In recent months, there has been a natural tendency to compare the cases of Greece and Portugal because both countries have an Economic Assistance Programme negotiated with the European Central Bank, International Monetary Fund and European Commission. However, one should be careful in this exercise. Each case is different both in the origins of the problem and in the type of programme agreed upon. Each country has its specific strengths and weaknesses but I am confident that in the end both will prevail.
In Portugal we happen to have a considerable political consensus around the measures contained in the Memorandums of Understanding, because the three main political parties in Parliament (representing more than 80% of the votes) supported the agreement with the Troika.
It is national understanding that the Assistance Programme can also represent a huge opportunity to modernize our country, as it gives us the right incentives to implement structural reforms in key areas, such as in the judicial system, education, health, banking, energy and labour market.
For many years the State had a very large role in the economy and the current government, for example, intends to sell all the shares it holds in a number of utilities and transportation companies, and move to a role of pure regulator. The government is also committed to provide the necessary conditions so that Portuguese companies can invest in new products and services with higher added value, creating jobs and generating growth.
According to EUROSTAT, Portugal has a youth unemployment rate of 27,1%. Reform of the labour market is crucial to foster a more dynamic hiring process for our young people and to match their educational skills, acquired during their academic and university training, to their jobs.
Portugal is working very hard to meet the consolidation targets agreed upon with the international institutions, pay our debt and return to the markets in due course. Restoring confidence and implementing the structural reforms is essential to foster a new period of growth and prosperity.
