2019 Aximage Study Surveyed Nearly 5,000 Residents on Living Costs
Élvio Sousa, leader of Juntos pelo Povo (JPP), warned today that the cost of living in Madeira remain a serious problem for families. He pointed to a 2019 study ordered by the Regional Government and carried out by Aximage, which surveyed almost 5,000 people across the archipelago.
The study, titled Qualitative study to assess the social, cultural and economic reality of the Autonomous Region of Madeira found that the cost of living was one of the most common concerns among respondents. In a statement to the press, Mr. Sousa said the findings have not lost relevance. “The study keeps all its relevance,” he said, adding that many residents cited low wages and high costs for water, electricity and gas.
VAT Near 23% and Transport Costs Keep Prices Higher Than Mainland
Mr. Sousa also criticised what he described as structural reasons behind higher prices on the islands. According to him, many goods cost more in Madeira than on mainland Portugal because of transport costs and taxation.
He noted that the regional VAT rate is only one percentage point lower than the national rate of 23%, which limits its effect on final prices. “These prices are still made worse by freight transport costs and by VAT,” he said, arguing that the small tax difference does little to protect consumers.
Six Years Later, Housing Shortage Adds Pressure on Families and Youth
Six years after the Aximage study, Mr. Sousa said the same problems are now joined by a lack of affordable housing. He described families under pressure from loans and rent, while young people struggle to see a future on the island. According to him, this situation leaves families “in total despair”.
2026 Budget Doubles Golf Spending While Promised Support Remains Unmet
Mr. Sousa strongly criticised the regional government’s budget choices, especially plans for 2026. He said spending for golf courses will double, while promised measures for workers and young people remain unfulfilled.
The promise of a base salary for young people and an island allowance for private sector workers, promised and written into this year’s budget, stayed only on paper
Élvio Sousa, Diário de Notícias Madeira
Comparing budget lines, he added:
When one compares what is spent on these infrastructures with what is set aside for surgeries, it becomes clear these are not priorities
He concluded with a sharp judgment on the government’s choices: “This is an insult”.
Source: Diário de Notícias Madeira
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