Welcome to the Official page of the Presidency of the Portuguese Republic

Honourable Vice-Minister for the Economy of the Federal Republic of Germany
Honourable Ministers and Members of the Government
Members of Parliament
Ladies and Gentlemen,

I would like to start by thanking the Vice-Minister for the Germany Economy his presence here today. This gesture reflects the importance that the German authorities place on the business activities associated with my state visit.

I would like to thank the DIHK (Deutscher Industrie und Handelskammertag) and AICEP for organising this seminar.

I would also like to greet the representatives of the business associations and the Luso-German Chamber of Commerce, and all the firms which took part, and thank them for their presence.

We are going through a global crisis, with effects on the financial system, economic activity and the very fabric of society; its extent is not clear and its full consequences cannot yet be foreseen.

In this crisis, political decision-makers and economic agents are facing a particularly tough challenge: how to mitigate its effects now, but without losing sight of the legacy it will leave us.

Its origins may have been localised, but it would be hard for this crisis to have anything other than a global dimension.

In the first place, because its epicentre was in the financial system of the United States, the world’s biggest economy, and because the financial system is vital to the functioning of market economies.

And second, because it is happening in an era of globalisation, that is to say, in an era of avowed economic interdependence between countries.

This interdependence, which has helped to heighten the effects of the crisis at global level, must be seen as part of the solution, and not as part of the problem.

The strategies for recovery and the reforms that will have to be introduced into market operations should reject new forms of protectionism, which history has shown involve consequences that are far worse than those of the original crises.

Restricting the degree of openness of national economies, whether explicitly or implicitly, would be a response as economically counterproductive as it would be politically dangerous. What is really needed, therefore, is that the advantages of responding to the current difficulties on the basis of policies that are closely coordinated, and on agreement between countries, should be accepted without reservation.

The Member States of the European Union are in an institutionally useful position in this respect. But the pressures to which this crisis has been subjecting national decision-makers are beginning to prompt manifestations of economic and financial nationalism that would have been unthinkable only a short while ago.

These manifestations must be fought, because they are dangerously detrimental. They jeopardise the functioning of the Internal Market, and thus put the future of the model of European integration and affirmation at risk.

The effects of the shock waves from the crisis that has rocked the world financial system are still being felt in the markets, and so one of the priorities of governments, and of decision-makers in general, must be to minimise the consequences of the credit crunch and to restore confidence in the financial markets.

But, as I said earlier, we cannot indulge in the luxury of losing sight of the medium-term challenges and goals. These include, even more importantly than the restructuring of the international financial system and its governance, the issues of fighting social inequality and terrorism, creating jobs and achieving sustainable growth. If we fail in this we shall be opening the door to fresh crises, which may prove even more serious to the soundness and stability of international relations.

Germany, which is celebrating the 20th anniversary of its reunification, has been an example of how to overcome myriad problems and tensions through the perseverance of its people and the clear-sightedness of many of its leaders. The result is a country with a strong economy, striking competitiveness at global level and an enviable standard of social equity.

A country that has understood how to remain a leader in world manufacturing, with innovative technology and producing high quality goods; it is a driving force in the European economy and serves as an example of the benefits of full integration in the world economy, especially through its export sector.

Germany occupies 2nd place – as both customer and supplier – in the trading relations between our two countries. More important than this, perhaps, is the fact that in the trade between Portugal and Germany there is a significant concentration of medium- high-technology goods. There has also been a gradual rise in Portuguese exports of greater added value to the German market.

A small, open economy like that of Portugal relies to a considerable extent on the ambition of its corporate sector to produce tradable goods and services that meet a demand, that are distinctive and genuinely capable of penetrating markets, but which also depend on the quality of the partnerships that companies manage to establish. They should be partnerships that involve productive systems of international scope, requiring the incorporation of high-intensity technological factors, skilled resources, knowledge and innovation. It is in this respect that Germany has made its mark as an exceptional partner for Portugal’s productive structure.

Germany is also highly important in terms of foreign investment. In relation to Portugal, Germany has been important not only for the amount of its investments (1st place for the past four years), but, and above all, for the qualitative impact of its investments on our productive structure. This is a situation that we want to consolidate and strengthen.

As the presentations and contributions to this seminar have made clear, Portugal has sound answers to the foreign investors who seek it out. At the technical level, in research, in the use of new technologies and information processing, in the skills of our young human resources. The competitiveness/price relation in production is another very attractive factor.

I think there is still room for us to expand our commercial and investment relationship.

This is why I have to stress the chance that this seminar and the business meetings represent: they offer an opportunity for Portugal’s and Germany’s business people and top managers to strengthen their links. And furthermore they can help to improve mutual understanding between Germany and Portugal.

The retinue that has accompanied me represents, at the highest level, an entrepreneurial class that is more and more focused on quality, innovation and internationalisation.

In relation to the Tourism sector, Germany is a very important sending market for Portugal, in terms of tourist flows and investment alike.

German visitors feel at home in our country. German tourists mostly tend to travel around Portugal to simply enjoy our culture and countryside.

Executives from Portugal’s leading tourism companies have accompanied me on this visit, along with managers from Turismo de Portugal. And a small display of what we have to offer was organised. I would therefore like to invite you all to visit the Alexa Shopping Mall, owned by a Portuguese corporate group, where a cultural and artistic event will be held this afternoon, and a range of Portuguese tourism-related goods and services will be on display.

Portugal’s tourist sector will also feature in the next International Tourism Fair, the world’s largest such event, which is taking place in Berlin in a few days’ time.

I would like to end on a note of confidence, based on the expectation that the work of this seminar will have helped German and Portuguese entrepreneurs to single out new interests and make the most of the business opportunities that are there to be exploited.

Thank you very much.