Elisa Ferreira, the European Commissioner for Cohesion and Reforms, states that the countries of the East have managed, in the last seven years, to increase their GDP 5 percent, but the countries of the South and Southeast “are stagnating and falling behind”.
“For the European model to survive, it has to deal with the growth trap that leads countries to grow to a certain point and then stagnate”, explains Elisa Ferreira.
According to a report by ECO, the commissioner explained that, in the countries of Southern and South Eastern Europe, after “the first structural investment deficiencies are addressed, namely through investments in infrastructure, countries end up stagnating in a kind of growth trap”.
The growth is evident after the investments in roads, basic sanitation networks, which bring a “very big impetus in terms of development”, which is even greater the more qualified and cheaper the labour is, but as soon as they reach per capita income levels of 75 percent of the European average, countries seem to “not be able to surpass this”, adds Elisa Ferreira.
Recognising that the phenomenon requires reflection, the Commissioner recalls that cohesion funds are a long-term strategy, with proven and recognised evidence. “The World Bank considers Europe to be a convergence machine. Cohesion Policy is essential to keep Europe together, but of course, we can always discuss improvements,” she adds.
Among the most principle things that Portugal most requires to do to reach the average income level of the European Union, is to invest in education. Unfortunately, the funds that the European Union have provided in the past for Portugal to have income levels more at average with the rest of Western Europe, has largely focused on infrastructure, instead of education. Is this because the richer European states do not wish to see the Portuguese competing with them in industry? You be the judge.
By MICHAEL ANTHONY FURTADO from Other on 10 Feb 2022, 21:29
Good points but the truth is that governments are not interested in an educated, well trained population. Easier to have the cult of poverty and serving tourists instead of actually thinking and producing.
By K from Algarve on 11 Feb 2022, 00:46
Reduce the size of the state. That is it. Size and reach. Economy will thrive. Portugal, as most of the world is facing stagflation, too much money printing to little work. Europe has more politicians than economic capacity to sustain them.
By Pedro from Lisbon on 11 Feb 2022, 08:19
Discontinue Football...Government...Tourism...Banking...and the country just might have a chance...
By Sakamoto Saurez from Lisbon on 11 Feb 2022, 10:44
Same old same old. With only 49% of the population turning out to vote, the stagnation will continue. Nobody seems to care for too much except football and supermarket shopping. Or could it possibly be that those 49% are disenchanted with an apparently broken system?
By L from Other on 11 Feb 2022, 23:54