The two-decade entry into the circulation of euro notes and coins on January 1, 2022 justifies the production of balance sheets. Looking at Portugal’s participation in the Economic and Monetary Union for over 20 years, we have every reason to be dissatisfied.

In the first group born in 1999, we entered the Euro. In addition, we have the third lowest growth rate in the world, apart from epidemics. Only Greece and Italy worse than us. In just six years, we have grown above the Eurozone average, four of which were between 2016 and 2019. But that did not stop our average growth rate from remaining at 1.1%.

Source: Ameco;
Notes: Average growth rate after joining the euro until 2019, the year before the Pandemic; In parentheses: year of entry into the euro.

It is true that the eurozone has always had lower growth than the EU over the past 23 years, but the combination of a single currency does not mean that we are growing at an average rate. We can say that expansion countries are in the early stages and that is why they are growing so much. But that was not the case with us – we stopped merging in 2000, and a year ago, in 2009, we reunited, but apparently without the capacity to sustain this growth, we went into recession like in 2011. Between 2016 and 2019 we came together in a process that was disrupted by the Pandemic.

The example is obviously Ireland. Portugal entered the euro at the same time as, like Portugal, a recession and its banking was fundamentally bankrupt, however, in these 23 years the Economic and Monetary Union has grown the most. The enviable average rate is 5.2%.

Paul Krugman describes Ireland “Leprosy economy“Where”Leper Financey ”- a shoe maker elf who always adjusts to the same shoe, as can be read in some references from Celtic mythology. At the time, Krugman was responsible for the 26.3% jump in Ireland’s GDP in 2015, which is basically because Apple estimates its profits there. Although Krugman said they had a sense of humor, the Irish did not like it. Ireland’s Ambassador to the United StatesUnacceptable exception”, The success of Irish growth is not based solely on education, but on the tax benefits offered by technology multinationals. This inspection will be implemented as soon as the minimum taxation agreement negotiated within the framework of the OECD comes into force.

Whatever the reason, Ireland is sure to be an undeniable success story that will make us want to look at it. Of course we cannot apply their policies. Considering what is revealed by party preferences, tax measures do not respect the range of values ​​of the Portuguese. But of course there are many other steps that can be taken.

To celebrate the 20th anniversary of the entry into circulation of euro notes and coins, Sabado published a special magazine, where he recognizes former President of the Republic Anibal Kawako Silva, In the interview, A bunch of reforms he calls “Reformist conflictTo get out of this predicament of low growth: justice, public administration and the tax system. Other economists may recognize other priorities, but it is difficult to see how we can grow without addressing at least some of our problems in justice and public administration. Furthermore, in one case or another, we are basically talking about simplification, which provides a more secure and unpredictable relationship between citizens and the state.

In the presentation of PS Electoral Program, Antonio Costa talked about this. In addition to issues that entice voters, there are also commitments that can make a difference. They are, that is, the reduction of contextual expenditure, the intervention of justice, and the special emphasis on governance and taxation; Since the departure of Maria Manuel Leito Marquez to the European Parliament, the return of the forgotten PS flag, the Simplex, has become a more investment – friendly financial framework. The PSD election program will be known this Friday.

Since the January 30 election is between these two parties, the PS and the PSD, it is essential to focus on ensuring high growth for Portugal rather than losing on various targets. – Proper accounts as Antonio Costa says – We must ensure that we do not ruin everything.

With further development, it will be easier to guarantee everything from tax breaks and wage increases to better quality education and health. Fighting the bureaucracy, fighting to ease ties with the state, and ensuring faster and more predictable justice will be the two pillars of action, which will undoubtedly help increase the productivity of a large section of companies, free up investment resources and provide better wages. Get the education and training you need most. Let us look at Ireland, at least in part.