Portugal must advocate, within the context of the European economic and monetary union, for greater protection of the outermost regions, according to a retired full professor who addressed the working group convened by the Azorean parliament regarding the revision of the Local Finance Law, which met in Ponta Delgada.
The Azores seek more revenue and greater powers for the local government of the autonomous regions, but Eduardo Paz Ferreira suggests that any potential increase in funding for local municipalities should primarily come from Europe, which already provides positive discrimination under the outermost regions framework.
“If legislation exists for outermost regions, then we must take it seriously! It should not merely serve as a label or a signboard stating outermost parish or municipality. No, it should entail compensation!” the expert insisted during the parliamentary hearing.
Eduardo Paz Ferreira further explained that the task facing Azorean deputies encounters hurdles in the Constitution and the Azorean Political-Administrative Statute.
“This is a matter under the competence of the Assembly of the Republic, albeit with relative competence, yet it seems quite challenging—I’m not even considering the negotiating difficulties—but the constitutional doubts it would raise,” warned Eduardo Paz Ferreira, referring to a possible legislative initiative originating from the Azores on this matter.
In his view, the working group may still present suggestions on matters they believe should be reviewed in the law and subsequently forward them to the national parliament or to the government of Luís Montenegro, who would ultimately carry the responsibility of advancing concrete proposals in that direction.
“What you can do is present a resolution that essentially serves as a non-binding political instrument, conveying suggestions,” emphasized the expert, acknowledging that, although “less effective,” this solution may be “more peaceful” from a constitutional standpoint.
Eduardo Paz Ferreira also cautioned the deputies of the Regional Assembly’s working group to avoid incorporating any potential revision of the Local Finance Law into the future revision of the Autonomous Regions Finance Law, noting that these are different matters.
“If you ask me if I believe that matters related to local municipalities should be included in the Autonomous Regions Finance Law, my answer is no. If you ask whether the Local Finance Law needs revision, my answer is yes. It is, undoubtedly, necessary,” he clarified.
The working group, consisting of parties from the General Policy Commission of the Azorean parliament, must present a proposal to revise the Local Finance Law by year-end, which would “increase” the state funding transfers to Azorean municipalities.
