The law to facilitate capital over 5 million is a shot in the foot. International consultants avoid pirate investment, which steals the market from national competitors by having access to cheap capital or by obtaining tax credit or authorization for billboards on the roads, which the locals cannot.
They tolerate speculative capital in crises, which buys today at despicable prices and leaves tomorrow, with a profit of around 30%, without bringing benefits to the country. They approve of technology, which brings something new to the local business fabric, and here they buy material, components and services, then export or reduce imports.
This investor, on hearing from colleagues about the bureaucracy and costs of context, for example, cartels, ends up choosing another destination. For example, the new Transport Guide, which no EU country uses, as there are simpler ways to control the economy; the tax evasion of SMEs is minimal compared to that obtained by tax offices.
Portugal has competitive advantages, among other sectors, in special uniforms, furniture, ornamental stone, nature tourism, health tourism, winter internships for athletes, golf, reconstruction of truck engines and road machinery, sea energy equipment ( despised by us), biodigesters for biogas.
Among the consumer products: wine, organic food, artisanal agro-industry, virgin olive oil, fish, flowers, pottery, safety boots, evening dresses, made-to-measure clothes.
And the hiring of Portuguese companies abroad to carry out major maintenance of yachts, co-develop shipbuilding projects, and much more.
These investments require only about 50 euros per job, while the large company needs about 800 euros. Thus, with 1 million, the technological SME brings 20 jobs and the pirate, one to two.
In the Algarve, the hunt for SMEs because of the useless Transport Guides, which are not available in other EU countries, as they are controlled by crossing other data, has brought a climate of insecurity to tourists and they ask if there is a ETA here, for that was how they saw Spain ten years ago.
By attracting speculation and not creating jobs, the finance minister increases unemployment, which brings despair, crime and will bring many shots in the Algarve.
Author Jack Soifer is the author of the books «How to Get Out of Crisis», «Algarve/Alentejo – My Love» and «Ontem e Oje na Economia»
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