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

I am deeply gratified to witness, together with His Excellency President Joachim Gauck, the closure of this Conference. I take this advantage to congratulate the Luso-German Chamber of Commerce and Industry on its sixtieth anniversary and for the actions it has undertaken, throughout these years, to deepen the economic relations between both countries.

The excellent bilateral relationship between Portugal and Germany based upon close cooperation and mutual respect, greatly overrides the political dimension, and is particularly consolidated and developed in economic and trading features.

In the last three years, which have been difficult and demanding, Portugal carried out an important effort in macroeconomic and financial adjustment. With the completion of the Programme of Economic and Financial Aid, we now have better perspectives for economic growth, and the rate of unemployment, although still very high, has significantly decreased in the last year. More relevant, however, is the increase in exports, which rose from 30% of GDP in 2010 to 40% in 2013.

This is the path we want to continue following.

Since mid-2013 the interest rates of Portuguese public debt have significantly decreased. The Country has resumed the issue of medium and long term debt in the international markets, and it is worth while emphasizing that interest rates on 10 year debt are currently below 3.5 percent.

We are well aware that it is essential that we continue the ongoing structural reforms and that economic growth will have to be fundamentally based on national and foreign private investment, and on exports.

Mister President,
Ladies and Gentlemen,
The crisis in the latter years evidenced the very high degree of economic and financial interdependence between the Member States of the European Union, in general, and specifically of the Euro zone. The process of the Portuguese budgetary consolidation went ahead, in spite of a much worse external economic context than was originally estimated and of the asymmetric shock to which we were subject.

Throughout all these years I have been insisting on the need to advance more decidedly, at European level, on an agenda for the promotion of growth and job creation. On another hand, and following the steps taken in the last few months, we must swiftly proceed in bringing into operation a real Banking Union, a necessary condition to combat the current fragmentation of the credit markets. We have to guarantee our companies, especially the small and medium sized, financial conditions comparable to those available to their European counterparts.

The execution of the Adjustment Programme comprised carrying out a set of structural reforms, such as that of the labour market, where the flexibility was substantially increased. Germany’s experience in latter years has shown us, in this particular case, how a competitive labour market is crucial for the economy’s positive performance. Equally relevant are the ongoing reforms in the areas of justice, licensing and company taxation.

Mister President,
Ladies and Gentlemen,
Portugal nowadays presents, in several sectors, companies that are competitive, innovatory and capable of producing with quality. At a level equal to that which is best achieved worldwide. And this is the case in state of the art technologies, such as electronics, software and information technologies, renewable energies, pharmaceuticals, automobile or aeronautical. But this equally occurs in the so called traditional sectors, such as textiles, footwear, timber and agriculture itself, where olive oil, wine, horticultural and fruit products are outstanding.

The economic and trading relations between our two countries have always been extremely relevant. Germany is Portugal’s second largest trading partner and it also one of its largest foreign investors. The sample of the German companies present in Portugal, some of them for many years, largely reveals the degree of confidence shown in our Country, and is evidenced by their important contribution towards the development of our economy, in terms of capital employed, technology and know-how.

Portugal is an attractive country for foreign investment, offering excellent conditions to investors. In addition to the structural reforms I previously referred to, Portugal will also benefit from a new and interesting European investment support programme, especially directed towards SMEs and to innovation and competitiveness. The corporate tax reform, in particular, provides investors with guarantees as to stability and a competitive fiscal framework, as well as very favourable conditions for investment, set-up of companies and patent registration.

Portugal, I am certain, is an excellent opportunity for German companies whose intent is to produce for selling in the global market, offering stability, qualified human resources and notable physical and technological infrastructures. Additionally, Portugal has valuable relations with other regions in the World, particularly in Africa and in South America.

Equally, there are nowadays many Portuguese companies that invest in the German market. I expect this to be a growing trend in the future.
We are undoubtedly starting out from an important economic and trading relationship, but this must be developed. There is still much to be achieved.

With this appeal I reiterate my congratulations to the Luso-German Chamber of Commerce and Industry on today’s anniversary. I hope you keep up your drive, promoting business opportunities and obtaining the best possible results from the competitive advantages of our countries.

Thank you very much.