The "second negative judgment of the Constitutional Court" made "inevitable" the resignation of the former Minister of Finance, today accepted by the Prime Minister and the President of the Republic, says Vítor Gaspar in his resignation letter, which the Sul Informação had access.
But its "credibility" undermined by deviations, namely the fall in tax revenues, was also decisive, he adds.
In a kind of mea culpa, Gaspar stresses that "the failure to comply with the original program limits for the deficit and debt, in 2012 and 2013, was determined by a very substantial fall in domestic demand and by a change in its composition, which caused a sharp drop in tax revenues" . Thus, "the repetition of these deviations undermined my credibility as Minister of Finance".
Gaspar also gives his hand to the paddle with regard to unemployment and the need for investment. “The large adjustment costs are, to a large extent, unavoidable, given the depth and persistence of the structural and institutional imbalances that led to the fiscal and financial crisis. However, the level of unemployment and youth unemployment are very serious», admits the former minister in his letter to Passos Coelho.
Therefore, such problems "require an effective and urgent response at European and national level. For our part, they demand a rapid transition to a new phase of adjustment: the investment phase"
But, admits Gaspar, “this evolution requires credibility and trust. Contributions that, unfortunately, I am not in a position to ensure. The success of the adjustment program requires everyone to take responsibility. Therefore, I have no alternative but to fully assume the responsibilities that fall to me».
In his letter, the former minister begins by recalling that already on October 22, 2012, "just over eight months ago", he had sent another letter to the prime minister "which signaled the urgency of my replacement in the post of Minister of State and Finance”. Now, "in the middle of the following year, this urgency became unavoidable."
The first "judgment of the Constitutional Court of July 5, 2012 and a significant erosion of public support for the policies necessary for budgetary and financial adjustment following the then proposed changes to the single social rate" were, in October of last year, the reasons given now by Gaspar for his first resignation, which was then not accepted.
This time, after the second lead by the Constitutional Court, the minister considered his resignation "inevitable", but was "asked to continue to ensure completion of the seventh regular examination [of the Troika], the extension of the payment period for official loans European Unions and the preparation of the amending budget'. “I accepted then because of the dramatic situation into which the country would be dragged if these tasks were not carried out,” writes Gaspar.
Now that these tasks are ready, the former minister considers that his departure was "unpostponable".
But, before finishing, Vítor Gaspar complains that "only after the extraordinary Council of Ministers of May 12 did I receive a clear mandate from the Government that allowed the completion of the seventh regular examination", which happened the following day.
However, he stresses, "the absence of a mandate to timely conclude the seventh regular exam does not allow me now to continue leading the team that leads the negotiations with the objective of better protecting Portugal's interests".
Hence, in conclusion, Vítor Gaspar alludes to the discomfort that his maintenance at the head of the Finance portfolio was creating within the Government itself, stating: “It is my firm conviction that my departure will contribute to strengthening its [of Passos Coelho] leadership and cohesion of the governing team».
Read here in full the resignation letter by Vítor Gaspar.
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