Portugal needs capital and can attract it

The CEO of Portugal’s largest clearing bank, the publicly-owned Caixa Geral de Depósitos (CGD), Paulo Macedo commenting on the theme ‘Portuguese Investment Outlook in Perspective’  and the report ‘Structural Trends Shaping Portugal’s Economy and Growth’, said that keeping IRC taxes stable over the next three years was “positive” and called on a “more reasonable” tax policy, coupled with a significant reduction in bureaucracy.

Addressing companies and investors earlier this month on Capital Markets Day in Lisbon, the banker and former Portuguese health minister framed his speech on the conclusions of a McKinsey report on the Portuguese economy.

Paulo Macedo stressed the importance of the immigrant workforce as absolutely essential for the tourism sector both in Portugal and countries like Italy.

Referring to the report, the CEO of public bank CGD highlighted that part of Portugal’s economic growth in the future should come from new areas such as electronic commerce, the aerospace sector, and security.

Macedo equally identified sectors in which Portugal could attract more capital because of its competitive advantages, namely batteries, electric vehicles, software and cybersecurity. “We can be competitive in areas where we can establish synergies”, he said.

Paulo Macedo also stressed that a strong capital market constituted a relevant alternative to traditional bank financing. “It is a question of knowing how to give confidence to the players”, he said.

Rounding off his speech, the CEO of Portugal’s largest bank used a phrase by the Brazilian Formula 1 driver Ayrton Senna to illustrate the economic opportunities Portugal was facing, calling on both large companies and the regulatory bodies that supervise the stocks and shares market to take a “step forward”.

“Portugal needs capital and can attract capital. You can’t overtake 50 cars on a sunny day, but you can do it on a winter’s day”, he said quoting the racing driver.