Today in the news: banking, high speed and fires
National banks are among the least capable of converting customer deposits into loans to the Eurozone economy. Since 2021, IP has commissioned 33 studies for the different lines of the high-speed rail project, costing a total of eight million euros. Learn about this and other news highlighted in the national press this Wednesday.
Portuguese banks are among those with the least incentive to raise interest rates on depositsBanks in Portugal continue to be among those with the least incentive to raise the interest rates they offer on deposits compared to their Eurozone competitors. The weight of their funds (such as deposits) is so great that these are easily covered by the high-quality assets they hold in their portfolios should they face pressure. According to the most recent statistics from the European Central Bank (ECB), Portuguese banks had the third-lowest deposit-to-loan ratio in the region, behind only Lithuania and Greece, at the end of the first quarter of the year. This ratio compares the volume of deposits to loans to the economy, which, between January and March, stood at 64%—that is, for every 10 euros invested in deposits, only 6.4 euros were granted in the form of loans by the three large banks included in the ECB data (CGD, BCP, and Novobanco).
Read the full story in Público (paid access)
High-speed studies have already cost IP 8 millionInfraestruturas de Portugal (IP) has already spent nearly €8 million on contracting 33 studies for the high-speed rail project (the vast majority through direct award), since it was relaunched by the António Costa government for the Lisbon-Porto and Porto-Vigo lines, and added by the current government for the Lisbon-Madrid line. The contracts cover preliminary studies, environmental impact studies, geotechnical surveys, and urbanization plans, among others, such as those related to legal consultancy or assessment of impacts on tourism, for the various sections of the future lines. The highest-value contract was awarded last year for the complementary geotechnical survey of the Soure-Carregado section , for €498,000.
Read the full story in Jornal de Negócios (paid access)
Fire prevention spending was 26% below forecast and fire fighting spending was 23% below forecast.Between 2020 and 2024, expenditure on the Integrated Rural Fire Management System (SGIFR) totaled €2.427 billion, 25% below (minus €808 million) the estimated €3.235 billion budgeted for in the National Integrated Rural Fire Management Plan (PNGIFR) and the National Action Program (PNA). During this period, prevention measures accounted for 57% of the total budget, 26% less than planned, while firefighting measures accounted for 43% of the total, 23% below target. This conclusion is contained in the SGIFR expenditure execution report, a "status report" published on the website of the Agency for Integrated Rural Fire Management (AGIF), the entity coordinating this Plan.
Read the full story in Diário de Notícias (paid access)
Mega-fires in Portugal have occurred mainly in three years and are mainly caused by arson2025 is already the fourth-worst year in terms of burned area since the beginning of this century. In August alone, in addition to the largest fire ever in Portugal—the Arganil fire, with over 64,000 hectares burned—the month was also marked by the third-largest fire ever—the Trancoso fire, in the Guarda district—with an estimated burned area of 49,324 hectares, according to still provisional data from the August 23 report by the Institute for Nature Conservation and Forests (ICNF). Since 2000, mainland Portugal has suffered 37 super-fires with over 10,000 square meters of burned area. During the decade from 2011 to 2020, in particular, 17 large fires were recorded, eight of which were attributed to arson.
Read the full story on Observador (paid access)
Prisons are operating with around two thousand fewer guardsAccording to the Directorate-General for Reintegration and Prison Services (DGRSP), the prison staffing plan anticipated 5,407 guards, but only had 3,966. Furthermore, 14% to 17% of guards are absent every day due to health reasons. This means that, on an average day, there are two thousand fewer guards on duty than expected, with the situation worsening during Christmas and the summer months. In addition to the days off, there are also the vacations to which each guard is entitled. This staff shortage results in a constant workload. "For the past two years, any professional has been working more than 180 hours [per month], with permanent absences and unpredictable working hours," said Hermínio Barradas, president of the Prison Guard Corps Chiefs' Union Association.
ECO-Economia Online
