Introduction to Portugal’s New Central Bank Governor
The new governor of Portugal’s central bank, Álvaro Santos Pereira, has spoken out about the need for structural reforms to promote growth in the country. In a speech at Lisbon’s ‘Museu do Dinheiro’ (Money Museum), Santos Pereira emphasized that while Portugal is economically better off than it was a decade ago, more needs to be done to create policies that promote growth.
Economic Progress and Challenges
Santos Pereira, a renowned economist and former PSD minister of economy, acknowledged that Portugal has made significant economic progress over the past decade. However, he stressed that the country still requires policies that foster growth, and that structural reforms are essential to achieving this goal. Although he did not specify what these reforms entail, it is clear that Santos Pereira is committed to addressing the country’s economic challenges.
Addressing Indebtedness and the Housing Crisis
The incoming governor also touched on the issue of indebtedness, stating that while the state, families, and businesses are less indebted than they were in the past, further reductions are necessary to prepare for potential economic crises. Regarding the housing crisis, Santos Pereira emphasized that it is not solely the responsibility of central government to resolve the issue. Instead, he believes that local councils must also play a role in addressing the crisis by reducing obstacles and restrictions on construction.
The Role of Local Councils in Addressing the Housing Crisis
Santos Pereira argued that the main problem hindering construction is not a lack of economic incentives, but rather the numerous restrictions imposed by municipal councils. He stressed that it is essential to reduce these restrictions to facilitate the construction of new housing units. By doing so, local councils can help alleviate the housing crisis and promote economic growth.
Biography of Álvaro Santos Pereira
At 53, Álvaro Santos Pereira takes over as governor of Portugal’s central bank, succeeding Mário Centeno. Santos Pereira comes to his new role from years of service at the OECD, where he was most recently chief economist. His experience and expertise will undoubtedly be valuable assets in his new position.
Conclusion
In conclusion, Álvaro Santos Pereira’s speech as the new governor of Portugal’s central bank highlights the need for structural reforms to promote economic growth. By addressing indebtedness and the housing crisis, and emphasizing the importance of local councils in resolving these issues, Santos Pereira has outlined a clear vision for Portugal’s economic future. As he begins his tenure, it will be interesting to see how his policies and reforms shape the country’s economy in the years to come.
