The State Budget proposal for 2025 (OE2025) has “positive signs”, but lacks ambition, considers the president of the Portuguese Business Association (AEP), Luís Miguel Ribeiro, adding that he would abstain if he had to vote on it.

In an interview with Antena 1 and Jornal de Negócios for the Conversa Capital program, Luís Miguel Ribeiro describes the attitude of the PS as “responsible”, by abstaining from the vote in general and in the global final, thus paving the way for the viability of OE2025.

Although he recognizes that the OE2025 has some “positive signals” in the sense of valuing the role of companies and strengthening family income, the president of the AEP considers that it is a document “without ambition” and therefore the vote he would give it would be be “abstention”.

The AEP, it also says, will insist on defending its proposals before the Government and the parties, taking advantage of the discussion period in the OE2025 specialty, during which the parties can present proposals for changes. In this context, the need to reduce the IRC to 15% or change the rules so that companies can effectively pay performance bonuses stands out.

Despite praising the attitude of the PS towards the budget proposal for the predictability it provides, Luís Miguel Ribeiro emphasizes that it is necessary to do more, that is, for the two largest parties to assume “commitments in the short and medium term so that this predictability is a reality.”

When asked about the privatization of TAP, he affirms that he is in favor of the sale of all the capital of the airline company, taking into account that “there are airline companies with knowledge and structure that can allow TAP to fulfill its mission.” mission”.

Regarding Exponor’s continuity in AEP, it guarantees that the asset sale process is not closed, that negotiations are ongoing and that AEP will maintain exploration and, eventually, ownership of Exponor. “The model is still open and we will see what the best solution is, but we are actively in the process and the Exponor exhibition park will continue to be an asset for the AEP and the country. We can assure you that this is true. We will see the shape and model when the process is finished,” he says.

Insolvencies and layoffs are already a reality. Aicep “has been paralyzed”

The president of AEP warns that companies face a situation in which the increase in insolvencies and ‘layoffs’ is already a reality, highlighting that in public policies it is necessary to move from good intentions to implementation.

“The challenges are there, companies are already struggling with a decrease in business volume, in the volume of orders,” highlighted Luís Miguel Ribeiro, specifying that the current international situation, with the main export destinations in difficulties and competition from other economic blocks, This means that companies “already face a scenario that is difficult to manage”, in which “insolvencies, layoffs and other situations” begin to “become a reality.”

Luís Miguel Ribeiro affirms that the measures and signals that the Government has given, specifically in the General State Budgets for 2025 (OE2025), “are positive” and “go in the right direction”, but then they lack the “adequate intensity” . highlighting the need to provide an immediate response to the challenge of foreign competitiveness.

Regarding the actions of the Ministry of Economy, it gives a similar reading, recognizing “openness and willingness to do”, but that “it remains to be done”, highlighting that there are things that can be achieved for which money is not needed, and it is only necessary to speed up the operation.

“Companies today already face a difficult scenario to manage.” […] I have something here in the State in public policies that contributes to reducing this challenge of external competitiveness or we are going to have a very difficult period,” he explains. In this context, he states, “it is not enough to point out good intentions,” and “it is necessary to have responsiveness and immediate response capacity” because “the challenges are there.”

The president of AEP also said that this is a situation that is not only being experienced in one sector or another, such as textiles or footwear, but that it is also beginning to be noticed in several, pointing out “metalworking, construction and others.” “

In this interview, the president of the AEP also accused Aicep of being stagnant in coordination with business associations and of making it difficult to carry out missions abroad, pointing out the weak implementation of PT20230 which currently, he stated, is around 4%. The Government changed the direction of the investment agency in June, appointing Ricardo Arroja.

Regarding the Development Bank, Luís Miguel Ribeiro states that currently there are “many situations in which companies access financing lines through the Development Bank that are more expensive than in commercial banks,” also considering that “the weak functioning ” of this bank “negatively affected the functioning” of the mutual guarantee companies.