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

It has never been so important to discuss Europe as now. In a fast-moving world, with new challenges constantly arising, calling the old socio-economic paradigms into question, the debate on European construction is a pressing imperative for Europeans and particularly for the Portuguese. A debate which questions, which gets under the surface, which stimulates, which responds. A debate which draws out the options responsible for the future of European integration. Europe will not be built by inertia or from ignorance. Neither can it be based upon mistrust or fear.

Within the scope of my responsibilities and competences I will dedicate myself to supporting reflection and debate on European integration, based on my conviction that the future of Europe is decisive for our collective future. European challenges are also our own!

And that is why I so ardently take part in the opening of this conference in honour of Europe Day which we celebrate tomorrow.

I would like to now thank the Institute of International Strategic Studies and the Público newspaper which have organised this worthy initiative since 1995. I also greet the European Commission and the European Parliament, institutions which support the holding of this Conference. And I also welcome all participants, and in particular the President of the European Commission.

It will never be inappropriate to celebrate the genius of the founders of the process of European integration. The Schuman Declaration still echoes today, projected into an admirable project of cooperation and solidarity which have provided peace and prosperity in Europe as had never been seen before.

From a Customs Union we moved on to a Common Market and later to an Economic and Monetary Union, with the single currency forming a key landmark in this integration. From a European Economic Community of six States we have become a European Union with 25 members, shortly to be 27, in a process which bears undeniable witness to the attraction exercised by the success of this process of European integration. From a divided Europe we have seen the creation of a space without borders, which respects our diverse national identities. Taking advantage of the synergies of Europe’s scale without destroying the value of its differences, herein lies the originality and the greatest challenge of the process of European integration.

On the 1st of January 1986, Portugal became a member State of the European Communities, fully assuming its role as a dedicated and active partner in the construction of Europe. Twenty years later, I can say with conviction, that it was well worth it. It was worth it for two reasons: clearly because Portugal benefited intensely from adhesion, but also because Portugal has consistently contributed towards the process of integration.

Our country did not just sit back and reap the legitimate benefits that adhesion brought it. Portugal brought value to the European project, sharing its secular identity and its vision of the world and cooperating jointly with European institutions and its partners.

When we joined twenty years ago, the greatest challenge we had to overcome was precisely one of credibility. We knew that Europe still looked on Portugal with a certain lack of confidence, at times somewhat mixed with a distant paternalism. Portugal had gone through a period of intense political instability and the Portuguese economy had been considerably shaken.

When we joined in 1986, the question lying in the hearts of our partners was if Portugal could bear the impact of adhesion and play a full role in European policies. The response to this question has been amply provided by the results of these two decades of integration. We have passed the test of credibility with flying colours. When Jacques Delors called Portugal “the good student”, a positive expression, but one which has often been misconstrued by some, he rightly wanted to show that our country had managed to overcome the mistrust and had unanimously come to be considered as a serious and stable partner.

Once we had earned this credibility, as this was something we had to win over, this was founded, primarily, on the country’s domestic performance, both due to the efficient and stable functioning of our democratic institutions and of the Administration, and to the recovery of the economy. It was also based on our capacity to receive structural funds and make intensive use of them to achieve economic and social progress in Portugal.

But credibility was also achieved from our effective participation in community institutions. By cultivating discipline and a spirit of cooperation and solidarity, Portugal managed to gain the trust of its partners. This credibility was decisive for us to be able to effectively defend our specific interests.

The way in which we ran the Presidency of the Council of the European Union, in both 1992 and 2000, strengthened our sense of affirmation. In 1992, in this very room where we are today, I presided, then in the capacity of Prime Minister, over the Lisbon European Council. It was here that it was decided to create the Cohesion Fund, the main guidelines for what was to become the Delors II Package and the major strategic steps towards the future enlargement of the European Union. I recall the main protagonists of this Council, such as François Mitterrand, since deceased, Helmut Kohl and Filipe Gonzalez, decisive players in a decade which accelerated the process of European integration. In 2000, in the Portuguese Presidency, with Prime Minister António Guterres, the Lisbon Strategy was established, which continues to be the reference for the major objective of placing Europe at the top of world competitivity.

Over these years, Portugal has managed to secure a place at the forefront of the construction of Europe. Portugal joined exactly at a time when European integration had undergone a period of acceleration hitherto unparalleled in its history, which placed on our country not only the demand of adapting to the Community framework in place at the time of our adhesion, but also it required it to have the capacity to accompany the pace of intense change being experienced.

With the European Single Act the single market came up against the principle of economic and social cohesion. This is, and has to continue to be, a fundamental cornerstone of European integration, not only because of its intrinsic value, but because it was created to respond to the difficulties of the less well-off States in making full use of all of the advantages which the single market offered and still offers.

With the Schengen Agreements, seven countries of the European Union anticipated the free circulation of people, fully realising the space without frontiers conceived in the European Single Act. In turn, the Treaty on European Union established a Monetary Union which has already been realised.

Well, Portugal has helped to take the single market forward; it was part of the first group of Schengen countries and it adopted the single currency from the beginning, overcoming mistrust and resistance from various quarters. Or rather: it has closely accompanied the demanding process of furthering integration, revealing not only the political will, but also the effective reformist capacity to adapt to change. Portugal’s performance placed us at the centre of the process of building Europe.

Meanwhile, the European Union has gone from 12 to 25 member States. Portugal was one of the countries most affected by the impact of the fifth enlargement, as pointed out by various studies, and which, nevertheless, has not always been duly understood and taken into consideration by the community authorities. But also with regard to the enlargements of the European Union Portugal’s orientation has always been marked by a responsible, coherent and supportive attitude.

In weighing up these twenty years of integration one cannot sufficiently stress the socio-economic impact. This period was one of the most productive in our history and it marked a real convergence with Europe which surpassed all expectations. The poor performance of the Portuguese economy in more recent years does not overshadow the progress achieved in these two decades.

When we joined, our product per capita was around 53% of the community average; fifteen years later we have risen by over twenty percentage points, or rather close to 75%, signifying a pace of real convergence which was only surpassed by Ireland. Today, our product per capita has slipped back to around 70%, after a few years of almost economic stagnation and real divergence with the EU, making the resumption of real convergence precisely one of our major national imperatives, in order to come into line with the European Union average as quickly as possible.

All of the analyses produced by credible international authorities reach similar conclusions: Portugal’s integration into the European Union was the most important factor for economic growth and the improvement in the quality of life of the Portuguese in the last twenty years. Because it made three decisive elements converge: the modernisation of our legal and administrative framework, favouring an open and competitive economy; access to community funds and the attraction of direct foreign investment.

There is a tendency to underestimate the impact of our adhesion, beyond financial fluxes. Now this impact was also very positive. The administrative vice of protectionism was attacked, the economy was opened up to initiative and the demand for efficiency and high standards of quality was stimulated.

In other words, competitivity became the goal and an economic and social model compatible with western democracies was consolidated.

It is obvious that structural funds drove the Portuguese economy. A significant part of our economic growth can be attributed to the community support provided by the three community support frameworks arising from the Delors Packages I and II, and from the 2000 Agenda.

It is true that one can always wrangle over the options concerning the application of the community funds. But it is also true to say that these funds brought considerable benefit in terms of the economic and social development of our country. It is true that there is still much to be done. But one should recognise that, without the community funds, it would have been impossible to modernise the communications and social infrastructures which today practically cover the whole country.

Associated with the European Union funds was direct foreign investment, which grew five-fold just in the first five years after adhesion. Here also the modernisation of our infrastructures, as well as the improvement in the quality and intensity of professional training, were decisive factors in attracting investment from abroad. Investment which brought technology, markets, and the organisation and creation of jobs.

It is within this context that one should emphasise another impact of adhesion: relations with Spain. In 1986 we discovered new dimensions in our relations with our neighbour, which was no longer a mere competitor in a relationship often exacerbated by a history of antagonism, but above all a partner in the European Union. And we discovered a market with enormous potential. And the synergies of proximity which led to trade, investment, services, regional concertation, and also cultural exchange which reached levels never witnessed before.

And if it is true that these two countries do not always have, nor do they have to, a symmetrical convergence of interests and orientation, it is no less true that, in the majority of European topics, there is a convergence which should be cultivated. The intensity of Luso-Spanish relations can only become stronger within the context of European integration.

A glance at these twenty years also brings out another consequence of our participation in the European Union: the strengthening of our voice on the international stage. As opposed to what some anticipated, with adhesion Portugal has improved its ties with its traditional extra-European partners, specifically with the Portuguese-speaking world, and also, for example, with the Mediterranean countries. The cause of East Timor which tasted victory with the recognition of its independence, although within a context of dramatic suffering, benefited our status of a member State of the European Union, when we had to defend this stance on the international stage. Our capacity to interact with the Portuguese speaking countries of Africa, specifically in the areas of cooperation, was also improved, and our participation in the European Union granted our partners greater access to resources.

From another perspective, over these twenty years Portugal has contributed very actively towards strengthening the relations of the European Union with other countries and regions, specifically those with which we have a deeper bond. Nicely illustrative of this is the fact that, under the Portuguese presidency, and before the scepticism of many, the first European Union — Mercosul encounter was held in Guimarães. And it was under the Portuguese Presidency that dialogue between the European Union and India was institutionalised.

There are also a further two factors which I should mention concerning the success of Portugal’s integration in the European Union.

Firstly, the fact that it has been possible to cultivate full strategic convergence concerning our participation in the European Union; convergence with the main political forces and our economic and social partners, a convergence which is also revealed in the cooperation between sovereign bodies. This convergence constituted a force for the permanent negotiation of which European integration is made.

Secondly, the quality of the Portuguese people who work in the community bodies and our representatives in the various entities which comprise the institutional universe of the European Union. Their performance has greatly contributed towards the prestige of our country and towards the credibility earned over these two decades. It is more than just that we show our recognition of this now that Portugal has completed two decades of integration in the European Communities.

I also cannot fail to mention the very particular importance of the responsibilities which were attributed to Dr. José Manuel Durão Barroso, which, due, above all, to his merit and qualifications, similarly reflect the recognition of Portugal’s role in the construction of Europe.

Ladies and Gentlemen,

I believe that the challenge of integration is a permanent one, one that is never definitively overcome. Portugal will always be under the close scrutiny of Europe, whether regarding the situation of its public finances, or with regard to the performance of its economy, and even regarding its contribution within the European institutions.

The preparation of the National Strategic Reference Framework for the period 2007- 2013 is another challenge, a greater and decisive opportunity to again place the Portuguese economy on the path of real convergence and provide it with the means to face up to globalisation.

The holding of the presidency of the Council, in the second semester of 2007, is another challenge which requires timely preparation, especially given the demanding agenda which we will have to face.

Active participation in the debate on the model of European construction is another demand which faces our country. Portugal should have a consistent and coherent voice in the defence of its fundamental interests in negotiations on the future of the European Union.

I firmly believe that, with the effort and dedication of us all, we will, as in the past, face up to these challenges and make the most of the opportunities which European integration continues to offer us.

The process of European construction again faces difficult and complex challenges.

It is frequently declared that Europe is in crisis. The failure of the draft Constitutional Treaty in two countries which submitted it to a referendum dramatically heightened that perception, above all shown by the disappointed reaction of whose who consider the strengthening of the political dimension to be a necessary condition for the sustainability of the process of European integration in a global world. Some even speak of the fatigue of the process of European construction.

Without wishing to deny it, the current crisis is probably no more serious than others which have been overcome by European integration in over more than fifty years of its history.

The truth is that much of that which we today call symptoms of crisis are, largely, the result of great success: if one needs to find more efficient ways of managing an enlarged Union, it is because the European Union is a success, the advantages of which others wish to enjoy, in the name of peace, stability and social and economic progress; if today our peoples are more demanding and ask of Europe what they previously expected from their States, it is because Europe has fulfilled many of their needs and its citizens will now not allow it to fail.

The truth is that European integration it not the cause of the difficulties, but rather the answer to the problems. The truth is that the sensitive issues which European citizens now face, like unemployment, security and international competition, do not suggest a lesser Europe. On the contrary, they recommend more European integration.

Even without a Constitutional Treaty there are the right conditions to further European construction and to decide, in the short term, on policies and measures which respond to the legitimate expectations of the citizens of Europe. Citizens who appear perplexed over the consequences of globalisation and even regarding the role of Europe. And this is where the responsibility of European leaders is greater, to point the way and to take the right decisions to recover the confidence of the States and their citizens.

As it seems to me to be unquestionably relevant to today, I cite the triptych with which Jacques Delors, some years ago, defined the European Union’s framework of action: “competition which stimulates, cooperation which strengthens, solidarity which unites”. This is what we need to hold on to as a reference: a competitive and efficient framework, strengthened cooperation and tangible solidarity devoid of rhetoric.

Let there be no illusions: one will not be able to convince European citizens concerning the sound basis of any theoretical reflection on the future of the European Union if we are not able, simultaneously, to satisfy their more immediate needs, if we do not prove to them, by our action, that Europe has the advantage over the response capability of the individual States.

Furthering the Economic Union to stabilise the Monetary Union, ensuring the objectives of growth and the creation of employment, is something that can and should advance, even without a Constitution. Similarly, the strengthening of the Lisbon Strategy seems indispensable for us to be able to reap the benefits which are expected and are overdue. The execution of the Lisbon Strategy should impose a discipline and a responsibility shared by all the member States, without which it would end up by merely being a set of good intentions.

Where there is a well identified common interest, there should be action from the European Union. Always, obviously, respecting the principles of subsidiarity and proportionality. A good example was given by the recent initiative of the European Commission on energy. This is clearly a matter of common interest and, therefore, as it should, the Commission took the initiative. The energy sector is decisive for the competitivity and security of Europe. And it is also decisive for the foreign relations of the European Union with some of its neighbours, such as Russia.

The Inter-Institutional Agreement now reached on the European Union budget for 2007-2013 was good news for Europe. But I will be clear in stating that it fell short of the means necessary to effectively face the challenges and demands of the EU, specifically those which arise from the enlargements. There persists a preoccupying divergence between the defined ambitions and the means allocated to the European Union.

The emphasis placed by the European Commission on entrepreneurship and innovation is a step in the right direction. Portugal has to learn how to cultivate its entrepreneurial initiative which has remained quite timid and to promote innovation as the main competitive factor for corporate sustainability.

There is nevertheless still one central question: is it, or is it not necessary to strengthen the political dimension of the European Union? My answer is assuredly affirmative. Without reinforcing its political dimension, without making its decision making process more efficient, without guaranteeing the coherence of its embryonic common foreign policy, without more tangibly promoting European citizenship, without strengthening its democratic legitimacy, the European Union will face serious difficulties in order to sustain the Economic and Monetary Union and to earn its place as an influential player in the emerging global world and to successfully achieve its enlargement.

The vicissitudes which the process of approval of the current draft Constitutional Treaty has been going through are well known. But it is not due to this that reflection and debate on this topic is less urgent. The community reforms will have to happen given the challenges which Europe faces. And Portugal must be prepared to have a voice in the negotiation and realisation of these fundamental reforms.

The principle of equality of the States has to be ensured in any case, and a greater agility in the decision making process cannot be achieved at the cost of democratic legitimacy and the representativity of the States.

Within the institutional balance which the European model brings, a balance so cleverly conceived by its founders, the central role of the European Commission must be preserved, specifically through the exclusive right of initiative in the domain of community competence. The weakening of this institution — here or there attempted through explicit or surreptitious initiatives — is not in Europe’s interest, and it is certainly not in Portugal’s interest.

Whenever a common interest is identified it is the community method which should be followed to decide the necessary policies and/or actions. Any inter-governmental drift which may emerge is also harmful to the common European interest and does not serve the interests of a country like Portugal.

Globalisation is a current reality which is increasingly projected with greater force. It will not wait for Europe. And, nevertheless, the global world needs a strong, cohesive and influential Europe.

Closed in on itself, fearful, divided and protectionist, the European Union will miss its encounter with the future and could even reverse the admirable path of integration followed so far.

I believe in the capacity of Europeans to press ahead with the indispensable process of improved integration, with the strategic vision and ambition which the global world requires. And I believe that Portugal will be able to enhance its place in the future of the construction of Europe.