Madeira To Gain More Independence From Portugal?

Tax-News.com, Brussels

27 March 2002

Commentators in Madeira are emphasizing the strong position of the four Madeiran members of parliament after the recent 'hung' Portuguese election.

One leading professional asks: 'Central Government to allow Madeira to conduct their own fiscal affairs sooner than predicted?'

Says a briefing: 'Madeiran Regional President Alberto João Jardim (AJJ) delivered, this weekend, the strongest message of all. As we have previously pointed out, the Madeiran PSD MP´s vote as a block on instructions from Madeira and not from their party whip. Even with a 14 MP addition from the PP, the 4 Madeirans could alter the Government's chances of survival and political stability as their votes would reduce the Government's votes to below the 116 required. Though no one wants to go that far, the threat of action is real as AJJ defends his territory with the ferocity of a she-wolf protecting her cubs. The warning was issued when the Prime Minister confirmed his Election promise of belt tightening order to reduce its unacceptable deficit.'

Experts expect that cuts to the Portuguese government's Madeiran budget will have a good result for the jurisdiction: 'We expect that cuts to the Madeiran budget will eventually be made. The 'horse-trading' currently being conducted underpins our previously stated opinion that the National Government will cede to RAM Election policy for a full regionalisation of some national services such as tax collection and supervision, which means that there will be no need, or future opportunity, for Lisbon to become involved, any more, in any of Madeira's fiscal affairs. It has been unkindly suggested, in political circles, that once again Madeira has come to the rescue. Madeira's fiscal 'regionalisation' policy is helping the Prime Minister to reduce costs by taking out a vast bureaucrat layer of soon to be redundant direct & indirect tax Civil Servants dealing with Madeira's fiscal affairs in Lisbon.'

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