The Portuguese Prime Minister Luís Montenegro advocated that Portugal must make the most of the current international context to boost its industrial capabilities, attract investment, and create the conditions to grow more, innovate, and pay better wages.

At the opening of the Industry Summit in Braga, he claimed that “this context of uncertainty and instability is oftentimes an opportunity context” and that Portugal “has all it takes to become a benchmark for stability, knowledge, performance, and for investment attraction and settling”.

Luís Montenegro stressed that economic growth requires structural changes based on competitiveness, innovation, enhancing work, and reducing red tape costs for companies.

Less taxes to increase wages and investment

The Prime Minister classified the reduction of the tax burden on work and companies as a “strategic and structural change for the country”, upholding that lower taxes enable a valuation of merit, increased productivity, and better wages.

“It is worthwhile to work and it is worthwhile to work harder because the return on the effort is greater”, he claimed, noting the drop in income tax and the performance incentives as important instruments to settle young people in Portugal.

The cut in income tax was also noted as decisive to improve companies’ profitability, encourage investment, and accelerate technological innovation.

“We want to signal that it is worth investing in an economy whose goal is for companies to be more profitable, with greater returns, to create more wealth”, he said.

Luís Montenegro also claimed that Portugal has the capacity to grow “3.5% or 4% per annum consecutively”, if it is able to consolidate a new cycle of investment, innovation, and productivity.

A simpler State, more flexible work, and more qualification

During his speech, the Prime Minister also highlighted the State’s modernisation and the reduction in red tape as priorities, indicating the Digital Company Wallet as a tool to simplify the relationship between companies and Public Administration.

On the labour legislation, he claimed that Portugal has “the 38th most stringent labour law in 39 [OECD] countries”, advocating greater flexibility to adapt companies and workers to economic and technological changes.

Luís Montenegro rejected the criticism made to the changes proposed by the Government, considering that measures such as the hours pool can help companies to respond to new market opportunities, preserve jobs, and increase income.

The Prime Minister also noted the investment in higher education, vocational training, and innovation as pillars for the Government’s economic strategy, including the creation of new universities, boosting social action in higher education, and investing in vocational schools.