
by the areas of homeland security, justice and national defence and the Local Administration.
Within the scope of equipment and facilities, the bet will be to assure the bodies of
firefighters the conditions suitable to their good performance, evaluating the device
existing, depending on the needs and specific risks of each area and clarifying
the various levels of operational intervention.
Finally, the Government intends to promote the necessary changes to the process of
electoral census by adjusting administrative procedures in order to guarantee the
reliability of the electoral procedures and the permanent updating of the notebooks
election.
3.2. Justice
The Government has taken over, in its Programme, that Justice is a pillar of the rule of law.
There is for the citizen, for the defence of their rights, freedoms and guarantees, constituting,
at the same time, an efficiency factor of the economy.
In 2012-2015, the Government will strengthen the system of Justice by ensuring a response
effective judicial, based on the stabilization of legislative production and impact assessment
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normative, which presupposes the prior afferition of the existing situation and costs, results
predictable and interests affected by the reforms to be introduced.
It will, in the second place, promote universal access to justice and the law, as well as the
guarantee of the effective judicial tutelage of the legitimate interests of citizens and agents
economic, in particular of the most fragile groups in society.
Such an objective requires, for its part, the gamble that will continue to be made in the
de-bureaucratization, the increase in efficiency and the optimization of proximity justice and
of the mechanisms of self-composition of disputes, specifically of the means of resolution
alternative: mediation, conciliation and arbitration.
The qualification of the judicial response does not prescinde, too, being another one of the priorities for
2012-2015, of the rational management of human resources and available materials, by valorizing the
training and the careers of Justice professionals, restoring the model of the " professions
legal " and ensuring judicial independence and autonomy of the Public Prosecutor's Office, the
who is to direct the whole research in a model in which the magistrate responsible for the
investigation should ensure the process at the stage of the trial.
In order to combat the morosity of justice will be potentiated the management of the judicial system in
function of objectives, preferably quantified, circle to circle, comarch the comarch
and sector the sector, by assessing, with regularity, their degree of achievement.
It will continue, ademais, the effort to provide the courts with the necessary technical support,
ensuring the specialization of judicial operators and the creation of a new paradigm
for the civil procedure, likely to create the conditions for the processes to be completed
in good and reasonable time.
In this context, measures of procedural simplification will be implemented, retiring in the
demformalization of procedures, procedural orality, and limitation of issues
relevant procedural, so as to make the process more speedy, effective and comprehensible
by the parties.
The model of the Judgary Map will also be the subject of re-evaluation, based on
territorial centralities recognized by citizens and in a new matrix of distribution of the
judicial offer.
Another key pillar of the system and, therefore, another of the priorities for 2012-2015,
is based on combating corruption and strengthening criminal justice, while respecting the guarantees of
defense and contributing to improving the image of criminal justice.
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In these terms, the revision of the Criminal Code and the Code of Criminal Procedure will be carried out,
investing in the credibilization of criminal justice, the guarantees of the rights of citizens and the
reinforcement of the criminal status of victims by enshrining new rights of information, support
and intervention in the process and eliminating dilatory expedients.
The revision of the Code of Procedure of Administrative and Fiscal Tribunals, specifically
with respect to its harmonisation with the Code of Administrative Procedure and the
execution of sentences, the amendment of the Insolvency and Recovery Code of
Companies, redefining the priorities of creditors in the sense of quick decisions that,
without nullifying the defence of the interests of the state and the employees, allow to contribute to
the acceleration of the economic recovery of assets and the revision of the Access Regime to the
Right, they will be, too, carried out.
The actions to be developed will therefore have as strategic priorities: the improvement of quality
of the rule of law, the reinforcement of the Citizenship, the dignifying of the Justice and its agents,
as well as the streamlining of procedural systems, involving the different organs of
sovereignty, judicial operators and their institutions and society. This effort
will take particular importance in the current economic context, constituting one of the
vectors of the transformation agenda of the Portuguese economy.
Finally, the Action Plan for the Justice for the Information Society will be approved.
3.3. Solidarity and Social Security
The XIX Constitutional Government took over in its programme the need to develop
an extended set of initiatives and implementation of concrete measures that, assorted
in safeguarding the dignity of the human person, they can guarantee vital minimums of
subsistence and wellbeing, particularly to the most vulnerable, children, the elderly, the
persons with disabilities, the unemployed and all persons in a situation of deficiency and
of social vulnerability. In this framework, one of the strategic priorities goes through the reinforcement
of the articulation with the institutions of civil society, specifically, the institutions
individuals of social solidarity (IPSS), the mercies and mutuals, broadening the
its sphere of intervention and promoting greater flexibility and autonomy of action of
form to potentiate a greater range of social support responses more adjusted to
emerging needs of the population.
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3.3.1. Social Emergency Programme (PES)
At a juncture in which it becomes imperative and urgent to ensure the socially more
vulnerable global levels of social protection, it imposes itself on developing the Programme of
Social Emergency. The reduction of social inequalities should rest on measures
structural that promote combating early school dropout, support for the family and the
fairer distribution of earnings. The Programme has as strategic objectives: ( i )
Fighting poverty; ( ii ) Strengthen social inclusion and cohesion; ( iii ) Stimulate the people,
empowering them and encouraging them through socially useful work; ( iv ) Maximize the
answers from the existing social networks; ( v ) Fostering social responsibility; and ( vi )
Streamline volunteering.
3.3.2. Combating Poverty and Strengthening Inclusion and Social Cohesion
The reduction of social inequalities constitutes one of the central axes of the intervention of the
Government in the current context of economic crisis as a way to prevent the exclusion of
most vulnerable social groups. In addition to the updating of minimum pensions, social and
rural at the level of inflation, the governing option contemplates measures such as the majoration of the
unemployment allowance for couples with children and in which both members of the
aggregate are found to be in unemployment, the revision of the Social Income Scheme of
Insertion (RSI), which will be carried out through an improvement of the contractual mechanisms of
allocation and supervision, particularly the active demand for employment, frequency of
training and provision of community work by the beneficiaries of the RSI age and in
conditions of working, the development of a national social equipment network
more flexible and adapted to the economic conditions of the country, in particular with regard to the
responses directed at children and the elderly.
In the plan of support for families of smaller resources, among others, they stress answers
how the implementation of the social rental market that promotes the use of
houses at prices lower than those of the market, as well as the creation of social tariffs in the sector
of transport, in the creation of extraordinary social support for consumers of
energy.
In the context of combating extreme poverty and exclusion, it is intended to guarantee:
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(s) Access to the food to whom it fails to provide it; and
O Access to medicines in better conditions.
The inclusion and social participation of persons with disabilities or disability is considered
also a priority, both through betting on empowerment, activation and employability
of these people, either through the implementation of programmes aimed at people of
reduced mobility and the deepening of the measure "Rest of the Caregiver".
3.3.3. Social Economy
In recognition of the importance of local institutions in the development of the
better conditions of social protection and by taking advantage of the structures and synergies of the
existing resources in the community, it is intended to give greater security and stability to the
entities participating in the area of the social economy. For the purpose will compete for
implementation of the respective law of bases and a model of articulation with the State that
it confers them greater flexibility and autonomy in structuring their activities, in the
definition of the necessary resources and the efficient reallocation of available means.
In the assumption that volunteering is an activity inherent in the exercise of citizenship that
translates into a sympathetic relationship to the next, through free participation and
organized in the solution of problems that affect society at large and that the work
volunteer represents today one of the basic instruments of civil society participation
in the most diverse fields of activity, it is intended to foster its dynamisation
increasing networks of social solidarity.
3.3.4. Family and Natality
Family support and promotion of birth will take particular focus on the framework of the
intervention of the Government. The debate around the rise in the birth rate face to the
current demographic juncture will be the subject of discussion, seeking to analyze measures
to come to the meeting of the best existing practices in Europe. The families more
numerous will merit special attention, seeking to develop benefits
economic to the fixation and extension of families in low population density areas.
Within the framework of the reconciliation of family and professional life is assumed to be the need of
find new paths, so as to support the aggregates with children in the first
years of life. On the other hand, we want to potentiate the responses to the level of equipment
of children's education, ensuring the effective conditions for the reconciliation of life
familiar with working life.
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3.3.5. Promoting the Sustainability of Social Security
In such a way as to ensure the sustainability of the Social Security System, particularly,
in the face of adverse economic situations as the current conjuncture, it matters to act in a manner
preventive with the evaluation and introduction of measures that allow for financial balance
of the system in the long term. It is further intended to stimulate active ageing and promote
measures that bring the average age of retirement age retirement to retirement and adjust the rate
of the contribution of the companies with regard to pension components and subsidies of
unemployment for workers with a career contributory plenas, facilitating their
voluntary stay in the labour market. In addition to the reform of the benefits of
unemployment, it will also be assessed the possibility of the autonomization of the financing of the
unemployment risk and the introduction for the newer generations of an upper limit
salary for contribution effect and determination of the value of the pension, further assessing the
review of the Public Social Security System in a way to ensure not only the
inter-generational financial sustainability, as also the voluntary capacity of
choice of the most new generations of the organization of your contributory career.
Also in the framework of improving the effectiveness of the system and simplification of compliance
and regularization of the contributory bonds will be implemented a measure of
voluntary restructuring of debts, allowing the competent entities to use the
necessary instruments, with a view to the removal of legal impediments, in particular
with respect to self-employed workers.
3.4. Local Administration and Administrative Reform
The Government intends to introduce a markedly reformist agenda based on the
proximity to citizens and administrative decentralization, always on the assumption
matrix of an extended political agreement that will viabilize a reorganization of the map
administrative, aiming at the optimization and rationalization of the number of municipal organs.
In accordance with the Resolution of the Council of Ministers No. 40/2011 of September 22,
are guiding principles of the reform of the Local Autarctic Administration:
(A) The greater proximity and administrative decentralization;
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Enhancing the strengthening of the municipality and the intervention of the freguesias as a strategy of
development;
Enhancing efficiency in the management and allocation of public resources, potentiating savings of
scale;
Enhancing the enhancement of the sustainability of the municipal structure, in a perspective of size and
of scale;
(A) The valorisation of the provision of public service;
Special The special consideration for local specificities; and
Enhancing the strengthening of cohesion and territorial competitiveness.
On the other hand, they are structuring axes of the reform of the Local Autarctic Administration:
The Local Business Sector (SEL);
(A) The organization of the territory;
(A) Municipal management, intermunicipal management and financing; and
The Local Democracy.
The reform in the local administration will also pass through the passage of a new Law of the
Local Finance that will meet the current municipal dependence on construction revenue and
of the real estate, seeking to secure the right to a portion of the tax revenue collected in the
its territory, compensated with a municipal cohesion fund, in the case of municipalities
economically weaker, which corresponds to changing the financing model for
o make it more transparent, more suitable and more accountable.
The Government will continue to carry out the transfers of competences and resources of the
central administration for municipalities and for the various forms of voluntary association
in a number of areas such as the environment, culture and spatial planning, this of
cross-sectional and integrated form. The Government prioritizes, still, in the Local Administration and
Administrative Reform, areas such as education, health and social action, as well as the
simplification of administrative and planning procedures in the relations between the
Central Administration and the Local Administration.
3.5. Social Communication
In this framework, the Government will pauper its activity in accordance with the new context
technological and financial. Particular attention will be paid to the ongoing changes (eg.
the introduction of Digital Terrestrial Television within the planned and agreed timeframe between
the operators, ANACOM and PT or the new generation broadband) in a way
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guarantee that there are no citizens excluded in respect of the benefits that may be taken
of these changes.
The Government will follow up, from a new state positioning register, both
at the level of the RTP Group as of Lusa, the ongoing restructuring plans in respect
by the principle of maintenance of a public service media service
redefined in the light of current realities, either at the socieage-level or technological level, and
to respond to the challenges of the lusophonia and the European and cosmopolitan Portugal we want
solidify.
The RTP Group will be restructured in a manner to carry out a strong cost containment
operational in the course of 2012. It is thus intended to significantly reduce the effort
taxpayer financial and create the necessary conditions for the divestance process
of a public television channel that ensures full respect for the rules and conditions of the
market. In this context, the options to be pursued in the period 2012-2015 are: ensuring a
free and plural social communication; offer a quality public service and encourage the
regional and local media.
3.6. Gender equality, domestic violence and integration of populations
immigrants and the gypsy communities
The Government takes as an option for this period the deepening of policies
public that promotes and consolidates equality, enshrined in the Constitution and in the law.
The improvement of the ways of collection and processing is considered to be of the greatest relevance
of statistical data relating to the subjects of equality, domestic violence and trafficking
of human beings, instrumental action that imposes itself as a way of promoting a
more substantiated and effective intervention in these areas.
In the area of gender equality, the reinforcement of the transversality of the dimension will be promoted
gender in the policies of central and local administration, the implementation of new
initiatives and the enlargement of measures already taken in the area of education, size
fundamental to the progressive elimination of all forms of discrimination yet
verified in Portuguese society. They also assume themselves as a priority, in the area of
employment, measures to combat pay differentiation between women and men, from
promotion of a greater balance between women and men in the decision-making and
prevention and combating sexual harassment in the workplace.
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As for domestic violence the Government considers necessary a redoubled effort in the
sense of a better articulation of all the public entities involved. Will be given a
special emphasis on more effective protection of victims and more intense training, wants
of the professionals acting in the investigation and punishment of these crimes, whether still from those
that they proceed to the care of the victims or work in the reception structures.
With respect to human trafficking, the Government is proposing to strengthen prevention and
combating this practice, specifically, through increased awareness of the opinion
public with regard to the seriousness of this crime and the need for its complaint, of the
training of professionals who intervene in this area and from protection and assistance to
victims.
3.7. Plan for the Integration of Immigrants and Cigan Communities
At the present time, considering the development goals that are intended
reach in Portugal in the coming years, with the indefusing need to effect the
growth of the economy and balancing public accounts, subsists the need for
continue to recruit external labour, to ensure professional segments in
certain sectors and areas of economic activity and, in a more global sense, to
promote the rejuvenation of the age pyramid, demographic sustainability and the
financial sanitation of the social system.
In that sense the immigration policy to be developed radica on three key pillars and
insurmountable in a rule of law: regulation, surveillance and integration. The regulation
rigorous, adjusted and proportional of the flows, accompanied by the consents
procedures for surveillance and combating lawlessness, to be developed in the plan of the policy
of internal security, are basilar in immigration policy, allowing the state to control
the migratory process and create the conditions of sustainability to effect practices
integratedand effective integrators.
Follow up on the implementation of the current Plan for the Integration of Immigrants and the
its seventeen areas of strategic intervention, namely, at the level of consolidation
of the immigrant reception networks, the potentiation of access to social rights and the
measures to foster employment and vocational training with special emphasis on the
dimension of immigrant entrepreneurship as a response to crisis and Project
Immigrant Entrepreneurial (PEI). It is thus assumed to be the aim of ensuring
a greater equality of opportunity and a strengthening of social cohesion in society
Portuguese. The plan will be coordinated by ACIDI, IP, with the remaining partners
ministerials, without prejudice to one-off adjustments to some of their attentive measures the new
economic and social circumstances that the country crosses.
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On the other hand, ensuring the continuity of the implementation of the 4ª Generation of the School Program
(2010-2012) in the framework of its priority areas of action-school inclusion and education
non-formal, vocational training and employability, community dynamisation and citizenship,
digital inclusion, as well as entrepreneurship and empowerment and launch a Strategy
National for the Inclusion of Cigan Communities (2011-2020) in four areas
strategic, Education, Housing, Health and Employment, which will be accompanied and
monitored by an Advisory Group for the Inclusion of Cigan Communities.
3.8. Sport and Youth
The Government intends for the establishment of a holistic Youth Policy and
cross-sectional, assented in particular:-In support of children and young people;-In education, formal and
non-formal;-In innovation;-In volunteering;-In the incentives for employment,
specifically to young entrepreneurship to competitiveness;-In the promotion of reading;
-In mobility;-In the inclusion and civic participation;-In health and sexuality;-Na
prevention of alcoholism, sedentarism, obesity, smoking, criminality and
delinquency;-In the fixation of young people in the interior; and-In the agilization of procedures of
financing of juvenile and student associativism.
For the purpose an integrated strategic planning is required, as per the best
international practices, in a medium and long term perspective. For this purpose the
Government has espousled a Youth White Paper, in a process involving the
input from all the actors and recipients of youth policies in Portugal.
The Government also wants the establishment of a sports policy with all and
for all, remembering, specifically, that everything begins in the nursery phase-juvenile and that the
women and the senior population cannot be disliked. For the purpose there are two
immediate priorities in this sector: the creation of a Museum / House of the Heritage of the
Sport and the implementation of a National Plan for Ethics in Sport.
It is also intended to ensure the operational coordination of the policies of the sport and the
youth, through the merger of the Institute of Sport and the Institute of Youth in a
single body, with an improvement of integrated information networks and a larger one and
better catchment of financial means for program execution and the promotion of a
acting more agile, functional and unfocused, as well as achieving synergies with
a view to the realization of public policies in these areas.
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4-4. TH OPTION-FOREIGN AND NATIONAL DEFENCE POLICY
4.1. Strengthening the Economic Diplomacy
One of the main axes of action of Portuguese foreign policy will be the pursuit of a
economic diplomacy that will make a decisive contribution to the affirmation of credibility
external to Portugal, to the attraction of investment and to the promotion of companies,
national products and brands abroad.
In this sense, the synergies between the instruments that will be actively implemented will be
can sustain effective economic diplomacy.
At the present juncture, the Government will seek to reallocate resources to the countries with greater
potential for increment of exports and capturing foreign direct investment,
relaunch the "Marca Portugal" and develop a line of performance that contributes to the
elimination of obstacles to the internationalization of Portuguese companies.
The contribution to the strengthening of the internationalization and competitiveness of enterprises will pass
for the promotion of the action of the Portuguese Chambers of Commerce and for an action
coordinated with private business structures, including the stimulus to the capacity of the
large enterprises to involve Portuguese SMEs in their processes of
internationalisation, support for the formation of consortia of companies and integrated networks of
value chain and the fostering of partnerships between Portuguese entrepreneurs (residents and not
residents).
4.2. Evolving in Bilateral and Multilateral Relations
Restructuring its diplomatic network, with a view to achieving efficiency gains and
complementarity, Portugal will potentiate its foreign policy around the foundations
traditional European integration, transatlantic relationship and lusophony, always searching
identify for their businesses and for their citizens new opportunities in a
international reality in constant evolution.
Our country will continue to act actively with the different European institutions,
keeping up with the front line of the integration process and looking to defend and reinforce
its image in the context of the Union.
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In particular, the negotiations regarding the new Financial Framework will be monitored
Multiannual, as well as the evolution of the Union's policies with budgetary incidences more
significant, such as the Cohesion Policy, the Common Agricultural Policy and the Policy
Common Fisheries.
Portugal will also contribute to the implementation of the Europe Strategy 2020, well
as for the deepening of integration in the various fields of the internal market
European, with special emphasis on the energy and the development of the network of
transport.
In all of these policies, the action of Portugal will have as a guiding thread the respect for the
fundamental principles of cohesion and solidarity between the Member States and the strengthening
of the community method.
Within the framework of the bodies of the European Union, Portugal will engage in the promotion of
an increasingly representative presence of Portuguese agents and staff,
notably through the development of training programmes especially
vocationalized for the support of recruitment processes.
Portugal will endeavor to contribute to the implementation of the European Policy of
Renovated neighbourhood, to which it intends to respond to the processes of processing in
course in neighbouring countries, either from the South or from the East, towards the consolidation of the
Democracy, the Rights of Man and the rule of law, in societies more
thriving, stable and safe.
Portugal will also seek to engage actively in the preparation and participation in the
Summits provided for in 2012 with the Latin American countries (EU-ALC Summit) and with the
Asians (EU-ASEM Summit) to which they will allow to strengthen political-economic ties already
existing with these regions. In parallel, involvement will be maintained in the preparation of the
Annual summits with the strategic partners of the European Union, such as Russia, USA,
China, India, Brazil, Ukraine and Canada.
Particular attention will be given to the Mediterranean Partners, in particular as regards the
delivering the Union's support to the processes of democratic transition and reform.
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In the present legislature, the commitment to the implementation of the strategy will be pursued
on "Trade, growth and international issues" that aims to confer a
external dimension to the 2020 Agenda for growth and employment, constituting this strand
one of the axes of European competitiveness policy. The accent will continue to be put: in the
identification of the main barriers in key sectors for the European economy and
national in priority markets, aiming for the respective elimination; at the conclusion of the
ongoing negotiations regarding a new generation of bilateral free trade agreements
and of association agreements aiming at the strengthening of the Union's presence in these markets, in
particular in Asia and Latin America; and in strengthening the protection of property rights
intellectual and enhancement of access of European companies to public markets of countries
third parties, notably by the inclusion of specified provisions in the bilateral agreements.
Portugal will still engage in the implementation of the Africa-EU Joint Strategy and its respective
Plan of Action, with a view to the IV EU-Africa Summit scheduled for 2013 in Brussels.
In the framework of the Global Migrations Approach, and in the wake of what is mentioned
in the Stockholm Programme, it matters to keep up with the strengthening of the EU's dialogue with countries
third parties on migrations and asylum, with a view to more effective management of flows
migratory.
Portugal will remain committed to responding to the challenges posed by the Treaty of
Lisbon in the areas of Common Foreign and Security Policy and the Common Politics of
Security and Defence, ensuring that its proper implementation dowry the EU's action of
increased coherence and ensure greater visibility of the Union on the international stage.
At the level of Portugal's bilateral relations with third countries, and in the context of the relationship
privileged with the USA, the Government will defend the historical dimension of Portugal as
euro-Atlantic country and dynamising the bilateral strategic relationship, specifically in the framework of the
Standing Committee and cooperation in the areas of defence, trade and investment,
justice and internal administration and science, technology, energy and the environment, as well as of the
specific cooperation with the Autonomous Region of the Azores.
It will continue to give priority to Portugal's historical relations with Latin America,
with a highlight for the deepening of the vast bilateral relationship with Brazil in
various areas and for the development of political and economic relations with the
Venezuela, having also present the size of the Portuguese community in that country.
In parallel, a diversification of Portugal's partnerships will still be sought with the
iber-American space.
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In this legislature, there will be continuity in the deepening of bilateral relations with the
countries in the Maghreb region in their multiple strands, notably through the
mechanisms of the bilateral Summits already instituted and the monitoring of the process of
stabilization of Libya.
Portugal will maintain commitment to strengthening the relationship with Asia and Oceania in the
bilateral and regional perspective, which will pass through the intensification of bilateral and the
realization of political consultations.
The relationship with African countries will be pursued, as well as with the
regional and subregional organizations that they are a part of. In this context, and listening to the
special existing relationship with the Portuguese-speaking African Countries, points out-
if the realization of reciprocal bilateral visits, as well as the realization of Summits with
Mozambique and Cable-Green. They will also deserve particular attention to the intensification of the
privileged relationship maintained with Angola in all sectors, as well as support for the
stabilization process in Guinea-Bissau.
Portuguese foreign policy is founded, too, in the participation of Portugal in the
Community of Portuguese-speaking Countries. Investing in consolidation and deepening
of the CPLP and to promote a policy of structuring cooperation are priority areas to
proceed.
In the framework of the CPLP, Portugal will participate in the Summits of Heads of State and Government
of the CPLP, giving continuity to the pursuit of the priority objectives, in particular the
promotion and diffusion of the Portuguese Language, the intensification of political concertation-
diplomatic and the strengthening of sectoral cooperation. In this framework, Portugal has been forecasted
arrange the II Conference of the Portuguese Language in the follow-up to the Conference of Brasilia.
In the area of development cooperation, the new Programs will start
Indicative of Cooperation (PIC), in the PALOP and Timor-Leste, having on the basis of criteria of
increased geographical and sectoral concentration, through "Flag Programs" that target
improve the effectiveness and impact of investments. Neighbouring or framed countries in the region
may also be considered, potentiating partnerships and approaches to Cooperation
South-South and Triangular Cooperation, privileging relations between member states of the
CPLP, given its strategic and economic relevance.
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Strict criteria of rigour, transparency and greater concentration on identification will be still applied
of the partnerships, privileging consortia among different cross-sectoral actors, in a
approach ' whole-of-government ', highlighting the ONGD and private sector entities,
as well as authorities that will be able to represent an added value to the level of growth
economic, support for the local private sector and job creation in the countries, sharing
experience, knowledge and innovation (in line with ODM 8).
Relief will be given to interaction with multilateral partner organisations, be they
International Financial Institutions, Organizations, Programs and International Funds,
to enable leveraging new technical and financial resources, highlighting the Union
European through the mechanisms of Delegated Cooperation.
In addition to the traditional areas of cooperation in the areas of education and teaching of the Language
Portuguese, justice, safety, health and rural development, will be promoted others
innovative areas related to the " Combat to climate change and energies
renewables "and" Science and Technology for Development ", having on the basis of the most-
Valuable and degree of expertise that Portugal will be able to offer to its partners, in
particular in the CPLP space.
Portugal will engage in fine-tuning in multilateral international organizations. In this
sense, and in the performance of the non-permanent member mandate of the Council of
Security of the United Nations, Portugal will continue to seek to strengthen its prestige of the
country on the international stage and to contribute, constructively, to making decisions
in the framework of the maintenance of international peace and security.
In the course of 2012 actions will be developed in the framework of Portugal's application to the
Human Rights Council (triennium 2015 to -2017), with a view to the election to be held in
May 2014.
Within the framework of the NATO, Portugal will continue to maintain a committed presence, both in the
policy framework as operational, with particular focus on the national implementation of the
new Command Structure.
Portugal will continue to participate actively in various peace and business operations
international security, particularly within the framework of the United Nations, NATO and in
civilian and military missions within the framework of the EU's Common Security and Defence Policy.
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In the matter of Human Rights, Portugal will continue to implement the recommendations
which were made to you during your examination by the periodical review mechanism
universal (UPR). For this will appeal to the National Commission on Human Rights, institution
created in the sequence of that examination.
Portugal will actively support the Alliance of Civilizations, both at the level of the Group of
Friends as at the regional meetings and will develop the second National Plan of
Implementation of the objectives of the Alliance.
4.3. Valuing Lusofonia and the Portuguese Communities
The policy for the Portuguese communities points to a growing rapprochement between
all Portuguese, regardless of the place in which they live.
The Portuguese Communities thus constitute themselves as an absolute priority in the
context of foreign policy.
The mobilization of young luster-descendants is expected to be one of the first concerns
giving sequence to programmes that enable their relationship with our Culture, our
Language and the reality of contemporary Portugal.
The increase in civic and political participation of our Communities in political life
national and in the host countries should be encouraged, with special attention to the
public intervention by women.
The Council of Portuguese Communities and the associative movement of the Diaspora will be
considered privileged partners, being called upon to pronounce or accompany the
development of the main measures.
Priority will be given to the enlargement of the electoral participation of the Portuguese residents in the
foreign, at the same time that the electoral census will be encouraged.
A large bet will be made in the development of capturing mechanisms of
savings and investments of the Portuguese resident abroad.
It is imposed that entrepreneus-organization strategies are encouraged within our
Communities in an optics of approximation to the national industrial and commercial fabric, having
particularly in account of the role of chambers of industry and commerce.
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The consular network should be an active tool of development of our policy
external, by combining its institutional function of state representation with actions
integrated economic and cultural diplomacy, in a close connection to communities
Portuguese.
The reform and modernization of the consular network will be permanent, and it should provide for the adoption of
organizational models involving the associative movement and the private initiative
jointly with the public bodies of external representation, reserving a
special role for the honorary consuls, usually unleaved, and being able
to concentrate and effectively coordinate the most different strands of our action
external. In this sense, a new experience of creating Cabinets will be developed.
Support for Portuguese Communities in institutions of an associative nature, which
will develop the strands of consular action, social support and cultural action.
The Government will not forget the Portuguese in economically more difficult situations and
more socially fragilized, and in this sense owing to develop a network of
monitoring of the most delicate cases, which should involve the official institutions and
the local associative movement. The management of social support programmes for emigrants and
needy elderly should be changed, going on to rely on a more active participation
of such entities.
The reform of the teaching of Portuguese abroad will be prioritised by betting on a
model that allows to extend the network to countries outside of Europe, the development of a
new distance learning platform for direct support to the action of teachers, the
certification of apprenticeshare obtained, the strategic articulation with institutions
existing trainers in each country or host city and the local hiring of
teachers.
It will be privileged to cooperate with the CPLP in the different fields, in particular the
promotion and diffusion of Portuguese as a global language, pursuant to the Action Plan of
Brasília and promoted the strengthening of cooperation with countries whose language planning
integrates or envisage integrating Portuguese as a curricular language.
It will be looking to strengthen the introduction of information and communication technologies (ICT)
in the processes of formation and learning of Portuguese abroad and restructure and
to qualify the network of Portuguese Cultural Centres in the world as platforms of
regional intervention.
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It further highlights the continuation, in 2012, of the presidency of the network of culture institutes
of the Member States of the EU (EUNIC- European Union National Institutes for Culture ),
contributing to the visibility of Portugal in the EU and the world and the organisation, in 2012,
of the ' II International Conference on the Future of the Portuguese Language in the System
World '.
4.4. National Defense Policy
Between 2012 and 2015, the Ministry of National Defence will guide its activity having
present the permanent objectives of the National Defence Policy and the assigned missions
to the Armed Forces, and which are constitutionally defined, as well as the fact
of the uncertainty that has been characterizing the international context require flexible responses,
effective and efficient, in an extended cooperative framework.
In that sense, the Portuguese presence in international humanitarian and peace missions will
keep up, through the commitment of the Portuguese Armed Forces in various theatres,
ensuring the continuity of the national contribution to global security and stability.
That commitment, in 2012, in a pioneering initiative that will be able to extend to others
Portuguese-speaking countries by 2015, will count on the integration of a military contingent
of Timor-Leste in the National Dested Force in Lebanon, in the UNIFIL Mission, of the Nations
United.
The participation of the MDN in the Common Security and Defence Policy of the European Union
will be focused, in particular, on the process of definitive consolidation of the fundamentals of
Treaty of Lisbon, specifically at the level of the forms of Structured Cooperation
Permanent and Cooperations Reinforced and the process of "Pooling and Sharing".
At the level of NATO, and in addition to its contribution to the strengthening of the Alliance, the MDN
will materialize aspects related to the approved structural reforms, specifically
with the installation, in Portugal, of the Strike Force NATO, and of the transfer, to our country,
of the School of Information and Communications System of the Organization.
Within the framework of bilateral foreign defence relations, the MDN effort will focus on
strategic areas, be it by way of strengthening the relationship with allies and partners
traditional, be it through the consistent dialogue and approximation with the countries of the Maghreb.
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The historical, cultural and linguistic proximity implies the continuous valorisation of Cooperation
Technical-Milting, betting on Training in Portugal and in Projects that are in
course in the Partner Countries, but also discovering new opportunities for cooperation
in the Defence sector, to be developed either bilaterally or multilaterally in the
Community of Portuguese Language Countries (CPLP).
In this period, the procedures for revising the Military Programming Act will be concluded.
(LPM) and the Military Infrastructure Programming Act (LPIM), in an effort to
adjustment of the needs for reequipment of the Armed Forces and maintenance of
military infrastructure at the current economic-financial juncture and the real capacity of
profitability of the real estate of Defence, which will allow for a Largest and
better sharing of military equipment in the future.
The business sector of Defence is expected to have Greater sustaining capacity, being the subject
of restructuring, and will actively and actively seek to find new partners and
international partnerships, thus contributing to the goals of Economic Diplomacy.
A "one-stop shop" will be set up with the aim of facilitating access and streamlining
procedures relating to the Former Combatants and the Disabled of the Armed Forces,
dignifying the servicemen who served the Country.
MDN will be inductor of processes that identify mechanisms of coordination with
other Ministries, which avoid the duplication of capacities and interventions and that
enable gains in efficiency and synergies, providing obvious advantages in terms of
of economy of effort, scale and resources. In this sense, they will be strengthened the
mechanisms for coordination with the MAI.
The reform of Military Health will make decisive steps in bringing it forward, seeking
improve existing structures, the level of service provided and the rationalization of resources,
humans, financials and materials, the same as checking with the reform of the Teaching
Military.
The start-up of the restructuring of the Army Manufacturing Establishments, of a long
deferred, will be realized in this period.
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MDN activity will pay attention to the commitments to which Portugal is obliged in the
framework of economic-financial support provided by the international Institutions, being
active part of the national effort to curb public spending, so on the Budget
of State for 2012 there are already concrete contributions from the MDN to the consolidation effort
budget.
The rationalization of structures and resources, with a view to greater efficiency and efficiency of the
Armed forces, it intends to equally deepen the concept of a Armed Forces by
service of people.
The realization, in the MDN, of the Central Administration's Reduction and Improvement Plan
(PREMAC) will allow a Largest rationalization of structures and better use of the
resources, the modernization and optimization of the functioning of the Public Administration and the
improvement of the quality of public services provided.
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5-5. TH OPTION-THE CHALLENGE OF THE FUTURE: PRIORITY SECTORAL MEASURES
5.1. Economics and Employment
In order to achieve sustainable and lasting economic growth, but having
present the very demanding context resulting from the PAEF, the Government will hold a
set of structural reforms that promote the increase in productivity and
competitiveness, which create conditions that are more favourable to financing of companies, which
stimulate the production of transactionable goods and facilitate investment and the creation of
employment.
The Government will follow an active policy of promoting the internationalization of the economy
Portuguese and of stimulus to exports that contribute to economic recovery and
for the reduction of the trade deficit. The Government will bet on the transactionable sector,
promoting competitiveness and innovation and ascent in the value chain of industry and the
tourism.
The Government will further follow a labour policy that fosters job creation, decreases
the segmentation of the labour market and to increase the competitiveness of companies. From the
same form, the sectoral policies in transport and energy will be oriented towards the
increased competitiveness of the country, improving its efficiency and rationality and
ensuring their financial sustainability.
5.1.1. Support for Internationalization and Investment Caption
The growth and competitiveness of our economy has to inevitably pass through the
increase in our exporting capacity and the renewal of our corporate fabric. The
imbalance of our trade balance is a recurring factor of limitation to our
healthy economic development, in addition to the consequent imbalance at the level of
national accounts. A restructuring of the monitoring of the following is necessary.
issues associated with internationalization, in the sense of potentiating the effectiveness of strategies
of internationalization of Portuguese companies.
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The Government further aims to strengthen the catchment of new investors and investments from
existing businesses, notably those that contribute to modernization and
restructuring of industrial fabric. For this, it will seek to promote an environment favourable to the
investment, eliminating or reducing context costs and simplifying processes from
licensing. The main measures are set out below:
The Consolidation of the State's action in the framework of support for internationalization and the
investment caption, with a view to the use of synergies between different
public bodies and the strengthening of the effectiveness of economic Diplomacy;
Support for the internationalisation of traditional sectors, through a strategy of
differentiation and cooperation (via poles of competitiveness / clusters and associations
sector), in the sense of strengthening the national added value;
Creation of the "Passport for export" that certifying SMEs (non-exporting)
as companies with potential for export;
To Develop, in conjunction with the representative associations of economic agents,
modalities of development of partnership actions between SMEs and Large enterprises
with a view to the internationalization of the first;
Creation of a network of active contacts based on the expatriate Portuguese and the
Portuguese communities abroad that will support the internationalization of the
Portuguese companies and the investment angling;
Revision Revision of the applicable investment legislation with a view to its simplification and the
transparency of processes.
5.1.2. Revitalization of economic activity
In the current context of difficulty in financing the economy, it is crucial to promote the
liquidity and the creditworthiness of the business fabric so as to strengthen financial conditions
of companies with economic viability. Thus, in the period 2012-2015, it is intended to
promote a context appropriate to the acceleration of economic growth and consolidation,
restructuring and creation of companies. It matters to perfect the mechanisms for supporting the
consolidation of capital, essential to the growth of the average size of the productive fabric
to achieve a minimum scale of productivity and competitiveness.
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In this context, a summary of the main measures is then presented.
implement by the Government in this area:
Promoting a strategic reprogramming of the QREN by optimizing resources
financial available;
The Reduction of state payment delays to its suppliers and restructuring
of the credit to the State Corporate Sector;
To Streamline the resource to sources of funding and create specific programs to go from
meeting the difficulties of liquidity;
Reform Reform in the Capital of Risk sector reorienting it above all to SMEs with
potential for innovation and job creation. It is based on 3 key points: ( i )
Promotion and development of the Private Risk Capital; ( ii ) Rationalization of
resources; ( iii ) Reorientation of priorities.
Revision Revision of the extrajudicial process of consolidation, with a view to greater speed and
less complexity, in the face of the judicial process of insolvency;
Assessing demand deficit assessment by sources of financing beyond credit
traditional, including the resource to the capital market, capitalization funds,
recapitalisation and restructuring of companies;
Further Strengthening the dissemination and de-bureaucratization of financing instruments
made available by the European Union to strengthen the rate of participation of the
Portuguese companies.
5.1.3. Strategic Program for Entrepreneurship and Innovation
The development and competitiveness of a country are nowadays associated with the
intensity of investment in research and development (R&D) and the pujance of its
innovation system, which has as its main function to allow companies to have an access
privileged to the knowledge and thus to its application in the creation of economic value.
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There is a space to strengthen both innovation and the R&D effort itself in the
Portuguese business context. For Portugal to be a reference in terms of
innovation in global markets, it is necessary to strengthen the market value of research, the
which goes through stimulating to the networking of universities, research centres,
incubators and companies, and encouraging the integration of human resources highly
qualified in the companies.
On the other hand, to create an entrepreneurial-friendly framework and a
lower risk aversion, in addition to the reduction of context costs and the promotion of access
of adjusted forms of financing, will matter to start by identifying the
bottlenecks that arise for companies in the economic valorisation of the results of the
R&D and Innovation activities, and to promote initiatives and policies aimed at the creation of
markets for innovative products, processes and services.
In this framework, the following priorities are subscribed to:
Creation of the program + Entrepreneurship + Innovation, which translates development
of a strategy for the Country through an aggregator programme of promotion of these
areas as crucial factors for competitiveness. This program will be open and will
being adjusted according to the needs and results obtained, involving a
extended set of actors;
Will Be implemented the Small Business Act (SBA) with the necessary adaptations to the
specificities of the Portuguese economy in such a way as to promote the creation of new
companies, the enhancement of competitiveness, job creation and support in the management of
treasury of the EMS and its financing;
Create Create more favourable conditions for the participation of Portuguese companies, especially
of SMEs, in the International R&DT and Innovation Programs, through a
active participation and which aim to safeguard the interests of the national economic fabric,
not only when its implementation of those Programs, but also in the phase
of design or review of them;
Enhancing the Internal Competencies of SMEs in Innovation through a Better Duma
use of specific instruments already existing within the framework of the QREN/COMPETE,
notably the Núcleus modalities of I&DT and Valleys of I&DT and Vales de
Innovation; supporting companies in the various phases of Implementation of a System of
R&D and Innovation Management;
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Entrepreneurship Strengthening business cooperation policies and clustering capable of overcoming the
current inadequacies of cooperation between companies and the scientific system and
National Technology, in this context it will proceed to the evaluation of priorities and the
governance model of Competitiveness and Technology Policies and others Clusters
supported through the COMPETE Collective Efficiency Strategies initiative;
Promoting Promotion of skilled entrepreneurship, not least in technological areas, and
assessment of training needs of entrepreneurs aiming at familiarization with
those sources of funding;
Research In the field of administrative procedures: simplification of creation processes,
restructuring and extinction of companies; enlargement of the scope of acting of the Stores of the
Company, focusing on a unique location and interlocutor the key functions of the State
for business (finance, labour inspectorate, social security, etc.).
Support Supporting companies in the national and international industrial property register,
particularly in the registration and licensing of patents.
5.1.4. Valorisation of the National Offer and Deepening of the Internal Market,
including Competition
In the period 2012-2015, a strategy will be implemented aimed at promoting the
valorisation of the national supply, as well as consumption of goods and services of greater
contribution to the VAB in Portugal, simultaneously potentiating job creation
and the dynamisation of local markets.
The Competition Act will also be perfected.
With respect to the valorisation of the national supply, it is intended to increment the scale of the chain
of value of traditional activities and the development of new industry activities
transformer, through the following measures:
Acting Performance within the areas of industry, trade and services, through dynamisation
of consumer awareness initiatives, companies and public entities for the
quality of products of national origin, within the fulfilment of the rules of
competition from the European Union;
Adopting Adoption of stimulus measures to the adoption of patterns and consumption practices more
sustainable;
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To Combat unfair trade competition to ensure transparency in the
markets for goods and services;
European Union, pugnar by the adoption, by third countries, of standards of
health and environmental protection, among others, equivalent to those who are practised in the
European Union;
Creation of the Platform for Monitoring Relationships in the Food Chain, which
has the mission to keep track of the relationship between agricultural production, processing and
distribution, so as to ensure transparency, fairness and balance in the chain
feed;
Promoting the elaboration, definition and implementation of consumer protection policy
as a goal of ensuring a high level of protection for consumers, to
that these can also contribute to the creation of a more competitive market and
dynamic, leading to an increase in overall well-being.
With respect to the policies of competition and regulation, the Government intends
develop, in the framework of the Major Options of Plan 2012-2015, a facilitator matrix
of the development of the Portuguese economy, and of the spread of markets
competitive, which are simultaneously promoters of the investment, on the part of the
private companies and generators of trust in the field of citizens and consumers in
general.
The current revision of the Competition Act aims, among other objectives, to promote
modalities of business cooperation with a positive economic balance, in the terms
of Article 101 (3) of the Treaty on the Functioning of the European Union, which in parallel,
promote the praxis of a regulatory state in which it itself does not distort the rules of
competition.
5.1.5. Employment and Labour Market
The well-being of people and the competitiveness of companies and the Portuguese economy
requires labour legislation that fosters the economy, competitiveness and the creation of
employment, which decreases labour precariousness and which is concentrated on the protection of the
worker and not from the job posting. In this context, it is intended, in the period 2012-
2015, adopt a broad set of measures:
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Within the framework of Social Concertation: simplifying labour legislation through a larger
clarity of standards and diminished bureaucracy; create a legal regime more tailored to the
reality of business; reshaping the system of severance compensations
labor contract, aligning Portugal with the average compensations of the remaining
countries of the EU; implement the funding mechanism with a view to ensuring the
partial payment of the compensations for termination of the employment contract; extend to
small businesses the compensation claims in replacement of reinstatement at the request of the
employer; to promote labour arbitration in individual conflicts of work; and
guarantee the possibility of changing the dates of some holidays, so as to increase the
productivity;
Under the contracts to be concluded in the future, the trial period will be relaxed in the
initial recruitment and simplified the process of termination of contracts. Due to the
current situation of social emergency, it is intended to still admit, by way of exception, the
extraordinary renewal of the fixed-term contracts which, until June 30, 2013, no
may be the subject of renewal by effect of the duration limits set out in the n.
1 of Article 148 of the Labour Code;
In the area of the duration of the work, adjusted working hours will be established
to the needs for the laboration of organizations, in particular through the creation of
a bank of hours and the adequacy of compensation resulting from supplementary work
to the needs of the company and the worker. It is intended to enable the resource to
temporary work whenever there is a real transient need for
work;
The Aim is to still introduce mechanisms of temporary giving of workers
between companies for a limited period of time, dependent on express agreement of the
worker;
A new generation of active employment policies will be promoted, namely the
review of the contents of the formative offers, adept at the needs of the
labour market; identification of occupations in which the supply of jobs
is not met by demand; creation of programmes with the aim of promoting the
access to the labour market of young people with high qualifications and the insertion of
unemployed with more than 55 years, through vocational training actions
specific; launch of a program aimed at the professional requalification of
unemployed and targeted for occupations in which there is greater inadequacy
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between supply and demand; resort to cheque-forming, facilitating individual access
from workers to training; development of promotion support mechanisms
of the employment itself; and deepening, in conjunction with the social partners, of the
intervention mechanisms provided for in the scheme of the Employment and Insertion Centres.
5.1.6. Regional Development and Community Funds
The public policies of support for regional development and community funds, in the
period 2012-2015, will aim at the following objectives:
To Promote a harmonious development of the national territory simultaneously with
the promotion of high and sustained levels of economic development and
sociocultural and territorial qualification, aligned with the reform of local power, well
as a policy of valorisation of the territory and its potentials,
establishing measures to increase rationality, coherence and
effectiveness of public policies oriented towards regional development (central,
regional and local);
Ensuring the execution in the fullness and with rigour of the monies in the Operational Programmes
of QREN, in coherence with strategic and operational priorities;
Promoting a strategic reprogramming of the QREN, oriented towards optimization of the
use of the resources available through the Operational Programs;
To Prepare and negotiate, according to the needs of our Country, the next period
of programming 2014-2020, either from the financial point of view, or from the point of view
of national priorities.
5.1.7. Transportation, Infrastructure and Communications
In the field of transport, in the period 2012-2015 improvement will be ensured
of the mobility of people and goods, so as to improve the conditions
of the operation of the economy, increasing energy efficiency and reducing the
environmental impact, through:
A Strategic Plan of Transport that reviews and simplifies the regulatory framework
of the sector in such a way as to ensure a full development and modernization and
coherent of the different modes of transport;
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Establishing Establishment of investment priorities for the sector, taking into account
the financial constraint framework of the Country, specifically promoting all those
contribute to an improvement in the competitiveness of national exports,
reducing context costs and promoting the effective integration of Portugal into the Network
Trans-European Transport.
Investments in this sector will consider the availability of financial support in the
scope of the QREN and will be prioritised in a concession scheme to the sector
private, so as to minimise the financial effort of the state.
Measures that allow for the resolution of chronic operational deficits and
growing financial debts in the area of public transport through: promotion
of public transport and would improve the efficiency of operators, in parallel with
measures of price discrimination by way of alleviating the effects of increases
tariff rates for the lower-income citizens; debt restructuring
historical financial; clarification of the model of the state's relationship with the
various operators at the level of public services, ensuring transparency and
commitment to productivity improvements; and evaluation of the eventual grant of the
careers and lines of the Carris, STCP, CP and Metro of Lisbon;
Re-dimensioning and requalification of the national railway network: pondering
the needs of the transport of passengers and goods; defining the model
of privatization / concession of the state railway operator, specifically in the
activity of the transport of goods and suburban passenger; and evaluating the
organization model and funding of the REFER-National Railway Network.
Additionally, reinforcement of links to ports and production centres oriented to
the foreign trade, developing railway infrastructure in European yardstick
so as to privilege the external competitiveness of the Country;
In the Air Transport sector, definition of a growth project a
long term for the airline, strengthening the strategic role of Lisbon as
hub, ensuring still the regulatory reframing of the airport system. Will be
still defined, and concretized, the models of privatization of TAP and ANA, and
reassessed the opportunity for construction of a new airport in the Metropolitan Area
of Lisbon;
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At the level of road infrastructure, the management model will be reviewed
and operation of the Roads of Portugal, with a view to ensuring the
its sustainability, and the National Road Plan, redefining priorities in face
of the financial constraints of the Country, and will be reinforced the principle of
paying user, through the introduction of tolls in road concessions, and the
security, so that it will continue the reduction of the sinister;
At the ports, and in such a way as to reduce the cost of moving the loads and reinforcing
the caption of international tourist flows, will be: improved the model of
governance of the port system and its effective integration into the global system of
logistics and transport; intensified the technological modernization of the instruments of
port management, with a view to increasing the efficiency of Portuguese ports (Janela
Sole Port, Single Window Logistics, etc.); improved its attractiveness by the
evaluation of existing concession contracts and for the revision of the legal framework that
rege the port work;
In Telecommunications and Postal Services, functioning will be improved
of the market, specifically increasing competition and updating the
respective regulatory frameworks. Thus, it will be: realized auctions of new frequencies
of radio for access to wireless broadband; reduced barriers to entry in the
market for fixed communications; renegotiated the concession contract with the company
which currently provides the universal service of communications; launched a new
contest for designation of universal service providers; and defined, and
concretized, the model of privatization of the CTT.
5.1.8. Energy market and energy policy
In the period 2012-2015 will be reviewed the National Energy Strategy in such a way that they can
be achieved the following objectives:
Ensuring an energy model with economic rationality, which ensures costs of
sustainable energy, which do not compromise the competitiveness of companies, nor the
quality of life of citizens;
Promoting the competitiveness, transparency of prices, good functioning and
effective liberalisation of the markets for electricity and natural gas;
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Improving the Country's energy efficiency substantially (reduction in 25% of the
consumption up to 2020), with the State as a first example (30% reduction of the
consumption up to 2020), combating wastage, contributing to the improvement of
balance of payments and for a more cabal fulfilment of the objectives of
sustainability;
To Strengthen the diversification of primary energy sources, contributing to increasing
structurally the security of supply of the Country, decreasing the risk of the price of
determined commodities and improving levels of sustainability;
Ensure to ensure final energy sources at relatively competitive prices, contributing to
reduce intermediate costs and increase the competitiveness of enterprises;
To Ensure compliance with the targets for reducing gas emissions with effect
greenhouse;
To Strengthen legal certainty and transparency in the sector by consolidating legislation
approved in a dispersed manner and assists in a code of energy.
At the beginning of the 1º quarter of 2012, a National Strategy will be presented for the
Geological resources that establish a financing strategy for dynamisation
of the stage of prospecting and attracting foreign investment for exploration and that
promote the sustained growth of the sector, the increase in exports of technologies and
the creation of employment.
5.1.9. Tourism
In the period 2012-2015, the Tourism sector bets on the differentiation and authenticity of the
services and products, and in the diversification of markets, so as to reduce their current
concentration, through a shared strategic vision between public and private actors,
innovation and efficiency in the management of financial resources, strengthening of regulatory action and
simplification of the legislation. For this, the following measures will be implemented:
Gambling Bet on the "Marca Portugal" and enhancement of the attractiveness of Tourism by its articulation
with planning of space, the environment, transport, health, sea and culture,
in the priority internal and external markets, taking aim at the bet on the
growth in the sector;
The Strengthening of the Senior Tourism Programs, Tourism for Emigrants, Tourism for
Citizens with disabilities and incapacities, Religious Tourism, Health Tourism and
Tourism of Nature;
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Promoting Promotion of new valorisation content of destination Portugal in cooperation with
the creative industries, on the basis of history, shared values and authenticity of the
tourist product;
The Consubstantiation of an economic and logistics platform that reinforces the flows
atlantaic root tourist.
5.2. Rental market
The shortcomings of the leasing market have functioned as an embarrassment
for the dynamisation of the real estate sector, while also entailing problems
economic and social. For the period 2012-2015, the Government is proposed to invert this
trend, creating a dynamic and sustainable leasing market, as well as
conditions of trust for anyone who wants to put real estate in the renting market.
This will pass, among other measures, by the review of the renown update mechanism,
by the implementation of an extrajudicial eviction mechanism of the lessee and the
reinforcement of contractual freedom between the parties. This effort should meet the situations of
deficiency and to the economic and social specificities of the tenants.
5.3. Agriculture and Forests
The period 2012-2015 corresponds to the start-up of a cycle of the Common Agricultural Policy,
owing to Portugal pugnate for a more equitable distribution of financial resources.
Domestically, every effort should be made to take advantage of the totality of the monies
intended for the income of farmers. At the internal level, it should be ensured to
national turnout needed to complete PRODER, co-financed by the EU up to
2015.
Agricultural enterprises should be encouraged, so as to increase production and
promote the improvement of productivity. In them radicam a diversity of resources
humans that matter to value and harness in order to potentiate conditions
competitive competitive of Portuguese farmers. In this sense, particular attention
is to be provided to the valorisation and training of the farmers.
It will be looking to invest in plant and animal, agro-industrial and basic industries productions
forest, betting on a model of rural development that resists the pressures of a
asymmetric model.
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The agricultural space should value multifunctionality, particularly potentiating
new uses and sustained explorations of the land. This implies a particular attention to the
availability of agricultural land, a land grant should be created.
An effort should be made to promote the balance of the value chain,
ensuring better articulation and justice among the actors.
Forest associativism, functional emparceling and collective management are
instruments that contribute to the balance of forest tissue and to combat the
fractionation. In that sense, the redynamisation of ZIF's (zones of
forest intervention).
It should proceed to the forest enrollment and the creation of a safety mechanism and
risk management, as a form of reducing fire risks. In the same way,
problems such as the decline of the underwater stands and the nematode of the pine
they should receive special attention.
5.4. Sea
As a structuring factor of national identity, the Sea should again be a factor of
development and creation of wealth. It matters, so to develop assented actions
in a strategic thinking about the maritime dimension of Portugal that allow for a
systematic knowledge about the activities with it related.
For this, it will be accurate, among other vectors:
To Act in the sectors of ports, logistics and shipping;
To Encourage the development of fisheries, aquaculture and the fish industry;
To Promote joint business performance within the legal limits of the sound competition;
To Act in the field of recreational nautics;
To Encourage, promote and publicize maritime culture;
To Act in the sectors concerning energy, minerals and biotechnology, in services
maritime;
Shall Act in the field of maritime works;
To Promote scientific research, innovation and development;
To Encourage in a widespread way the teaching and training associated with knowledge,
economy and culture of the sea, especially in the regions of vocation more markedly
maritime;
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To Take Advantage of actions in Maritime Security, including environmental protection
marine, to potentiate the Economy of the Sea.
In the Merchant Marine sector, specifically in the Commerce Navy, there is a
potential for growth and diversification by way of bridging insufficiencies gravesoment to the
level of maritime transport deficit secured by vessels under Portuguese operation,
to contribute to the balance of the balance of payments and safeguard needs
basic strategies that in the current context of zero national maritime assume the largest
gravity, in case of the inexistence of national tanker vessels associated with the inability to
supply of fuels to the Autonomous Regions with own means, in addition to
near-nula participation in foreign and international trade.
In the Naval Industry sector, including platforms or infrastructure in the sea, lies
another crucial strategic factor of an effective policy of Return of Portugal to the Sea,
preserving what exists and encouraging in all possible ways, innovation and the
development of repair and shipbuilding in Portugal, so that we can
make a significant contribution in an effort to relaunch repair and construction
naval in Europe and support the reconstruction of the fleets of trade, fishing and military in
Portugal.
In the fisheries sector there is a potential for renewal and growth that should bolt the
relaunch of the fishing sector at the level of world competitiveness. Much of this
desicration is met at the level of the EU's common fisheries policy that should merit
special attention from Portugal.
Aquaculture should still be developed.
5.5. Environment and Territory Planning
A country that is committed to economic growth finds in its resources
natural and in a good territorial organisation solid foundations for their development.
A new development model should allow for an integrated view of the territory and
of its natural resources.
In the period 2012-2015 will continue to combat climate change, with the promotion
of a low-carbon economy and developing efforts to reduce emissions
national; inauguration of a new strategy for nature conservation and
biodiversity; will give a new impetus to the policy and resource management of resources
water, concreting and implementing hydrological planning in arrears; will create-
a National Plan of Action for the Efficient Use of Water, aiming to address the shortage
of water resources, whose institutional management model should be reshaped; guarantee-
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if it is the full implementation of the Water Framework Directive, whose supply sector and
sanitation should be reorganised; identification and resolution of the deficit will continue
tariff; review the tariff system and promote the opening up to the participation of
public or municipal public entities; a sustainability strategy will be pursued further
of the policy and the waste management and treatment system; the measures will be implemented
necessary for the opening of the Water Group of Portugal to the private sector; privileging
energy enhancement solutions of non-recyclable waste and refuges with potential
energy; optimising solutions for treatment and enhancement of industrial waste
dangerous; to bet on ecoefficiency and the revision of environmental taxation; to proceed
to the revision of the Bases of Environment Act and the Solos Act.
In the field of spatial planning, the simplification of the
institutional model of planning, decreasing the sectoral entities actors
in the processes, focusing skills on spatial planning and
urbanistic management and opting for a model that allows for the existence of a single
interlocutor for municipalities and municipes.
The seaside and the maritime space should merit particular attention to the level of protection and
valuation.
A policy of cities should be developed so as to correct imbalances.
A new framework should be penalised and implemented a new framework
legal from Urban Rehabilitation and the Tenancy, socially just, administratively
expedito and promoter of the restocking of the urban centers.
5.6. Health
5.6.1. Strategic objectives
Portugal has achieved a relative positive positioning of its Health System in terms
international. However, as mentioned above in the framework of the 1 th Great Option of the
Plan, the respective financial sustainability is at this point in time to the extent
that expenses have grown above the available revenue to finance them.
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It is therefore crucial to carry out a more rational and efficient use of resources
available, not just for the purpose of sustainability, but because this is
absolutely necessary to continue to ensure the right to the protection of health, what
implies strengthening the principles of accountability for the results, transparency of the
management of public monies and that of objective and effective impartiality of decisions to
health policy, as well as fulfilling the following strategic objectives:
To Continue to improve the quality and effective access of citizens to the care of
health, both at the level of the organisation and at the level of the provision;
Fostering a Major protagonism of the citizens in the use and active management of the
system;
Deepening cooperation in the field of health with the Community of Countries of
Portuguese Language (CPLP) and the European Union.
5.6.2. Measures
Quality and effective access to health care
To Implement the National Health Plan 2011-2016, as a key pillar of the
reform of the health system;
-Extending progressively the coverage of primary care, with the aim of
eliminate the current asymmetries of access and coverage of a regional or social nature and
betting on prevention: reinforcing the role of the integral entities of the Network of
Primary Care; shifting, in a phased manner, some care currently
provided in a hospital medium for structures of proximity; and enjoying and
developing the existing means, with the reinforcement of the care continued for
institute, for phased targets, a nationwide network of palliative care;
To Rearrange the hospital network through an integrated and more rational view of the system
of provision;
To Review the strategy of human resource management in health with weighted analysis of the
needs.
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Regulation of the sector
Deregulation Regulation and development of the public health sector, with special focus
in the performance of the Health Authorities and the application of surveillance systems
epidemiological;
To Promote conditions that enable and maximize health research in
Portugal, with special focus for clinical research.
Clinical guidelines lines
To promote the elaboration and implementation of up-to-date clinical standards and guidelines with
seen to ensure quality, measurable and comparable criteria with standards
known and accepted by the international and national scientific community, based on
principles of cost-effectiveness.
Accreditation of SNS services
Ensure structures and mechanisms of accreditation in health with a view to certification and to
public recognition of the level of quality achieved in the service providers
health care, according to pre-defined standards, strengthening the trust of the
citizens and professionals in the institutions, fostering a culture of improvement of the
quality and safety.
A Greater citizen's protagonism in the use and active management of the system
To Introduce freedom of choice in certain areas and services, on a priority basis
in Primary Care;
Enhancing integrated health promotion and disease prevention programmes
upon cross-sectoral basis initiatives, specifically with Education, Security
Social, Environment and Municipalities, with Greater proximity to the population;
To Insist on the reduction of average wait times for specialty queries and
surgeries;
To Intensify and promote ambulatory surgery through appropriate incentives that
stimulate your execution;
To Promote convergence in the state's convention contractualization policy;
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Resume Resume and complete the previously initiated legislative process, ensuring the
approval of a vital testament law.
Improving the information and knowledge of the health system
To Ensure an investment policy in information systems that allows for
optimization of existing sources of data in useful information for management and improvement
of the conditions of access of citizens to the health system;
To Evaluate the use of a card as a means of validation of all episodes of
care that is provided to you by ensuring the funding of the respective provider
in a more efficient and transparent manner;
The increasing dematerialization of all administrative processes of the entities
caregomers, promoting effectiveness and speed of response;
Development of Electronic Health Register (RSE), linking different typologies
of caregan-providing units;
Making Available monthly public information on the performance of institutions
(hospitals, health centres and services).
Improving the transparency of information in health
Transparency in health falls in the duty that the state assumes to inform the
citizens about the services that provide health care with quality and safety,
including the public provision of accounts as well as disclosure of simple information,
objective and decoded.
Deepening cooperation in the field of health with the CPLP and the European Union
Intensifying cooperation with the CPLP, facilitating the transfer of knowledge and the
setting up an agenda of cooperation in health, in the technical and scientific fields, well
how to promote the exchange of SNS professionals with the health services of the
CPLP.
To maintain and deepen cooperation in the area of health with the European Union in order to create
the conditions for the implementation of the Cross-border Donor Mobility Directive in the
Health system in Portugal.
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5.7. Education and Science
Education as a public service with quality is the conceptual framework around which
if they develop the measures set out in this document, which they take into account the
different elements of the education system, namely pupils, establishments
of teaching and the teachers.
As far as science is concerned, it is consensual to recognize that a scientific community
internationally competitive is a critical factor in the economic development of the
nations. In this sense, it is shown to be fundamental to foster the competitive capacity of the fabric
national scientific.
The year 2012 will be marked by the start-up of the new organisational structure of the Ministry of
Education and Science, stemming from the merger of the previous Ministries of Education and the
Science, Technology and Higher Education. In this context, the merger / reorganization is planned
of various services, bodies and entities, that will result in a significant reduction in the
number of leading posts-namely 38 top management positions and 47 posts
of intermediate steering (corresponding to 53% and to 28%, respectively, of the number
current of leadership positions).
5.8. Elementary and Secondary Education and School Administration
In matters of education and training, the Country faces as main challenges ensuring it
a significant improvement in apprenticeships, raising the skill levels of young people
and of adults and combating early school dropout. The Economic Support Programme
and Financial comes to reinforce precisely the need to put together efforts and bet on
measures that have in view " the increase in efficiency in the educational sector, the increase in
quality of human capital and the facilitation of adaptation to the labour market ".
Thus, with regard to subjects related to curriculum, pedagogical and
of qualification, the following strategic objectives are considered:
To Raise the skill levels and significantly improve the quality of the
apprenticeship, from pre-school education to secondary education (either in the general courses,
either in the professionnal courses), and their comparability in the European space;
To Extend access to special education and to appropriate educational intervention and response
therapeutics to the needs of pupils and families in special education;
Enhancing the ante in the vocational education of young people either at the basic level, or in the
secondary level of education;
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To Maintain the qualification responses of adults, with a particular focus on elevation of the
levels of professional certification and in the conversion and labour integration of the people in
unemployment situation;
To Develop and consolidate a culture of monitoring and evaluation at all levels
of the system of education, based on rigour, accountability, promotion and
valorisation of merit and the detection of the weaknesses.
As far as the school administration is concerned, the following objectives are considered
strategic:
Improving the management of human resources by means of the mobility process, using
demanding criteria for management and rationalization;
To Reorder the school system of the education system by improving the teaching conditions and
of learning in the 1º cycle and articulating and rationalizing pedagogical management and
administrative at the different levels of education;
To Create a coherent public offering network of education and by taking advantage of resources
existing;
To Strengthen the autonomy of schools by contractualizing with a Largest number of schools
Greater autonomy;
Undertake to undertake reforms in school administration, particularly in a first phase, the
financing model of private schools and cooperatives with contract of
association and the implementation of a new model of performance evaluation
lecturer.
5.9. Higher Education
Higher Education is essential for the development of the Country, be it through quality
of graduates, whether through research done at the institutions, be it through
direct transfer mechanisms of the know-how with a view to the creation of cultural richness and
economic.
The last few decades have been of rapid growth of the student population frequenting
institutions of Higher Education in Portugal. That population approaches the 400000,
being about 63% of the university subsystem and 37% of the polytechnic subsystem (with
approximately one-fifth in private institutions), and constitutes more than 35% of the
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corresponding age groups. At the same time, the qualified faculty has increased
substantially, having the number of doctorates surpassed the ten thousand in the year 2009.
The network of institutions and formations presents itself heterogeneous and unbalanced, coexisting
situations of high quality with problematic cases in the pedagogical, scientific plans
and of sustainability.
In the face of the current picture, the following strategic objectives have been defined:
To Improve the quality of the Higher Education system in Portugal using and, if
necessary, perfecting and strengthening the legislative and regulatory instruments
currently existing;
To Rationalize the network of Higher Education Institutions, with a view to optimizing the use of the
resources available and improve the adjustment of the formative supply to the needs of the
country;
To Improve social support policies with a view to the greater efficiency of services and
optimization in the use of public resources.
5.10. Science
The analysis of the social and economic impact of Research and Development policies
(R&D) in European reference countries reveals the importance of R&D support policies
sustained in time.
How to be inferred from the report " Science, Technology and Tertiary Education in Portugal,
2011 ", of April 20, 2011, such sustained effort has only two decades in our
Country. In this report, they identify themselves in the science policies of the last decades in
Portugal the following points that require attention: the fragility of the model of
funding for R&D in the face of economic cycles; the still limited link between science and the
productive fabric; the little clarity in policy decisions on the structure of the system
scientific of the Country; the absence of independent evaluation of the R&D policies themselves.
In this context, the following priority areas of intervention have been defined:
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5.10.1. Scientific Research
Modifications will be made to the financing model of the Units of
Research, in order to promote excellence and to concentrate financial supports where
they are scientifically more cost-effective, reducing the administrative burden of assessments
institutional, promoting the individual initiative of researchers and encouraging the
competitiveness of institutions for the reception of researchers and projects of
greater value.
5.10.2. Applied research and technological transfer to the business fabric
Measures will be introduced in the human resource training programmes that
stimulates the entrepreneurship of researchers and their integration into companies; by
other side, the dissemination activities of Science and Technology will be strengthened from the
young people from elementary and junior high school, so as to stimulate choice of careers
professionals in the areas of Science and Technology.
5.10.3. Formation of highly skilled resources and increased employment
scientific
National contests will be initiated for "career development contracts" of
young Doctorates and for the recruitment of the best national and foreign scientists
who want to integrate the national scientific system. Pretends, thus: (i) to create a body
stable of researchers of excellence in the Country, selecting the best at the national level;
(ii) promoting the mobility of researchers, allowing them to work in the institutions
what better conditions offer for the development of your projects and for the
competitiveness of their careers; (iii) adjusting the skills in the different areas of the
knowledge to the evolution of the needs of the Country; (iv) stimulate scientific employment in
Companies, State Labs and Universities.
5.10.4. Independent evaluation of Science policies
In order to withstand decisions on Science policies, a rigorous analysis will be made,
by independent entities, from the society-related impacts of the developed R&D policies
in recent decades, as well as monitoring of those to be implemented in the
future.
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5.10.5. Establishment of the National Council of Science and Technology
It will be constituted, in its Majority, by some of the best scientists and entrepreneurs in the
country and will have its post the follow-up of the R&D policies and the presentation of
recommendations necessary for its optimization.
5.11. Culture
In the coming years it needs to assert a clear vision of what the future of Culture should look like
in Portugal. Culture is a factor of cohesion and national identity, assuming itself as
an attitude to the life and national realities. It constitutes, today, a universe
generator of wealth, employment and quality of life and, at the same time, an instrument
for the affirmation of Portugal in the international community.
The main strategic objectives of the Secretary of State for Culture are:
5.11.1. Heritage
The Cultural Heritage constitutes the most precious assets of any country and represents the
inheritance common to all Portuguese, to be shared with the present and future generation.
Thus, more than a legal obligation or imposition, this is a civic and a
citizenship guarantee your care and development, assuming maintenance
responsible and the valorisation of museums and national monuments, through a strategy
integrated with the sector of Tourism, Municipalities, Schools and Civil Society.
5.11.2. Book, Reading and a Politics of Language
We are going through an important reform that translates into the adoption of the Ortographic Agreement
of the Portuguese Language. We believe that its increasing universalization constitutes a
opportunity to place the Portuguese Language at the heart of the political agenda, both internal
as externally. Also important is the reassessment of the National Reading Plan,
key piece in the articulation between spoken language and written language.
5.11.3. Liberating the Arts from the Tutela of the State
Implementing a new policy of assigning support to performative arts, seeking
not only de-bureaucratize procedures, expedite applications and, above all, evaluate
results. An absolute transparency in the allocation of state supports is intended to be
arts, theatre and film. We cannot continue to assign supports without identifying
clearly the most-worth they represent, whether in the framework of public service, be it
responsiveness and attractiveness of initiatives and spectacles.
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5.11.4. Growth of Creative Industries in Digital Environment
The work of national creators is a key factor in the definition of identity
contemporary of Portugal. Contributing to the development of the creative industries is
fundamental to increase the self-sustainability of the cultural sector, ensure diffusion and
defense of Author's Rights and generate qualified employment, running still for the
urban revitalization. It is necessary to legislate and act, as a matter of urgency, in the area of piracy of
music, of cinema and books, defending the creators, the rights of the authors, the
companies and the quality of the platforms in which they are circulating their work and products.
5.11.5. An Education for Culture and for Art
Culture is heritage of every one of us and we should be formed, while public not
specialist, for the importance of understanding and appreciating the various forms and
contents produced. Strengthen the connection to the school, deepening and developing the foundations
already existing, ensuring a generalized artistic education through periodic frequency
of museums and monuments, theatres and other structures of creation, so as to relate
with the school programs. There is only one way to create new audiences for culture and for
the markets of culture: creating cultural habits from the school age.
5.11.6. Landscape and Culture
The landscape that engages us has conditioned our evolution since the most remote times,
becoming also a pillar of the cultural identity of each region. Promote changes to
these landscapes has to be understood as an eventual interference in this cultural root,
soon subject to a prior opinion of this tutelage.
5.11.7. Measures
Aware of the objectives outlined in the Budget Strategy Document and in
consonance with the Memorandum of Understanding on Policy Conditionals
Economic, will promote a new Organizational Model, with a view to reducing the
costs for the State and the Contribute, the most efficient models of operation and the
re-evaluation of the role of the state in cultural life through a reorganization and
simplification of the structures and the tuteled entities, namely:
The Merger / extinction of organisms: will reduce the number of structures from 16 to 11,
decreasing the number of posts of leaders from 191 to 122, which translates into a
reduction of personnel expenses in the order of the 2.6 million euros.
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Amendment of the management model of the State Entrepreneurship Sector, with the creation of a
Complementary Grouping of Companies (ACE), which will allow for more management
effective, the centralization of processes, the decrease in expenditure by a management
more rational of human resources; the decrease in the charges with the hiring and
external services, the reduction of expenditure related to internal processes and reduction
of the expenditure at the level of the Boards of Administration. The creation of ACE will release the
Corporate Public Companies for what is truly public service in the
area of culture: artistic programming, creation, diffusion and itinerancy.
Contributing Contribution to the transversal target of manpower reduction in the Central Administration
at about 2%, capping the admissions of personnel.
The Organization's Reorganization and rationalization of the premises of the estate of the State Secretariat
of Culture, allowing for greater efficiency and effectiveness in financial resources,
humans and logistics and reduction of rental charges for real estate, through termination
of tenancy agreements. An estimated reduction will be expected to reach 0.8
million euros in 2012 and 2 million euros in 2013.
The Centralisation of Purchasing, notably through the aggregated acquisitions in the
Shopping Ministerial Unit, which will allow acquisitions at more competitive prices
and reduced.
Assessing the cost / benefit assessment and financial viability of the foundations that benefit
of transfers from the State, as well as the financial supports granted in the framework
of cultural activities, requiring a greater discipline in the use of them.
Revision Revision of the free regime of museums and cultural heritage, decreasing the
period of its application and change of its operating schedules, promoting
the increase in revenue.
Further Strengthening monitoring and monitoring of economic and financial implementation,
on a monthly basis, through the implementation of a system of information support
uniformed in all the Services and Organisms of the State Secretariat of Culture.