“The central government is much better at controlling expenditure than executing it. I am convinced that the administrative regions, instead of bringing an increase in public spending and less budgetary rigor, will, on the contrary, bring greater budgetary rigor, as is the case today with municipalities”, said José Silva Costa, in an interview with Lusa.

As a full professor at the Faculty of Economics of the University of Porto (FEP), José Silva Costa was one of the national experts to whom the Independent Commission for Decentralisation contracted a set of studies, the conclusions of which were known in July 2019.

Responsible for a set of four opinions on the attributions, powers and funding of Regional Governments, the former professor argues that municipalities are subject to a set of rules imposed by the central government, executing their expenditure in strict compliance with these norms.

Positive findings

Reiterating the defense of a regionalisation model based on the principle of “variable geometry” - that is, suitable for each region - the former FEP professor says he has no doubts that if there were “sufficient and abundant means”, there would be a consensus around the creation of administrative regions.

“The problem of the lack of regionalisation remains like an elephant in the room, even if the decentralisation process is successful”, he defended, adding that the conclusions drawn from his work remain current.

Referendum

The referendum on regionalisation in Portugal took place on November 8, 1998, with two proposals being presented to Portuguese voters: the first on whether they should implement regionalisation in Portugal; the second, on whether if regionalisation was approved, they agreed with the region in which they voted. Both proposals were rejected.

José Silva Costa believes that with the openness shown by the Presidency of the Republic, which was perceived as an “obstacle” by many academics, the necessary conditions are in place for a new referendum on regionalisation.

“Regionalisation without a referendum cannot now be launched. I think it would be the first mistake”, he said, then listing a set of other criteria that, in his view, must be followed in order for regionalisation to be successful.

For the former teacher at FEP, the regionalization process has to be “a little ‘soft’”, and cannot “be too redistributive” and moderate in terms of the distribution of competences.

On the other hand, there must be a “very muscular guarantee” in relation to the increase in public expenditure and indebtedness.