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In Europe, States Challenge Austerity but Lack Cash to Spend

Page created: Monday, 28 March 2016 13:58 GMT

Thematic
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Austerity  Budget  Tax System

Portuguese officials hope tax cuts coming into force this month will put more cash in people’s pockets, generating a spurt of domestic demand and firing up the wider economy.

That might have a modest impact, concedes Gomes, but he’s not expecting a big pay-off for firms like his. Capital is still too scarce for big, job-creating investments, he says.