Portuguese economy has few years to take a quantic leap

"If we focus decision implementation and rationale on capitalising and financing companies, fostering innovation, assisting with internationalisation, removing red tape, we will be able to take a quantum leap at a speed that is not possible in larger and much more complex economies", said the Minister of Economy Pedro Reis at the annual conference of the Portuguese Metal, Metal Mechanic and Similar Industrialists Association held in Aveiro.

Pedro Reis stressed that "we have four or five years to position ourselves and attract some clusters, some investment ecosystems" and that although Portugal "has done a good job", we "now need to materialise it". 

Permanent themes

The Minister noted that "when we see the various opportunities that exist and are being addressed in Portugal", "some themes are always on the table: the strategic sectors of decarbonisation, the circular economy, mobility, logistics, pharmaceuticals, defence (…), the financial system, and the sea cluster".

"All of these are deep research areas, accelerated innovation, talent creation, with a gigantic progression margin, being spilled over into other sectors. As such, this is where Portugal can be positioned with some agility and in a natural way", he added.

Pedro Reis underlined that "these matters are at the top of our priorities. In fact, it is not possible to see the world as an interconnected system and not request the same from the Ministry of Economy" because Portugal "Has all the conditions in place to be an exporting and internationalised power based on innovation and talent".

Productivity

"When we speak of productivity", he said, "we are speaking about assuring capital intensity. It is not possible currently, with the technological research and development intensity that exists, to do so without density, capital2, he said, adding that "productivity implies, as you know, waging on continued investment".

And "productivity implies competitiveness, that is, tax relief, dismantling red tape, it implies agile economic justice, and it implies strategic infrastructures".  

Responsible reforms

Accordingly, the public sector must be tasked with "a reform agenda, which I call a responsible one. And it must above all invest in qualification, talent, and knowledge, to win over the challenge of productivity scale competitiveness. Because those are the challenges without which everything we do is ungrateful or insufficient. And if we assure that, everything else is possible".

For this, "we are working thoroughly" on a "Portuguese Development Bank that activates its job fully: get financing and capitalisation solutions to the Portuguese companies, namely, to cover and overcome market failures", he added.

Metal and metal mechanics

The Minister advocated that the metal and metal mechanic sector cluster "is as though the Portuguese economy’s backbone. It is almost the marrow within industry and industry is the backbone. Just as the backbone of economies it does not represent the whole body, but without that body, it has no structure or movement".

This sector (3 000 companies 50 000 jobs, turnover of 34 billion euros and exports of over 20 billion) "is absolutely crucial for the path of the future. Plus, it is a backbone that is connected to the brain, where evolution lies. And on top of a robust and solid base, one must place knowledge and technology".