The Economic and Social Council of the Azores (CESA) has warned of the worsening regional debt ratio and called for a review of public spending, as well as the promotion of a sustainable economic growth model.

In a statement released after an extraordinary meeting held this week, where the Azores’ budget execution was analyzed, the CESA highlights the favorable evolution of the Region “in terms of increased employment (+0.9%) and decreased unemployment (-21.7%), the dynamics of the tourism sector, and the performance of the primary sector, with a 35.4% increase in the shipment of agri-food products between 2021 and 2024.”

However, despite these positive indicators, the body warns “of the worsening regional debt ratio (+€190.8 million in 2024, in accordance with the second notification relating to the Excessive Deficit Procedure of 2024),“ emphasizing the need to ”strengthen budgetary discipline“ and to ”strictly comply with the legal rules on financial balance.”

The CESA, chaired by Piedade Lalanda, advocates “a review of public spending and the promotion of a sustainable economic growth model that will increase the Region’s revenues,” while expressing concern about late payments, “which affect the liquidity of companies, especially SMEs and sole proprietors.”

In the note, it calls for “greater rigor in budget forecasts and suggests the creation of a simplified version of the Autonomous Region of the Azores Account (CRAA), accessible to citizens, with clear information on the implementation of public policies.”

Regarding the implementation of the Recovery and Resilience Plan in the Azores (PRR-Azores), CESA noted that the cumulative implementation rate “reached 87.3%, with 165 milestones and targets completed and 24 not completed.”

The body recognizes and praises the “recovery effort” on the part of the Regional Government and the recently created Mission Structure in the publication of the Periodic Monitoring Reports.

CESA reaffirms its role as an independent collegiate body, of an advisory and monitoring nature, and indicates that, at the meeting, the proposal to transfer financial and administrative dependence from the executive sphere to the Legislative Assembly of the Azores was approved, “emphasizing its independent character, in line with its counterparts in the Republic, the Autonomous Region of Madeira, and Europe.”

Created in 2018, CESA is an independent advisory collegiate body, aiming to foster dialogue between political power and civil society through consultation between social partners and the Regional Government. CESA is responsible for issuing opinions on preliminary drafts and draft economic, social, and environmental development plans, including the regional plan and budget, as well as reports on their implementation. Additionally, it provides opinions on economic, labor, social, and environmental policies.

In Diário Insular-José Lourenço, director

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