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SPEECHES

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Speech delivered by the President of the Republic at the Ceremonial Celebration of the 160th Anniversary of the Court of Auditors
Lisbon, 13 July 2009

President of the Court of Auditors,
Speaker of the House of Parliament,
Prime Minister,
President of the Constitutional Court,
President of the Supreme Court of Justice,
Attorney General,
Vice-President of the Supreme Administrative Court,
President of the European Court of Auditors,
Ladies and Gentlemen,

I begin by warmly greeting the Court of Auditors, through its President and Judge Councillors. We must express our deepest respect for an institution which celebrates 160 years of existence and that has always been marked by an inimitable spirit of service to Portugal.

The relevance of institutions such as the Court of Auditors for the strengthening and the transparency of a democratic society is well known. However, its role as a guarantor of economic development has only lately been undertaken. .

Nowadays there is a clear recognition that market mechanisms – institutions which, in themselves, must be preserved and developed – can only effectively contribute towards social and economic progress if quality public institutions exist to defend and place limitations on their operation.

It has thus been deduced that the progress of a country depends not just from the intrinsic quality of the institutions but also from the capability of adapting them to political, economic and social reality.

It is possibly for this reason that the general prescriptions for economic policy have lately become adjusted with regard to the recognition that the specificity of countries and their institutions is crucial for establishing adequate policies and for a sustained and harmonious development.

But there is more: it has equally lately been deduced that, contrary to what was frequently supposed, economic growth is not a sufficient condition for the emergence of quality institutions. On the contrary, it demands, for its sustainability, the effective operation of the institutions.

The adequate determination of the limits of power, the credibility of politicians, the defence of the people in their relations with the State, the protection of private property, the existence of a speedy judiciary system, the development of economic stability and freedom of expression are widely accepted as essential pillars of a mature and developed democracy.

However, in spite of this consensual recognition, it is not always easy to find the most adequate path for the improvement of a country’s institutions, in the sense of ensuring the existence and the effective operation of these pillars of a quality democracy.

It is within the midst of these thoughts that the relevance of solid and secular institutions such as the Court of Auditors becomes particularly noted. Immediately, because it is a clear instance of an operational and effective public body which provides relevant services to the Country. Equally, because its longevity is the guarantee of common identity and logic, transversal to the economic, social and political cycles that have become known to Portugal.

It is thus only fair to value the role of the Court of Auditors and honour how it has been able to adapt itself to the new demands of a world which is increasingly complex.

It is also fair to celebrate how the remaining institutions and the Portuguese in general, have congregated with the Court of Auditors and recognized its role, for which the work developed here has greatly contributed.

Institutions such as the Court of Auditors have relevantly contributed for the performance of highly important duties in our society, such as safeguarding compliance with the law, the appraisal of the validity of Public Accounts, the weighting of reasonability and severe discipline in the use of public funds.

It is the growing importance of these duties in our society that justifies the existence of the Court of Auditors and which redoubles its responsibility.

Amongst us, the perception still exists, possibly exaggerated, of lesser transparency and easiness in some acts of State. The activity of the Court of Auditors has very justly contributed to contain such a perception and to ultimately lessen the risks of corruption in our society.

The quality and the visibility of the work carried out by the Court of Auditors may, objectively, be decisive. Not just to reduce the risks of abusive or less transparent use of public funds, but also to strengthen the trust that the people place on the operation of the State as a whole and in the development of the Country itself.

In large measure, institutions such as the Court of Auditors provide the people with confidence in their country and in themselves. In addition to the material work carried out here, this intangible effect of the actions of the Court of Auditors must be emphasized and praised.

In recent years, themes such as the good management of public finance and the containment of the budgetary deficit have been particularly relevant, even central, to the discussion over Portuguese economic policy.

Equally, increased attention has been given to issues such as the sustainability of public finances and the adequate use of budgetary resources, not just in a short term perspective but also in an intergenerational perspective.

In spite of the efforts of governments, Portugal has for years been facing grievous problems in its public finances, in which the responsibility lies more on the side of expenditure than on that of revenue. Its resolution must be jointly shared by the bodies responsible for the approval, operation and control of expenditure.

Progress in this area is thus essential. The defence of the rights of the taxpayers is no longer a mere definition of fiscal fairness, but it now also demands a severe assessment on how its funds are managed and shared, that is, on the transparency, the benefits and the fairness in State expenditure.

The centenary mission of the Court of Auditors gains, in this context, increased relevance and redoubled responsibility. I am certain that, after 160 years, the Court of Auditors has already achieved the experience and the expertise necessary to deal with these new challenges.

This anniversary, which we are celebrating today, is the best testimony of the capability of the Court of Auditors to respond to current challenges. And it is thinking of the future that I salute this institution and all those that served it throughout its 160 years of existence.
 

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