Portugal Aiming High for Inclusion in the Top Ten Business-friendly Nations

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Economy Minister Álvaro Santos Pereira has announced that the Portuguese national government has set a goal of inclusion in the top ten business-friendly countries. His statement was made to the Official Forum of Monetary and Financial Institutions, a forum established for the conduct of dialogues between public and private sector financial institutions on asset management and finance regulation.

According to the World Bank Ease of Doing Business ranking, Portugal occupies the 30th place in a field of 185 countries in the business index. The country garnered respectable ratings in Trading Across Borders (17th), Enforcing Contracts (22nd), and Resolving Insolvency (23rd). But its ratings in Getting Credit (104th) and Dealing with Construction Permits (78th) leave something to be desired.

The abovementioned figures are benchmarked for June 2012. Portugal has held its overall ranking from 2011 to 2012, a sign that the country is holding up despite the internal and external pressures brought by the global financial crisis.

The Ease of Doing Business Index ranks the economies of countries on several aspects with ranks from 1 to 185, with 1 being the best. A high ranking on the index – or a low numerical rank, to put it another way – means that the country’s regulatory environment is conducive to business investments including strong protection for property rights.

For 2012, the top ten countries in the index are (in order of rank from 1 to 10): Singapore, Hong Kong SAR, New Zealand, United States, Denmark, United Kingdom, Republic of Korea, Georgia and Australia.

How does Portugal plan to move up the rankings from 30 to 10, at the very least? Economy Minister Pereira asserted that the national government will adopt reforms in the business regulatory environment through lesser bureaucratic red tape and faster actions on business-related matters.

He also announced that Portugal will follow the example set by the United Kingdom’s coalition government – for each new regulation introduced, an outdated regulation will be abolished. The main goal is to truly speed up the process for businessmen and investors to set up shop in the country.

Economy Minister Pereira also discussed the reforms implemented in the transportation, energy and labour industries as well as the progress made in the country’s privatization program. Specific references were made on the deep water port in Lisbon, the redevelopment of existing facilities for a tourism-friendly approach, and the increased attention on the minerals sector.

And speaking of the minerals sector, Economy Minister Pereira placed the value of gold, copper, iron ore and wolfram deposits between €170 billion and €250 billion. This is in addition to the ongoing oil and gas prospecting, which is forecasted to bring in hundreds of millions of euros in investments to the country.

He further announced the ongoing review of Portugal’s corporate tax system. The country occupies the 77th rank for Paying Taxes on the Ease of Doing Business Index for 2012.

In another venue attended by young entrepreneurs on the same day, Portuguese President Aníbal Cavaco Silva encouraged his audience toward a revitalized dynamic of growth. He encouraged the group to turn their backs on the outdated idea that low wages guaranteed competitiveness and to seek new ways of thinking and acting. He further exhorted his audience to act with energy, ambition and audaciousness.

This piece of news is, indeed, music to the ears of businessmen, investors and employers as well as the labour force. With economic reforms toward becoming one of the top ten business-friendly countries in the world, Portugal is marching toward a brighter future.


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