The Euro and Economic Growth
“Was it with Portugal's entry into the euro that Portuguese economic growth stagnated? In preparing the country for the convergence of compliance with the criteria for entry into the euro, the Portuguese economy showed a balanced current balance in 1995, the external debt represented around 8% of GDP and interest rates were relatively high. With the accession to the euro, we have been witnessing a loss of growth potential and smaller increases in productivity. The first excessive deficit took place in 2001 in a situation of low unemployment. Public expenditure was not contained and there were no structural policies with a relevant impact on economic growth. From there until we arrive at the current situation is the great challenge of this conference through the presentation made by one of the best specialists and analysts of the Portuguese economy”.