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Portugal report
by Euro Reporter
2008-10-12 10:46:20 |
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Cut corporate tax
Portuguese Prime Minister Jose Socrates on Wednesday unveiled plans to introduce a new, lower corporate tax rate of 12.5 percent in 2009, a move designed to help small and medium-sized firms ride out the financial crisis. Speaking in parliament, Socrates said the Socialist government would also extend an existing credit line to small and medium-sized companies to 1 billion Euros and that interest rates on these loans would be set below official levels.
"The world is facing a very difficult situation," Socrates told parliament as he outlined measures that would be included in the 2009 budget, which will be presented in coming days. He told parliament the new 12.5 percent tax rate would be applicable for corporate incomes of up to 12,500 Euros ($17,030). The existing rate of 25 percent would apply to income above that. He stressed the measures would not upset Lisbon's efforts to reduce its budget deficit, which a few years ago was 6 percent of gross domestic product, twice the European Union limit of 3 percent, and said this year's budget deficit target of 2.2 percent of GDP would be maintained. He said "all countries" had downgraded their economic forecasts because of the crisis but did not provide any new figures for Portugal. In May, the government forecast 2008 growth of 1.5 percent, down from 1.9 percent in 2007. It expects 2009 growth of 2.0 percent. The government's announcement came as the International Monetary Fund cut its 2009 growth forecast for Portugal to 0.1 percent from 0.6 percent.
Cutting tax has its sharp edge as well!
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Kosovo and Portugal
Portugal has become the 48th country to recognize Kosovo’s independence from Serbia and the 22nd European Union member state to do so. Portuguese Foreign Minister, Luis Amado, declared his government has officially recognized Kosovo as a new country. “It is in the interest of Portugal to recognize Kosovo as we believe independence is irreversible,” he said.
The head of diplomacy in Lisbon mentioned four reasons why his country chose to recognize Kosovo. “Independence is irreversible; the fact that international law cannot solve a political problem; that recognition is important to foster the ties within NATO and the EU and above all the Russian intervention in Georgia,” said Amado. Lisbon’s recognition comes at a crucial moment for Kosovo when later on Wednesday the United Nations General Assembly will vote on Serbia’s resolution to ask the International Court of Justice whether Kosovo’s February 17 declaration of independence was in line with international law.
I suppose the only remaining is Russia’s reaction!
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Losing Deco, Maniche to injury
Portugal midfielders Deco and Maniche will miss World Cup qualifying games against Sweden and Albania due to injuries. The two players were released from the squad late Tuesday after undergoing medical tests.
Chelsea playmaker Deco is still recovering from a torn thigh muscle, while Atletico Madrid's Maniche has a back injury. Their absences extended Portugal's injury list which includes winger Simao Sabrosa and central defender Ricardo Carvalho — both sidelined with knee injuries.
For a country that breathes with football the news are …dramatic!!!
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