AD's approach to managing crises, according to Pedro Nuno, involves "making cuts."
Rewritten Article:
Here's the scoop on what's happening with Portugal's Democratic Alliance (AD) government, straight from Pedro Nuno Santos, the PS leader. He's not mincing words, vocally criticizing the AD's handling of the economy, particularly after the Q1 2025 results.
The economy recently had a rough patch, contracting by a whopping 0.5% quarter-on-quarter and growing at a snail's pace of 1.6% year-on-year. This speaks volumes, says Santos, as it's the worst quarterly result since records began[3][5]. According to him, this economic slump is a direct result of AD's flawed policies[5].
Santos also points a finger at the political instability surrounding the AD government, arguing that it's undermining economic momentum following the advances made under the PS leadership[1][5]. The AD government came to power amid a political crisis and early elections on 18 May 2025, and critics argue that this has exacerbated uncertainty[2].
When it comes to economic forecasts, the government predicts a robust 2.4% growth for 2025. However, the Public Finance Council (CFP) believes this is "probable but not prudent" due to several macroeconomic risks and over-optimistic assumptions about public consumption growth[2]. Santos uses the Q1 contraction to call into question the AD’s economic credibility[5].
Interestingly, the AD government inherited a 2024 budget surplus of 0.7% of GDP, a figure that surpassed earlier predictions[1]. However, the focus now lies on governance stability and sustainable growth, rather than fiscal discipline itself.
With all this in mind, Santos declares that "Portugal needs a government change to restore growth" and that the AD coalition's policies are not offering solutions[5].
As of now, the economy is showing signs of stagnation. Portuguese companies are selling less, leading to less earnings for businesses. This trend is bound to affect workers, potentially leading to decreased wages and job losses[5].
Looking back to the PS government under António Costa, Santos emphasizes that they left the economy growing. He repeatedly stresses that the economy "is no longer growing" under the current AD leadership[5].
Remember, this is just one perspective. Things might look different from the AD's point of view. But for now, the Portuguese people are feeling the heat of an economy in crisis, with many experiencing lower tax refunds and even having to pay taxes for the first time[5].
[News updated at 5:29 PM]
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- Luís, the PS leader, has been vocal about his criticism towards the Democratic Alliance (AD) government's handling of the economy, particularly after the Q1 2025 results, which he implies show signs of a crisis.
- According to Santos, the AD government's flawed policies and political instability have contributed to a major economic slump, with the worst quarterly result since records began.
- The AD government's economic forecasts predict a robust growth for 2025, but Santos uses the Q1 contraction to call into question the AD’s economic credibility.
- Portuguese people are currently experiencing the heat of the economy in crisis, with many facing lower tax refunds and even having to pay taxes for the first time.
