Spanish
The new governor of the Bank of Portugal, Álvaro Santos Pereira, advocated this Monday for structural reforms to boost economic growth and warned of the risk that the real estate crisis may bring, during the taking of office in replacement of Mário Centeno.
"We are undeniably much better than a decade ago, but we cannot be complacent, first of all it is essential to bet on policies that stimulate economic growth, the Portuguese economy can and must grow more, but for that we need structural reforms," he said in a speech at the Money Museum.
In that sense, he maintained that a "reformist attitude is essential" for the prosperity of countries and the standard of living of citizens.
He anticipated that they will closely monitor the evolution of the real estate market and its impact on the lives of families and financial stability: "The enormous rise in prices in the real estate sector is a cause for concern, mainly when we take into account international indicators, the average income values of families and their effort rate in the purchase of their own home."
He highlighted that currently "there is a fundamental imbalance between the demand and supply of houses" and that the scarce growth of the real estate supply "has more to do with construction restrictions than with the lack of economic incentives".
In this regard, he recalled the measures adopted by the Government to "unblock the restrictions" and pointed out that "it is essential" that the city councils also do so.
On the other hand, he considered it "absolutely vital" to continue with the effort to reduce the national economy's debt and recalled that the country is still at a level of indebtedness that is "too high", with public debt hovering around 94% of GDP and that of the non-financial sector at around 290% of GDP.
Regarding his vision of the central bank, he wants an institution "more open and present in the national territory, more innovative, more attentive and more influential".
He also stressed that he wants the body to be "more independent".
He recalled that digital solutions are more convenient and efficient for the banking system, service providers, companies and users, although he warned that they raise "more fraud concerns".
Therefore, it was pointed out that it is necessary to guarantee "an adequate balance" between the promotion of innovative and European-oriented solutions, with the security of transactions; and it was emphasized that it is the Bank of Portugal that is responsible for doing so "with careful and intervening action".
Among some of the measures it wants to put on the table is to hold a regular dialogue with the Government and other financial supervisors on the promotion of financial education, the fight against fraud and money laundering.
We will also propose the reactivation of the National Financial Stability Council, so that the Government, the Bank of Portugal and other supervisors can periodically discuss risks to financial stability.
Santos Pereira arrives at the Bank of Portugal after having been chief economist of the Organisation for Economic Co-operation and Development (OECD), after the government of Prime Minister Luís Montenegro (center-right) decided not to ask Mário Centeno, who was Minister of Finance under the socialist António Costa, to remain at the head of the central bank for another term.
Santos Pereira was Minister of Economy between 2011 and 2013 during the government of the conservative Pedro Passos Coelho and stood out for defending structural reforms during the 'troika' period in Portugal. Afterwards, he stepped away from active politics although he has maintained a presence in the international economic debate.
