Portugal and the EU

1
Portugal and the EU
2
Before Accession

• Portugal Had Been Under Fascist Dictatorship
  Until 25th April of 1974. During That Time the
  Colonial War (1961-1974) Absorbed Most of the
  Economic Resources Conditioning Its Development.
• In 1959 Joined EFTA, Because Unlike the European
  Union Allowed the Maintenance of Our Colonies.
  After the Fall of Dictatorship the New Government
  Started Attacking Private Property Causing an
  Escape of the Investors Elsewhere. These Events
  Amplified the Consequences of the International
  Crisis of That Time.
• It Was Needed to Wait Until the End of
  Dictatorship So That Portugal and Europe Could
  Establish Negotiations.

3
Political Situation

• Hard-left Communist Partys Took Control of the
  Administration and Started the Nationalization of
  Our Economy As The State Controlling System With
  a Wide Organization to Control the Colonial
  Empire Collapsed. Hard-left Wing Political
  Parties Influence Was Very Powerful and a Sudden
  Change to Communism Was Imminent. The Influence
  of State Was Growing by the Day.
•  

4
Economical Situation

• There Was a Great Dependency From the Colonial
  Goods and Markets. Their End Forced Many Major
  Companies to Close Forcing Unemployment to Rise.
  Afterwards Our Trade Was Focused Mainly With
  Other Countries From Europe, but the Degree of
  Concentration Was Inferior Than Nowadays. In
  Those Days Despite Spains Proximity Commerce
  Between Our Two Countries Was of Reduced
  Importance.

5
Social Situation

• The End of Colonies Forced the Return of Around
  One Million People. Furthermore the Civil War
  That Arose in Those Countries After the
  Colonization Brought to Portugal Hundreds of
  Thousands of Refugees. The Population became More
  Heterogeneous and the Existing Social Problems
  Only Got Worse. With The End of The Dictatorship
  Crime And Terrorism Struck And Social Unrest
  Increased Everyday.

6
The European Option

• The Accession Request Made to The EU on the 28th
  of May of 1977 Was Mainly an Attempt Solve The
  Crisis And Correct Structural Malfunctions of The
  Portuguese Economy (Stagnation of The Agriculture
  And The Specialization in The Exports of
  Traditional Industry Goods). Yet Years Before in
  1970 Portugal Had Already Delivered a Memorandum
  in Brussels in Which it Reaffirmed Its Interest
  in The Opening of Negotiations For a Commercial
  Agreement With The Common Market to Take Place in
  1972. Nevertheless The Colonial Problems as Well
  as The Dictatorship Characteristics of The
  Portuguese Regime Were Unmatchable With the
  Principles And Objectives of The Romes Treaty,
  Disabling Any Chance of Success in Such
  Intentions.

7
Duration of the Negotiations

• Portugal Requested Accession for the First Time
  in 1961 and Was Rejected. Six Years Later a
  Similar Request Was Made but the Results Were the
  Same. Only After the Implementation of a
  Democratic Regime (1977), Is That Portugal Was
  Accepted As an Official Candidate. Only Nine
  Years After in the 1st of January of 1986 Is That
  the Condition of Candidate Changed Into
  Membership.

8
Access Negotiations

• The Stage of Negotiations Can Be Divided in Four
  Periods. First One the Normalization, From
  1976-77, Where the Companies Working Conditions
  Were Privileged As Well As the Increase in
  Entrepreneurs Confidence and External Deficit
  Control Second the Turning Point, From 1978-79,
  in Witch the Previous Restrictive Tendency Was
  Heightened. For That Huge Foreign Loans Were Made
  and Took Place the First IMF Agreement to Balance
  Foreign Trade Third the Return to the Problem of
  Foreign Trade, From 1980-83, As a Consequence of
  an Internal Expansionist Policy Together With an
  International Crisis Fourth Economic
  Stabilization, From 1983-84, With the Second
  IMFs Agreement to Guarantee the Balance in
  Foreign Trade.

9
After Accession

• The European Union Brought to Portugal Enormous
  Benefits Allowing to Improve Life Conditions for
  Most of the Population, the Political Environment
  and Stability and Companies Competitiveness and
  Innovation.
• The Portuguese Communitarian Integration Was One
  of the Most Remarkable Periods of Portuguese
  Development History. It Helped Changing
  Mentalities, Opening Society, Improving
  Infrastructures, Macroeconomic Stabilization,
  Opening of the Financial System, Liberalization
  of the Capitals Market, Modernization of
  Productive Procedures and Companies, Educational
  System and Administration Reforms.

10
New Economical Situation

• It Was Needed to Do in a Few Years What Had Been
  Forgotten for Decades. Portuguese Has a Foreign
  Trading Deficit Yet That Deficit Was Strongly
  Reduced. In 2002 There Was a Reduction of 12,3
  and in 2003 of 9,3 but in 2004 It Grew 12,7 to
  a Level of 15,4 Thousand Million Euros. The
  Deficit Has Structural Reasons Due to High
  Amounts of Imports of Machinery, Transport
  Equipment, Chemical and Energetic Products and
  Food and Agriculture Goods.
• According to European Union Data in the Next Two
  Years Portugal Will Still Divert From the Average
  Life Level of the Other Union Members.
  
• Nowadays Portuguese Trading With Outside Markets
  Is Very Concentrated in OCDEs Markets, Just Like
  It Happens With the Other European Markets,
  Especially in the Countries of the European
  Union, With a Weight of 78.2 in 2004. Foreign
  Portuguese Trading Was the Main Responsible for
  the Fast Economical Growth. From 1994-1997
  Exports Grew at a Rate of 14,3 a Year.

11
New Social Situation

• The Social Changes in the Last Decades Show a
  Tendency to the Reduction of the Differences
  Between the North and South, Urban and Rural.
  Nevertheless Because of the Reduction on the
  Amount of the Population Working on the
  Agriculture There Is a Tendency From Populations
  to Flee to the Seaside and to the Cities. The
  Migration Balance Became Positive That Is, the
  Number of Immigrants Overtook That of the
  Emigrants.

12
New Political Situation

• Current Political Institutions Are More Stable
  Than They Were Before Accession and the Major
  Political Areas Are Now Focused on the
  Right-center Wing and the Left-center Wing,
  Instead of the Hard-left and Left Wings. These
  Changes Give a Further Guarantees on the
  Continuation of the Major Policies Ensuring
  Political and Social Stability.

13
Expectations Vs Achievements

• The Portuguese Population Was Expecting a
  Fundamental Option for the Future of Progress and
  Modernity but Especially an Opportunity to
  Change.
• The Portuguese Economy Made an Enormous Progress
  in the Last Years in Catching up With European
  Average Lifestyle, but 19 Years After European
  Union Access, Portugal Has Not Yet Reach the
  Development Level of Its Community Partners.
• Around 22 of the Portuguese People Live Nearly
  Poverty (Have Incomes 60 Inferior to the
  National Average).
  
• Furthermore European Funds Were Irresponsibly
  Used and Fishing, Agriculture Were Severely
  Damaged.
  
• On the Other Hand Infrastructures, Technological
  Development, Citizen Rights and Consumption Have
  Had an Outstanding Evolution.
  

14
Perspectives Portugal

• This Year Portugal Will Have One of The Lowest
  Economical Growth of EU. It Will Grow Around
  1.1, Which Is Half of the Predicted Last
  November. But the Most Important Thing Is That
  Portuguese Will Continue to Diverge From the
  Average Level of Lifestyle of Other European
  Countries.
• Nevertheless the Impressive Economical
  Performance After the First Years of the
  Accession Proved That Real Convergence Isnt
  Impossible.
• It Is True That There Are Still Some Social
  Unbalances and Regional Asymmetries but Thats
  Due to a Better Performance From Some Sectors and
  Regions When Compared to the Others So the
  Solution Is to Keep on Working Towards Greater
  Development.

15
The Idea of Europe

• It Was From The Ashes of the Second World War
  That a New Hope Was Born. Those Who Has Resisted
  Totalitarism During the War Were Determined to
  Put an End to National Disputes and Set the Bases
  for Everlasting Peace Between Former Enemies.
• From This Idea a New Western Europe Would Arise,
  Based on the Common Interests of the Nations and
  Their Peoples, Based Upon Treaties That Ensured
  Law and the Equality of Nations. The First Step
  Was to Gather in That New Union the Goods That
  Once Had Been the Engines of the War Industry,
  Such As Coal and Steal. What Was Once for War
  Would Now Be for Peace.
• Furthermore and Because No Country of the
  European Union Had Enough Dimension to Compete in
  a Further Global Market a Bigger Integration Was
  Decided. European Union Was Pursued Because of
  the New To Obtain Scale Economies, and Half a
  Century of European Integration Showed That the
  Whole Is Bigger Than the Sum of the Parts.

16
Europes History

• 1948 After the End of the Second World War
  Europe Tries to Create Mechanisms That Can
  Prevent Another Conflict From Happening.1951
  First Step Shumans Vision.1957 The Birth of
  the European Community France, Germany and
  Benelux Sign Romes Treaty.1965 Signature of
  the Communities Union Treaty Economical, Coal,
  Steal and Atomic Energy. Creation of a Ministers
  Council and a European Commission for the Unified
  Communities The Economical European
  Community.1973 The First Enlargement the
  European Community Starts to Include Denmark
  Ireland and the United Kingdom.1979 The
  Pathway to Euro The European Monetary System Is
  Introduced.1981 Greece Becomes the 10th Member
  of the Community.1986 Pathway to the Single
  Market. Portugal and Spain Are Part of the
  Community.1991 - Maastricht Treaty the Creation
  of the European Union.1993 In the 1st of
  January the Europeans Single Market Its
  Reality.1995 - New Enlargement the Community
  Broadens to 15 Members As Austria, Finland and
  Sweden Enter.1997 - Amsterdam Revision Draft of
  the Treaty - Beginning of the East
  Enlargement.1999 Euro Is Born Sweden, Denmark
  and the United Kingdom Choose to Stay Away.2004
  East Enlargement on the 1st of May 10 Out of
  13 Candidates Are Accepted Into the European
  Union.

17
Europe

• Economic, Commercial and Monetary European Union
  As Already Reached the Status of World Power. It
  Has a Considerable Influence in International
  Organizations Such As the WTO (World Trade
  Organization), the UN (United Nations) and
  Environment and Development World Summits. It Is
  Based on the Principle of a Single Commercial
  Space and Includes Around 500 Million People With
  a Fairly High Income.
• Nevertheless It Is Sometimes Described As an
  Economical Giant but a Political Dwarf. This
  Feature Is Related With the Often Disagreements
  on the Foreign Policy Ideas of How Relations With
  Other States and the UN Should Be Handled.

18
Funding

• In the Same Way Inhabitants From Periphery
  Regions Benefit From Structural Funds Such As the
  European Regional Development Fund, Farmers Have
  the EAOGF (European Agriculture Orientation and
  Guarantee Fund).
• The PHARE Program Is One of the Three
  Pre-accession Instruments Financed by the
  European Union to Assist the Applicant Countries
  of Central and Eastern Europe in Their
  Preparations for Joining the European Union.
  SAPARD and ISPA, Which Took Over Rural and
  Agricultural Development (SAPARD) and
  Infrastructure Projects in the Environmental and
  Transport Fields (ISPA) Were Designed to Allow
  PHARE to Focus on Its Key Priorities.

19
Accession Criteria

• The European Council Defined Three Main
  Principles Any Accession Candidates Should Follow
  Before Becoming European Members.
  
• First a Political Criteria That Determines That
  the Candidate Must Have Stable Institutions That
  Can Guarantee Democracy, Justice, Human Rights
  and the Respect for Minorities.
• Second a Economical Criteria Establishing the
  Need for Their Economy to Have a Viable Market
  Economy and the Capability to Face Competitive
  Pressure From the Companies Already Inside the
  Common Market.
• Third Willingness to Accept the Obligations
  Resulting From the Accession Such As the Adoption
  of All the Rulings Issued by the European Union.

20
Enlargement

• Numerous Economic Analyses Have Concluded That
  the Benefits of Enlargement Outweigh the Costs.
  Although the Benefits Are Relatively Larger for
  the Acceding Countries, Because They Start From a
  Lower Economic Base, There Are Gains for Both
  Sides. Moreover, the Future Members, Already
  Exposed to the Challenge of Globalization, Will
  Help the Union to Surmount It.
• Enlargement Is Also the Final Objective of
  European Union Whose Goals Are to Help
  Maintaining Peace and Economical Prosperity for
  the Highest Number of Nations and Peoples.

21
Current Negotiations

• Romania and Bulgaria Remain Candidates, Turkey
  and Croatia Submitted Their Applications for EU
  Membership. The Republic of Macedonia Is
  Currently in the Process of Being Recognized As a
  Candidate Country.
• Switzerlands Government Stated Long-term Aim Is
  to Join the EU When Certain Key Conditions Are
  Met and Norway Has Previously Submitted
  Applications, but Twice Rejected Membership in
  Referenda Yet a New EU Membership Debate Will Be
  Started After 2007.

22
Other Partners

• At the Small Distance From Europe in the South
  Border of the Mediterranean There Are Many
  Countries With Whom EU Has a Lot of Bonds Both
  Historical and Cultural. There Has Been Between
  the Two Regions Many Migratory Flows, Witch
  Might Become Much Bigger. These Countries Are
  Very Important Partners for the EU Which
  Traditionally Has Followed a Mediterranean
  Regional Integration Policy. Those Countries Were
  the First to Establish Special Economical and
  Commercial Relations With Europe.
• Also The Relations Between Europe and Sub-Saharan
  Africa Are Ancient. With the Romes Treaty the
  Former Colonies and Ultramarine Territories From
  Some Members of the EEC Became Communities
  Associates. With the End of the Colonization the
  Relationship Changed to an Association of
  Sovereign Countries. The Present Agreement in
  Effect Is the Cotonu Agreements and Its Goal Is
  to Promote and Accelerate the Economic, Cultural
  and Social Development of the States of Africa
  Caribbean and Pacific.

23
Perspectives Europe

• In the Last Spring Europeans Report, Predicted
  That Probably Europe of the 12 Will Only Grow
  1.6. A Good Explanation for That Is the Fact
  That Europes Engine, Germany, Will Not Grow More
  Than 0.8. On the Other Hand the Europe of 25 Is
  Growing at a Rate Above 2, Thanks to the
  Excellent Performance of the 10 New Entering
  Countries.
• At the Same Time Unemployment and the Galloping
  Growth of Retirement Pensions Are Pressuring Hard
  European Economies, Pushing Them to Reforms.
  
• Terrorist Threats Are Making Most of the European
  Members Question the Usage of Tighter Control
  Systems Threatening to Reduce Citizens Freedom.
  
• The Rejection of the European Constitution
  Proposition As Risen the Problem of Weather the
  Project for Europe Is to Continue Towards a
  Higher Level of Integration Between Their Members
  or not.
•  

24
Tendencies

• The Concerns With Environmental Balance and
  Lifestyle Quality Demand New Policies That Manage
  to Attain a Balance, Having Always in
  Consideration the New Realities and the Purposes
  to Achieve. The Problems Created by the Ageing of
  Population, the End of Traditional Solidarity,
  the Development of Family Structures Until Now in
  Minority and the Evil Effects of Economical
  Development Demand a Redefinition of the Social
  State Policies That Can Contribute to Reduce
  Previous Failure.

25
Dangers

• But the Dangers to the Olds Continent Economy
  Such As the Increasing in Oil Prices, the Erratic
  Movements of Euro When Compared With the Dollar
  Justify the Cautions When Establishing Goals And
  Assessing Plans. If the Consumers Economy
  Doesnt Recover It Can Significantly Affect
  Economical Development. The Ageing of Population
  is a Severe Question in Sustainability, Future
  Development and Current Social Security Systems.
  These Factors Altogether Can Present Important
  Obstacles for Business Plans of Investment.

26
Advantages

• Each and Every One of Us Enjoys in His Daily Life
  Many Benefits From the Common Market Access to a
  Wide Range of Goods, True Competitive Prices,
  Consumers and Environmental Protection and
  Quality. Additionally Citizen From Community
  Countries Can Freely Move, Work and Live
  Throughout European Union
• He Also Benefits From Having a European
  Citizenship Witch Is Complementary and Not
  Substitute of the National Citizenship.

27
Euro

• Since the 1st of January of 2002 More Than 300
  Million European Citizens Use Euro in Their Daily
  Life. Between the Acceptance of the Maastricht in
  February of 1992, That Established the Idea of a
  Single Currency Until Its Usage in 12 Countries
  of the Union Only 10 Years Passed.
• The Need for Such a Currency That Could Ensure
  Monetary Stability Grew As the Common Market Was
  Taking Place.
  
• Euro Replaced Currencies That Were Sovereignty
  Landmarks of Those Countries. It Was a Step That
  Made Europe Significantly Go Forward Towards
  Economical Union.
• There Are 5 Conditions So That Countries Can Be
  Accepted in Economical and Monetary Union and
  They Are Public Deficit Below 3 of the GDP
  Low and Controlled Inflation Public Debt Below
  60 of the GDP Stable Currency, Within the
  Fluctuation Limits of the EES (European Exchange
  System) Long Term Interest Rate Controlled.