Minister of Economy announces creation of national industrialisation master plan
By INÊS LOPES ines.lopes@algarveresident.com
The Minister of Economy and Employment, Álvaro Santos Pereira, has assured that a plan for industrial development in Portugal, conceived by a committee of experts, will be concluded in February 2013.
This is the first time the government has been seen to be addressing the issue in an official manner, and their action is considered a breath of fresh air from the austerity measures that have been crippling the economy.
This action follows consistent claims by the opposition PS leader António José Seguro that the government was undermining any chances of economic growth in the country.
The government believes that the timing is now right for action and has backing from other European ministers, thereby giving the subject the attention it deserves (see story on facing page).
The previous plan for improved industrial action in Portugal was conceived 45 years ago under Marcelo Caetano, the last prime minister under the Salazar dictatorship.
Salazar himself had previously presented two such plans – the first in 1953, followed by another in 1958. Whilst these were strictly limited by industrial conditioning laws approved by Salazar in 1931, Caetano’s plan for industrial development promoted a capitalist and competitive market.
Forty-five years later, and amidst a serious economic crisis, Álvaro Santos Pereira initiated a debate last week on strategies for industrial development, involving entrepreneurs and specialists from various fields. One thing the minister has confirmed – the plan will be ready in February next year.
After a meeting with entrepreneurs, industry associations and political parties on new industrialisation strategies to aid the Portuguese economy, Álvaro Santos Pereira told Lusa news agency: “In February, once all parties have been heard, we will be announcing our strategy to bolster the industry.”
His message was clear in that all political parties, “including the PCP (communist party) and Bloco de Esquerda (Left Bloc)”, would be heard, as well as other vital players, to ensure a broad and engaging debate.
The minister went on to explain that the government will be creating an “industry innovation council”, which essentially will be a group of specialists from the Ministry of Economy that will be working on industrialisation policies and will closely monitor their implementation.
To start the ball rolling, on Wednesday last week Santos Pereira met with representatives from the automotive and aeronautics industries.
Companies in discussions with the government include Embraer (aircraft manufacturers with two factories in Évora), Logoplaste (manufacturers of rigid plastic packaging which is distributed worldwide) and OGMA (specialist aviation company), as well as investigation centres such as the Centre for Nanotechnology and Smart Materials and the Centre for Excellence and Innovation in the Automotive Industry.
According to a source from the Ministry of Economy, a new round of meetings will be held before the end of the month with entities from the health sector.
In January, the Minister of Economy will be in further meetings with the following sectors: technology and chemicals; construction materials and furniture manufacturers; forest and sea; agriculture and farming; and fashion.
On Monday last week in Brussels, the Minister of Economy had already announced plans for industrial development, not just in Portugal but at a European level. A new group called ‘Friends of Industrialisation’ was introduced and includes five European ministers of industry and economy who are advocating the same objectives – a new and innovative industrial policy for Europe.
Europe reindustrialisation
Portugal, Spain, Italy, France and Germany want new industrialisation policy for the European Union
Open letter || Five European ministers of industry and economy are calling on the European Union to reverse the cycle of corporate relocation and the loss of jobs in the region.
In an open letter signed by Portugal’s minister of economy and employment, Álvaro Santos Pereira, Spain’s minister of industry, José Manuel Soria, Italy’s minister of economic development, Corrado Passera, France’s minister of industrial renewal, Arnaud Montebourg, and Germany’s minister of economics and technology, Philipp Rösler, deliver a stark message:
“Our future success depends on having a strong, diversified and sustainable growth model, one in which industry plays a key role as a major source of job creation, investment, innovation and human capital. A strong, renewed and modernised industrial base will allow the real economy to lead Europe’s recovery.”
Europe not keeping up with changes and competition
Explaining that Europe is going through a critical phase in ensuring the future of the region’s economy, the letter continues: “Around the world, growth patterns and sources of competitiveness are changing dramatically. Emerging economies, for instance, are becoming key world players, changing the structure of global value chains and accelerating profound fluctuations in the balance of economic power” and “unfortunately, Europe as a whole, constrained by the financial crisis, is not coping with these changes at the right pace”.
“Overall results show a stagnating European industrial sector that is limiting our ability to lay the foundations to return to sustainable growth. While the European Union remains a major industrial power, three million industrial jobs have been lost since 2008 and industrial production is 10% below pre-crisis levels,” it continued.
The five European ministers believe that “in our countries we have some good starting points. There are several sectors in which Europe is a world leader. However, we need a larger share of competitive companies that are able to operate in a wider range of sectors within an open and increasingly internationalised environment”.
And highlighting modernisation of the European industry sector as vital, the document read: “A strong, renewed and modernised industrial base will allow the real economy to lead the Continent’s recovery.”
The open letter has been published in various leading international newspapers.
Environmental rules are obstacle to economic growth, says minister of economy
Criticism || Minister of Economy Álvaro Santos Pereira has come under attack for saying “fundamentalist” environmental rules were jeopardising industry and employment.
Assunção Cristas, Minister of Environment, discredited Álvaro Santos Pereira during a parliamentary commission by saying Europe should not want to follow 19th century industrial policies – that disrespected the environment – and that “we should not have the ambition to be like other countries which are lagging behind” as far as sustainable economic policies are concerned.
However, she believed it was possible to have economic development strategies that were “suited to the 21st century”.
Assunção Cristas was speaking during a parliamentary commission on the environment, following a question from the socialist PS MP Pedro Farmhouse who had asked: “The Minister of Economy believes the environment is an obstacle to the economy. Do you agree with him? Is this the government’s official position?”
The environment minister said she did not agree with Santos Pereira and defended balanced, sustainable economic development that created wealth for a country and that took advantage of the opportunities that the environment provided to ensure a “low-carbon, green economy”.
She said the message was very clear in the government’s agenda and that the Prime Minister himself favoured sustainable economic development strategies, which he discussed during a conference of the Rio+20 (United Nations Conference on Sustainable Development), held in June this year.
