Almost 80% of Azoreans have difficulties paying expenses

In the Azores, 77.1% of families are facing financial difficulties, reveals the Barometer conducted by DECO/PROTESTE, for 2022.The Autonomous Region of the Azores and Alentejo (78%) are the regions where more families are experiencing financial difficulties, according to data obtained by the consumer protection organization.In the questionnaire, 8.5 per cent of Azoreans said they were facing "serious financial difficulties", while 68.6 per cent admitted to having "some difficulties" – higher percentages than those seen nationwide, where 65.6 per cent of the around 5.000 respondents said they were "experiencing some financial difficulties" and 7.9 per cent "serious financial difficulties".According to DECO PROTESTE, large families with at least five members and single parent families continue to be the family profiles with the most financial difficulties. The DECO/PROTESTE study also calculates the Index of financial capacity for the Portuguese, and, in light of the results, the consumer protection association says that "in five years of DECO PROTESTE Barometer, which evaluates the capacity of households to face the expenses of food, education, housing, leisure, mobility and health, 2022 was the year in which the index reached its lowest value": 42.1 on a scale of 0 to 100 (the higher the number, the easier it is for households to pay expenses), with a drop of 3.2 points compared to 2021. And, it adds, "the outlook for 2023, in turn, is no more encouraging, because the trend is for the index to continue to fall.”It is precisely in the Azores that this index of financial capacity is the worst (37.2), and the outlook for 2023 is also the worst (32.8).Following the Azores are the districts of Vila Real (38) and Aveiro (39.4), while the districts of Coimbra (47.1), Beja (43.5), Lisbon (43.5) and Madeira (45.1) are in some financial distress.In 2022, housing, food and mobility were the expenses that weighed most heavily on the wallets of Portuguese families. However, the highlight is food, since the percentage of families having difficulty paying these expenses increased 15% compared to the previous year: 44% of households now have difficulty paying for food.This is largely due to inflation and the rising prices of supermarket products. Almost 60% of families say they have difficulties in paying for basic necessities such as fish and meat, and more than half (51%) guarantee that it is difficult to bear grocery expenses such as pasta, rice, yogurts, among others. The rise in product prices has pushed six in ten families into a more difficult financial situation. As far as housing is concerned, house maintenance and water, gas, and electricity bills are the expenses that most complicate the budgets of most Portuguese families: 54% and 53%, respectively, say they have difficulty bearing them.In turn, in mobility, the expenses with the car are the ones that most affect Portuguese wallets: 67% of families have difficulties supporting expenses with fuel, car insurance and vehicle maintenance.DECO proposes a Roadmap of measures to survive the crisisOn World Consumer Rights Day, DECO released several proposals to help families survive the crisis.Thus, regarding food, the consumer protection association advocates the creation of a Price Observatory and legislation that strengthens the obligation of consumer information on products that are the target of shrinkflation; it also advocates the strengthening of own‑brand and national products’ supply. Regarding housing, DECO suggests there should be tax, financial, and social incentives that guarantee balance and supply in the market, including programs adapted to consumer’s needs, as well as simple and unbureaucratic measures to support residential energy performance. When it comes to energy, DECO calls for a reduction in VAT to 6% on all electricity components and natural gas bill, as well as the reassessment of social tariff criteria.In the area of electronic communications, DECO suggests operators make available an Economic Service Package and that annual increases in services above the weighted average of the inflation rate over the last 10 years be prohibited, as well as increases in prices and postal service fees.With regard to water and waste billing, DECO supports the mandatory application of the Social Tariff and the approval of the Service Quality Regulation; it also supports the implementation of waste tariffs that reward those who separate to recycle.As for mobility, DECO proposes the right to reimbursement by pass-holders in the event of a strike, the creation of a social tariff for public transport, and the application of VAT exemption for rail transport.