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João Leão is aware that “there were sectors very affected” by the pandemic and that “many workers” are earning the minimum wage, currently 635 euros, but the Government believes that “there must be scope” to increase the minimum wage.
When asked if this increase in 2021 can be at the level of what was applied this year –35 euros – the The Finance Minister stressed that “the world has changed” with the pandemic, so it is essential to assess the situation of companies.
Regarding the salaries of the public administration, João Leão stated that in 2021 there will be an increase of more than 2% in the wage bill due to progressions and the recovery of the time of service of teachers and special careers.
On the current situation, João Leão was very clear when stating that the “worst is not yet over” despite admitting that in the third quarter “there were signs of recovery” above expectations. Income from the Internal Revenue Service for August, after sharp falls in previous months, had a year-on-year increase of 7%, an increase that, corrected for extraordinary effects, was 1%.
Despite the positive signs of the third quarter, the minister admitted that it is possible “that the fourth quarter is not as good” as the Government predicted.
The unemployment rate in 2020 and 2021 is expected to approach “9 or 10%,” while estimates for 2021 remain “uncertain,” he said.
João Leão also said that the Executive maintains the forecast that the The budget deficit is expected to remain at 7% this year.
Regarding the negotiations in Parliament for the approval of the State Budget, João Leão was optimistic, stating that “They are going quite well”, showing themselves convinced that the budget proposal will be approved in the Assembly of the Republic “with the same type of support as the previous five years.”
Asked about Novo Banco, the finance minister did not want to reveal whether the funds for the banking institution will be entered into the state budget for next year.
He further said that One of the priorities of the State Budgets is to increase the confidence of families and companies and guarantees that there will be no increase in taxes.
See here RTP’s report on the interview
