The reduction of wages in Portugal and the troika

Troika insists on wage cuts in the private.

Portugal runs the risk of concluding a further adjustment program, the third in less than half a century, without changing some of the fundamental aspects of their economic architecture.

This tenth exam troika nothing seems to have happened. The government ceased to be an active agent of structural reforms and left the work incomplete. And unfortunately, we are only prepared to win with the euro when we allow wages fall as well as we allow wages to rise.

Although the social partners and even the government are against the idea, the 10th report of the troika review, recently published claims that there is more flexibility in the labor market.

International creditors argue, therefore, that the adjustment of the economy must be based on " increased flexibility in product and labor”, an expression that can lead to a new troika pressure to lower wage income in the private sector.