At an economics conference in the Algarve which took place on 25 February, António Saraiva, head of the association of companies in Portugal (CIP), spoke to entrepreneurs in the hospitality sector about the new challenges of the Portuguese economy. The event, which took place at the premises of AHETA (Association of Hotels and Tourist Enterprises of the Algarve) in Albufeira, was attended by José Carlos Rolo, mayor of Albufeira, and Hélder Martins, president of AHETA.

Following the war between Ukraine and Russia that has just broke out, António Saraiva said that the external geopolitical outlook greatly impacts the Portuguese economy, but the country has to do its internal work to overcome all these adversities.

A country of small companies

“Portugal is a country made up of small and medium-sized companies,” he said. Of the 1,300,000 companies based in Portugal, 1,200,000 are small-sized enterprises, only 1,600 are large companies and the rest are medium-sized enterprises. These companies are the raw material of our economy and that's what we have to work with.

On this matter, he believes that growth is fundamental. “In the last 10 years, the country has grown on average only 1.5 percent. The political parties - both right and left - have to look at this problem with a strategic plan to allow the country to grow. That's why growth is the watchword, but it can only be achieved with public policies”, said António Saraiva at the conference named “The new challenges of the Portuguese economy”.

In addition, the “boss of the bosses”, as he is called, defended three fundamental reforms, one in tax matters, another in justice and the last one in public administration. Something he believes is within the reach of the government, which has recently won a majority in parliament.

Key policies to boost economy

According to António Saraiva, Portugal has high taxes, which doesn’t allow the country to grow economically. Furthermore, he argued that we should be gradually thinking of dropping the corporate tax (IRC). “Let's be investment friendly by rewarding those who create job opportunities”, he stated.

On the justice side, António Saraiva said that Portuguese courts take four times longer to resolve cases than the EU average. In addition, he said that justice needs to be quicker in resolving court conflicts, otherwise a feeling of injustice arises among the population.

Last but not least, the public administration reform that António Saraiva has already defended before. “It can take several years to get a license to build a factory and with the taxes that we pay, we deserve a more efficient and better service,” he added.

“We have 800,000 public servants in the public administration”. A number that António Saraiva considers enough to carry out internal mobility whenever necessary instead of hiring more staff. "I'm not saying that we have to fire the public servants we already have, but we can run it more efficiently."

In addition, he believes that digitisation is essential. “We shouldn't ask for paperwork that can be in the system. That's the kind of efficiency that I'm talking about,” he said.

Author

Paula Martins is a fully qualified journalist, who finds writing a means of self-expression. She studied Journalism and Communication at University of Coimbra and recently Law in the Algarve. Press card: 8252

Paula Martins