Rui Rio was asked by journalists about whether he believes there is room for salary increases, replying that this question should be put to the Prime Minister.
“Less than three months ago, the Prime Minister swore that he would increase the weight of wages in national income. These were the promises that determined the vote of many people. It hasn't been three months yet and he is already doing the exact opposite. He threw the promises into the bin,” he said.
The Social Democrat leader questioned how a promise that was “determining for the people's vote”, after three months, “is not being fulfilled and people will take a huge cut in their purchasing power”.
“The nominal salary [has no cuts], whoever earns a thousand will continue to earn a thousand, only that, in a year from now, they will not get the same thing as they do today, because inflation will eat it up. It’s the same thing as a hidden tax,” he said.
The PSD president recalled that the State Budget for 2022 is under discussion in the Assembly of the Republic, after legislative elections in which the PS “strongly promised to increase salaries”.
“Right now, what we are witnessing is exactly the opposite. What will happen in 2022 and 2023, with this government policy, is a brutal drop in the purchasing power of wages," he said.
Rio stated that this happens because "the Government does not want to adjust the increases to the inflation rate and this is like a hidden tax, the person loses purchasing power" and the Government gains, through inflation, "either at the level of macroeconomic ratios, particularly in terms of the debt ratio, or later in terms of growth in revenue and nominal expenditure”.