A Region Where Expenses Rise Faster Than Incomes
According to the ruling CDS party, led by Parliamentary President José Manuel Rodrigues, Madeira has become the most expensive place to live in Portugal while maintaining the lowest average wages in the country. The combination of high prices and stagnant salaries has made daily life increasingly difficult for many residents, pushing middle-class families toward financial strain.
Inflation Among the Highest in Europe
Inflation in Madeira has reached 3.6%, making it the highest in Portugal and one of the highest in the European Union. This has made essential goods and services more expensive, while wages have failed to keep pace. Many households struggle to afford housing, utilities, and groceries, leading to growing concerns about economic stability on the island.
We have a middle class that is getting poorer, and why? Because inflation is very high, salaries have not kept up with the inflation rate, and taxes need to be significantly reduced.
José Manuel Rodrigues, CDS-PP, RTP Madeira
Calls for Lower Taxes and Higher Wages
Centrist politicians argue that reducing income tax rates by 30% and cutting VAT across all three brackets would help ease financial pressures. They also advocate for salary increases that match inflation, preventing wage gains from being eroded by rising prices. Another proposal includes establishing a minimum reference salary for young graduates entering the workforce, aiming to make the job market more attractive and financially viable.
Regional Wealth Not Reaching Residents
Despite Madeira’s economic activity and tourism revenue, many locals feel that prosperity is not benefiting the general population. Lawmakers critical of the current system say the region's resources should be used to improve the quality of life for its people rather than allowing living costs to rise unchecked while average wages remain among the lowest in the nation. The ongoing debate continues as residents hope for meaningful policy changes that could bring relief.
As it stands, Madeiran residents must speak out more vocally to drive change. Given that José Manuel Rodrigues and his party were part of the last two governments, his statements lose credibility - much of what he now criticizes happened under his watch.
Source: RTP Madeira
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