Portugal cannot rely solely on tourism, warns CGTP – Portugal Resident

Portugal’s largest trade union confederation has warned that the national economy is overly dependent on tourism and has lost much of its domestic production capacity.

Speaking on Friday (May 8), Tiago Oliveira, general secretary of the General Confederation of Portuguese Workers (CGTP), said Portugal “cannot base its economy on the hotel industry and tourism,” calling instead for a model focused on higher-value production.

Oliveira made the remarks to journalists on the sidelines of a public forum marking World Social Security Day.

He said the Portuguese economy remains “based on low-value-added products,” which restricts its ability to compete with imports.

“We can sell as many croissants and pastéis de nata* as we want, but none of this will compete with what we have to buy from abroad because we have given up our domestic production,” Oliveira said.

He also highlighted the railway sector, criticising Portugal’s reliance on foreign train purchases.

“We now have to buy another 100 trains. Where are we going to buy those 100 trains? We’ll buy them from Spain, we’ll buy them from France, we’ll buy them from Switzerland,” he asked.

Oliveira added that Portugal “used to have a major national train company.”

“How many pastéis de nata will we have to sell to buy a train from Switzerland, Spain, or France?” he questioned.

The union chief attributed the country’s productivity challenges to public policy decisions in recent years.

“The issue of productivity lies here, in the political choices that have been made over all these years,” he said.

He also stressed the importance of valuing workers and creating conditions for them to “lead a prosperous life in their country.”

On the labour package currently under discussion, Oliveira said there is “rejection” among workers and warned that parties “will have to be held accountable” for their votes in the Assembly of the Republic.

“Either they are on the side of a government that has responded to the interests of employers, or they are on the side of the majority. The majority are the workers,” he said.

On taxation, Oliveira argued that workers are willing to pay their share, provided the money is used “to improve public services” and meet the needs of the population.

Source: Lusa

* Traditional Portuguese egg custard tart, widely considered a must-try delicacy for tourists visiting Portugal