LISBON STRATEGY NATIONAL PLAN OF REFORMS (PNR) PORTUGAL. Cabinet of the National Coordinator of the Lisbon Strategy and the Technological Plan

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1 LISBON STRATEGY NATIONAL PLAN OF REFORMS (PNR) PORTUGAL Cabinet of the National Coordinator of the Lisbon Strategy and the Technological Plan Report on the implementation of the PNACE PNR New Cycle OCTOBER 2008 Rua da Lapa, Lisboa

2 PRESIDÊNCIADOCONSELHODEMINISTROS GABINETEDOCOORDENADORNACIONALDAESTRATÉGIADELISBOAEDOPLANOTECNOLÓGICO INDEX Introduction Part1 PNACE2005/2008;aprogrammeinFullImplementationandinlinewith EuropeanUnionRecommendations Part2 PNR/NewCycle(2008/2010);ConsolidatingReforms Part3 OutcomeoftheimplementationofPNACE2005/2008 AnnexesandusefulLinks Outubro2008 2

3 PRESIDÊNCIADOCONSELHODEMINISTROS GABINETEDOCOORDENADORNACIONALDAESTRATÉGIADELISBOAEDOPLANOTECNOLÓGICO INTRODUCTION The Renewed Lisbon Strategy approved by the Spring European Council in 2005 envisagedthateachmemberstatewoulddevelopandimplementanationalreform ProgrammefocussedonGrowthandEmployment,basedon24guidelinesthatcover themacro,microandemploymentdimensionsandtobeappliedbetween2005/2008. PortugalapprovedanambitiousreformprogrammeandpresentedittotheEuropean Commission. It is entitled the National Action Programme for Growth and Employment(PNACE2005/2008)andisstructuredinto4targets,7prioritiesand125 measures. Therehasbeenahighlevelofcomplianceandalsoresultsintheimplementationof the programme as set out in the first and third parts of this report; the evaluation report approved by the European Commission in this year s Spring Council has classifiedportugalasacountrythatismaking GoodProgress intheimplementation ofitspnr. Fromtheveryfirst,theimplementationoftheRenewedLisbonStrategyfocussedon executionandresultsandhadthejointinvolvementofpublicpoliciesandcivilsociety initiatives. Inthiscontext,andbearinginmindthestrategicconformitythathasbeenseen,the recommendations and warnings from the European Commission were always interpreted as a boost and stimulus to increase the quality and intensity of the executionofthepnace2005/2008.theresultoftheconvergenceeffortandresponse arepresentedinthefirstpartofthisreport. Theimpactassessmentisafundamentaltoolfortheeffectivenessofpolicies.Hence, in addition to the control of the level of execution and compliance with targets and objectives, the concept of impact drivers was also introduced. The nine drivers selectedareusedinthethirdparttoshowthemainlinesofexecutioninthelastyear oftheimplementationofthepnace2005/2008. The second part of this report also presents the strong lines for the launch and realisationofthenewcycleofthelisbonstrategyinportugal. A new cycle for the 2008/2010 period was approved in the Slovenian Presidency of the European Union but the contribution made to its design by the Portuguese Presidency in the second semester of 2007 has been recognised as extremely relevant; this cycle boosts the country s commitment to the future of a European Strategy that is able to empower the Union to overcome the challenges of globalisationinacontextofeconomic,socialandenvironmentalsustainability. Outubro2008 3

4 PRESIDÊNCIADOCONSELHODEMINISTROS GABINETEDOCOORDENADORNACIONALDAESTRATÉGIADELISBOAEDOPLANOTECNOLÓGICO ThisreportframesabroadenedandambitiousvisionoftheapplicationoftheLisbon Strategy in its dual national and European dimensions as an internal and external strategy of the positioning and action of Portugal and the European Union in the global economy, which is especially important at a time of international crisis and changeofparadigm. Hence, the structural funds and the cohesion fund in the context of the National Strategic Reference Framework (NSRF) will be assumed as fundamental support instruments for the implementation of the Lisbon Strategy in Portugal in the 2008/2013period. The preparation of this document has been supported by extensive interaction and feedbackfromtheinterministerialnetworkforthecoordinationandimplementation of the Lisbon Strategy and from the economic and social partners, and from coordinated work with the ESC (Economic and Social Council) and with the CNADS (NationalCouncilfortheEnvironmentandSustainableDevelopment). BilaterallinesofworkwerealsodevelopedwiththepermanentmembersoftheESC whoproducedspecificcontributionsfortheformulationofthedocumentduringthe preparatoryvisitmadebythedelegationfromtheeuropeancommissiontoportugal injulythisyear. The time horizon of this new cycle of the Lisbon Strategy is Although this is a relatively short period, a rigid definition of the National Reform Programmes, which have structural goals and play a vital role towards generating a new momentum for economic growth, is both unnecessary and inappropriate given the need to be attentivetothewaythecontextevolves.hence,thestrategicmeasuresidentifiedwill ofcoursebeadaptingsystematically 1. The success of the New Cycle implies that the Lisbon Agenda will be projected to a substantiallybroaderhorizon.weareconfidentthatthiswillbetheconclusionofthe debate taking place on the post 2010 Lisbon Agenda and we have included this convictioninourassumptionswhendrawingupthisreport. 1 ThisdocumenthasbeenapprovedintheextraordinaryCouncilofMinistersof12 th ofoctober. DuetothepreliminarydiscussionoftheGovernmentBudgetfor2009occurredinthatCouncil, theexpectationsaretotheinclusionofspecificmeasuresinordertorespondtotheinternational crisesinfinancialmarkets,namelytheonesaimingthestabilizationofthefinancialmarketsand, inparticular,whatconcernstosmeandfamiliessupport,thedecreaseofirctaxestocompanies andtheincreaseofthesmeaidfund,aswellastheenlargementofspecificsocialtransfers. Outubro2008 4

5 #1 PART PNACE 2005/2008 A Programme in full implementation and aligned with European Union Recommendations

6 INDEX Introduction...3 Recommendation1 Reorientationofpublicexpenditure...5 Recommendation2 Improvequalifications...7 Recommendation3 Moderniselegislationandemploymentprotection...13 FutureChallenge4 Sustainabilityofpublicaccounts...16 FutureChallenge5 ImplementationoftheTechnologicalPlan...17 FutureChallenge6 Competitionandregulation...20 FutureChallenge7 BetterRegulationProgramme...22 FutureChallenge8 TranspositionofEuropeanUnionlegislation...24 FutureChallenge9 Reductionofgreenhousegasemissions...27 FutureChallenge10 Factorsthreateningsocialcohesion

7 INTRODUCTION PNACE2005/2008isanagendainfullimplementation,asseeninthethirdpartofthis reportandtherespectiveannexes. Followingtheexecutionoftheprogramme,4goalswereset:reductionofthebudget deficit from 6.8% (projection for 2005) to 2.6% of GDP (starting from a stagnant situation in 2005), increase in the employment rate to 69%, doubling the public investmentandtreblingtheprivateinvestmentinr&d. Thefirstgoalwasreachedoneyearearlierthanforecastandthepublicdeficitin2007 was2.6%ofgdp.theactualgrowthofgdpin2007was1.9%whichenabledthisgoal to be fully achieved. However, in May the international crisis led to a review of the growthprojectionsfor2008toarateof1.5% 1.Forthesecondquarterof2008,the growthofthegdpwas0.7%(0.9%inthefirstquarterof2008). The employment rate was 67.8% in 2007 and reached 68.6% in the 2 nd quarter of 2008.Theemploymentrateforwomenwentupto61.9%in2007and62.3%inthe2 nd quarterof2008.forseniorworkers(55 64yearsold)therateamountedto50.9%in 2007and51.2%inthe2 nd quarterof2008.thenetjobcreationreachedavalueof nearly133,800betweenthe1 st quarterof2005andthe2 nd quarterof2008. Finally,thepublicinvestmentinR&Dwasdoubledoneyearaheadofforecastandwas reflected in the State Budget of the current year. The results of the survey on the scientificandtechnologicalpotentialincoursearenowawaitedsoastoconfirmthe expectationsofaverysignificantincreaseinprivateinvestment,correspondingtothe goalofitstrebling. These results were reached within the framework of a strong alignment with the Recommendations from the European Union which systematically validated the prioritiesdefinedandactingasincentivesnottoslowdowngiventheirambitionand impact. In the evaluation of the 2007 report, the recommendations to Portugal can be summedupinthreelinesofaction: 1. Toreorientatethepublicexpendituretowardsthereinforcementoftheeconomic growthpotential,keepingastrictcontrolofoverallexpenditure,withinthecontextof thecorrectionsincourseofbudgetimbalancesandthepublicadministrationreform; 2. To significantly improve the efficiency of the education system, namely through theincreaseofthequalificationlevelsofyouth,fightingagainsttheearlydroppingout 1 Meanwhile, and due to the international crises in financial markets, the projections for GDP growth to 2008 was reviewed to 0,8%. 3

8 fromschoolandprovidingavocationaltrainingsystemthatisadaptedtothelabour marketneedsandthatisbaseduponthe NationalQualificationsFramework ; 3. Topursuetheeffortstomodernisethelabourprotectionmechanism,namelythe legislation, in order to reduce the significant segmentation of the labour market, withintheframeworkoftheflexicurityapproach. Inputtingtheselinesofactionintoeffect,theEuropeanCommissioninvitesPortugal topayparticularattentiontothefollowingfuturechallenges: 4. Tocontinueboostingthelongtermsustainabilityofthepublicfinancesandthe sustainedreductionofthecurrentbalance; 5. To pursue the application of the Technological Plan, consolidating the connections between research, higher education and industry, fostering increased participationfromtheprivatesector; 6. To assure effective competition, namely in the energy markets and financial services; 7. TopursuetheapplicationoftheBetterRegulationprogrammeand,inparticular, thereinforcementoftheimpactevaluationsystem; 8. ToreducethedeficitinthetranspositionofEUlegislationtonationallaw; 9. Toprepareandapplythemeasuresrequiredtoreducegreenhousegasemissions; 10. Tocontinuethefightagainstfactorsthreateningsocialcohesion. Theserecommendationsandfuturechallengesareinfullalignmentwiththestrategic andoperationalprioritiesassumedfortheimplementationofthepnace2005/2008 andwillbefollowedinthepnr NewCycle2008/2010. The main constraint on the improvement of Portugal s economic, social and environmentalsustainabilityinthepastfewyearshasbeentheinsufficientlevelsof economicgrowthand,inparticular,thelimitedpotentialgrowthinducedbythelow productivityofthefactors. Hence, and in compliance with the European Commission Recommendations, the pledge in the quality of public finances and the allocation of the resources of the National Strategic Reference Framework (NSRF 2007/2013) has been achieved by focusing on a mobilising agenda towards growth and competitiveness the Technological Plan driven by the mobilisation of the Portuguese society and the concentration of public policies on resolving the factors blocking Portugal s the potentialgrowth. The Technological Plan (PT), together with the Stability and Growth Pact (PEC), the National Employment Plan (PNE), the National Strategy for Social Protection and Social Inclusion(EPSIC) and the National Land Use Planning Programme(PNPOT), in the wider framework of the National Strategy for Sustainable Development (ENDS 2015), the Pledge with Science initiative and the Connecting Portugal Programme, amongstother,constitutethefoundationfortheapplicationofthelisbonstrategyin Portugal, whose earmarking, acknowledged in the National Strategic Reference Framework(NSRF),isof83%. 4

9 Within this strategic framework, Portugal believes it has already been acting in line with the recommendations and future challenges indicated by the European Union with many of the measures integrated in PNACE 2005/2008, and it is ready to reinforcetheseconcernsinthepnr NewCycle2008/ Withinthiscontext,the readingoftheresponsestotherecommendationsandfuturechallengesissuedbythe European Union, presented below, must be complemented by comprehensive and more developed information in the PNR New Cycle and the Outcome of the last yearofexecutionofpnace. ItshouldbestressedthattheimplementationofPNACE2005/2008followedamatrix logicthat,takingintoaccountthecentralaxessetbytheguidelinesoftherenewed Lisbon Strategy at the Macro, Micro and Employment levels, also reflected the differentpoliciesintransversalapproachesoncriticalspheresforthepromotionofan inclusivesociety,suchasqualifications,innovation,youthandgenderequality. It was this matrix approach that provided strength to the implementation of the PNACE 2005/2008, enabling a positive outcome in the way global responses were givenandconsistentwiththeeuropeancommissionrecommendations. 1. REORIENTATION OF THE PUBLIC EXPENDITURE: FOCUS ON PRODUCTIVITY AND EVALUATION, FOLLOW UP AND MONITORING OF PUBLICEXPENDITURE 3 Recommendation: Toreorientatethepublicexpendituretothereinforcementofthe economicgrowthpotential,keepingastrictcontrolofoverallexpenditure,withinthe context of the corrections in course of budget imbalances and the Public Administration Since 2005, the budget policy has been mainly directed towards the responsible managementofpublicfinanceswithaviewtopromotingitslongtermsustainability through the process of budget consolidation. The balance of the public finances is essential for the provision of a favourable environment for entrepreneurship, productivity and economic growth. Therefore, Portugal will pursue the budget consolidationeffortbasedonthecontrolofpublicexpenditure. Morethanhalfofdeficit sreductionby3.5percentagepoints(p.p.)ofthegdpseenin 2006 and 2007 (from 6.1% to 2.6% of the GDP) resulted from the decrease in the 2 Besides the direct responses included in this part of the report, please see Part III, results of , and Part II, PNR New Cycle, new measures. 3 Complete with the underlying information of the measures included in Part II, Quality of Public Finances, and in the results Part III, macro level. 5

10 weight of public expenditure on the GDP (1.9 p.p. of the GDP, i.e., from 47.7% to 45.8%).Inaddition,theweightofthepublicdebtontheGDPreducedin2007,inline with the evolution of the budget deficit, standing at 63.7%( 1.0 p.p. than in 2006), interruptingtheevolutioninthegrowthseenintheprevioussixyears.thisdynamic ofthepublicfinancesenabledthereleaseofresourcesfortheprivatesectoranditis estimatedthatthecorporateinvestmentincreased1.5%in2006and14.7%in2007. Inacontextofbudgetconsolidation,theweightofthepublicinvestmentinthetotal primary expenditure declined in 2006 from 9.5% to 7.8%, and recovered to 8.1% in 2007.Itshouldbenoted,however,thatincoherencewiththedevelopmentstrategy adopted by the Government, despite the contention of public investment, this has been redirected to areas and projects that are associated to a greater economic growth potential namely in the areas of knowledge and the qualification of human resources. This is the case of the Ministry of Science and Technology and Higher EducationallocationtoinvestmentinScienceandTechnology,whichincreased61%in 2007and14%in In addition, the governance model of the National Strategic Reference Framework (NSRF),whichfosterscompetitionandtheselectivechoiceofinvestmentprojects,the involvement of stakeholders and monitoring and evaluation, enables community funds to be managed in line with the promotion of the competitiveness factors, the growth of human capital and the endogenous territorial factors that stimulate potentialgrowthandtheincreaseinthelevelsofcohesion.asaresult,notonlyare the large majority (83%) of NSRF community funds directed towards the Lisbon Strategy priorities of promoting competitiveness, job creation and the increase of economic,socialandterritorialcohesion,buttheyarealsoimplementedinlinewith the focusing and selectivity principles of the respective investments supported. This pledgeinqualityisseenintheapprovalrateoftheapplicationspresentedtonsrfby August 2008, during calls for applications or application periods that have already closed,whichisonlyabout50%. The reform of the budget process underway is aimed at the structuring by programmes and is the Government s main pledge to structurally improve public expenditure capacity to be effectively channelled towards its goals, in particular towards the activities that stimulate the potential of economic growth. In fact, this reform aims at assuring the budget choices are aligned with the social economic impactsintendedbythegovernment,inviewoftherespectivepoliticpriorities.this reformwillenabletheeffectiveandsystematicdefinitionofprioritiesintheallocation ofpublicexpenditure. 4 The last data available about the functional classification of the public expenditure (COFOG) dates back to 2006, hindering an updated analysis of the evolution of the functional composition of the public expenditure in Portugal. 6

11 Responsetorecommendation1: Thegreatmajority(83%)oftheNSRFcommunityfundsisdirectedtowardstheLisbonStrategy priorities; Thereformofthebudgetprocessincourse,aimingatitsstructuringbyprogramme,inorderto structurallyimprovethepublicexpenditurecapacityandbeeffectivelychannelledtowardsthe activitiesthatstimulatetheeconomicgrowthpotential. Mainresultsalreadyobtained: Reorientationofpublicexpendituretowardsinnovation,scienceandtechnology;theMinistryofScienceand TechnologyandHigherEducationallocationtoinvestmentinScienceandTechnologyincreased61%in2007 and14%in2008. Thereductionofthedeficitby3.5percentagepoints(p.p.)oftheGDPseenin2006and2007(from6.1%to 2.6%oftheGDP). ThedecreaseoftheweightofthepublicexpenditureonGDP(1.9p.p.ofGDP,i.e.,from47.7%to45.8%). ThereductionoftheweightofthepublicdebtintheGDP,inlinewiththeevolutionofthebudgetdeficit, standingat63.6%( 1.1p.p.thanin2006),interruptingtheevolutioningrowthseeninthepastsixyears. Corporateinvestmentisestimatedtohaveincreased1.5%in2006and14.7%in IMPROVEQUALIFICATIONS:BOOSTINGSTANDARDSOFCOMPETENCE ACQUISITIONLIFELONGLEARNING 5 Recommendation: ( )Tocontinuetotakemeasurestosignificantlyimprovetheefficiency of the education system, namely through the increase of the qualification levels of youth,fightingagainsttheearlydroppingoutfromschoolandprovidingavocational trainingsystemthatisadaptedtothelabourmarketneedsandthatisbaseduponthe NationalQualificationsFramework The pledge in the qualification of the Portuguese population continues to represent anessentialstrategicchallengeforthepromotionofthecountry seconomicgrowth and social cohesion. The urgency in the recovery of the deficits in education and training,accumulatedoverseveralyearsandthesignificantreductionofearlyschool leaving, led the Government to embark on a wide set of reforms that include the different levels of education and the vocational training system. To increase their impact,differentpublicandprivateentitieshavealsobeenmobilised. 5 Complete information with measures Part II, 5.1. Qualifications and results Part III, employment level, qualifications section. 7

12 In this context, due to its scope and impact, emphasis is given to the launch of the NewOpportunitiesInitiativeinSeptember2005.Thisconstitutesafirmanddecisive responsetothequalificationchallengeofthepopulation,throughanintegratedsetof strategic measures in terms of education, training and certification, which aims at generalisingthesecondarylevelasareferencegoalforthequalificationofyouthsand adults. Thestrategyofthisinitiativeliesontwomainpillars: - Theimprovementofthebasictrainingofyouth,namelybythediversificationof theeducationandtrainingsupplies,throughthestrengtheningofvocationalcourses, the fight against non achievement and early drop out rates in the educational and trainingsystem; - The improvement of the base training of the adult population, recognising, validating and certifying the skills already acquired by means of education, training, professional experience or other, thereby structuring qualification paths that match therealityofeachcitizen,guidedtowardshis/herpersonaldevelopmentandtowards theneedsofthelabourmarket. The mobilisation of the population and the results achieved in the meantime are encouraging(seenewopportunitiesinitiative).thesereflectthepriorityofthepublic policies in terms of education and training, with a rise of more than 10 percentage pointsintheweightregardingtheeuropeansocialfundofthesetofstructuralfunds for the period , to a total of about 8.9 billion euros, of which roughly 6 billioneuroswillbeallocatedtothedevelopmentofpoliciesthatintegratethenew Opportunities Initiative, namely through the Human Potential Thematic Operational Programme. Equally, following the broad consensus achieved between the Government and the majority of the Social Partners, the reform of the vocational training system reform constitutes a fundamental instrument essential to the successful pursuit of the qualificationstrategydefinedwithinthescopeofthenewopportunitiesinitiative. In the framework of this reform, Decree law 396/2007, dated December 31, was published,establishingthelegalsystemofthenationalqualificationssystem(snq), which assumes the aims already stated in the New Opportunities Initiative and promotes the required instruments for its effective execution with the financial instruments. This system adopts the principles sanctioned in the agreement signed with the social partners and restructures the vocational training integrated in the education system and in the labour market, incorporating them with common aims and instruments and under a renewed institutional framework. The fundamental strategy aims to assure the relevance of training and learning for personal developmentandforthemodernisationofcompaniesandtheeconomy,whilstalso assuring that all the national effort in training is actually valorised in terms of the school and professional progression of the citizens, both directly, through dual certificationtrainingwithinthescopeofthenationalqualificationscatalogue(cnq), and indirectly, by means of the New Opportunity Centres and the process of recognition,validationandcertificationofcompetences. 8

13 Thestructuresthatmakeupthesystemare:(i)theNationalQualificationAgency 6, which assumes a central role in the management of the New Opportunities Centres network, in preparing, and updating the CNQ, in planning and rationalising the training supply and disclosure of information and in providing guidance in terms of qualificationsandemployment,thusassumingacentralroleinthepursuitofthegoals andfulfilmentofthetargetssetinthenewopportunitiesinitiative;(ii)thenational CouncilforVocationalTraining 7,responsiblefortheevaluationandglobalapprovalof theelementsincludedinthecnq;(iii)thelocaladvisorycouncilsforqualification 8, whichpermanentlyidentifythecnqupdatingneedsandcooperatewithanq;(iv)the New Opportunities Centres; (v) the Basic and Secondary Education Establishments; (vi) the Direct Management and Protocol Vocational Training and Rehabilitation Centres; (vi) the Poles of Excellence that are created from training operators that distinguishthemselvesforthequalityoftheirtraininginterventions,namelyfromthe vocational training protocol centres; as well as (vii) other entities with certified trainingstructures. Within the scope of this system, the following are formed: (a) the CNQ, a strategic managementinstrumentofqualificationsnotatthehigherlevel,whichintegratesskill based qualifications according to a dual certification logic, identifying the respective training skills referential and the qualification level for each one in articulation with the National Qualifications Framework (QNQ); (b) the individual skills booklet, mentioned in CNQ, which is an instrument that registers all life long skills that the individual acquires or develops, as well as all the remaining training programmes concluded,otherthanthosethatgaverisetotherecordedskills;and(c)theqnq,an instrument that structures the qualification levels in accordance with the European QualificationsFrameworkforlifelonglearning.Stillinitsfinalstagesofapproval,after national public consultation 9, the draft for the decree law regulates the System for theregulationofaccesstotheprofessions,aswellasthedifferentdraftsofdecrees that, resulting from the National Qualifications System, regulate QNQ, the model of the individual skills booklet and its recording process, the vocational training certificate, the guidance towards qualification and employment and, also, the certificationoftrainingentities. The quality of the SNQ is one of the main objectives in the different elements constituting it, namely through the certification of the training entities and the qualificationofthetrainersandothertrainingtechnicians. 6TheNationalQualificationAgency,establishedin2007,isundertheMinistryofLabourandSolidarityandtheMinistry ofeducation.itscreationstrengthensthecoordinationandexecutionoftheeducationalandtrainingpoliciesinportugal. 7Oftripartitecomposition. 8 The local advisory councils for qualification integrate, amongst other, specialists appointed by the Ministry for the respectiveactivitysector,tradeunionsandemployersassociationsrepresentativeofthecorrespondingactivitysectors, referencecompanies,trainingentitieswithgreaterlocalorregionalspecialisationandindependentexperts;theyshould notexceed10members. 9 Cf.BoletimdoTrabalhoedoEmpregono.5 Leaflet,of9August

14 Atthesametime,allmeasuresconnectedtotheimprovementoftheefficiencyand effectiveness of the basic and secondary educational systems continue to assume their relevance, namely those that aim at reducing non achievement rates at school andearlyschooldropouts(seebasicandsecondaryeducationdriver). The most remarkable aspects of the Portuguese educational system (K 12), in the triennium, are the increase in the number of students and the improvement in the quality of learning, within a framework of greater system efficiency,withthereductionofthenumberofteachersandschools.thedecreasein the repetition rate and early school drop outs, the recovery of students that had already abandoned the educational system, the increase in the number of students entering higher education, as well as the improvement of school results in national examinationsandtests,showtheeffectivenessofthemeasuresthatwerecarriedout; futureprogressdependsontheircontinuity. Mostmeasuresimplementedareconsolidated:thefulloccupationofschooltime(by substitutingabsentteachers);fulltimeschoolinthefirstcycleofbasiceducation,with curricular enrichment activities (offering English, Study Support, French, Physical EducationandSports,MusicalEducation,amongstother);theclosingofsmallschools andtheresultingreorganisationoftheschoolnetwork;wideningthetrainingsupply at the secondary education level; the availability of computers connected to the Internetatlowcostforstudentsandteachers;teachingICT;thehierarchisationofthe teaching career with the creation of the titular teacher position; the introduction of the new teacher evaluation system; the allocation of teachers for several years; amongstother.thesemeasureswillcontinueineffectforthenextthreeyears,with theirscopewidenedordeepenedwhenjustified. Anewsetofabouttwentymeasuresispresentedforthenexttriennium, Theseinitiativesinclude:greatersupporttothefamiliesoflowsocial economiclevels by means of developing educational projects guided towards school reinsertion of students; the modernisation of school buildings with interventions in one hundred secondary schools, and the upgrading of the pre school and first cycle education network;theconclusionoftheschoollibrariesprogrammewiththegeneralisationof libraries in all schools of the 2 nd and 3 rd cycles; new school management rules, enabling greater autonomy and boosting leadership; a new technological plan for Education,evenmoreambitiousintermsofresourcequalityandquantityavailablein schools. These new initiatives articulate with the ones already launched in the trienniumnowending,consolidatingthemandraisingtheireffect. Between 2005 and 2007, Portugal undertook a deep seated reform of higher education, introduced in the current European movement of the modernisation of universities and polytechnics for the development of knowledge societies and economies,notablybyimplementinglegislativemeasures,whichlaydownnamely:(i) the new Legal Regime of the Higher Education Institutions (RJIES); (ii) the quality assurance system, including accreditation rules of the study cycles, the legal system forthequalityevaluationofhighereducationandthecreationoftheevaluationand Accreditation Agency for Higher Education; (iii) the creation of conditions for the 10

15 nationalandinternationalmobilityofstudentsandgraduates;(iv)theestablishment of new rules that facilitate adult admission in higher education and make it more flexible; (v) the widening of the scope of non refundable scholarships awarded to students enrolled in technological specialisation degrees and master degrees, promoting new conditions to enter and attend higher education by all students;(vi) andtheimplementationofagrantsystemtohighereducationstudentswithmutual guarantee,whichcomplementstheschoolsocialservicessystemforhighereducation students. The fulfilment of this process of reform was widely acknowledged in the analysis presentedbyoecdinapril2008,inthestudy HigherEducationfortheKnowledge Society comparativeanalysison TertiaryEducation policies,whichinvolved24 countries mainlyatthelegislativereformlevelintroducedbythenewlegalregime of the Higher Education Institutions, of the widening of the recruitment base of highereducation,namelybymeansofaninnovativegrantsystemandattractionof newgroups,theincentivetotheinternationalisationofhighereducationandofthe scientificcommunity,theopeningofhighereducationinstitutionstosocietyandthe labour market, the reform of the evaluation and accreditation system and the reinforcement of the scientific and technologic capacity of higher education institutions. It should also be stressed that in the academic year of , the downward trend in new higher education students was inverted; this inversion was also confirmed in As a result, in 2007, for the first time since 2002, the total number of students attending higher education increased in Portugal. On the other hand, the number of new graduates in scientific and technologic areas has significantly increased in the past few years, having reached the figure of 18.1 per 1,000 in the population aged between 20 and 29 years for the first time in 2007, (abovetheeuropeanaverage),whilethenumberofnewdoctoratesinscientificand technological areas increased to 0.42 per 1,000 in the population aged between 25 and34years,in2007(havingbeen0.3in2001). 11

16 Responsetorecommendation2: Priorityofpublicpoliciesineducationandtraining:ariseofmorethan10percentagepointsinthe weightregardingtheeuropeansocialfundofthesetofstructuralfundsfortheperiod ,to atotalofabout8.9billioneuros. ConsolidationoftheNewOpportunitiesinitiative,namelystimulatingdualcertificationtraining. Improvement of the organisation and quality of the public service of education: consolidation of measures such as the full occupation of school time; full time school; reorganisation of the school network; widening and diversifying the training supply in secondary education; new teacher evaluation system; modernisation of school buildings; upgrading of the pre school and first cycle educationnetwork;newschoolmanagementrules;greaterschoolautonomyandboosttoleadership; TechnologicalPlanforEducation. Continuation of the higher education reform: the new Legal Regime of the Higher Education Institutions(RJIES);thelegalsystemforqualityevaluationofhighereducationandthecreationofthe EvaluationandAccreditationAgencyforHigherEducation;thecreationofconditionsforthenational and international mobility of students and graduates; the establishment of new rules that facilitate adultadmissioninhighereducationandmakeitflexible;thewideningofthescopeofnon refundable scholarshipsawardedtostudentsenrolledintechnologicalspecialisationdegreesandmasterdegrees; theimplementationofagrantsystemtohighereducationstudentswithmutualguarantee. Reformofthevocationaltrainingsystem: the National Qualifications System(Decree law 396/2007, dated December 31), which restructures the vocational training integrated in the education system and in the labour market, incorporating themwithcommonaimsandinstrumentsandunderarenewedinstitutionalframework; thenationalqualificationscatalogue(cnq),adynamicinstrumentforthestrategicmanagementof qualificationsnotatthehigherlevel,essentialforcorporatecompetitivenessandmodernisationand theproductivebelt,andforthepersonalandsocialdevelopmentoftheindividual; the National Qualifications Framework (QNQ), which is an instrument that structures the qualificationlevelsinaccordancewiththeeuropeanqualificationsframework; theindividualskillsbooklet,whichregistersalllifelongskillsthattheindividualacquiresordevelops, mentionedinthenationalqualificationscatalogue,aswellasalltheremainingtrainingprogrammes concluded,otherthanthosethatgaverisetotherecordedskills; thesystemfortheregulationofaccesstotheprofessions,whichestablishestheprinciplesofthe systemfortheregulationofaccesstoprofessionswhoseaccessdoesnotdependonqualifications bornebyhigherlevelcoursesandregulatesthestructuresresponsiblefortheirpreparation,follow up andevaluation; NewGovernanceModel:CreationoftheNationalQualificationAgency,thusassumingacentralrole inthepursuitofthegoalsandachievementoftargetsestablishedinthenewopportunitiesinitiative; NationalCouncilforVocationaltraining;LocalAdvisoryCouncilsforQualification. Mainresultsalreadyobtained: Thedecreaseintherepetitionrateandearlyschooldropouts Therecoveryofstudentsthathadalreadyabandonedtheeducationalsystem Theimprovementofschoolresultsinnationalexaminationsandtests Theincreaseinthenumberofstudentsthatenteredhighereducation,in2007;forthefirsttimesince2002,the totalnumberofstudentsattendinghighereducationincreasedinportugal Thenumberofnewgraduatesinscientificandtechnologicalareashassignificantlyincreasedinthepastfewyears Thereturntoschoolof450,000PortuguesethatsignedupfortheNewOpportunitiesprogrammeforvalidationof skillsandre qualification Increaseofstudentsinqualifyingcourses Increaseofthepercentageofstudentsagedbetween20 24yearsthathaveconcludedsecondaryschool 12

17 3. MODERNISING LEGISLATION AND EMPLOYMENT PROTECTION: THE IMPLEMENTATION OF A NEW CODE OF LABOUR IN A FLEXICURITY FRAMEWORK 10 Recommendation: To pursue the efforts to modernise the labour protection mechanism,namelythelegislation,inordertoreducethesignificantsegmentationof thelabourmarket,withintheframeworkoftheflexicurityapproach In 2006, the government begun a process moving towards the reform of the normative framework of labour relations, in order to make it simultaneously more flexible and secure both for workers, and for employers and adequate to the current economic and labour market needs. The diagnosis included in the Green PaperonLabourRelations,aswellastheidentificationofthemainproblemsofthe PortugueselabourrelationssystempresentedintheWhitePaperofLabourRelations, constituted the main grounds for a proposal made by the Government to the Social Partners a tripartite agreement for a new regulation system of labour relations, labourpoliciesandsocialprotectioninportugal whosenegotiationgaverisetothe draft law approved, on June 26, by the Council of Ministers, providing the structure for the reform. The proposal was already presented by the Government to the Parliament,toenterintoforceonJanuary1,2009. Hence, and taking into account the recommendation presented by the European Council to Portugal in terms of carrying on with the efforts to modernise the employment protection device, namely the legislation, in order to reduce the segmentation of the labour market, within the framework of Flexicurity, the Governmenthascontinued,widenedanddeepenedtheintegratedstrategyinterms of revision of the active labour policies and the strengthen of Life Long Learning (ALV), associated to the labour reform and the modernization of social protection, withtheprimaryobjectiveofassuringamorebalancedlabourmarketforall(seepart III.Area5.3.). In fact, the Government and the Social Partners understood that the reform of the normativeframeworkofthelabourrelationsandtheadequatebalanceoftheactive employment policies and social protection are mutually beneficial and constitute indispensable instruments for the virtuous articulation between economic growth, improvedcorporatecompetitiveness,increasedproductivity,improvedemployability, employment quality development, reduction of inequality, particularly of opportunities between men and women, and the more equitable allocation of the results of economic progress. The reform of the labour relations normative 10 Complete information with measures Part II, 5. Positive Mobility, and Part III, employment level. 13

18 frameworkandrebalanceoftheactivepoliciesofemploymentandsocialprotection thus constitute essential responses to the fight against precarious employment and thesegmentationofthelabourmarkets. Also, taking into account the recommendation given to Portugal in respect of the Agreementreached,mentionmustbemadeofsomeofthemeasuresagreed,which constituteintegratingelementsoftheintegratedflexicuritystrategy,whichhasbeen undergoingprogressivedevelopment. Hence,emphasisisgiventothemeasuresrelatedtothechangeintheassumptionof the labour contract and the creation of a new very serious infraction for the concealmentofalabourcontract,toenableamoreefficientcontroloftheuseofthe "fakegreenreceipts.inadditionthereisthelimitationoftheadmissiblefixed term employmentandthereductionofthedurationoffixedtermcontractstothreeyears, applying this limit to the set of fixed term or temporary contracts for the same job position or service provision for the same object, signed between a worker and the sameemployerorcorporategroup. Still in this context, and in the area of social protection and active employment policies,theagreementforeseesdifferentmeasuresaimedat: supportingtheconversionofindependentworkintoafixedtermcontractforworkers ingeneral; supporting indefinite employment of young people, defending the conversion of independent work or fixed term contracts into indefinite employment contracts and facilitatingthetransitionintoactivelife; facilitatingthetransitionunemployment/employment,topreventandfightlongterm Unemployment(DLD); supportingtheentryintothelabourmarketofactivecitizensover55yearsofage; supportingtheentryintothelabourmarketofdisadvantagegroups; promotingnewtypesofprogressiveapproachestoemploymentwithinthescopeof publicpolicies. 14

19 Responsetorecommendation3: Consolidationofthefollowinginitiatives: Alterationsinthenormativeframeworkofthelabourrelations: Changeintheassumptionofthelabourcontract FuturechallengesforPortugal(Point to watch PTW) LabourRelationsReform:draftlawapproved,onJune26,bytheCouncilofMinistersfollowingthe TripartiteAgreement.TheproposalwasalreadypresentedbytheGovernmenttotheParliament,toenter intoforceonjanuary1,2009. Revisionoftheactivelabourpolicies ReinforcementofthepledgeinLifeLongLearning Modernisationofsocialprotection Thecreationofanewveryseriousinfractionfortheconcealmentofalabourcontract,toenableamore efficientcontroloftheuseof"fakegreenreceipts Thelimitationoftheadmissiblefixed termemployment Thereductionofthedurationoffixedtermcontractstothreeyears Facilitatingtheproceduralrequirementsfordismissal,duetoafactattributabletotheemployee Modernisationofsocialprotection: Definitionofgeneralbasisofthesocialsecuritysystem BoostingSocialprotectionmeasuresinmaternity,paternityandadoption Promotionofpoliciesencouragingchildbirthandsupporttofamilieswithfewerresources Revisionofthelegalsystemforprotectionoftheunemployed ActiveEmploymentPolicies: Tosupporttheconversionofindependentworkintoafixedtermcontractforworkersingeneral To support indefinite employment of young people, LTU, workers over 55 years of age and unprivileged groups Tofacilitatethetransitionbetweenunemploymentandemployment,preventionandfightLTU Tosupporttheentryintothelabourmarketofactivecitizensover55yearsofage Tosupporttheentryintothelabourmarketofdisadvantagedgroups ReinforcementofthepledgetowardsLifeLongLearning: ContinuationoftheNewOpportunitiesInitiative Adaptationofthetrainingclause Reinforcementoftherighttocontinuousvocationaltrainingandadaptationofitsexecutionmechanisms 15

20 4.SUSTAINABILITYOFPUBLICACCOUNTS 11 Challenge: Tocontinuereinforcingthelongtermsustainabilityofpublicfinancesand sustainedreductionofthecurrentaccountsdeficit One of the major strategic objectives of the budgetary and taxation policy is to improvethequalityoffinancialaccounts,inparticular,longtermsustainability. InJune2008 ayearearlierthananticipated theprocedureagainstportugalin2005 for excessive deficit was closed. The budget consolidation process, which began in 2005, corrected a considerable part of the budgetary imbalance, and thus, in 2007, thepublicaccountsdeficitwasthelowestofthelast30years. In turn, the reforms that took place in the social security systems, both the general and the public workers systems, enabled a decrease in the risk of unsustainability associatedwiththedevelopmentofpublicaccountssensitivetoanageingpopulation (namely, expense with pensions), removing Portugal from the group of high risk countries,benefitingthesustainabilityofthepublicaccountsinthelongterm,atthe same time that is maintained the sustainability of social security, stimulating longer workingcareersandprotectingtheoneswithlowerreformspayments. The public accounts reform and the strict budgetary policy will continue to pursue budgetary balance in the mid term and implementing measures that reinforce the long term sustainability of public finances. Consolidation of public accounts will continue to be based on reducing the structural weight of the primary current expenditureandonincreasingfiscalandtaxpayingefficiency. The progressive improvement in the primary balance(which was already positive in 2007), associated with the policy to reduce structural deficit and the impacts of the improvementofexternalcredibilityofourpublicfinanceswhendebtisplacedonthe international markets, will facilitate a reduction of the public debt in the GDP. Furthermore,thenewpublicdebtmanagementmodelwillalsobeafactorinreaching this target, as will its impact on increasing the management efficiency of funding of State activities, in particular by reducing circulating stock and consequent expenses forthestate. TheState smainlineofactionintryingtoreducetheportugueseeconomy sneedfor funds is the increase in public sector savings associated with the budgetary consolidationprocessandlongtermstabilityofpublicfinances.however,thestate s roleintryingtoreducetheportugueseeconomy sneedforfunds,andwithrespectto thefreedomofeconomicagents,shouldalsoentailthepromotionoffinancialliteracy of economic agents with a view to fighting the excessive debts of families and 11 Complete information with New Cycle, part I.1. Quality of Public Finances and Outcome Part III, macro level. 16

21 companiesbyattractingproductiveinvestment,promotingexports,promotingenergy productionbasedonrenewableendogenoussources. ResponsePtW1: Pursuebudgetarystabilityinthemediumtermbycontinuingthepublicfinancesreform andapolicyofbudgetarydiscipline; Consolidation of the reforms undertaken in the social security systems both the generalandpublicworkers system. MainResultsalreadyobtained: Portugal is no longer in the group of high risk countries, benefiting from long term sustainabilityofpublicfinances. TheprocedureagainstPortugalin2005forexcessivedeficitwasclosedinJune2008,and in2007thepublicaccountsdeficitwasthelowestforthelast30years. 5.IMPLEMENTINGTHETECHNOLOGICALPLAN 12 Challenge: pursue the application of the technological plan, consolidating the links between research, higher education and industry, and encouraging greater participationbytheprivatesector TheTechnologicalPlanisamobilisingagendaandapledgetotakeactionfocusedon knowledge,technologyandinnovation.coordinationofthetechnologicalplanisthe responsibility of the National Coordinator for the Lisbon Strategy and for the TechnologicalPlan(CNELPT)andtheCoordinationCabinetoftheLisbonStrategyand thetechnologicalplan(gcnelpt). ThedifferentMinistriesandpublicbodiestogetherwithanactiveinvolvementofcivil societyensurethattheplanisimplemented.inordertosupportitsimplementation, an inter ministerial network of focal points operates together with GCELPT with personal representatives of every Minister and an Advisory Council made up of 40 eminentfiguresfromcivilsociety,especiallyfromthebusinessworld,academicsand frominstitutionsofasocialnature. Launchedwiththepledgetoundertake68measures,theTechnologicalPlancurrently includes142directmonitoringmeasures.thepoliticallegitimacyofthetechnological 12 See further information on part II, New Cycle, especially point 5.3 R&D and Innovation and point 5.5 Positive Mobility, considering the transversal character of the Technological Plan. 17

22 PlanasameasurewithintheGovernment sprogrammehasthesamehorizonsasthe actualgovernment splanofaction.nevertheless,theplan sstructuralcharacterhas beenacknowledgedbyportuguesesocietyingeneralanditisthereforeexpectedthat, albeitwithsomeamendments,itwilleventuallytakeonatleastthesameperspective asthensrf2007/2013withwhichitisinfactstronglyco related. The Technological Plan s Monitoring System (SM.PT) is constantly updated by the focalpointsmakingitpossibletoseethestateoftheplan sexecutionandtheresults of its implementation at any given time. A global execution report is issued and publicly available every six months. The site for the Technological Plan has updated dataregardingperformanceandresults,andthenetworkmembersandthemembers of the Advisory Board can access the Monitoring Platform continuously and interactivelyparticipateintheplan sevaluation. TheEvaluationoftheTechnologicalPlan simpactisbasedonagridofindicatorsthat closely follows the European Union s Innovation Scoreboard. However, considering the EIS weaknesses in terms of global coverage of impacts and updated data, the GNELPTcommissionedtwowell knownportugueseacademicstoconductastudyon impactindicatorswhichthenledtoascoreboardbasedonsevenareasandfocused onpromotingentrepreneurshipandentrepreneurialcapacity.theresultofthisstudy waspresentedtothenetworkandtothetechnologicalplan sadvisorycouncil. ThestudiesundertakenbyGCNELPTshowanincreasedawarenessandconsideration of the Technological Plan as an important or very important agenda for Portugal, reachingmorethan90%ofthepopulationinthesurvey. Althoughitsformathasnotbeeninstitutionalised,theimplementationmechanismsof thetechnologicalplanmadeitpossibletobuildanintegratedandflexibleplatformto boostcompetitionandobtainverysignificantresults. Within the PNACE 2005/2008 framework, public investment in R&D doubled and private investment experienced a strong stimulus which should be picked up by the survey currently taking place into the scientific and technological potential. This increaseinpublicinvestmentallowedforthedevelopmentofoutstandingcompetitive networks, with emphasis on the launch of new R&D consortia around thematic networks. These consortia are made up of bodies from the national scientific and technologicalsystem,includingcompanies,andpartnershipswithknowledgecentres of worldwide renown, such as the MIT and Carnegie Mellon University, Texas UniversityinAustinandtheFraunhoferSociety.Themainnetworksthathavealready been set up include namely the fields of energy, the automobile sector, transport sector,bioengineering,ict,multimediacontentsandadvancedcomputingsectors.at the same time, by strengthening its international cooperation with Spain, an InternationalIberianNanotechnologyLaboratory(INL)wascreated. ImpactindicatorswithinthescopeoftheTechnologicalPlanincludetheinversionof the Country s technological balance which was positive for the first time in 2007; broadband availability among over 32% of the population (in particular, mobile 18

23 broadband); Portugal was ranked third in terms of availability and sophistication of onlinepublicserviceswithintheeuframework;and,450000portuguesecitizenswho returned to school having enrolled in the new opportunities programme to validate skillsandobtainfurtherqualifications(seeexecutionreportpartiii.microlevel). ResponsePtW2: TheTechnologicalPlancurrentlyincludes142directmonitoringmeasures EnsuredbythedifferentMinistriesandpublicbodiesandanactivepartnershipwithcivilsociety. Inter ministerialnetworkoffocalpointswithpersonalrepresentativesfromallministers AdvisoryCouncilmadeupof40prestigiousfiguresfromcivilsociety,especiallyfromthebusiness world,academicsandsocialinstitutions. Monitoring: Integrated Monitoring System of the Technological Plan (SIM.PT) is continuously updatedbythefocalpointsandbymeansofwhichitispossibletoknowthestateofexecution andtheresultsoftheplanatanygiventime. Continuing development of outstanding competitive networks with emphasis on the launch of newr&dnetworksaroundthematicnetworks,madeupofbodiesfromthenationalscientificand technologicalsystem,inpartnershipwithknowledgecentresofworldwiderenown. MainResultsalreadyobtained: InversionoftheCountry stechnologicalbalancewhichwaspositivein2007forthefirsttime PublicinvestmentinR&Ddoubledandprivateinvestmentwasstronglyencouraged,whichshould beregisteredbythesurveybeingcarriedoutonthescientificandtechnologicalpotential. Over32%ofthepopulationhaveaccesstobroadband(mobilebroadbandrankingfirstintheEU) Portugalrankedthirdintermsofavailabilityandsophisticationofonlinepublicserviceswithinthe EUframework ThePlan sstructuralcharacterhasbeenacknowledgedbyportuguesesocietyingeneral, Studyregardingimpactindicatorswhichledtothepreparationofasevenpointevaluationgrid andfocusedonpromotingentrepreneurshipandentrepreneurialcapacity. 19

24 6.COMPETITIONANDREGULATION 13 Challenge: to ensure effective competition, in particular in the energy and financial servicesmarkets Energymarket The Government set the stimulation of the energy sector as a central objective, creatingliberalisedandcompetitivemarkets.fromthisaspect,portugalisalreadyan example of leadership, as mentioned in the Micro section and explained in Part 3, Energydriver,ofthisReport: Portugal is among the three EU countries with complete unbundling of the electricityandgasnetworks,withassetsconcentratedinthesamecompany; It has one of the EU s most ambitious objectives in terms of interconnection capacity,over20%in2010,andalreadyover10%; It is among the six countries with the lowest public capital influence on market agents,togetherwiththeunitedkingdom,germany,belgium,spainandireland; The Iberian Electricity Market (MIBEL) is the second regional electricity market implementedintheeuandhasapproximately30millionconsumers. Encouraging competition in the energy sector will remain a priority, and MIBEL will continuetobeimplementedasindicatedinprioritydomain2ofpart2ofthepresent Report. Financialmarkets Within the realm of financial services markets, Portugal s financial sector is considered to be evolved from an international standpoint, with innovative, internationalised and highly efficient banking models. This has been recognised by internationalinstitutions,suchastheinternationalmonetaryfund. Somecommunitydirectivesinthefinancialservices fieldhavebeenintroducedinthe national legislation and contributed positively towards effective competition in the financial services market. Examples of such directives include those regarding the abuse of privileged information and market manipulation; the prospectus to be publishedinthecaseofpublicofferofsecuritiesortheiracceptancefornegotiation; contracts at a distance regarding financial services signed with consumers; further supervision of credit institutions, insurance companies and investment companies withinafinancialcluster,andtheoperationofpensionfundsandmanagingbodiesof pension funds. Other legislation initiatives to encourage competition on financial marketshavealsobeenimplemented,suchasdecree Lawsnº240/2006dated22nd 13 For more information see New Cycle, part II.2 Business Environment 20

25 December,andnº171/2007dated8thMay,whichestablishrulestotheroundingof calculationsofinterestratesformortgagecontractsandothercontracts,respectively. Furthermore, considering the challenges in terms of supervising the behaviour of credit institutions and financial corporations, the review of the General Scheme for CreditInstitutionsandFinancialCorporationswhichwascarriedoutatthebeginning of the year (Decree Law nº 1/2008, dated 3 rd January) gave the Bank of Portugal furtherpowerstodefendtheinterestsofclientsoffinancialproductsandservices.as the conduct of institutions regarding their relationship with clients and the information those clients find available when deciding to contract financial products and services are two key factors for the efficiency of financial markets, the Bank of Portugal has now added processes to ensure that credit institutions and financial corporations comply with the rules of conduct, either via official procedures, or by analysing complaints made by clients. Initiatives such as the Portal for the Banking Client,theBehaviouralSupervisionReportsoftheBankofPortugalandseverallegal measures appear within this context, aimed at regulating the supply of financial products and services by strengthening the duty to inform and increasing families financialliteracy. ResponsePtW3: The Government established that its main objective would be to encourage the energy sector, creatingliberalisedandcompetitivemarkets. Promotionofcompetitionintheenergysector,andcontinuedimplementationofMIBEL Inclusionofsomecommunitydirectivesinthenationallegislationcontributingtowardseffective competitioninthefinancialservices market. ReviewoftheGeneralSchemeforCreditInstitutionsandFinancialCorporationscarriedoutatthe beginningoftheyear PortalfortheBankingClient,theBehaviouralSupervisionReportsoftheBankofPortugaland severallegalmeasuresaimedatregulatingthesupplyoffinancialproductsandservices. MainResultsalreadyobtained: Portugal is among the three EU countries with total unbundling of the gas and electricity networks,withassetsconcentratedinthesamecompany; IthasoneoftheEU smostambitiousobjectivesintermsofinterconnectioncapacity,whichwillbe over20%in2010,andiscurrentlyalreadymorethan10%; Itisamongthesixcountrieswithlowestpubliccapitalinfluenceonmarketagents,togetherwith theunitedkingdom,germany,belgium,spainandireland; TheIberianElectricityMarket(MIBEL)isthesecondregionalelectricitymarketimplementedinthe EU,withabout30millionconsumers. Portugalhasanevolvedfinancialsectorintheinternationalpanorama,withinnovative, internationalisedandhighlyefficientbankingmodels. 21

26 7.BETTERREGULATIONPROGRAMME 14 Challenge: to pursue the application of the Better Regulation programme and, in particular,toreinforcetheimpactanalysissystem Despite most measures foreseen in the Resolution of the Council of Ministers nº 63/2006, which approved the Better Regulation Programme, already in fully implementation, the Government expects to continue its efforts to legislate better during the period, with greater justification, suitability and quality of legislative measures, and paying greater attention to simplifying and ensuring the transparencyofproceduressoastoeliminatestatebureaucracyandfacilitatethelife ofcitizensandcompanies. During the period, priority will be given to concluding and consolidating the measures laid down in the Better Regulation Programme directed especially at developing inter operability processes between DIGESTO s legal data bases (treatmentandanalysissystemoflegalinformation)andthestate streatmentoflegal information data bases, as well as to the definition of a technological model for the electronicreconstitution(substantialconsolidation)oflegaltexts,theimplementation andconsolidationofopenconsultationprocedurestobedevelopedwithcitizens,the capacity of promoting effective participation of citizens and companies, and preparation of a practical guide for the drawing up of the Government s legal measures. Specialattentionwillalsobegiventoenhancingtheevaluationsystemoftheimpact of the Government s legal measures, by taking advantage of the national pledge to reduceadministrativeburdensby25%,followingtheproposalmadebytheeuropean CouncilinMarch2007toMemberStatesandwhichapprovedtheActionProgramme toreduceadministrativeburdensintheeuropeanunion. Althoughthisnationalcompromiseisonlydirectedatadministrativeburdensimposed bylegalandregulatorymeasuresofnationalorigininrelevanteventsofcompanies life cycles, the Government will be using the processes and methods to reduce administrative burdens equally for all legal measures submitted for the approval of the Council of Ministers, whether they affect the life of companies or the life of citizens. The principle already established in the Better Regulation Programme approved by theresolutionofthecouncilofministersnº63/2006,whichdeterminesthatnolegal measure can create new administrative burdens or aggravate existing ones without firstbeingquantified,willbereinforcedfromtheoutset.secondly,withinthescopeof the Government s legislative process and by using the SIMPLEX trial, administrative 14 For detailed information, see New Cycle part II.1 3. Improving the Legislative Process 22

27 burdens maintained, eliminated, reduced or created by rules laid down in the documentsapprovedbythecouncilofministerswillbeidentifiedandquantified. The current SIMPLEX trial is to be reviewed and adjusted so that the Standard Cost Model can be adopted as a base method of measuring administrative burdens with dueadjustmentssoastointegratethequantificationofopportunitycostsassociated withthewaitingtimesanddelaysinadministrativedecisions,aswellastheimpacton interveningpublicservices. Inordertoaidtheministriesresponsibleforpreparinganddevelopingtheinitiatives, a Practical Guide for Prior Assessment of the Administrative Burdens of the Government slegalmeasureswillbelaunched. The results of the assessment of the impact of legal measures through the new SIMPLEX trial model will be presented by the Government and be subject to public scrutinyeveryyear. Also noteworthy with regard to measures planned to reduce, facilitate or eliminate licenses: Simplificationoftheindustriallicensingscheme subjacenttotheprinciplethat thecomplexityforeseenfortheproceduresneededtocarryoutanindustrialactivity mustbeinproportiontotherespectiverisk,anumberofalterationshavebeenput forwardaimedatsimplifyingthelicensingprocess.amongotherfeatures,thebackup information system will allow the businessperson to use a Simulator which will indicatebeforehandtheprocedurethatappliestotheircase,andwillalsoallowthem tofollowthedifferentphasesoftheprocedure. Dematerialisation of relationships between companies and the State Online Registration services are now available through which it is possible to register companies via the Internet; the Simplified Business Information (IES) system means four legal obligations which had been handled by different Public Administration bodiesarenowdealtwithbyoneasof2007;thepre fillinginoftaxdeclarationsin 2008wasalsoextendedtomorethan80%;itisnowpossibletoobtainanelectronic Permanent Certificate through the Internet, continuously updated, in Portuguese or English, at registering a brand name or a patent or a utility modelisnowpossibleatwww.inpi.pt;registeringthepurchaseorsaleofavehicleis also possible via the internet at an online catalogue of licensesandauthorisationswascreatedinthecompanyportalthatwillworkasaonestop shop to obtain licenses and authorisations; special reference goes to the new dematerialisedprocesstolicencetheindustrialactivitywhichwillbeapilotprocessof thisinitiative.in2009,thisone stop shopwillalsoincludeaface to faceservice. The Resolution of the Council of Ministers that establishes a 25% target in the reductionthecostswithinthecontextoflegalproductionforcompanieswillsoonbe scheduledforthecouncilofministers. 23

28 ResponsePtW4: ConclusionandconsolidationofthemeasuresforeseenintheBetterRegulationProgramme SteppingupoftheevaluationsystemoftheimpactoftheGovernment slegalmeasures, takingadvantageofthenationalpledgetoreduceadministrativeburdensby25% StrengtheningoftheprinciplealreadyestablishedintheBetterRegulationProgramme, approvedbytheresolutionofthecouncilofministersnº63/2006,thatnolegalmeasurecan createnewadministrativeburdensoraggravateexistingoneswithoutbeingpreviously quantified. Identificationandquantificationoftheadministrativeburdensmaintained,eliminated, reducedorcreatedbyruleslaiddowninthedocumentstobeapprovedbythecouncilof Ministers. AdoptionoftheStandardCostModelasthebasemethodusedtomeasureadministrative burdens, ThelaunchofaPracticalGuideforthePriorAssessmentofAdministrativeBurdensofthe Government slegalmeasures. Simplificationoftheindustriallicensingscheme ContinuingthedematerialisationofrelationshipsbetweencompaniesandtheState 25%targetforreductionofcostswithinthecontextoflegalproductionforcompanieswill soonbescheduledforapprovalbythecouncilofministers. 8.TRANSPOSITIONOFEUROPEANUNIONLEGISLATION 15 Challenge: reducedeficitinthetranspositionofeulegislationtonationallaw The transposition of community directives to the internal legal system represents persistentlegaladaptationwork.asarule,allministries,aswellastheassemblyof therepublic,areinvolved. The Government will be maintaining its pledge laid down in the Resolution of the Council of Ministers nº 63/2006, which approved the Better Regulation Programme, toensurethat,withregardtomattersrelatedtothetranspositionandadaptationof community laws to the internal legal system, the transposition of directives is monitored on time, within a framework of close cooperation between the Foreign AffairsMinistryandthePresidencyoftheCouncilofMinisters. 15 For detailed information, see New Cycle, part II.1.3 Improvement of the Legislative Process and 2 Business Environment. 24

29 The ministries commitment to this legal procedure is carried out through various coordinatingactivities: Preparation of continuously updated lists describing the current situation, per ministry, of all directives about to be transposed, taking into account the respective state, either because the term for its adoption has elapsed (phase of the European CommunitiesCourtofLaw,phaseofareasonedopinion,phaseofnotificationofnoncompliances,administrativeletterphase),orbecauseitsadoptionisstillunderway; Monthly distribution of these lists to the different ministerial cabinets and representatives of the ministries at the Inter ministerial Committee for Foreign Affairs; Regularmeetings atleasteverytwomonths withtheinterestedministries,to evaluatethesituationofeachdirectiveintherespectivelist,definingtheobjectivesto decrease the deficit by transposing directives and assessing the ways with which to overcomepossiblesetbackswiththetranspositionproceduresduringthecommunity pre litigiousandlitigiousphases; A new methodology was adopted in 2008 within the scope of the Government s computernetworksystem.awarningsystemwascreatedfordeadlinesregardingthe adoption of the legal projects concerning directives. This online system, which is accessible to the ministerial cabinets, warns and informs of the fixed deadlines and intermediatephaseuptotheapprovalofthelegislationbythecouncilofministers. Alsowithinthisrealm,intermsoftranspositionandadaptationofcommunitylawsto the internal legal system, the Government will now take into consideration, identify andquantifytheinformationrequirementsresultingfromthetransposition,inexcess, ofcommunitylaws,normallyknownas goldplating. Ontheotherhand,dueattentionwillalsobegiventobetterconsolidationbetween thecommunitylawtobeimplementedinthenationallegalsystemandthelegislation already in force in Portugal, with identical material schemes. In this manner, the Governmentwillpreventthephenomenonusuallyknownas double banking,making communityandnationalschemesmorecoherent,byconsolidatingprinciples. Finally, the Government will ensure control of the transposition of the simplified European legislation within the framework of the 2005/2009 simplification programme, the fast tracks initiated in 2007 and the Action Programme to Reduce Administrative Burdens in the European Union. Obligations to inform will also be identifiedandquantified,resultingfromthetranspositionofthesimplifiedeuropean legislation to the internal legal system within the scope of the said European programmesandverificationoftherespectiveoutcome. The Portuguese situation has progressively improved as proved by the results publishedinthelatestinternalmarketscoreboards:scoreboard17,july % deficitcorrespondingtoaglobalfigureof32non transposeddirectives;scoreboard 25

30 16bis,February %deficit,correspondingto37non transposeddirectives; Scoreboard 16, July % deficit, corresponding to 71 non transposed directives. In the most recent data published by the Commission in August 2008, based on the latest information provided by Member States, Portugal shows a deficit of 1.3%, ranking25 th,followedbyluxemburg(1.5%)andgreece(1.7%). ResponsePtW5: Results:thePortuguesesituationhasimprovedprogressively: Ensuring that the directives are implemented on time in a framework of close cooperation betweentheforeignaffairsministryandthepresidencyofthecouncilofministers. Severalinter ministerialactions:preparationofcontinuouslyupdatedlistsindicatingthecurrent situation, per ministry, of all directives about to be implemented; regular meeting with the ministriestoassessthesituationforeachdirective,etc. A new methodology adopted within the scope of the Government s computer network system, with a system to warn of deadlines regarding the adoption of legal projects related to the directives. Combat gold plating the Government will now take into consideration, identify and quantify theinformationrequirementsresultingfromtheimplementation,inexcess,ofthelawslaiddown incommunitydirectives. Avoiding double banking better consolidation between the community legislation to be implementedinthenationallegalsystemandthelegislationalreadyinforceinportugal Control of the transposition procedure of the simplified European legislation within the framework of the 2005/2009 simplification programme, of the fast tracks initiated in 2007 and theactionprogrammeforthereductionofadministrativeburdensintheeuropeanunion Scoreboard17,July %deficit,correspondingtoaglobalamountof32non transposed directives; Scoreboard16bis,February %deficit,correspondingto37non transposeddirectives; Scoreboard16,July %deficit,correspondingto71non transposeddirectives. 26

31 9.REDUCTIONOFGREENHOUSEGASEMISSIONS Challenge: preparation and application of the measures needed to reduce greenhousegasemissions NewpoliciesandmeasuresrecommendedintheNationalClimateChangeProgramme havebeendeveloped.withregardtotheenergyfield,continuousinvestmenthasbeen madeinrenewableenergyresources,especiallywindpower,licensingofnewnatural gas combined cycle plants, which are more efficient in producing electricity. The RegulationontheThermalCharacteristicsofBuildings(RCCTE)hasbeenapproved,as hastheregulationconcerningenergysystemsandair ConditioninginBuildings(RSECE) andthenationalenergyandqualityofairinbuildingscertificationhasbeencreated. As for the Tax Reform on Road Vehicles, an environmental factor is now taken into accountwhencalculatingthetaxassociatedwithcarbondioxideemissionsofvehicles to discourage the purchase of the more polluting vehicles. Within the transport sector, the procedures for the scrapping of vehicles at the end of their lifecycle has been simplified, acquiring a new one is encouraged, and the restructuring of the railwaysystem(cp)availablehasledtoanincreaseinthenumberofpassengersusing thismeansoftransport. Thetaxondieselfuelforheating(ISP)hasbeenincreasedsoastoencouragetheuse ofotherlesspollutingsourcesofenergy(decreenº16 C/2008,dated9 th January). Within the decarbonising sector of the Portuguese economy, the PNALE hasbeenapproved thisimpliesafurtherandeffectiveefforttoreducegreenhouse gasemissionsfrominstallationscoveredbytheeuropeanemissiontradingschemeup to2012. WithregardtheinvestmentmadeinflexibilitymechanismsoftheKyotoProtocol,in 2007 the Portuguese Carbon Fund (FPC) subscribed/invested a total of 25 million eurosinseveralcarbonfundsthatinvestinprojectsrelatedtoflexibilitymechanisms ofthekyotoprotocol. ResponsePtW6: NationalActionPlanforEnergyEfficiency(PNAEE) toreachanimprovedenergyefficiency equivalentto10%ofthefinalconsumptionofenergy,regardingtheefficiencyofthefinaluseof energyandenergyservices,by2015. ImplementtheManagementSystemforIntensiveEnergyConsumptionwhichdeemsit compulsorythatenergyauditsarecarriedout. OperatorsareobligedtoprepareEnergyConsumptionRationalisationPlans(PREn),establishing targetsregardingenergyandcarbonintensitiesandthespecificconsumptionofenergywhich, onceapproved,arecalledenergyconsumptionrationalisationagreements(arce). ContinuedinvestmentindevelopingrenewableenergiesandimplementingtheNationalStrategy forenergy(see Energy chapter,partii) 27

32 MainResultsalreadyobtained: TheNationalEnergyandQualityofAirinBuildingsCertificationhasbeencreated(SCE) (Decree Law nº78/2006) TheRegulationconcerningEnergySystemsandAir ConditioninginBuildings(RSECE)hasbeenpublished it aimsatimprovingtheenergyefficiencyofbuildingsandreducingtheconsumptionofenergyandco2 emissions(decree Lawnº79/2006). TheRegulationontheThermalCharacteristicsofBuildings(RCCTE)hasbeenpublished itestablishesthe rulestobecompliedwithwhenprojectingallresidentialandservicesbuildings,withnocentralisedairconditioningsystems(decree Lawnº80/2006). NationalPlanforEnergyEfficiency(ResolutionofCouncilMinistersnº80/2008) ManagementSystemofIntensiveEnergyConsumptionandaccessoryRegulation(D.L.nº78/2008,15.04) Chargesonhighenergyefficiencylightbulbs(oD.L.nº108/2007,12.04) TaxReformonRoadVehicles 10.FACTORSTHREATENINGSOCIALCOHESION Challenge: continuingthefightagainstfactorsthreateningsocialcohesion Promoting every citizen s access to a number of social rights, such as minimum income,thelabourmarket,socialprotection,educationandtraining,housing,health care,socialservicesandfacilities,amongothers,isastrategicchallengethatportugal has been gradually responding to in an articulate and cohesive manner, through policiesespeciallydirectedatgroupsthatshowgreatervulnerabilityandgreaterrisk ofsocialexclusion,therebystrengtheninginclusionandsocialcohesiononanational, regionalandlocallevel. ArticulationofthescopeandmeasuresincludedinthePNACE,integratinggrowthand competitiveness, qualification and employment and social and environmental sustainability, with the National Strategy for Social Protection and Social Inclusion, whichintegratesthenationalactionplanforinclusion(pnai),thenationalpensions Strategy and the National Plan for Health Care and Long Term Care, which in turn, operatesinconjunctionwiththevariousspecificplans,suchas:theactionplanforthe Integration of Disabled or Impaired Citizens (PAIPDI), the National Plan to Promote Accessibility (PNPA), the Plan to Integrate Immigrants (PII) and the National Plan against People Trafficking and the National Equality Plan Citizenship and Gender, togetherwiththenationalplanagainstdomesticviolence,allthesestrengthensocial cohesion and inclusion and contribute immensely to reducing poverty and social exclusion. The continued reforms in public finances and a policy of budgetary discipline are important factors in ensuring the continuity of the social cohesion policies. In the same way, all ongoing initiatives to improve access and maintenance of a business 28

33 friendly environment (including access to funding, to R&D and encouragement to entrepreneurship), especially with regard to the SME, contribute towards consolidatingthesocialcohesionpolicies. Concurrently, considering that there are several factors threatening social cohesion andwhich,together,encourageexclusionandincreasesituationsofextremepoverty, anactiveinclusionperspectivehasbeengainingparticularrelevanceasmeasuresare being directed at access to minimum income, to the labour market and to quality socialservices,asdecisiveintegrationandsustainabilityfactorsfortotalinclusionand equalopportunitiesforallintermsofsocialandeconomicdevelopment.however,it is worth pointing out that the investment in education and training, which, as a structuring strategy from the very first years of life, is a determining factor in preventing situations of poverty and social exclusion (see New Opportunities InitiativesandmeasureswithinthescopeofEducation). Insertioninthelabourmarketisoneofthemostinclusivefactors,andaqualityjobis the greatest guarantee of sustainable and complete social inclusion. The following were included in the intervention programmes for the inclusion of everyone in the labour market, between 2005 and 2007: i) Inclusive Labour Market Programme people with special insertion difficulties entered the labour market; ii) Professional Training and Employment for the Disabled Programme handicappedpeopleand,iii)interventionprogrammeforunemployedimmigrants immigrants. It is expected that in 2010 these Programmes will embrace ,46.000and38.000people,respectively. Furthermore, access to the network of social services and facilities is of major importance and is a determining factor of inclusion, equal opportunities, and conciliation of professional, personal and family life, contributing unquestioningly towardssocialinclusion.worthyofnoteistheprogrammefortheextensionofsocial FacilitiesNetwork(PARES),whichsupportsearlychildhood,peoplewithdisabilityand theelderly,andthenationalnetworkofintegratedcontinuedcare(rncci),aimed atprovidingcontinuousandintegratedhealthcareandsocialsupporttopeoplewho, regardless of their age, are dependent on others (see Driver Proximity Community ServicesNetwork). On the other hand, access to the health system is an undeniable right of citizens. If accesstothisrightisfacilitated,itwillguaranteeinclusion,equalrights,qualityoflife and social cohesion. Therefore, also noteworthy is the Health Centre Service which was implemented and which registered 1077 consultations per day in 2007; the launchofthe ConsultationonTimeProgramme,whichtriestoensurethatthefirst hospital appointments are effected within a pre determined time. Scheduling of the appointmentsisfirstmadethroughprimaryhealthcareservicesandthenviathegp so as to facilitate citizens access to hospital infrastructures, especially the more disadvantaged citizens. The creation of the Oral Health Cheques Project has also representedamajorprogressinaccesstobasichealthcare,asitmakesitpossiblefor certainsegmentsofthepopulationwithlowerincome,especiallychildren,pregnant womenandtheelderly,tohavehealthyteeth. 29

34 Also worth highlighting is the Social Integration Income, which provides people and family members with support adapted to their personal and family situation, contributing towards fulfilling basic needs and at the same time helping to ensure progressive labour, social and community insertion. 106,167 families and 286,837 beneficiaries benefited from this scheme in 2006, and 49,394 insertion agreements were signed; and in 2007, the programme included 117,740 families, 341,149 beneficiaries and 64,982 insertion agreements were signed. In August 2008, this measure embraced approximately 341,149 beneficiaries and 128,915 families and 73,693 insertion agreements were signed. Also, the Supplement for the Elderly, aimedatpensionersover65withanincomebelowthatlegallyestablished,benefited 18,275pensionersin2006(theyearinwhichitwascreated);andin2007thisfigure increased to approximately 55,771. This measure also includes additional health benefits, such as: i) financial participation of 50% of the price of medicines not subsidisedbythestate;ii)financialparticipationof75%oftheexpenseforspectacles and lenses up to a limit of 100, for every two year period; and iii) financial participationof76%oftheexpenseforthepurchaseandrepairofdenturestoalimit of 250,foreverythree yearperiod. The role played by the social protection system, in particular by positive differentiation of benefits, which gives more to those more in need, is a powerful socialcohesionandpovertyreducingfactor,bymeansofwelfaretransfers.examples of this are: i) increase of the child allowance for children and youngsters in large families;ii)updateoffamilybenefitsbasedontheprincipleofpositivedifferentiation in favour of economically fragile families; iii) introduction of an increase in the child allowance for single parent families; iv) a number of social measures to reinforce social protection during maternity, paternity and adoption period, extending to the unemployed or those whose contributions have been insufficient and are economicallymorevulnerable. The right to proper housing is another essential factor for full social inclusion and equal rights. Thus, the various existing Housing Support Programmes are confirmation of the work that has been carried out to provide those who are more vulnerable, such as youngsters, families, and the elderly, with access to better and more affordable conditions. Mention should also be made of the Programme to Support Housing Construction at Controlled Costs (PCHCC); the Special Re housing Programme (PER); the Pilot project Initiative for Urban Rehabilitation and Reinsertion of Critical Neighbourhoods; the Porta 65 Programme; PROHABITA; the HousingRehabilitationPilot projectfortheelderly. The promotion of social cohesion at a regional level has evolved through Social Networks,aslocalstructures,inpartnershipwithpublicandprivatebodies,working asarticulationplatformsinsocialactionlocalcouncils,soastobetterrespondtothe needs of the population taking into account the proximity and profitability of resourcesonalocalscale,andarefoundin277ofthe278boroughsonthecontinent. During the first quarter of 2008, about 96% of the boroughs had finished the Social Diagnosis, at least, 88% the Social Development Plan and, 79% of the Action Plans. 30

35 The Local Social Development Contracts Programme (CLDS) focuses on more depressed areas, with a view to obtaining greater regional cohesion, developing partnerships with local bodies, fighting poverty and promoting social inclusion of those more vulnerable, through activities within the employment field, training and qualification, family and parent intervention, and empowerment of the community andinstitutions.19cldshadbeensignedbyapril2008,whichincludes22boroughs. ResponsePtW7: Macroeconomicpolicy - Publicfinancereform - Budgetarydisciplinepolicy Microeconomicpolicy - Accesstofunds - R&Dpolicies - Encouragingentrepreneurship Strengtheningsocialcohesionandinclusion,reducingpovertyandsocialexclusionbyestablishingthefollowingPlans: National Strategy for Social Protection and Social Inclusion (which integrates the National Action Plan for Inclusion (PNAI), the NationalPensionsStrategyandtheNationalPlanforHealthCareandLongTermHealthCare) NationalEqualityPlan CitizenshipandGender NationalPlanagainstDomesticViolence PlanofActionfortheIntegrationofPeoplewithDisabilitiesorImpairment(PAIPDI) NationalPlantoPromoteAccessibility(PNPA) PlanforImmigrantIntegration(PII) NationalPlanagainstPeopleTrafficking Continuedinvestmentineducationandtraining Integrationinthelabourmarket:continuedimplementingthefollowingprogrammes: InclusiveLabourMarketProgramme ProfessionalTrainingandEmploymentofDisabledPeopleProgramme InterventionProgrammeforUnemployedImmigrants Accesstothesocialservicesandfacilitiesnetwork ProgrammetoExtendtheSocialFacilitiesNetwork(PARES),supportingearlychildhood,thedisabledandtheelderly NationalNetworkofIntegratedContinuedCare(RNCCI) Accesstohealth HealthCareCentre AppointmentonTime Programme CreationoftheOralHealthChequesproject Socialsecuritysystem SocialIntegrationBenefit,whichgrantsaidtopeopleandtheirfamiliesaccordingtotheirpersonalandfamilysituation IncomeSupplementfortheElderly,forpensionersover65whoseincomeisbelowalegallyestablishedamount. Positivedifferentiationofbenefits(e.g.increaseinchildallowanceforchildrenandyoungstersgiventolargefamilies;updateof familybenefitsbasedonthepositivedifferentiationprincipleinfavouroffamiliesthatareeconomicallyvulnerable;additionalchild allowanceforchildrenandyoungstersofsingleparentfamilies;establishmentofanumberofsocialmeasurestostrengthensocial protectionduringthematernity,paternityandadoptionperiod). AccesstoHousing HousingSupportProgrammes, AidtotheConstructionofHousingwithControlledCostsProgramme(PCHCC); SpecialRe HousingProgramme(PER); Pilot projectinitiativeurbanqualificationandreintegrationofcriticalneighbourhoods; Porta65Programme; PROHABITA;Pilot ProjectforHousingRehabilitationfortheElderly. Promotionofsocialcohesiononaregionalandlocallevel LocalContractsforSocialDevelopmentProgramme(CLDS) 31

36 #2PART NATIONALREFORMPLAN NEWCYCLE ConsolidatingReforms 1

37 INDEX Introduction...3 Area1 QualityofFinancesandPublicServices...9 Area2 AFavourableBusinessEnvironment,especiallyforSME...24 Area3 BetterInnovationSystemandmoreR&D...34 Area4 CombatingClimateChange,PledginginRenewableEnergiesandinEnergy Efficiency...45 Area5 MorePositiveMobilitythroughQualifications,EmploymentandSocial Cohesion...50 Area6 PromotinganIntelligentTerritory

38 INTRODUCTION Despite the economic and social problems that have resulted from the difficult startingpointin2005andtheimpactofthecurrentinternationalcrisisinternational, thenationalactionprogrammeforgrowthandemployment(pnace2005/2008)is an ambitious programme of reforms that has proved itself to be both appropriate andviableandahighlyeffectivemeansofobtainingresultsandmeetingthedefined targets. The depth of the structural deficits and the demonstration of the adequacy of the responses have led Portugal to giving unequivocal priority in this new cycle of the PNR2008/2010tothecontinuationandfurtheringofthereformsalreadyunderway inthescopeofthepnace2005/2008. The results already obtained and in particular the consolidation of the public accounts and strengthening of the competitive base allow for an even more ambitious programme, introducing new transversal approaches and taking advantageoftheconvergencewiththensrf2007/2013. In its PNR New Cycle , Portugal assumes four Areas defined by the European Council as the Priorities of the Lisbon Strategy, namely Intensifying Research, Development and Innovation; Improving the Business Environment, notably for the SMEs; Investing in People Qualifications, Labour Market and Social Protection and Economic and Ecological Conciliation Energy and Climate Change, taking into account their relevance to the national challenges and the weight already represented by these areas in the implementation process of the PNACE2005/2008. Inaddition,thePNR NewCycle alsoassumesspecificpriorityareas,the QualityofPublicFinancesandtheModernisationofthePublicAdministrationand the Valorisation of the Territory, given their strategic importance in the consolidationofthecountry smodernisationprocess,recognisedinmanyaspectsin the actual recommendations and warning of future challenges from the European UnioninitsappraisalprocessofthereformsinPortugal. In this context, the updating of the National Reform Programme in Portugal in the framework of the New Cycle of the Lisbon Strategy revolves around six priority areas: Area1 QualityofFinancesandPublicServices Now that the ambitious targets defined in the PNACE 2005/2008 of consolidating public accounts, the sustainability of the social security system and the 3

39 modernisation of the public services have been reached, in the PNR 2008/2010 Portugal will place greater focus on improving the quality of public finances in interventionareasthatboostthecountry spotentialgrowthandemployment,and improvetheproductivityoffactorsinaccordancewiththeguidelinesofthelisbon Strategy. Area2 AFavourableBusinessEnvironment,especiallyforSMEs The PNACE 2005/2008 enabled reforms to be undertaken that made Portugal an exampleofgoodpracticesintheareasdebureaucratisingprocedures,transparency, fosteringentrepreneurshipandthedevelopmentofcomprehensiveresponsestothe needsofcompaniesandsmesinparticular.prioritywillbegiveninthepnr totheareaoflicensing,integrationofproceduresamongthevariouslevelsof decisionmakingandthechannelingofthehumanresourcesavailableinthensrfto create competitive contexts that are more favourable to companies and entrepreneurs. Area3 MoreR&DandBetterInnovationSystems IntheframeworkofthePNACE2005/2008,publicinvestmentinRDdoubledanda significant momentum was seen in private investment which should be caught by the enquiry into scientific and technological potential in There was an unprecedentedboostins&thumanresources,competitivenetworksofexcellence weredevelopedandpartnershipspromotedwithinternationallyrecognisedcentres ofknowledge.inthepnr ,prioritywillbegiventotheconsolidationof networks as competitiveness and technology poles or clusters, fostering collective efficiency as an instrument of innovation and the creation of the competitive dimensionateuropeanandworldlevel.ontheotherhand,continuitywillbegiven toboostinghumanresourcesins&t,tothedevelopmentofthematicr&dnetworks and consortia with scientific institutions, and the creation and participation in international knowledge networks, as well as to the stimulation of private investment in R&D. After consolidating a new level of investment in the scientific andtechnologicalsystem,specialattentionwillbefocusedoncreativeinnovationin thecontextofthedifferentvaluechains. Area4 CombatingClimateChange,PledginginRenewableEnergiesandinEnergy Efficiency Portugal is one of the leaders in the promotion of renewable energies, giving sequencetooneofthestructuringdriversofthepnace2008/2010.thepnr2008/ 2010 pledges in the priority of energy efficiency as a way of reducing carbon emissions and increasing competitiveness in the processes and Portugal will make the renewable energies sector a key pledge both in terms of the incorporation 4

40 targets and through research into new sources of renewable energy and through investmentintheproductionsystemsofnewgenerationrenewableenergies. Area 5 More Positive Mobility through Qualifications, Employment and Social Cohesion In a country with low qualification levels and significant asymmetries in the distribution of wealth, the PNACE has made qualifications a priority, namely with the reform of basic education and the improvement of vocational qualification levels through the New Opportunities programme. The PNR strengthens this priority, taking advantage of the significant increase in the resources allocated to human potential in the NSRF, in particular for the improvementofqualificationsandforsocialprotection,boostingpositivemobilityin acontextofthemodernisationofthelabourmarketandtheimprovementofsocial cohesion, in articulation with the principles of flexicurity and in a climate of confidenceandarticulationwiththesocialpartners. Area6 PromotinganIntelligentTerritory The territory s ability to attract qualified populations to settle down and to make investmentsinsectorswithhighaddedvalueisacriticalfactorforraisingportugal s growthpotentialandtoimproveproductivityindicatorsinaframeworkofregional social cohesion. The PNACE incorporated the development of infrastructures that led to a rise in the value of activities developed in Portugal in importantareassuchastourism,technologicalservicesandenergy.thepnr willplacepriorityoninfrastructuresthatboosttheeconomiccentralityofthe Portuguese territory and do away with the costs of the periphery such as new generationnetworks,portandairportinfrastructuresandthemodernisationofthe railway as well as the networks of basic service infrastructures, notably those of education and of science and technology, in the framework of a city and urban networkpolicythatfostersintegrateddevelopmentandcohesion. The definition of these priority areas also reflects the strong convergence of the implementationofthelisbonstrategywiththensrf2007/2013. The implementation of the Lisbon Strategy (macro, micro and employment components),notablyinthisnewcycle willtakethecohesionpolicyinto account, ensuring growth that will enhance social and territorial cohesion through thekindofeconomicdevelopmentmeasures,theboostingofthesocialdimension, and the valorisation of the development of an intelligent territory (Area 6.), respecting diversity, empowering endogenous resources and generating the availabilityofinfrastructuresthatbringdevelopmentandwellbeing. Incarryingouttheactionsthatwilldriveeachoftheareas,theexternaldimension associatedtothelisbonagendawillbetakenintoaccount,namelythefosteringof businessandinstitutionalcooperation,aswellasthedevelopmentofstrategiesthat 5

41 are transversal to all areas such as cohesion, cultural and youth policies and the promotionofequalopportunitiesandcitizenship,notablygenderequality. ThedefinitionofthepriorityareasofthePNRNewCyclealsotakesintoaccountthe needforconvergenceoftheimplementationofthelisbonstrategywithoneofits maininstruments,thensrf2007/2013.boththepreviousandthecurrentcycleof thelisbonagendafindthestructuralfundsandthecohesionfundtobeasignificant lever for action, in particular in the convergence objective regions (North, Centre andalentejo,azores),asthefundingofthisdevelopmentisgreater,butalsointhe competitiveness and employment regions (Lisbon, Madeira, Algarve) where the LisbonAgendafindsaparticularlyfertileterrainalthoughthefundingisless. ButitisnotedthatthePNRcontainsasetofobjectives,measuresandactionsofa legislativeandregulatorynatureinvariousareas,aswellasincentivesandsupport measures targeting private agents or their surroundings. With regard the NSRF, therefore, it is a Plan that comes to the aid of a wide range of instruments and interventiontypologies.itisalsonotedthatthetimereferenceframeworksofpnr and of NSRF, 2008/2010 and 2007/2013 respectively, do not totally coincide. However,throughoutthenextcycletherewillbeakeyinfluencebetweenthetwo processes which requires careful articulation between the respective coordination structures. Thefollowingfigureillustratesthecoherentandconsistentassociationbetweenthe priorityareasofthenewcycleofthepnrandthestrategicprioritiesofthensrf, setforalltheop. 1 1 Forgreaterdevelopmentseeannex TheroleoftheNationalStrategicReferenceFramework (NSRF)inthePNR. 6

42 ThesuccessfulimplementationofthePNACE2005/2008waslargelytheresultofthe impetusprovidedbythetechnologicalplan,astrongpolicyideathatgaverisetoa mobilising agenda for the Portuguese society and a commitment to government actionfocusedonthepromotionofknowledge,technologyandinnovation. TheTechnologicalPlan,recognisedbythemajorityofthePortuguesepopulationas an important or very important agenda, allows the transversal governance of policies to be strengthened and promotes public/private partnerships, as well as creatingafavourableenvironmentforthelaunchofnumerousinitiativesthatprove themselvestobeinlinewiththeplan sagenda. ThePNRNewCycle2008/2010willcontinuetobeimplementedintotalarticulation with the Technological Plan, taking advantage also of the fact that they have the sameheadofficeandcoordinationstructure. The Technological Plan is a dynamic agenda which evolves to adapt itself to the needs and priorities of the public policies and private dynamics of the Portuguese economyasawhole. 7

43 In its current formulation, the application of the Technological Plan is centred around nine plans focused on new generation networks, collective efficiency strategies, the pledge in science, policies supporting the SMEs, administrative simplifications,health,justice,educationandsustainablemobility.asignificantpart of the structuring measures of the PNR New Cycle 2008/2010, in particular in the dimensionsfosteringgrowthandcompetitiveness,integratethetechnologicalplan. The PNR New Cycle 2008/2010 is also aligned with the National Strategy of SustainableDevelopment(ENDS2015)inforcesince

44 PRIORITYAREAS Each priority area is implemented through the continuation of measures from the PNACE which remain in the New Cycle either due to their nature or because their impacts will be particularly visible in this period and also through new measures that demonstrate the focus and commitment to reforms implicitinthenewlyestablishedsixpriorities. AREA1 QUALITYOFFINANCESANDPUBLICSERVICES In the New Cycle of the National Reform Plan , the implementation of structuralreformswillbefocusedonimprovingthequalityofpublicfinancesandon continuingwithmodernisationofthepublicadministration,oneofthemainvehicles fortheimplementationofpublicpolicies. Inaddition,initiativeswillbetakentoimprovethelegislativeprocessinitscontent, impactandmethodologies QUALITYOFPUBLICFINANCES Context Thereformofpublicfinancesandtherigorousbudgetpolicywillcontinuewiththe pursuit of a balanced budget in the medium term and the implementation of measuresthatstrengthenthelongtermsustainabilityofthepublicfinances.infact, the existence of structural budget deficits and the dynamics associated to the expected evolution of expenses that are sensitive to the ageing of the population makes it urgent to guarantee the intergenerational financial balance that does not putthecontinuityofpublicpoliciesatrisk. Theconsolidationofthepublicaccountswillcontinuetobebasedonthestructural reduction of the weight of the primary current expenditure, benefiting from the budgetreformprocessesunderwaythatimprovethecapacityofbudgetarycontrol, andontheincreasedefficiencyoftaxpayingandcontributions. Theprogressiveimprovementintheprimarybalance(whichhadalreadyreacheda positivefigurein2007),inconjunctionwiththepursuitofthepolicytoreducethe structuraldeficit,andtheimpactsoftheimprovedexternalcredibilityofourpublic financesintheconditionsforplacingdebtontheinternationalmarkets,willmakeit possible to reduce the weight of the public debt in the GDP. Moreover, the development of the new management model of public debt will contribute to this 9

45 objective along with its impacts on the increased efficiency in the management of the funding of State activities, notably by reducing the stock in circulation and the resulting financial burdens for the State. These developments will be pursued through better programming of financing, increased negotiating capacity with the financial system, better control of credit and liquidity risks, the minimisation of operational risks, and the extension of the State s central treasury to entities hithertoexcludedfromit,benefitingalsofromthepursuitofthepolicyallocatingthe resultofthesaleofpublicparticipationstotheamortizationofthepublicdebt. Inparticular,withregardtheprivatisationpolicybasedonthereorganisationofthe public participations portfolio, participations in companies in activity sectors which donotjustifythestate sdirectpresencefromthepublicinterestviewpointwillbe disposed of, as will participations where the State has a residual shareholder position and which were obtained as a result of business restructuring processes. ThereductionoftheState sweightinthebusinesssectorwill,inturn,enablegreater competitionthusfavouringtheefficientapplicationofeconomicresourcesandthe increaseofcompanycompetitiveness. The improved financial sustainability of the State s business sector is one of the main vehicles of public policies; as such, it makes a positive contribution to the sustainability of public finances. In fact, the accumulation of negative results and debt by public companies can become an additional risk for the sustainability of public finances as in the case, for example, of the State needing to assume the liabilities of a public company in order to guarantee that the latter honours its commitmentsthusensuringitssurvival. In the area of Public Private Partnerships that follows up on the measures implementedin2006and2007andtakestheintergenerationalequityprincipleinto account,theplanningandcontrolmechanismsofthisimplementationinstrumentof publicpolicieswillbestrengthened. Theconsolidationofpublicaccountsandtheirsustainabilityareessentialtoimprove the competitiveness of our economy, by orienting resources to more productive purposessoastostrengthenfinancialstabilityandconfidenceinthefutureofthe Portuguese economy, creating conditions for increased private investment, and to guaranteethesustainabilityofsocialpolicies. The evolution of the composition of the public expenditure should reflect its progressive orientation to increasing competitiveness and employment, in accordancewiththeguidelinesofthelisbonstrategyandthenationalreformplan, aswellastheneedtoconfrontthestructuralincreaseoftheexpendituresensitive totheageingofthepopulation. Hence, in relation to previous years, the weight of public investment in human capital,inr&d(inducingprivateinvestmentinr&d),inscienceandtechnology,and inpublicinfrastructuresofhighaddedvalue,notablywiththesectorialtechnological plans,shouldbeincreasedasaproportionofthetotalprimaryexpenses.hence,the 10

46 contributionofthestructuralfundsresultingfromthecurrentimplementationofthe OPs that are part of the NSRF is extremely relevant due to its obvious focus (in quantity and, from the perspective of greater selectivity, in quality) on these typologiesofpublicinvestment. Equally,theweightofthecurrentexpenditureshouldbedecreasedovertheNew Cycle; for that purpose, the operational expenditure will have to more than compensate for the expected increase in expenditure related to the ageing of the population.theseevolvingdynamicswillbelinkedtothereductionoftheweightof expenditureonpersonnelasaresultofthecontinuationofthepoliciescontrolling recruitment,thepromotionofbetterplanningandinternalmobilityandthecontrol of the evolution of the total payroll in the Public Administration, as well as the rationalisation of the acquisition of goods and services to which the work of the NationalAgencyofPublicPurchaseswillcontribute. In addition, there will continue to be a policy to increase the efficiency of expenditure,inparticularintheprioritysectorialareas(e.g.health,education,social benefits), rationalising and eliminating waste in the use of public resources whilst alsoraisingtheeffectivenessandqualityofthepublicservicerendered. The behaviour of the public entities as purchasers of goods and services has a significantimpactontherunningofsomemarketsandonthebusinessenvironment in general. More specifically, when public entities make extensive delays in payments, suppliers are required to have greater working capital (and therefore financial costs). Hence, public entities will pursue a policy of reducing payment deadlines. Theincreaseintheeffectivenessandefficiencyofthetaxandcontributionsystem willcontinuetobeatargetwiththeaimofassuringinafairmannerappropriateand sufficient income to implement public policies, increasing and supporting the voluntarycompliancebytaxpayerswiththeirobligationsandcombatingfraudand taxandcontributionevasion. A good budgetary framework, notably with regard the institutions and rules associated with the process of preparing, executing and evaluating the public budgets can benefit the credibility, transparency and quality of public finances. There should therefore be greater budgetary discipline based on mechanisms that makebudgetaryconsolidationmorelonglastingwithaviewtothesustainabilityof publicfinances. 11

47 Measures ConsolidationandSustainabilityofPublicFinances Definition of debt limits for public companies. In order to develop more rigorous financial management, especially with regard optimising financing and investment decisions, ceilings are to be fixed each financial year for public companies debt bearing in mind the proposed investment plan, the currentdebtandfinancingcapacity. Launchofrestructuringprogrammesoftransportcompanies.Withaviewto medium/long term financial restructuring of public companies in the transport sector, opportunities to improve internal efficiency will be identifiedinrelationswiththestate(particularlywithregardthecontracting ofpublicservices)andinthemanagementofthestockofcurrentdebt;these opportunities will be expressed in management contracts to be signed betweenthestateshareholderandtherespectivemanagementboards CompositionandEfficiencyofPublicExpenditure Running of the Paying at the Right Time Programme with a view to reducing the indicator for the average payment period(pmp) by 30 days in the public sector (registered at the end of the fourth quarter of 2008) by EfectivenessandEfficiencyofIncome Use of information as a lever to combat fraud and tax and contributory evasion. An integrated information system will be implemented in the Tax Administration to support tax inspections in its planning, control and proceduressothattaxinspectioncanbecomemoreefficientandtargetthe control of risk tax payers and enable detection through the use of IT programmes BudgetaryInstituitionsandRules Development of Programme based Budgeting. Following the Commission s workforprogrammebasedbudgetingandthebudgetreviewoftheoecd, pluri annual principles and the evaluation of results will be introduced into thebudgetprocessandnewbudgetingprogrammeswillbeconceived;thisis a follow up to the three pilot programmes (in the areas of Cooperation, Continued Health Care and Social Services in Higher Education) that the Government will now present in the State Budget Report for The pledge in the management by objective model will improve the budget planningandcontrolcapacityandcreateabasetomonitorandevaluatethe performanceofthebudgetaryservicesandprogrammes. 12

48 Reformulationofthefinancialmanagementprocessesinthepublicsector. The current financial management processes in the public sector are not in linewiththebestfinancialmanagementpracticesandthepotentialprovided by information and communication technology. The redesign of financial processesatthedifferentphasesofthebudgetplanningandcontrolprocess preparing the budget, implementing the budget and reporting is therefore a priority for the first cycle. Given the best practices in this area, the redefinition of the financial processes and circuits should be based on three fundamental principles: the definition of a plur iannual expenditure framework, the transparency of processes and autonomy in management andresponsibilsationfortheresults. IntroductionofaccrualandanalyticaccountingusingtheRIGOREsoftware intheintegratedservices.inordertoincreasecontroloftheassumptionof expense, to provide support information for management decision making andtoincreaseclarityandtransparencyinthemanagementofpublicmoney and financial relations of the State, the target has been set to introduce reporting in the State Official Audit Plan using RIGORE software in 50 integratedservicesofthestate sdirectadministrationby MODERNISATIONOFTHEPUBLICADMINISTRATION Context The modernisation of the Public Administration is one of the main vehicles for implementingpublicpoliciesanditwillcontinueasoneofthetransversaldriversof theimplementationofthenationalreformplan. The reforms in the Public Administration express the recognition that public resource management guided by the criteria of efficiency and effectiveness is essentialforacompetitiveeconomynotonlybecauseofthesignificantweightofthe public sector in the Portuguese economy and the possibility of reducing administrative costs imputed to the private sector, but also because by acting as leader in the promotion of the quality governance of organisations and best managementpractices,thepublicsectorcanobtainsignificantindirectbenefitsdue toitsimprovedperformance. The successful modernisation of the Public Administration necessarily implies advancing with reforms in management methods and rules, so as to improve the managementskillsofpublicmanagersandexecutivesanddrawgreatervaluefrom the public resources allocated to the activity of the entity they are leading, by improvedplanningandcontrollingoftheactivity,rationalisingandeliminatingwaste withtheconstantaimofahigherqualitypublicexpenditure. 13

49 In the scope of the planning, control and evaluation of the management of the Public Administration entities, there is increased orientation towards management byobjectivesalongwiththeinterconnectionofthecurrentevaluationmechanisms ofservices(quar)andtheevaluationofexecutivesandfunctionariesandalsothe capacity of management information systems to provide timely, relevant and reliable information that enables executives and functionaries to take the best possible decisions. Using objectives to support management is intended to communicate clearly what the service strives to achieve, defines prioirities, gives executives and functionaries guidance so that they concetrate their efforts and resourcesonwhatisimportantandontheresultstobeobtainedandalsocreatesa base to monitor and evaluate the perfomance of the service. Furthermore, it provides executives with a powerful tool to communicate their vision and strategy andmotivatetheirteamstoreachtheobjectives. The rationalisation and elimination of waste in the use of public resources focuses on the implementation of shared services in the accounting, finance and human resourcesareas,ontheconsolidationofanationalpublicpurchasingsystemanda newmanagementmodelforthestate sfleetofvehiclesandonthemanagementof thepublicrealestateassets. Inthescopeofpublicemployment,withtheentryintoforceofthethreepillarsof the new system, created over the last three years (Law nr 66 B/2007, dated 29 December, which approves the New Integrated Management and Performance Evaluation System in the Public Administration, Law nr. 12 A/2008, dated 27 February, that lays down the new systems of contractual ties, careers and remuneration in the Public Administration, and Law nr. 59/2008, dated 11 September, which establishes the new work contract system in public offices), evaluation of performance and management by objective provides the basis for a more productive human resources management that motivates executives and functionaries and therefore fosters excellence in the public services rendered to citizensandcompanies.hence,performanceevaluationwillbeconsolidatedinthe Public Administration, as well as the planning and mobility capacities of human resources. Lastly, the New Cycle has made a commitment to increasing the qualificationsandprofessionaltrainingofworkersinpublicoffice. ThesecondlargevectorofPublicAdministrationmodernisationisthatoforienting the Administration towards simplifying and improving the service provided to citizens and companies. Thus, and following on from the programmes in previous years, the Simplex Programme 2009 will proceed to work towards making administrative procedures simpler, more transparent and more rapid so as to facilitate the lives of citizens and companies, consolidating the strategy that associates simplification and electronic administration as one of the key factors to moderniseandinnovateintheconceptionanddistributionofpublicservices. The simplification measures targeting small and medium enterprises will have specialrelevance. 14

50 Withregardthecreationofnewintelligentchannelsofaccesstopubicservices,the strategy of implementing proximity services will be continued and the range of servicesavailableinthephysical,and whereverpossiblevirtual,onestopshopwill be broadened in articulation with the sectorial technological plans; greater integrationofservicesdealingwiththe lifeevents ofcitizensandcompanieswill be fostered and attendance will be reorganised so that one contact or interaction will be enough for the interested party to act or obtain all the documents and informationrequired. In relation to the modernisation of Public Services, the measures in the health, justiceandeducationwhichhavespecifictechnologicalplansarenoteworthy,with theiraimofimprovingservicesrendered,takingmaximumadvantageoftechnology andrationalisingstructuresandprocesses. Measures ReformsintheManagementMethodsinthePublicAdministration Implementationofsharedservicesintheareasofaccountingandfinancial managementandhumanresources.theimplementationofsharedservices in the areas of accounting and financial management and human resources willleadtoachangeinthewaypublicadministrationentitiesundertaketheir administrative processes (back office) and technologies due to the standardisation of rules and procedures, rationalisation of structures, equipmentandresources.hence,wewillhaveamoremodernandefficient Public Administration, based on standardised, automated and integrated processes. Thetargethasbeensettoimplementsharedservicesystemsinthefinance and accounting area in 50 state entities by The target for human resources management is to have the salary processing of 60,000 functionariesinsharedservicesby2010. Consolidation of the National System of Public Purchases and the New Management Model of the State s Fleet of Vehicles. In the area of the NationalSystemofPublicPurchases,thetargetistomakefrom10%to15% savings in the relevant expenditure (150 million euros in the period).thetargetforthestatevehiclefleetareaistomakesavingsof40 millioneurosinthe period. Progressiveimplementationoftheburdenprincipleintheuseofrealestate.AsrevealedintheconclusionsoftherecentSurveyofPublicAdministration RealEstatewhichnotesmoreefficientoccupationratiosinrentedrealestate than in owned real estate, the introduction of financial charges (rent) on usersofstateproperty,includingpublicadministrationserviceswithoutlegal personality,willfosterabetteruseofpublicspace. 15

51 Increase in qualifications and training. A critical factor for the successful modernisation of the Public Administration is that of the qualification of its executivesandworkers.theimprovedqualificationsofexecutivesandstaff willbeconductedbymeansofprospectiveevaluationandthepreparationof skillsdirectoriesandthedevelopmentofmade to measurecapacitybuilding programmes, raising the capacities of executives and management, the implementationofmobilitypoliciesthroughthedevelopmentofprofessional retraining programmes, the development of e Learning and practice communities, the decentralisation of training by means of partnerships between INA and local institutions, and alignment with the New OpportunitiesInitiative SimplificationandImprovementofAttendingCitizensandCompanies Reduction of charges made to companies. Following the approval in the EuropeanCouncilofMarch2007oftheActionProgrammefortheReduction ofadministrativeburdensintheeuropeanunion,in2008thegovernment approved the National Pledge to Reduce Administrative Burdens for CompanieswithaviewtoreplicatingtheobjectivedefinedbytheEUinthe national plan. In 2009, the evaluation process of the reduction of administrative burdens companies resulting from the application of the alreadyimplementedsimplificationmeasureswillproceed. LocalauthoritySimplex.In2009,theevaluationofthefirstLocalAuthority Simplex Programme will take place; the programme was launched in 2008 and will be extended to more local authorities with new simplification measuresthatdonotdispensewithcollaborationbetweenmunicipalitiesor betweenmunicipalitiesandthecentraladministration. One stop shop and second generation citizen shops. In the scope of the modernisation of public services, investment will continue to be made in raising the quality and proximity of services to their users, namely by increasingtherangeofpublicservicesavailableintheonestopshopsystem (presentially or online) and through the expansion of Second Generation CitizenShopprogramme.Oneofthekeyobjectivesofthisprogrammeisto rationalisethedistributionmodelofpublicservicesbothgeographicallyand financially,withoutlosingproximitytothecitizenandeconomisinginterms ofthecostofinstallationandexploitation;therefore,thenewcitizenshops should concentrate public services of the central administration and the municipaladministrationinthesamespace,usingtheirowncounterormulti service counters. Their appropriate articulation with other distribution channels is also foreseen, notably the voice channel and internet, thus assuringamorestandardisedattendanceforallcitizens. 16

52 Multi channel service for companies. The same multi channel attendance strategy will continue to be developed for all companies. The specific attendanceforcompaniesalsoincludesthevoicechanneland,inparticular, theongoingimprovementofthewebchannel(companyportal). On line catalogue of licences. In the area of the single counter (one stop shop)initiativestargetingcompaniesandcontinuingtheprojectinitiatedin 2007, the on line catalogue of licences will be optimised. This catalogue brings together licences, authorisations and administrative constraints and gives access to relevant information on each of these aspects, namely applicablelegislation,competentauthorityandcontacts;improvementswill be made so that it covers all existing authorisations in the legal system for which information must be collected so that the catalogue can be completed.inthescopeofthetranspositionworkoftheservicesdirective, along with the work of simplifying access procedures and the exercise of activities of services, a new single counter is still planned included in the licencecatalogue withelectronicproceduresthatenablesdistanceaccess byelectronicmeanstotheauthorisationproceduresrequiredtoexercisean activityinportugal.thepilotscheme,tobeconductedin2008withestonia, alreadyuseselectronicauthenticationbasedonthecitizencard.alsointhe context of electronic identification, Portugal is participating in a European consortium (14 countries) for the creation of an interoperability platform and for the recognition of electronic certificates. The services to be tested includecompanystart ups,applicationsforhighereducationandthechange ofaddress. Seniors Counter. The Seniors Counter will be an integrated counter that includes the availability of services and information related with pensions, free time, health and other matters important to the elderly such as transport, social support, leisure or services like arranging ambulances to transportthesick,bookingandrequestinghomehelp,municipalservicesfor seniors (payments, booking activities), public services of general interest (telephone, electricity); another predominant characteristic is that the servicewillbeprovidedfromaproximityserviceapproach,inotherwords,in additiontothecitizenshops,thisnewservicecanbefoundinplaceslikethe casasdopovo,localauthoritiesorevenrailwaystation. Elimination of certificates in public services. Project for the provision of integrated services based on the fostering of communication between entities or departments. In 2008, the certificates to be eliminated will be identifiedandtheimplementationofthecertificatecatalogueisalsoplanned (e.g.procedures,legislativeinformation,costsandcontacts).thistransversal project will work in articulation with the central and local administrations and in the first phase will bring together almost all the entities of seven ministriesandsixmunicipaltownhalls. 17

53 In relation to the tax system, the aim is to continue to build an Administration that is available and closer to the citizen and companies by making it easier, quicker and cheaper to comply with tax obligations and placingthetaxpayeratthecentreofthesystem.thisinvolvescontinuingto make improvements to the quality of the service rendered and to provide quickandqualityresponsestotherequestsoftaxpayersandestablishinga relationofmutualtrustwithcomplyingtaxpayersbyincreasingtheefficiency ofthesystem,eliminatingmistakesanddelaysinrecognisingrightsorinthe responsetorequests,andtotakeamoreproactivestanceintheinteraction withthetaxpayers TechnologicalPlanforHealth E_agenda in health the aim of this measure is to provide an electronic platform for making NHS appointments. It starts with requests for appointmentsforprimaryhealthcare(phc),andthisyearitwillprovidethe citizenwiththeinteractivitythatenablesthepatienttobealertedtothenext appointmentorapossiblere schedulingwithseveralhours notice. Health call centre Health Line 24 (continuation) Following the initial implementationphase,andgiventheadhesionofcitizenstotheguidelinesof Health 24, there is expected to be a considerable impact in the decline of unnecessary visits to the emergency services and a lower concentration of usersintheservicesprovided.thepotentialopportunityofgivinghealthcare guidanceathomeaccompaniedbytheserviceisalsobeingconsidered. Supportfortheexpansionoftheelectronicclinicalprocess(ECP) Until2010, the Ministry ofhealthwillactivelysupportthecreationofecpsinallhealth institutions. The ECP is a highly developed electronic process because it essentially constitutes an information collection process that is already electronically registered in the various information subsystems of institutions,inmobileorothersurgicalblocks,inhospitaladmissions,inthe laboratoryforcomplementarydiagnosticmeans,inimaging. TransparencyPortal (accesscardtohealthcare) Internetsitewherethe citizencancollectallinformationontheaccess,listingthetimedefinedand clinically acceptable and disclosing the results for the corresponding monitoring. Medicalprescriptionsbyelectronicmeansforholdersofchronicillnesses electronicplatformforprescriptionrequestsforpatientswithchronicorlong termpathologiesinthenhs. 18

54 TechnologicalPlanforEducation 2 SchoolSimplexProject createanintegratedelectronicplatformtosupport schoolmanagement.aimedatincreasingtheefficiencyofmanagementand communication among agents of the education community and improving accesstoschoolinformation. School Card generalise the use of electronic student card among the educationcommunitysoastoincreasetheefficiencyofschoolmanagement and security in schools. The project envisages functions such as control of access,registrationofattendance,processconsultation,andelectronicpurse that can be charged off school premises thus leading to a real reduction in thecarryingofcash. Escol@segura safe@school provide all schools with alarm systems and video surveillance in order to increase the security of facilities, discourage intrusions, theft and assaults in schools. The electronic alarm systems and video surveillance safeguard the investments made in schools whilst also guaranteeingtheprivacyofmembersoftheschoolcommunity. Institutional Portal of the Ministry of Education develop a preferential channel of communication between citizens and the Ministry of Education (ME) that provides relevant information in the areas of national and international education and concentrating the institutional contents of the ME services, combating dispersion, overlapping, redundancy and failures in contents TechnologicalPlanforJustice InthescopeofthesectorialmodernisationprogrammesfortheincreaseduseofICT, the Ministry of Justice will introduce significant changes in three areas: Property Register,CivilStatusRecordsandtheDematerialisationoflegalproceedings. On line property register: From 1 January 2009 it will be possible to make themajorityofpropertyregisteractsviaelectronicmeans.thus,byusingthe sitewww.predialonline.mj.pt,lawyers,chambersofcommerceandindustry, notaries and solicitors will be able to request registration, pay fees and overcomefailuresintheregistrationprocess. Moreover, it is planned to make an on line property registration certificate available, very similar to that of the Permanent on line Certificate of the trade register. From 1 January 2009, any person can get access to property register information via internet, which will be permanently updated and with certificate value by going to the site This electronic certificate is also accessible by use of a code that the interested 2 See Positive Mobility Area - Qualifications 19

55 partycandelivertoanypublicorprivateentity,thuseliminatingtheneedto deliverapapercertificate. Inthefirstquarterof2009,the Specialregistrationoperations counterwill start operating. This counter provides a special and personalised service for users who require it due to the volume and complexity of the registration requestsandrealestateoperationstheywishtomake. NewonlineCivilStatusRecords:Bytheendof2008,thefirstservicesofcivil status records will be available on line and in 2009 this will be extended to mostsituationsfortherecordingofcivilstatus. CITIUSandthedematerialisationoflegalproceedings.In2008,professional representatives (lawyers and solicitors) were given various incentives to undertakeproceduresonline.accordingly,since1september2008,therehas beenareductionof25%to50%inthechargesofthecourtpaidbyparties whoseprofessionalrepresentativesusethecitiussystemtosendpleadings. There has been a very significant use of these electronic means to deliver pleadingsanddocumentsthroughcitius DeliveryofPleadingsandCITIUS Injunctions, which does away with the sending of copies on paper, and the efforts to publicise and train these professionals will continue in For example,thepercentageofinjunctionsdeliveredusingcitius Injunctionsis 95% while 10% of pleadings and documents were delivered using CITIUS DeliveryofPleadings. InthescopeoftheCITIUSdematerialisationoflegalproceedingsproject,the following will also be made available in 2008: i) new electronic means of making seizures in the ambit of enforcement procedure/judicial debt collection, ii) new portals on Internet that facilitate access to and the consultation of information on courts and alternative means of dispute resolution,iii)theextensionofitworkinginstrumentsformagistratesofthe Public Prosecution Service CITIUS MP (penal) to all the DIAPs, iv) new electronic searches and consultations through the CITIUS that will facilitate criminal investigation, v) new electronic connections to entities that collaborateincriminalinvestigationandvi)throughout2008and2009,new wireless connections in courts that facilitate access to and use of CITIUS applications. As of 5 January 2009, it will be mandatory for magistrates and the Public Prosecution Service to use the CITIUS application for pleadings in civil processes.thismeasurewilldoawaywiththeprintingofthousandsofacts thatareirrelevanttothecasedecisionandsignificantlyreducethecirculation ofdocumentsonpaperinthecourts. During 2009, new electronic means of communication between lawyers, courts and some public entities will also be made available along with new functions in the IT applications in the courts that, in the scope of the enforcementprocedure,willfacilitateandsimplifytheproceduralflowinthis kindofprocess,closelyrelatedtoareductioninthepaymentdeadlines.also 20

56 in 2009, a public list of failed executions due to non existence of collateral assets will be made available online, with a view to avoiding legal proceedings that are unlikely to be successful and to foster the prompt complianceofcontracts IMPROVEMENTOFTHELEGISLATIVEPROCESS Context The improvement of the legislative process is considered to be fundamental by means of concluding and consolidating the measures foreseen in the Better Regulation Programme and furthering the impact evaluation system of the Government snormativeacts. The transposition of the community directives to the internal legal system continues to be a priority for Portugal. Thus, there will be renewed effort in legislativeadaptationsothatasubstantialrecoverycanbemadethatwillmeetthe 1%targetin2009definedbytheEuropeanCouncilinspring2007.Giventherecent evolution, the work to be undertaken will involve the continuation of activities alreadyunderwaytoboostandmonitortheworkoftheministries,andtocontinue motivatingministerialofficestotakeactionandattributepriorityandurgencytothe approvalproceduresoftranspositionlaws. The conclusion and consolidation of measures foreseen in the Better Regulation Programme,thefurtheringoftheimpactevaluationsystemofnormativeactsand the reduction of the shortfall in the transposition of directives are therefore three goalsfortheimprovementofadministrativeproceduresinportugal. Measures BetterRegulationProgramme.Thisprogrammewillassure: Interoperability between the legal databases of DIGESTO (system for the treatment and analysis of legal information) and the State s databases for treatmentoflegalinformation. Definition of a technological model for the electronic reconstruction (substantialconsolidation)oflegislativetexts. Implementation and consolidation of open consultation procedures to be undertaken by society that is able to foster the effective participation of citizensandcompanies. 21

57 Preparation of a practical guide for the drawing up of the Government s normativeacts. Impact evaluation of the Government s normative acts. This evaluation will be reinforcewiththefollowingactions: Revision of the trial SIMPLEX model used in the prior assessment of the administrative charges of all laws subject to the approval of the Council of Ministers,adjustingittothe standardcostmodel methodology. Launch of a Practical Guide of the Prior Assessment of Administrative Burdens of the Government s Normative Acts for use by the Ministries responsibleforthepreparinganddrawingupoflegislativeinitiatives. Writing and presentation of an annual report by the Government with the results of the impact evaluation of normative acts through the new trial SIMPLEXmodel. Adoptionofanationalpledgeofa25%reductioninadministrativeburdens imposed by national legal and regulatory norms on events relevant to the companylifecycle. Transposition of community directives to the internal legal system, that will involve: MonitoringofthetimelytranspositionofdirectivesbythePresidencyofthe CouncilofMinistersandbytheMinistryofForeignAffairs,bymeansofthe automaticelectronicwarningsystems,themonthlyupdatingoftransposition proceduresandtheholdingofperiodicinter ministerialmeetings. Combat gold plating (creation of administrative charges by national legislation beyond those foreseen in community directives) and doublebanking (compatibility between directives to transposed and already existingnationallegislationonthesamematter). Control of the transposition procedure from simplified European legislation in the framework of the 2005/2009 simplification programme, from fast tracks initiated in 2007 and the Action Programme for the Reduction of AdministrativeBurdensintheEuropeanUnion. 22

58 AREA 2 A FAVOURABLE BUSINESS ENVIRONMENT, ESPECIALLY FOR SME Context In the scope of the national agenda for modernisation that has been underway, Portugal has made considerable progress in terms of improving the business environment. TheProgrammeofadministrativeeliminationandsimplification(Simplex)iscentral to the simplification and dematerialisation of countless formalities in the various stages of the life cycle of companies and has contributed to the administrative simplificationofawiderangeofbusinessactivities. Moreover, a vast range of initiatives aimed at boosting business investment have been implemented together with initiatives to foster entrepreneurship and managementskills,tofacilitatetheaccessofsmestofundingandalsotofacilitate theinternationalisationprocesses. However, the objective set for increased competitiveness and the change in the competitive base of the Portuguese economy makes it necessary to create a more business friendlyenvironmentandthisimpliesdoublingtheeffortsalreadytakenin areasthatareinlinewiththoseidentifiedateulevel. Inthiscontext,theinvestmentsupportsystemsforcompanies,especiallytheSMEs, launchedinthecontextofthereformmadetotheincentivesystemforcompanies and closely articulated with the NSRF as its funding mechanism (through the CompetitivenessFactorsOPandtheRegionalOP),constitutesthekeyframeworkof measuresunderwayinthecontextofthepnr The incentive systems resulting from this reform are strongly oriented towards innovation issues in particular, two of the transversal systems meanwhile regulated: the Incentive System for Innovation (IS Innovation) and the Incentive System for Technological Research and Development (IS TR&D). Specific reference willbemadetotheseinther&dandinnovationpriorityarea(nextareadescribed). The incentive system for the Qualification and Internationalisation of the SME (IS Qualification of SME) should also be highlighted as it is vital to the promotion of companies competitiveness;thisismoredirectlyframedinthisspecificareadueto thewiderangeofinvestmenttypologiesitprovidesforandthefactthattheyarenot restrictedtoinnovationdimensions,evenifthisisunderstoodinthebroadsense. The future developments of the Simplex Programme as well as the measures to improve the legislative process, including the impact evaluation of each new legislation,notablyforthesmes,asdescribedinpoint1.2.and1.3,isexpressedin 23

59 continuingthereductionofadministrativeburdensforcompaniesandthecreation ofamorebusinessfriendlyenvironment. The results achieved and the need to increase the internationalisation of the Portugueseeconomyaswellastoattractinvestmenthaveledtotheintensification of the effort to create good conditions for companies, especially the SMEs, and provide them with an increasingly favourable environment both for exporting and fromtheperspectiveofexpansionormakingnewinvestments. Therefore,theimprovedaccesstofinancingcontinuestobeapriority,throughthe implementation of the INOFIN Programme Facilitating access to financing for entrepreneursandsme whichincorporatesthefinicia,fincresceandfintrans programmes, as well as through other instruments in the scope of the NSRF, of which the newly formed Support Fund for Financing Innovation is an example (FINOVA Decree Law nr 175/2008, dated 26 August). FINOVA works as an autonomous fund and strengthens the financing instruments for companies, particularlythesmeandprojectswithahigherlevelofinnovation. TheSupportSystemfortheFinancingandRiskSharingofInnovation(SAFPRI)isstill being prepared; it will create or strengthen the financing instruments as does the SupportSystemforCollectiveActions(SIAC)thatcomplementstheincentivesystems directly oriented towards companies and aims to boost their results with the creationorimprovementofthesurroundingconditions. Thepromotionofentrepreneurship,accordingtotheinterventionapproachwhich has been followed (specified in the Micro vector in Part 3 of this Report) will continuetobeapriority. The work to promote qualified entrepreneurship will continue to involve an interventionlinethatisbasedontheintroductionoffinancing,notablythroughthe FINICIAProgramme,asthelevertonewcompanystart ups,withnewmorequalified entrepreneurs,generatinganewstandardofspecialisationthatisincreasinglybased on technology intensive services and products, creativity and knowledge that can respond to the growing demands of the international markets. One new line of interventioninvolvesstimulatingculturalentrepreneurship. 3 The recognition of the contribution of women to a more far reaching concept of competitiveness and innovation in the business fabric has also led to betting in qualifiedfemaleentrepreneurshipbymeansofaidconcededintheambitofnsrf, through the Competitiveness Agenda (Competitiveness Factor Operational Programme). AsfortheTourismsector,Portugalhasexcellentresourcesandtouristpotentialand much work has been done to develop this so that it has a growing weight in the Portugueseeconomy.In2007,touristconsumptionrepresentedover10.4%ofGDP, 3 For more information, see point 3.3 of this section of the report. 24

60 contributing 22.7% to the increase registered in the previous year, exceeding the targetsetinthenationalstrategicplanfortourism.theindicatorsalreadyavailable for2008againpointtoapositiveevolution,despitetheexcellentresultsof2007.in thefirsthalfof2008,therevenuefromtourismexceeded3,000millioneuroswhich is an increase of roughly more than 180 million euros over the same period in the previousyearandthetotalearningsofhotelsforthesameperiodhasalsorecorded ariseof5.2%. Nevertheless,thefiercelycompetitiveenvironmentinwhichTourismmovesmeans that companies and all those people in the value chain of the product are increasingly required to exceed the performance of their direct competitors in capturingthemarketshare;theymustknowhowtointerpret,developandinnovate in producing the value that meets the demands of ever more knowledgeable, experienced and sophisticated consumers. In this context, knowledge and innovation, the upgrading of destinations and the dynamising of new centres of touristattractions,togetherwiththequalificationofthehumanresourcesworking in the activity, are essential components to compete successfully in the tourist market. Itisimportanttostressthatthelargemajorityofmeasuresincludedinthispriority area A favourable business environment, in particular for SME and especially thosereferringtotheaccesstofinancing,tothepromotionofentrepreneurshipand to the promotion of good practices and the support of internationalisation are embodiedinthenationalsmepolicy,whichincludesmeasuresfromotherpriority areas due to its horizontal dimension, namely in the R&D and Innovation and QualificationAreas. Measures 2.1 Boostingstructuringinvestment SupportprogrammefortheprojectsofPotentialNationalInterest(PNI).This programmebeganinjuly2005andwillbecontinuedinthe period and aims to accompany all the projects that obtain PNI status from the perspectiveofmakingtheproceduresmoreagileandtherapidresolutionof contextualcostsincurred. Support programme for the projects of Potential National Interest with Strategic Importance(PNI+). This programme consists of a Recognition and Monitoring System for projects of Potential National Interest with Strategic Importance (PIN+); the classification mechanism for this programme is set out in DL 285/07, dated 17 August. Once this classification has been obtained, the Government pledges to assure the accelerated processing of the authorisation. By 2010, all investment projects that obtain the PNI+ statuswillbemonitoredsothattheoveralldecisionmakingprocesswillbeas quickaspossible. 25

61 Client/SupplierProgramme.Theprogrammeaimstoworkinmultinationals established in Portugal so as to improve the positioning of Portuguese companies as suppliers of raw materials, intermediate products, components,servicesorothersolutions.theprogrammeaimstocover100 companiesduringthisyear,increasingto150in2009and175in Internationalisation ExportersClubProgramme.Theformingofanexporters Clubisintendedto provide conditions that strengthen the internationalisation process of companies.thegoalistohave50companiesintheprogrammein2008,100 in2009and150in2010. Building Business SkillsProgramme. This programme aims to boost activity in building business skills by providing a training programme on ways of approaching international markets in order to overcome the weaknesses of the SME in the areas of trade and international business management. It intends to hold 40 courses in 2008, 42 in 2009 and 45 in It is also expected that the number of companies involved in these initiatives will go upto800thisyear,1050in2009and1350in2010. MarketPlacePortugal.ThismeasureaimstocreateatechnologicalPlatform to publicise the Portuguese supply from SME with a view to giving them greatervisibilityandactingasanauxiliaryinstrumentforconductingtradein internationalmarkets.itintendstocover250companiesin2008,400in2009 and550in2010. InovVasco da Gama. The aim of this programme is to provide work placements abroad for young entrepreneurs and managers in Portuguese companiesthathaveorwishtohaveaninternationalisationstrategyintheir companyorinthecompanywheretheywork.itenvisagesoffering150work placementsayear. Network of international resources. An International Network will be createdandpromotedthatbringstogetherportuguesepeoplefromallover the world in order to contribute to a higher level of internationalisation of theportugueseeconomyandtomakeportugalbetterknown.theaimofthe Network is to have around 1000 users in 2008, 1500 in 2009 and 2000 in Accesstofinancing INOFINProgramme Tofacilitateaccesstofinancingbyentrepreneursand SMEs.ThisFrameworkProgrammeencompassesthefollowingprogrammes: 26

62 o FINICIA Programme. This programme aims to make specialised financialinstrumentsavailableforthesupportofcompanystart ups, such as: Pre seed Capital solutions targeting the concept testing stages; Seed Capital solutions targeting knowledge based company start ups; Risk Capital and Mutual Guarantee solutions targeting the initial growth of start ups; thematic Micro Risk Capital and Micro credit targeting young, female and social entrepreneurship with regionalemphasisassociatedtothenewclusteringprocesses. By2010,thereareexpectedtobe(i)600projectsevaluated,(ii)75% of evaluated projects approved, (iii) average of 2 work posts per projectcreated,(iv)totalinvestmenttotalof 45mmade(v) 20min financing by credit (with the support of Mutual Guarantee) and by RiskCapital. o FINCRESCEProgramme.Thisprogrammeaimstoprovidesolutionsto optimise financing conditions for companies that pursue innovative growth strategies, through Risk Capital and Mutual Guarantee solutionswithaviewtotheinnovativeand/orinternationalgrowthof SME. It is foreseen that by 2010,(i) 2500 SME will be recognised with the Leading SME status, (ii) an annual Leading SME Convention will be held, (iii) 1200 Leading SME will be involved in Benchmarking processes,(iv)implementationof500investmentprojectsbyleading SME using Credit and Risk Capital instruments in the ambit of the specificfinancingconditionstobecreated. o FINTRANSProgramme.TheaimofthisprogrammeistoprovideRisk CapitalandTitleholderCreditsolutionsinordertosupportoperations for the concentration of businesses, mergers and acquisitions and ManagementBuyOut(MBO)andManagementBuyIn(MBI). By 2010, (i) involvement of 10 financial partners and specialised entities,(ii)40companiesidentifiedasinsearchoftransfersolutions and(iii)10transferoperationsconductedareforeseen PromotionofEntrepreneurship Entrepreneurship Programme and Economic Valorisation of Knowledge. This programmes aims to foster the entrepreneurial culture, boost the creation of new companies and the transfer of technology, consolidate and promote the international growth of start ups and includes actions (i) to promote the link between schools, universities and companies, (ii) to dynamise focal points within universities so as to identify research projects susceptible to entrepreneurial activity, (iii) to develop mechanisms for the management of technology that effectively relate research with the 27

63 commercialisation of technologies, (iv) on management of intellectual property,(v) on the development of methodologies for the creation of EBT based on intellectual property and(vi) the identification of key areas based onthecompetencesofr&dcentres. Supprt for female entrepreneurship. This measure encompasses an integrated support system for female entrepreneurship that contemplates training, consultancy for the preparation of business plans and a support awardatthetimeofthestartup.italsoincludesaidforbusinessnetworksof activitiesmanagedbywomen. Support for qualified female entrepreneurship. This support is expressed througha10%mark upintheeligibleexpensesofprojectsapplyingfornsrf R&D incentives for female entrepreneurship projects and own budget allocation. Supportforculturalentrepreneurship.Thismeasureincludesthecreationof a post graduation in management specifically targeting agents from the culturalandcreativesectorswithaviewtoqualifyingtheirmanagersthrough training in business administration, as well as the conferring of awards for innovativeandsustainableprojectsintheculturalareaofrecognisedmerit. Mention should also be made of specific aid for entrepreneurship aimed at promotingjobcreationasspecifiedinpoint Promotionofgoodpractices/RecognitionofMeritofSME Competences Programme and stimulus for the SME to adopt growth strategies.thisprogrammeincludes:(i)smeacademy QualifyingtopSME for innovative and international growth; (ii) Dissemination of competitive diagnosticsolutionsandtheidentificationofgoodpractices(benchmarking); (iii) Generalisation of the use of Scoring tools, notably of innovation (Innovation Scoring); (iv) Facilitating access to relevant information for the businessofsmes. By 2010, the start of an SME Academy is planned which will act as the mediatorbetweentheknowledgedevelopmentcentresandthesmesinthe transferofcompetencesandthestrengtheningofdistinctivecapacitieswith theinvolvementofaround1000companiesworkingincompetenceanalysis, CompetitivenessDiagnosticsandInnovationScoring. Recognition of Merit of SMEs Mobilising by setting the example. This programme includes an articulated system of recognition of merit and business excellence: Leading SME, SME of Excellence, European Enterprise Awards. 28

64 EgualityandQuality award.thisawardisgiventocompaniesandentities withexemplarypoliciesandpracticesofgenderequality. Support for the adoption of Equality Plans. This is a system of multidisciplinary support that includes consultancy services for the development of diagnostics, training, the implementation and evaluation of Equality Plans in the public and private business sector as well as in the CentralandLocalPublicAdministration BoostingtheCompetitivenessofTourism KnowledgePlatformforDestinationManagement.Theaimofthismeasureis to develop an interface (knowledge, technical assistance and cooperation platforms) to support the implementation and management of tourist destinations and products, and to provide appropriate tools to monitor effectiveness indicators in critical dimensions of the viability and competitivenessofthebusiness.thisplatformisplannedtobeinoperation by2010. Dynamisation of Tourist development poles. This measure incorporates the definition of the development concept of new tourist poles, the respective infrastructureandprivateinvestmentprioritiesandamodelfortheapproach to markets. It also includes the forming of incentive systems applicable to publicandprivateprojectsthatputtheplannedconceptintopractice.itaims to launch the public and private investment projects necessary to the competitive development of new tourist poles, in terms of supply, in the prioritymarkets. UpgradingofconsolidatedTouristDestinations.Thismeasureaimstomakea competitiveevaluationoftheconsolidateddestinationsanddefineupgrading programmes given their competitive re positioning and on the basis of infrastructureandprivateinvestmentpriorities;italsoincludesanewmodel for the approach to the markets. It foresees the launch of the public and privateinitiativeprojectsnecessaryforthecompetitivere positioningofthe destinations,intermsofsupply,intheprioritymarkets. Dematerialisation of processes for relations with companies. This measure aimstodematerialisethemajorityoftheproceduresinvolvedinthelicensing andinvestmentsupportprocessesbytheendof NationalStrategicPlanforFisheries. Implementationoftheinterventionpolicyforthe periodandwhichforms thenationalframeworkofthepescaoperationalprogramme. 29

65 Sustained exploitation of resources, so as to maintain the capacity for the self regeneration of the ecosystems and promote biodiversity in order to guarantee the future of the fishing sector and the well being of the populations who depend on it. It therefore conciliates the preservation of resources and environmental quality with the biological and ecological constraintsandwiththeeconomicandsocialneeds,pledginginknowledge, training and scientific research as pillars of economic growth and job creation. Valorisationandqualificationofhumanresources,aspledgeincontinuous training, consolidation of the mechanisms supporting the entry of new professionals, increase of work linked training, boost of training support mechanisms based on technological platforms and IT tools and increase of dualcertification Dynamisation of the Market, Development of the Internal Market and Regulation(seeresponsetofuturechallenge) 4 Implementation of Services Directive. By the end of 2009, the execution measuresoftheservicesdirectiveswillbefullyimplemented.theopening of a one stop shop with electronic procedures is foreseen as part of the transposition work of the Services Directive and the simplification of procedures for the access to and exercise of service activities; this will provideaccessatadistanceandbyelectronicmeanstotheauthorisation proceduresnecessarytoestablishorrenderservicesinportugal. The one stop shop will operate in the Company Portal (which has a one stop shop for starting up a company, the Company online project) and will be included in the current Licence Catalogue, which is an online catalogue that brings together licences, authorisations and administrative constraints and provides access to relevant information on each of these matters, namely applicable legislation, competent authority and contacts. With this one stop shop, where all the service activities covered by the Directivethataresubjecttoanauthorisationprocedurearefound(forthe purposes of article 9 of the Directive), the service provider can start and accompany the authorisation procedure to establish or render services in Portugalandcomplywithallthenecessaryformalitiesfromtherequestto the final authorisation associated to each activity using electronic means. Relevantinformationsuchastheapplicablelegislation,theflowchartofthe authorisation procedure and all other aspects set out in article 7 of the Directivearealsoavailable. 4 This objective includes measures developed in Areas 1 and 4. 30

66 Inadditiontotheelectroniconestopshop,a presentialonestopshopis also planned using a multi channel approach that enables a process that wasinitiatedelectronicallytobehandledpresentiallyandviceversa. The on line Catalogue is linked to the Competent Authorities (CA), by electronic means, through a Public Administration Interoperability Platform.Thecompetentauthoritiesretainalltheirdecisionmakingpowers to assess and concede authorisation; however, the Interoperability Platform allows communication between the different computer systems ofeachofthecas. A pilot one stop shop project in the licence catalogue for three service activities Measure107oftheSimplexProgramme2008 isalsoplanned for2008. Following the complete transposition of the DirectiveatEUlevel,theCAs will participate fully in the Administrative Cooperation foreseen in the DirectivethroughtheInternalMarketInformationSystem. The national rules in force in these areas will be applied until common solutions for the signing of electronic documents have been adopted at communitylevel. ImplementationoftheintellectualpropertyDirective.Thetranspositionof the directive on means of complying with intellectual property provides Portugal with extremely relevant legal instruments to combat the counterfeitingthattakesplaceinsociety.thenewlawplacesportugalona parwiththestatesthatgiveclosestattentiontotheeffectiveprotectionof intellectualproperty,andprovidesagoodenvironmenttoattractnational and foreign investment in sectors linked to knowledge, information and creativeindustries.obviously,thenewlawdoesnotrejecttheproduction ofnewdevelopmentsinthisarea,especiallythoseobtainedbyagreements made between the companies and the representatives of the rights holders.inaddition,thereisexpectedtobeanimprovementintheworkof the courts and the other services involved in the fight to protect IP as a resultoftheincreaseinthetraininggiventoagents. It is also considered useful to place an English translation of the Code on Copyrights and Related Rights on line and to make the complementary legislationtothisavailable. Conclusion of the transposition of community directives related to the Action Plan for the Financial Services The transposition of the money launderingandfinancingterrorismdirectivesisunderway Gradualandcontrolledliberalisationofthepostalservices Transposition of the Directive 2008/6/CE aiming at the total liberalisation of the postal 31

67 services by 31/12/2010 (including notably: definition of the date of the totalliberalisationinportugalandoftheobligationsoftheuniversalservice thereafter; evaluation of its net costs and financing system; status of the postal operator; access conditions to public postal network; protection of citizens andconsumers interests). Reformulationoftheregulatoryframeworkoftheconstruction,thatwill involve: o Reformulation of Decree Law 12/2004, dated 9 January Legal frameworkfortheconcessionofbuildingpermits; o Reformulation of Decree Law 211/2004, dated 20 August legal frameworkforrealestatemediationactivities; o Creation of the Legal Framework for the real estate promotion activities; o Regulation of activities to promote the administration and managementofcondominiums; o Creationofalegalframeworkforpracticeintheactivityofrealestate evaluator. o Contact with a more restricted set of entities so as to form and implementthemediationandarbitrationcentre;thedocumentation forthedeedstoformtheassociationthatwillcreateandmanagethe MediationandArbitrationCentrearebeingprepared;thecentrewill laterbedecentralisedwiththeopeningofdelegations. o ThecreationofrealestateIdentificationCard(BII) o Theregulationofelectronicbookoftheconstructionwork,assaidin thejuridicalregimeofurbanizationandconstruction(law60/2007, December, 16), which integrates part of the information about the constructionbuildingsthatalreadyareinfth. PayingattheRightTime Programme astructuralreductionisplanned in the deadlines for payments to suppliers of public entities. This encompasses measures such as the monitoring and publicising of the averagetimeittakestopaysuppliers;settingobjectivesforthepayment deadlinestosuppliersandthecreationofincentiveslinkedtothelevelof compliance with these objectives; the implementation of operational improvementsintendedtospeeduppaymenttosuppliers;thecreationof mechanisms to substitute debt to suppliers with medium and long term financial loans in the specific case of autonomous regions and municipalities. Continuation of the CITIUS Injunctions. CITIUS Injunctions is an instrument that permits the delivery, payment and processing of the injunction procedure entirely by electronic means and it has been in operationsince5march2008.theinjunctionisaprovisionthatallowsthe creditor of a debt to obtain an enforcement order quickly and simply without having to declare action in a court. It is essential to have an 32

68 enforcementorderinordertoproceedwiththelegalrecoveryofthedebt throughthecourtsbymeansofanenforcementprocedurethatmakesthe respectiveseizureviable. 5 5 See results already obtained in Outcome part III of this report, micro level. 33

69 AREA3 MORER&DANDABETTERINNOVATIONSYSTEM Context When the Portuguese Government assumed the speeding up of scientific and technological development as a priority, it launched a Pledge with Science for the future of Portugal in 2006 which specifically set out the targets that it wanted to reach and proposed concrete measures and instruments so that they could be achievedby2010.thenationalscientificandtechnologicalprogresshasbeengivena great impetus and there are results and experiences that reveal the large public investmentmadeinthisarea(seeoutcomeofexecution,partiii). Theguidelinesproposedpointtoextendedparticipationinthismovementwhichis also one of the renewal and expansion of the social base of scientific and technological development in Portugal, through the direct involvement not only of scienceandtechnologybasedprofessionsandpublicandprivateorganisationsbut alsoofstudentsandtheirfamiliesingeneral.society sgrowingappreciationofthe scientificandtechnologicalculturemustthereforebeoneofthecentralsupportsof theseguidelines: PledginginKnowledgeandinscientificandtechnicalcompetencemeasuredat thehighestinternationallevel; PledginginhumanresourcesandintheScientificandTechnologicalCulture; Pledging in public and private R&D institutions, in their reinforcement, responsibility,organisationandnetworkinfrastructure; PledginginInternationalisation,HighStandardsandinEvaluation; PledgingineconomicValorisationofResearch. The area of the Information Society also assumed concrete objectives for 2010 in the Connecting Portugal action programme launched in 2005; the results already achievedbythisprogrammeareequallyencouraging(seereport,partiii).portugal will continue its efforts to develop and mobilise the Information Society, implementingtheconnectingportugalprogramme,andgivingspecialpriorityinthe period to R&D activities in the area of information and communication technologies and to the so called e Science instruments; this includes the highperformancenetworkforresearchandeducation,digitalscientificlibraries,theopen access information and scientific data stores and the Grid computing and super computingandtheworkplatformsfordistanceresearch. Portugal thus increased its commitment and has concentrated it on achieving specifictargets,aimednamelyat:i)achieving5.5researchers(eti)perthousandof theactivepopulationby2010(thefigurestoodat3.8in2005inportugaland5.5in EU25);ii)boostpublicinvestmentandScientificResearch,assuringatminimum,the doubleoftheamountofr&dexpendituresof2003;andiii)giveprivateinvestment inr&dagrowingimpetus,contributingtotriplether&dexpendituresof2003.the 34

70 intentionisalsotocontinuetoincreasethenumberofphdsayearfromatotalof 1500in2007to1800in2010,whiletheobjectivesaremaintainedforthegrowthof internationallyreferencedscientificproductionandtheinternationalregistrationof patentsintheepoandtheuspto. In the innovation area, mention should be made in particular of the work done to support collective efficiency dynamics aimed at strengthening the innovative dynamics of clustering, agglomeration and networking as well as the economic valorisation of knowledge generated by the Science and Technology System, that producesrelevantknowledgetosupportstrategicbusinessoptionsandpublicpolicy. Wenotethefollowingmainlinesofactionthatcontributetoachievingthisobjective inthiscontext: Dynamisation of projects around strategic projects or in relevant sectors of the economy Development of initiatives that lead to the organisation of economic agents for the definition of agglomeration strategies (e.g. competitivenesspoles,clusters,networks,strategicprojects); Monitoring of the economic aggregates and support for their collective efficiency strategies monitoring of the constitution and implementation processes of the activity of economic aggregates and their governance models,aswellasthedevelopmentofactionplansandcollectiveefficiency projectspresentedbythem; Production of strategic support knowledge for business initiatives Collectionandtreatmentofinformationbytheeconomicagentsinvolvedin collectiveefficiencyprocesses; Launch and monitoring of a strategic intelligence network in innovation Conception and operationalisation of a strategic intelligence system associatedtotheemergenceofeconomicaggregates. Equally,andparticularlygiventheconcerntofosterinnovationintheSMEs,priority is given to the introduction of the measures Value TR&D and Value Innovation which are exclusively targeting the SME and notably small companies. The philosophyofthesemeasuresistoencourageanapproximationofthesecompanies totheentitiesofthenationalscientificandtechnologicalsystem(nsts),byfunding the contracting of TT service (in technological areas or in management support areas, quality, environment, etc.) in these entities. They therefore aim to provide companiesthatarestillresistingworkingwithstsentitiesaneasiermeanstodoso through small innovation projects or TR&D in management or technological areas framed in the Incentive Systems of the NSRF, TR&D IS and Qualification and InternationalisationofSME. These measures are part of a vast range of investment typologies foreseen in the TR&DandtheQualificationofSMEIS,operatingintheambitoftheNSRF. The inclusion of Culture in the New Cycle of the Lisbon Strategy is due to the recognition that culture can generate wealth and is an engine of growth, 35

71 competitiveness,employmentandinnovation.inthisarea,besidestheimportance of cultural, geo strategically and economic value of Portuguese language, the intentionistostimulatethedynamicofthecultureeconomyandbringtothemarket the cultural agents, demonstrating the interest and value of arts and creative and culturalindustries. ThroughpartnershipsbetweenMinistries,Countiesandprivateentities,abroad approachisneeded,followingthelife cycleandthevalue chainofthesector,since therootsofindividualtalenttotheirfullestablishmentandconsolidationofthe socialandeconomicvalue,inordertostimulatecreativeactivities,qualificationof culturalagentsandcompetitivenessincreativeandculturalindustries. Culture in all its diversity can strengthen creativity and is a long lasting and sustainable resource. Companies that use culture as a raw material reduce the probabilityofrelocationasthiswouldleadtoalossoftheframeworkwhichmakes them competitive. Providing a favourable environment for the creation and development of SME in the cultural and creative sector and for the work of the creators and economic agents is a strategic objective that is embodied in a significantsetofspecificmeasures. In short, the approach taken by Portugal to the priority area of Research and Innovationisthatofanintegratedvisionthatgivesvaluetothenumerousprocesses and mechanisms that generate innovation and particularly value creation through theincorporationofcreativeknowledgeinproductsandprocesses. Measures 3.1. MoreR&D Increase aid for contracting new PhDs for the national scientific and technologicalsystem,atleast500morenewcontractsin ; Boost the allocation of Grants for Integration in Research (in recognised R&D centres) for students in the first years of higher education in order to motivate students to start scientific activity and develop a critical sense, creativityandautonomybyintegratingtheminr&dteamprojects; Creation of new Thematic S&T networks aimed at the integration of capacities, advanced training, demonstration and dissemination and international cooperation, namely to support international partnerships formedfors&tandhighereducation; Creation of new R&D Consortia, including support mechanisms for the formation of Post Graduation Schools in Portugal, with a view to boosting post graduation activities in Portugal in an international context as support 36

72 forreformunderwayinhighereducationinportugalandthemodernisation ofthenationalscientificandtechnologicalsystem; Launch of the Mobilising Programme of State Laboratories including the formingofr&dconsortiaandnucleiandnetworksaimedatmodernisingthe nationalscientificandtechnologicalsystem;morespecifically,theobjectiveis to ensure the reform of the State Laboratories through close cooperation with Associated Laboratories, Higher Education institutions, their R&D institutes and centres, and other public and private entities, namely with companies; Implementation of the Programme of Invited Full Professors for Research andtoattractr&dgroupstoportugueseinstitutions;thisaimstoattracttop international researchers to Portugal and support the internationalisation effortsofhighereducationandestablishpartnershipswithotherentities; Starting up of the new Associated Laboratories and increase the working conditionsoftheassociatedlaboratories; Conclude the building of the International Iberian Nanotecnology Laboratory(INL)inBraga,followingtheinternationalcallfortendersalready launchedforthe1stphase,startofinternationalrecruitmentofresearchers andofscientificactivitiesandextensionofparticipationtoothercountriesin thelaboratory. Reinforcement of the Partnerships for the Future programme, notably through the existing partnerships with the MIT (MIT Portugal Programme), Carnegie Mellon University(CMU Portugal Programme), University of Texas in Austin(UTAustin Portugal Programme), and Fraunhofer Gesellschaft, and includingthelaunchofanewpartnershipwithharvardmedicalschooland the start of an international MBA Programme(Lisbon MBA) in the ambit of thecollaborationwiththesloanschoolofmanagementofmit. Implementation of the protocol signed in April 2007 between the Portuguese State and the Fraunhofer Society, in the scope of new international partnerships, that laid down a framework for cooperation betweenthefraunhoferinstitutesandtheportugueseinstitutionsaimedat developingapplicationsofrfidtechnologiesandtheconceptsof Internetof Things inhealthandairtransportlogistics. IncreasedinterventionoftheLivingScienceAgencyforthepromotionofthe scientific and technological culture, including the launch of the Showing Science what is done in Portugal Initiative and broadening the Network of LivingScienceCentres;thereareplanstobuildatleastfourmorecentresin ; 37

73 PortuguesePresidencyoftheEuropeaninitiativeEUREKAfrommid2008to mid2009; RevisionoftheScientificPatronageLaw. Consolidation of the Network of Internet places for free public access to computers and broad band internet and the pursuit of Digital Inclusion policies through support programmes for participation from citizens with specialneedsintheinformationsociety. Start up of the Community Networks, following the building projects underway in 4 zones where it is difficult for the market to introduce New Generation Networks (Vale do Minho, Vale do Lima, Terra Quente Transmontana,EvoraDistrict),andalsothedevelopmentoftheuseoffibre opticnetworksbuiltintheambitofthedigitalcitiesandregionsprojects. Creation of a new platform to make medical contents available and continued support for the setting up of a new Fraunhofer Institute in Portugaltodevelopapplication,servicesandcontentsforthepromotionof digitalinclusion. Boosting vocational training in ICT, stimulating the expansion of TechnologicalSpecialisationCoursesandorganisingnationalprogrammesof ICTAcademiesinhighereducationinstitutionsinpartnershipwithcompanies withinternationallyrecognisedcertificationrecognitionmechanisms. Reinforcement of the Online Scientific Library (b On) integrated with the InternationalIndexingSystemofscientificandtechnicalPublications(Webof Knowledge) and the promotion of the availability of Open Access scientific information,namelypublications,archivesandscientificrepositories. Reinforcement of the National Infrastructure of Distributed Computing (GRID) namely through the National GRID Initiative, participation in the IBERGRID Network and international cooperation of CERN and other internationalpartnershipsinthescopeoftheeuropeanunion. CIG/FCTProtocol,aimedatpromotingResearchintheAreaofSocialGender Relations as a means of furthering multidisciplinary scientific knowledge in thisfieldandenablingthedefinitionofpublicpoliciesandactionstrategies. 3.2.Innovations CollectiveEfficiencyStrategies.Supportforbusinessdynamicsthatgenerate CollectiveEfficiencyStrategiessuchasCompetitivenessandInnovationPoles, ClustersandStrategicIntelligenceNetworkinInnovations. 38

74 By 2010, the following are foreseen: (i) dynamisation of clustering movementsaroundstrategicprojectsorinrelevantsectorsfortheeconomy nr. of aggregates (clusters, poles or networks with dynamisation intervention): 12; (ii) monitoring of economic aggregates and support for their collective efficiency strategies nr of aggregates/collective efficiency projects being monitored: 20; (iii) launch and management of a strategic intelligencenetworkininnovation implementationlevelofnetwork nrof networkhubs50 70%ofaggregatesformed. Value TR&D. Measure framed in the NSRF, in the ambit of the Incentive Systems for the Qualification of the SME, with a view to providing simple support for the acquisition of TR&D services by SME from STS entities in response to the company s specific questions and needs; the aim is to increase their competitiveness through the improvement of products, processes or services (transfer of scientific and technological knowledge whichisnewtothecompany). Value innovation. Measure framed in the NSRF, with a view to providing simple support for the acquisition of consultancy services and support for innovationbysmefromdulyqualifiedentitiesinresponsetothecompany s specific needs; the aim is to increase their competitiveness through the improvement of products, processes or services (transfer of scientific and technologicalknowledgewhichisnewtothecompany). R&DandInnovationAgendaforTourism,encompassing: StimulustoResearchandDevelopmentinthefieldofTourism.The aim of this measure is to prepare an R&D Priority Agenda for direct applicationinthetouristactivitybyidentifyingthemaininternational trends of R&D opportunities/needs in Tourism and to reach a consensusonapriorityagendawiththescsandthemoreadvanced sectorsinthetouristactivity;theaimisalsotosetupacompetence CentreinTourismwithaviewto(i)stabilisingrelationsbetweenthe SCS and all agents intervening in the Tourism value chain, (ii) dynamise and implement the R&D agenda for Tourism and (iii) develop international cooperation with emphasis on the Eureka Tourisminitiative.Thelaunchof10R&DprojectsintheTourismfield bytheendof2010isplanned. Boosting Innovation in Tourism. This measure includes boosting (i) publicity and awareness campaigns among entrepreneurs and executives about the importance of innovation in Tourism (ii) activities stimulating qualified entrepreneurship in Universities and Higher Education Institutes and (iii) boosting regional opportunities grantsforentrepreneursandriskinvestorswithaviewtodeveloping businessinnovationprojectsinthesectorandalsothecreationofan Innovation in Tourism Award. In the 2009/2010 period, 20 publicity 39

75 actions are planned per year leading to the launch of 15 innovation projectsintourismbytheendof2010. Excellence of Tourism Training. The programme includes (i) the internationalcertificationofthetrainingsupplyofhotelandtourism Schoolswhichinvolvesthecertificationofcoursestaught,thereview ofthestudyplans,thetrainingandqualificationoftrainersandaccess to the international work programme for young trainees, (ii) the upgrading of the training supply of Hotel and Tourism Schools and adjustmentoftherespectivestudyplans,andalso(iii)thebroadening andresizingofthenetworkofhotelandtourismschoolsascentres that generate knowledge and good practices for the sector, the territorial monitoring and development of the tourist activity and of itsnewpolesoftouristdevelopment. The progressive and phased implementation of certification is foreseen in all Hotel and Tourism Schools (currently 16), with the initialimplementationintheschoolsinthealgarveregionplannedfor the 2008/2009 academic year; (ii) increase in the training of Technological Specialisation Courses in the Hotel, Restaurant and Tourism area targeting middle and senior managers and which bring together theoretical and practical training components with the content and practice of the profession (application schools); (iii) balanced coverage of the training supply in areas of tourist interest, rising by more than 1000 students in relation to installed capacity openingofnewinstallationsinthelisbon,portoandsantamariada Feiraschoolsin2009,andopeningofnewinstallationsintheSetúbal andportimãoschoolsin2010. CreationoftheHospitalityManagementInstituteandtheCentrefor ResearchandAdvancedTraininginTourism.Theaimofthismeasure istoprovidepostgraduatetrainingforexecutivesandboostresearch in strategic matters related with the business and/or professional activity of tourism. The Hospitality Management Institute was formallysetupinaugust2008;thefirstpostgraduatetrainingcourses ofthecentreforresearchandadvancedtrainingareplannedforthe 2008/2009academicyear. Health Cluster: The main objectives of structuring and developing the nationalclusterofthepharmaceuticalindustryandhealthproductsare:to increasetheparticipationofnationalcompaniesinthemarketthroughnew products, processes or services; to have the companies benefit from opportunities to conduct innovation projects the architecture and aim of theseprojectscanbeachievedindifferentways,namelythroughpartnership with other national or foreign companies and research centres and to increasehighlyqualifiedscientificandtechnologicalemployment;thatthese productswillbeinnovativesoastoensurethebroadeninganddeepeningof 40

76 the technological base and increase the competitiveness in national and internationalmarketsofthecompaniesthatproducethem. CreationofNationalRuralNetwork.ThecreationofanintegratedNational Rural Network by agents working in Rural Development is a regulatory requirement;itaimstofacilitatetheshareandtransparencyofexperience and knowledge on matters related to the objectives and practices of Rural Developmentsoastoincreasetheeffectivenessandefficiencyofpolicies.In 2008,thesupportprogrammeforthenationalRuralNetworktobefinanced by EFARD was presented to the European Commission and is awaiting a decision. ThetechnicalandscientificinterventionareasofthesupportProgrammefor the National Rural Network relevant to Rural Development foresee the participation of public and private entities in the access to experimental knowledge (good practices, successful cases). The thematic areas to be developedwillresultbothfromtheobligationstotheeuropeancommission and from the proposals presented by the members of the Network; they should be relevant to meeting the needs already identified in the support diagnosis for the Rural Development strategy. The thematic areas to be developed will include themes related to the sustainable development of agriculturalandforestryactivitiesoftheterritories. The development of the National Rural Network contributes to attracting Rural Development agents to introduce new procedures or practices into theirworkthathaveprovedmoreappropriatetotheobjectivesincompatible situations. The National Rural Network for Rural Development is articulated with the othernationalnetworksofthememberstatesandwiththeeuropeanrural Network,thuscreatingabroadfieldofaccessthatencouragescooperation amongruraldevelopmentagentsatcommunitylevel. ByfacilitatingequalaccessforRuralDevelopmentagentsinallregionsofthe country to a universe of knowledge and the opportunity to share, the NationalRuralNetworkcontributestoimprovingterritorialcohesion. DynamisationoftheLivingLabs.InthecontextoftheEuropeanLivingLabs Networkdevelopedsince2006andwithaviewtorespondingtotheneedto re balance innovation support policies that act from the supply side with policiesthatactfromthedemandside. Portugalnowhas6LivingLabsanditishopedthatmorewillbeable to enter the European Network in November. The launch of the national networkoflivinglabs LL Portugal isalsobeingpreparedwiththeaimof 41

77 disseminating the practice of open innovation and consolidating methodologiesofinnovationmanagement. TheLivingLabsaimstocontributetoturningtheinnovationprocess towardsdemandandtheconcreteneedsofusersthatcanonlyberevealed inanenvironmentofco creationandexperimentation CreativityandthePortugueseLanguageandCulture CreativeandCulturalIndustriesFund,withtheprioritiesinthecreationofa market instrument, towards the investment in these industries and in their support structures. This programme involves the market diagnosis (macroeconomic studies and cultural sector statistics, in order to better understanddebusinessmodelandvaluecreationprocess);stimulatetalent sinceearlyyears,promotingtheaccesstoculturalequipmentsandcontents toyoungchildren;converttalentinjobs(inov ART:paidtraineesabroadin culturalinstitutions);createtalentnetworks(namelythroughthecreationof aelectronicplatformlinkingindustryandpublicinstitucions);stimulatethe creation of clusters and the protection and encouragement of intellectual propertyrights. International Promotion Programme of the Portuguese language and culture,asacplplanguage,valorsingthestrategicmeaningofthisvectorof Portuguese foreign policy, notably by: broadening the supply of presential language learning in strategic geographic areas and also distance language learningbyofferingportuguesecoursesforforeignersandcontentsintended for advanced learners of the Portuguese language; increasing the training supplyforteachersofportuguese;boostingthepresenceoftheportuguese Language in the numerous organisms where Portuguese is the official working language by the supply of training in translation/interpreting; the development of research into Portuguese and the different areas of Portuguese history, society sand culture and making material available in internetfortrainingintheportugueselanguageandcultureandculturesof the remaining members of the CPLP, notably research materials and materials to attract new publics and assuming that higher education institutionsserveasculturalstages,bothasstrategytoattractnewuniversity publics and with the purpose of the constant repositioning of Portugal s imageofthe21 st century. Study on the Economic Value of the Portuguese language with a view to determining the direct economic value of the Portuguese language(current and potential) in the contemporary context of globalisation, notably in economic and business activities in the areas of teaching, culture and communicationthatinvolvetheuseofportuguese. 42

78 Portal Forum on Multilingualism, in partnership with the EuropeanParliament/CabinetinPortugalandtheLuso AmericanFoundation; discussion panels address the following themes: Language and Politics; LanguageandtheEconomy;LanguageandCulture;LanguageandEducation. PORTUGESTProgramme:basedonthepost graduationinmanagementand Entrepreneurshipforculturalagents,theaimistovalorisehumancapitaland boost creative industries; the project consists of real time or recorded broadcastofcoursemodulesatthestudycentresoftheplpwhowishtobe associated.thisinvolvesthecreationofatechnicalandcomputerplatformto dynamise distance training (including simultaneous translation into Portugueseoftheseminarsledbyinvitedprofessors)andthedevelopment ofappropriatemeans/supportandequipmentfortraining;agreementswith companiesintheitsector(microsoft);creationofamultidisciplinaryteamto develop the project; establish network of agents and institutions from the variouscountriestobeinvolved. ProgrammeforthePromotionofmobilityofartists/creatorsandnational heritage, stimulating the association between creators and companies and fostering the mobility of creators and authors, notably with the aim of promoting the internationalisation of Portuguese artists/creators and the disseminationofportuguesehistoricandcontemporaryartisticheritage. DigitalisationProgramme:developmentofonlinedigitalisationserviceusing information indicated in the catalogue of the National Library for the digitalisation of specific items from its collections (material already in the public domain). From the client standpoint, this is a debureaucratised and dematerialisedprocessthatraisestheinternationalvisibilityandaccessibility ofpatrimonialassets; There are plans for a project which will form an online service with information in addition to the traditional biographical reference e.g. adding picturesofthecoverandabstractsofthebooks,withautomatisedservicesof personalised notification per profile based on the kind of audience e.g. books from children s literature, in the typology of the documents e.g. reviewsand/orbroadthemes,providinglinkstowebsites/servicesrelatedto theeditions. INOVART Programme. Support for the training of youths with specific qualificationsintheareasofartandculturebymeansofprofessionalwork placements with referenced entities in the international context of the art andculturesector. InvestmentFundforCinemaandAudiovisuals(FICA).Operatingsince2007 and is yet another source of funding for cinematographic and audiovisual production in Portugal; among its various objectives, we highlight the contributiontotheintegrateddevelopmentoftheaudiovisualsector,giving 43

79 preference to interventions oriented towards raising the sustainability of cinematographic and audiovisual activities, boosting the creative and competitivecapacityofsmallandmediumenterprises(sme)andincreasing the penetration of works produced or co produced by these SMEs into internationalmarkets,therebyincreasingtheaddedvalueofthesectorand thebusinessopportunities. INSerralves Incubator of Creative Industries: project aiming to fund activitiesofagroupofcompanies(76companiespresentedprojectsofwhich 8wereapproved)andtoevaluatetheimpactofthesecreativeindustriesin theeconomyoftheregion. Knowledge network in the scope of cultural tourism: project aiming to createatechnologicalplatformforthedisseminationofknowledgeusingthe EuropeanNetworkofVillageTourismasthebase.TheNetworkinvolvesan international public private partnership (Portugal, Italy, Romania, Poland, Finland, Belgium, Greece and Slovenia) and develops the concept of the tourismoftheimaginary.thenetworksearchesfortheauthenticitybrands ofeachcommunitythroughstories,legends,myths,traditionsandancestral knowledge. TrainingCentroofexcellenceinCulturalManagement;ExecutiveMBA`sfor agentsoftheculturalandcreativesector; Stimulus to the tertiarisation of the industrial facilities in decline, in particularinregionswithtouristpotential,withthesupplyofvariousservices includingculturalandleisureserviceandfosteringculturalentrepreneurship; Measurestostimulatereadingactivities,towardscitizenswithspecialneeds or in situation of social exclusion (prisons, hospitals, NGO, rehabilitation centres,etc.) Legal archive to accede to bibliographic, phonographic and images collections, regarding the author rights and similar rights. With the legal diploma and the specific regulation, implementation procedures will be developed, in order to speed up the process of legal archives, taking into account the balance between costs and revenues, the necessity of a new relationbetweenstate,publicandprivateinterests,thenecessityofaregular investment in the preservation of the material and the changes of technologicalevolution. 44

80 AREA 4 COMBATING CLIMATE CHANGE, PLEDGING IN RENEWABLE ENERGIESANDENERGYEFFICIENCY Context The Government has launched an important set of measures aimed at reducing energyconsumptionandinparticularinbuildings,inindustryandintransport. The National Action Plan for Energy Efficiency (PNAEE), known as Efficiency Portugal2015 wasapprovedin2008;thisinvolvesasetofmeasureswiththetarget of an improvement in Energy Efficiency by 2015, the equivalent of 10% of final energy consumption, in relation to the efficiency in the final use of energy and to energyservices. The Plan is oriented to managing the demand for energy, working in articulation withthenationalprogrammeforclimatechange(pnac)andthenationalplanfor theallocationofemissionslicences(pnale). The Government approved a far reaching set of measures to limit the carbon intensityoftheenergymix,andwithasignificantcontributiontothediversification oftheenergysupplybypromotingrenewableenergiesandenergyefficiency. Portugalhaspledgedinparticular,inthedevelopmentofwindandwaterenergies, inbiomass,biofuelsandsolarthermalenergy. Reinforcingthemeasuresalreadyestablishedintheframeworkofthepromotionof renewableenergysources(fer)in2007thegovernmentdefinednewcommitments for2010: 45%ofallelectricityconsumedistohavearenewablebase; thebiofuelsusedintransportshouldreach10%oftheconsumptionofroad transportfuel; 5to10%ofcoalusedinelectricpowerplantswillbesubstitutedbybiomass orwaste. Hence,newgoalsweresetforthevarioussourcesofrenewableenergy: WindEnergy:raisetheinstalledcapacityby1950MWby2012,makingupto atotalof5100mw(ofwhich600mwwillbeduetoequipmentupgrading), createatechnologicalclusterandtheinvestmentassociatedtowindenergy; Water Energy: Anticipation of the increase of power in the existing hydroelectricinfrastructuressoastoreachaninstalledcapacityof5575mw in2010,namely575mwmorethanpreviouslyforeseen,anduse70%ofthe nationalhydricpotential; Biomass:Allocationofanadditional100MWininstalledcapacityby2010,to a total of 250 MW, promoting articulation with forestry resources and policiestofighttheriskoffire; 45

81 Solar:Constructionofthebiggestphotovoltaicpowerstationintheworld Moura power station and link with the micro generation and solar heated waterpoliciesandtargets; Biogas: 100 MW target for installed capacity in anaerobic waste treatment units; Micro generation:promotetheinstallationof50,000systemsby2010,with incentivesfortheinstallationofsolarheatedwaterinbuildings. Biofuels: Reach the target of biofuels being 10% of road transport fuel in Measures 4.1. EnergyEfficiency (PNAEE),knownas: Implementationofthe EfficiencyPortugal2015 NationalActionPlanfor EnergyEfficiency(PNAEE).NationalActionPlanforEnergyEfficiencyaimsto achieve an improvement in energy efficiency by 2015 equivalent to 10% of thefinalenergyconsumption,inrelationtotheefficiencyofthefinalenergy useandenergyservices(seeoutcomepartiii). The Plan complements a set of new Energy Efficiency measures that are alreadybeingimplementedsuchas: Reform of car tax, to internalise environmental, social infrastructure costs. Measures taken in the SB 2009 that aims to reduce the negative impact of the reform on the tax revenue and give continuity to the progressivereductioninthecarbondioxideemissions. Creationofataxoninefficientlightbulbs, renewablesondemand, Energycertificationofbuildings Andintroducesnewmeasuresofwhichwehighlight: The launch of a reference award for the best practices in the area of EnergyEfficiency; A 2.5% bonus/reduction on electricity tariff for consumers with less energyconsumptionandanincentivetarifffortheleastefficient; Theawardingofan EfficiencyCheque for2yearsworth10%or20%of annualelectricityexpensesforconsumersmakingareductionof10%or20%, respectively,forinvestmentsinenergyefficiency; The creation of a subsidised line of credit with 250m/year for investmentsinenergyefficiencymeasures,withastrongemphasisonurban rehabilitation; The launch of a programme for the renewal of large electric household equipmente.g. 100incentiveforthesubstitutionofanoldrefrigeratorwith anewclassa++one); 46

82 The creation of an accelerated amortisation scheme for investments in energyefficiencyatindustryandserviceslevel; ThecreationofenergyRationalisationAgreementswiththeindustry; The energy certification of all State buildings and the launch of an extensiveprogrammefortheoptimisationofpubliclighting; Thecreationofafleetof greentaxis withreducedemissionlevels; The development of an innovative traffic management platform for LisbonandPortousingnationaltechnology. Implementation of the Management System of Intensive Energy Consumption. With the implementation of the Management System of Intensive Energy Consumption which institutes the conducting of energy auditsthataremandatoryforinstallationswithanenergyconsumptionequal to or more than 1000 tep/year, every six years, and for installations with energy consumption equal to or over 500 tep/year but less than 1000 tep/yeareveryeightyears theoperatorswillbeobligedtodrawupenergy Consumption Rationalisation Plans (PREn), setting a target for energy and carbonintensityandforspecificenergyconsumptionwhich,onceapproved, willbenamedenergyconsumptionrationalisationagreements(arce). Publicity campaigns about the management System of Intensive Energy Consumption in building and real estate companies and associations and municipalities Alternativeenergies Taking advantage of wind energy and other renewable energies. The programmeaimstoraisetheinstalledcapacityofwindenergyconversionto 5100MW;intensifytheuseofhydricpotentialstilltobeexploitedandother renewableenergies biomass,biogas,waves,waterandphotovoltaic.take measuresleadingtoclearandrapidadministrativemechanismsforlicensing. Theexpectedresults/impactsupto2010areasfollows: WindEnergy:creationofanindustrialclusterwithatotalinvestment of 1750m,creationofroughly1700workpostsandthesettingupof afundof 35mforinnovationintheareaofrenewableenergies; ForestryBiomass:anestimatedinvestmentofaround 225mandthe creationofroughly700workposts; Biofuels:creationofindustrialunitwithanestimatedinvestmentof 100m; Water: Authorised Reception Points for 922 MW of new large Hydroelectric Power Stations with an estimated investment of more than 1000m; WaveEnergy:creationofapilotzonewithpotentialexplorationofup to 250 MW for the technological development of new technologies pilot projects and the drawing up of legislation regulating the respectiveauthorisations(licencesandconcessions); 47

83 Photovoltaic: Moura Power Station with a forecast production of 56 GWh/year, the setting up of a photovoltaic module factory and a research laboratory. Serpa Power Station with a forecast production ofover18gwh/year; Micro generation: Simplifying the legal licensing system, substituting theexistingonewitharegistrationsystemsubjecttoaninspectionof technicalconformity.systemfortheregistrationofmicro production setup(srm) Conversionofthenationalrefinerysector Porto Refinery: Grant the refinery with a new conversion unit for heavycrudeoilthroughtheassociationsofthermalcrackingunitsand hydrocrackingtoobtaindieselwithahighenvironmentalquality.the aim is to build two new main units and three auxiliary units in the Porto Refinery by the end of 2010; reconfigure three existing units andonenewstorageunit. SinesRefinery:Increasethedieselproductioncapacity,byconversion from vacuum heavy diesel and from visbreaking heavy diesel readjusting the production profile to the market needs. Four main unitsandthreeauxiliaryunitswillbebuiltatthesinesrefinery,three existingunitsreconfiguredandanewunitformakingsulphurpellets andanewstorageunitwillbebuilt WasteTreatment ConstructionofUnitsfortheOrganicValorisationofUrbanSolidWaste.In the ambit of the strategy for diverting biodegradable waste from landfills incorporatedinthepersuii( ),fromtheperspectiveofcomplying withcommunitytargetsconsignedinthelandfilldirective,theunitsforthe organic valorisation existing in Portugal are expected to increase substantially. Hospital Waste Treatment. Construction and exploration of an Integrated CentreofEnergyValorisation,RecyclingandTreatmentofHospital,Industry and Animal Waste based on the international best practices of waste treatment with a view to minimising the environmental impact and maximising energy efficiency and generating carbon credits. Launch Oct 2008 Construction of units for the energy valorisation of sludge from ETAR and CDR.Withaviewtoresolvingtheproblemofthefinaldestinationofsludge andofwastefromthevariousmulti municipalsystems,twostationsforthe Energyvalorisationofsludgeandfuelderivedfromwaste(inEstarreja)and 48

84 with EDP (in Barreiro), a project promoted by Águas de Portugal, SGPS, jointly representing a maximum installed capacity of 58.8 MW of electrical energy ReducingtheEmissionofGreenHouseGases ContinuationoftheImplementationoftheNationalProgrammeforClimate Change(PNAC)andtheNationalPlanfortheAllocationofEmissionsLicences (PNALE). 49

85 AREA 5 MORE POSITIVE MOBILITY THROUGH QUALIFICATIONS, EMPLOYMENTANDSOCIALCOHESION TheemploymentsysteminPortugalhasbeenfacinganumberofchallengeswitha combination of different conjunctural dimensions linked to the international situation and the evolution of the economy and national labour market, as well as morestructuralaspectsthathavemadeitdifficulttofindasustainablesolutionto thesituationofthelastfewyears. IfPortugalistoconfrontthisdualchallenge,itmustnotonlycontinuetopledgein thestructuralreformsithasbeenmakingbutalsofaceuptoconjuncturalquestions proactively and dynamically. As such, the priorities most directly related with this PNR component, and which allow an appropriate response to be made to this situation, are concentrated around the pledge in the investment in education and training and in the improvement of the qualifications of the Portuguese population;inthepromotionofjobcreationandthepreventionandcombatingof unemploymentandthemodernisationofthesocialprotectionsystems;andalso, inthefosteringofthebalancebetweenflexibilityandsecurityinthelabourmarket (SeeNationalEmploymentPlan). Fostering this balance between flexibility and security in the labour market, for bothcompaniesandworkers,whichispartoftheprocessofmodernisingthelabour market,isclearlyvisibleintheseriesofreformssetintomotionbythegovernment in recent years in articulation with the social partners. The overriding objectives obviouslyinvolvecreatingmoreandbetterjobswithmoresocialcohesion. In this area, considering the abovementioned objectives and based on the integrating components of the flexicurity strategy that has been developed in Portugal, we stress: the reform of social security (2006), following the Agreement with the social partners; the launch of the New Opportunities Initiative and the Reform of Vocational Training(the latter, also following the Accord with the social partners),aspartofthelllstrategy(2005and2007,respectively);andtherevision of the labour legislation and employment policies (2008/2009). The legislative proposal,whichapprovestherevisionofthecodeoflabour,aimstocreateanew compromisebetweenlabourrightsanddutiesbasedonamoreeffectivenormative framework and the development of the social partners role in socio economic regulation and it reflects the measures found in the Agreement obtained with the social partners in the Social Dialogue. This has been given majority approval in Parliamentandshouldenterintoforceatthestartof2009.Mentionshouldalsobe made here of the measures linked to the social protection of the most disadvantaged. 50

86 Theinstrumentsandmeasuresconsideredhereareintunewiththeprevisionsinthe ambit of the NSRF, notably in the POPH, for the period and will be strengthened by a healthy macro economic climate and by micro economic dynamics,notablybythebusinessdynamics. The equal opportunities policies, namely between men and women, assumes a transversal dimension in all the measures. However, it is important to recall the continued execution of the measures set out in the National Plan for Equality, CitizenshipandGender( ),thePlanforDomesticViolence( )and thenationalplanagainstpeopletrafficking( ) 6. Concomitantly,inthemoregeneralareaofequalityforall,wehighlightthePlanfor ImmigrantIntegration( ) 7 andtheplanfortheintegrationofthedisabled orimpaired( ) 8.Alltheseplansincludeasetofmeasuresandtargetsthat, duetotheirimportance,willcontributetotheexecutionofthemeasuresincludedin thepnr INVESTING IN EDUCATION AND TRAINING AND IMPROVING THE QUALIFICATIONSOFTHEPORTUGUESEPOPULATION Context OvercomingthestructuraldeficitinthequalificationsofthePortuguesepopulation andmakingsecondaryleveleducationtheminimumqualificationreferentialforall willcontinuetobethegovernment smainpledgeinthisdimension. The valorisation of public schools, through the implementation of a vast set of measures, has been expressed in the greater number of students and improved school results and, consequently, in the drop in the failure rate at all levels of schooling and in particular in the 1st cycle of basic education and in secondary school.indeedtherehasbeenamarkedevolutioninthedropoutrateandtherate ofstudentsnotpassingtothenextgradebothinbasicandsecondaryeducationwith ratesfallingtothelowestlevelsforthelast12years.theseresultsindicatetheneed to pursue and consolidate the qualification measures of the public education and trainingservicethathavebeenadoptedinpriorityinterventionareas. Higher education in Portugal has also been undergoing a deep seated reform that comes within the current European movement of modernising universities and polytechnics for the development of knowledge societies and economies. The

87 realisationofthisreformprocesswaswidelyrecognisedintheanalysispresentedby theoecdinapril2008,inthestudy HighereducationintheKnowledgeSociety comparativeanalysisonpoliciesof TertiaryEducation thatinvolved24countries.it is noteworthy that in the school year the downward trend of new students in higher education was inverted and this trend was again confirmed in Asaresult,in2007,thenumberofstudentsattendinghighereducation inportugalroseforthefirsttimesince2002.thiseffortwillbecontinuedin ,withtheaimofconsolidatingandfurtheringtheresultsobtainedatthesame time as taking care to adjust the responses so that they are more in line with the needsofthelabourmarket. At the same time, attention is also focused on promoting scientific knowledge, on theinnovationandmodernisationoftheproductivefabric,inlinewiththepriorityto transformtheportugueseproductionmodelbyboostingactivitiesofgreateradded value(seealsothemicrocomponent)).tothisend,thepledgeinthepromotionof LLLcontinues,namelycentredontheboostintheNewOpportunitiesInitiativeand thereformofvocationaltraining. TheReformofVocationalTraining,approvedbytheRCMnr.173/2007,dated7/11, following the signing of the Agreement for the Reform of Vocational Training, foreseestheenlargementofaccessandassuresthatalltrainingprovidesschooland professionalprogressionandincreasestherelevanceforbusinessmodernisationby placingqualificationatthecentreofthedevelopmentoptions.thisdemandsaction in five fundamental lines: (1) structuring a relevant and certified supply; (2) reforming the institutions and the regulation of training; (3) defining appropriate financing priorities and models; (4) promoting quality training; and (5) facilitating accessandfurtheringthedemandfortraining.decreelawnr.396/2007,dated31 December,waspublishedintheambitofthereformsettingoutthelegalregimeof thenationalqualificationsystem(nqs). The NQS assumes the objectives already confirmed in the New Opportunities Initiativeandpromotesthenecessaryinstrumentsforitseffectiveimplementationin articulation with financial instruments, notably NSRF. This System adopts the principlessetoutintheagreementsignedwiththesocialpartnersandrestructures vocational training inserted in the education system and inserted in the labour market, integrating them with common objectives and instruments and under a renewedinstitutionalframework. The strategy involves assuring the relevance of training and learning for personal developmentandforthemodernisationofcompaniesandtheeconomy,whilstalso assuringthatallthenationaleffortintrainingisinfactvalorisedforthepurposesof the school and professional progression of citizens, both directly via the dual certification training found in the National Qualification Catalogue, and indirectly via the New Opportunities centres and the process for the recognition, validations andcertificationofcompetences. 52

88 Of the measures underway and being developed in the , in tune with thoseprogrammedintheoperationalprogrammes,wehighlight: Measures: NewOpportunities NewOpportunities Youths theinitialqualification,thediversificationand expansion of the supply of professionalising education and training which provides youths with dual certification school and professional that facilitates qualified insertion in the labour market and/or the pursuit of studies continue to be key features in the pillar for the young whilst also aimingtocombatnon achievementatschoolandearlyschoolleaving.inthis regard, we highlight the strong pledge in work linked training, vocational courses,cefandcet,amongothers.asetoftargetsupto havebeen definedforthesemeasures: (a) Professionalising means of secondary level Education/Training (dual certification): No. of youths matriculated in 2008 = ; 2009= ; 2010= No. of youths to be covered from start of initiative until 2010 = (b) Professionalising means of basic level Education/Training (dual certification): No.ofyouthsmatriculatedin2008=22500;2009=25000;2010= No.ofyouthstobecoveredfromstartofinitiativeuntil2010: (c) Broadening of vocational education to secondary schools integrated in publicnetwork: Allnewvocationalcoursescreatedfromthestartoftheinitiativeuntil 2010=450. New Opportunities Adults the promotion of the qualification and employabilityoftheworkingpopulationwithlowschoolinglevelscontinues to require the development of training strategies based on the principle of flexibility and adjusted to individual competence acquisition needs. Hence, thepledgecontinuesintherecognitionoflearningthroughexperience(crvc system),insofarasitprovidesforanincreaseintheaccesstotrainingaswell as raising its relevance and impact on individuals and organisations. The suppliesofeducationandtrainingtargetingadultswithlowschoolinglevels

89 (EFA courses) as well as valorising professionalising training and short term modular courses intended for the completion of school and professional certificationtrajectoriesarethereforekeypiecesofthiscomponent.among themeasuresofthiscomponent,wehighlight: 10 (a)systemfortherecognition,validationandcertificationofcompetences: No.adultscertifiedwithbasiceducation:2008=55000;2009=65000; 2010=75000 No. adults certified with secondary education: 2008=70 000; 2009=100000;2010= Total no. adults certified from start of initiative until end 2010: (b)adulteducationandtrainingcourses: No.adultscertifiedwithbasiceducation:2008=32000;2009=36000; 2010=42000 No.adultscertifiedwithsecondaryeducation:2008=40000;2009=55 000;2010=65000 Total no. adults certified from start of initiative until end 2010: (c)noofnewopportunitiescentres:2008=300;2009=400;2010=500. TheexternalevaluationprocessoftheNewOpportunitiesInitiativeandthe way it was implemented; this process has already begun and will be developedinmoredepthoverthecomingyearsasitisanextremelywiderangingexercise.ononehand,theevaluationintendstoassesstheproposed policy, the structure of its implementation and the procedures used for its realisation and on the other it examines the quality of the results obtained and the satisfaction level of those who entered the process at any time; lastly, it produces or improves the system s monitoring instruments so that proceduresandresultscanbepermanentlyevaluated VocationalTraining Reform of Vocational Training. Here, the proposed Decree Law regulating the Regulation System for Access to Professions is in the final approval phase following national public consultation 11 ; there are also the different proposed orders in council that, resulting from the National Qualifications Systems,regulatetheNationalQualificationsFramework,themodelofthe individual competence record and its registration process, certificate of vocational training, guidance for qualifications and careers and also the Cf. Work and Employment Bulletin no. 5 Boletim do Trabalho e do Emprego n.º 5 Offprint, 9 August

90 certification of training entities. Parallel to this, the aim is to continue structuringarelevantandcertifiedsupplyandfosterqualityintraining. Trainingandmanagementandfurthertraining. o Training courses linked to processes of organisational modernisation, restructuring and production conversions, that contemplatethepromotionofthecapacitytoinnovate,manageand modernise companies and other entities, notably the Public Administration,asafundamentalconditionforthemodernisationof the productive fabric, the improved quality of employment and increased productivity. This includes training for innovation and management and the so called action training, oriented towards trainingassociatedtotheorganisationalsupportofmicro,smalland medium enterprises and other entities. We highlight the following main targets for 2010: (a) involvement of 12,550 organisations in action trainingprogrammes;(b)97,100peopleinworkingpopulation concludetrainingcoursesforinnovationandmanagement ImprovedTeachingConditionsandEqualAccesstoEducationOpportunities NationalProgrammefortheUpgradingoftheSchoolNetwork 1stCycleof basiceducationandpre School.ThelaunchoftheNationalProgrammefor theupgradingoftheschoolnetwork 1stCycleofbasiceducationandpreschoolwasaimedatguaranteeingequalopportunityofaccesstoeducation with the appropriate size and resources for educational success and the improved learning of students; it gives priority to the reorganisation of the schoolnetworkbyworkingincloseproximitywiththelocalauthorities. The upgrading and modernisation of 1st cycle schools and pre schools involves the building of new school centres as well as extending and upgradingexistingbuildings;nsrffundingwillbemobilisedforthispurpose, through ERDF, along with municipal contributions. Expenses considered eligibleincludenotonlybuildingandextensionandupgradingofschoolsbut also improvements to the exterior within the school perimeter and also investment in school furnishing. In the 2008/09 school year, classes have started in 50 new school centres and intervention or building is planned in roughly600schoolcentres. The launch of the Support Programme for the Extension of the Pre School Education Network, especially targeting councils with coverage below the national average, is also given great importance in the area of promoting equal access to education opportunities. This programme is the joint responsibility of the Ministries of Education and of Labour and Social Solidarity and aims to guarantee 100% coverage for 5 year old children 55

91 throughoutthecountry.theobjectiveofthemeasureistoassurethecorrect overallsupplyinthepre schooleducationnetwork,wheresomeconstraints are still found particularly in the periphery of the large urban centres. This foresees the creation of 760 new classrooms in the metropolitan areas of LisbonandPorto. Generalised access to curriculum enrichment activities. The generalised access to activities enriching the curriculum in the 1st cycle of basic educationisapriorityinterventionareaintheexecutionoffulltimeschool. Here we note the mandatory extension of English teaching to pupils in the 1st and 2nd years of schooling and the increase of the weekly teaching of Englishinthe3 rd and4 th yearsto135minutes.itisintendedasaboosttothe previouslineofaction,namelybymeansministryofeducationfundingwhich isallocatedinvaryingamountsinlinewiththeactivitiesofferedtopupilsfor theenrichmentofcurricularactivities. Extension of the school social services. Changes have been made to the conditions to access School Social Services in another measure to foster success and integration in schools; it strives to increase transparency and simplifytheprocessthroughtheuseoffamilyallowancescales.althoughthe nature of the support remains unchanged, the amount granted is raised above inflation levels and also begins covering students in the 10 th to 12 th yearsunderthesameconditionsasthoseincompulsoryschooling.thisnew operational model of School Social Services in the 2008/09 school year representsagrowthfrom240,000to700,000thousandbeneficiaries. Educational Areas with critical interventions. Again in the scope of promotingequalaccesstolearningopportunities,wenotethedefinitionofa varied selection of measures and intervention actions in schools located in difficult neighbourhoods oriented towards the integration of the pupil in school.atpresent,thispositivediscriminationprogrammecovers26schools andgroupingsandthereareplanstoextendcoverageto100groupings. Specialeducationalneeds.Intheareaofspecialeducationalneedswenote thecreationofanetworkofreferenceschoolsfortheblindandthedeaf,as wellasspecialisedunitsfordisturbancesinthefieldofautismandmultiple disabilities (137 autism units; 220 multiple disability units; 1500 trained teachers and 760 auxiliary staff in training; a further 31% of trainers and interpretersofportuguesesignlanguage). Quality of learning and school results. Continuation of the Action Plan for Mathematics,theNationalReadingPlanandtheContinuedTeacherTraining Programmesfor1 st cycleteachersofmathematics,portuguese,experimental TeachingofSciencesandICT. 56

92 Organisationandrunningofschools Autonomy and management of schools. The improved organisation and running of schools is decisive to the increase of the efficiency and effectivenessoftheschoolsystem.inthisarea,referenceismadetothenew systemfortheautonomy,administrationandmanagementofschoolswitha viewtoprovidingaframeworkthatcanboostleadershipandfosteropening up qualified participation to other partners, as well as increasing school autonomyandcompetences.newmanagementbodieswillbeelectedinthe 2008/09schoolyearandtheinternalregulationsofallthegroupingswillbe approved. Descentralisation. In the field of adminstrative decentralisaiton emphasis is giventothetransferofpowerstothemunicipalitiesinpursuitofacloserand more efficient management model of educational resources as well as the sharingofresponsibiilitesandgreaterparticipationfromlocalcommunities. The Ministry of Education has already signed protocols with 90 local authorities for the transfer of powers regarding non teaching staff, curriculumenrichmentactivitiesandmanagementofschools. Evaluationofteacherperformance.Thenewperformanceevaluationsystem for teachers is a fundamental instrument for the improvement of school resultsandthequalityofteachingasitsmaingoalsareupgradingpractices, the differentiation of merit and the more thorough regulation of career progression Modernisationofteachingestablishments ProgrammefortheModernisationofSecondarySchools.Inthefirstphase of Programme for the Modernisation of Secondary Schools, the rehabilitationof25secondaryschoolswillbegininthe2008/09schoolyear, adding to the 4 schools already modernised. The second phase of the programme will take place in the 2009/10 school year when works will be doneonafurther74schools;interventionisplannedin330schoolsby2015. This Programme receives strong support from NSRF, in particular in the frameworkofthevalorisationoftheterritoryoperationalprogramme. HighSpeedInternet.Thegoalistoguaranteehighspeedaccesstointernet inallcomputers.tothisendlocalareanetworkswillbeconstructedsothat all classrooms will have a broadband internet connection (an increase of broadbandisplannedforallschoolstomorethan48mb). Tecnological Kit. So as to guarantee school equipment with more modern technological means, the Government launched six international public tenders for the acquisition of 310,000 computers, 9000 interactive boards and video projectors. The goal is to improve the ratio of pupils per 57

93 computer with broadband internet connection (going from a ratio of 16 pupils per computer in 2005, to 5 pupils per computer this year and to 2 pupils per computer in 2010), to guarantee one video projector per classroomandaninteractiveboardforevery3classrooms. ICTAcademies.Thecreationoftechnologicalcompanytrainingcentreswith the aim of boosting student skills and employability is a measure that enriches students CVs with skills and is associated to the training and certification of industry. This project, entitled ICT Academies, creates an important link to the private sector, with the participation of 7 reference companies.aprotocolhasalreadybeensignedforthesettingupofthefirst 30 ICT Academies in schools that will enable training in technologies, equipment and applications for students, teachers, non teaching staff and thewholeschoolingcommunity. ICTPlacements.TheICTPlacementprojectwhichpromotestraininginareal working context for students in ICT vocational courses in national and international companies of reference has attracted the interest of 30 companies of the knowledge economy. These companies have offered 300 work placements in Portugal and abroad for the 2008/2009 school year to the best students in the ICT area. The aim of this project is to extend the programmetomorecompaniesandpromotemoreworkplacements. e.schoolande primaryschool.mentionisalsomadeofthelaunchoftheeprimary school programme for access to the Magalhães computer for pupils in the 1st cycle free of charge or at reduced prices and the recent extension of the e.school programme to pupils of the 3rd cycle for the purchase of a laptop with a broadband internet connection in very advantageous conditions. This measure aims to reach 500,000 1st cycle pupils(freeofchargeforpupilsinthe1stscaleofschoolsocialsupportandat reduced prices for the remaining pupils) and 500,000 students of the 3rd cycleandsecondaryschool(inadditionto150,000forteachersand200,000 forworkersdoingtraining) Reformofhighereducationanditsarticulationwiththelabourmarket ContinuationofthereformofHighereducation.Continuitywillbegivento the support for higher education institutions in the implementation of the legislativereformmadeinrecentyears;thisaimstoconcludetheadaptation of the degree and diploma systems to the Bologna Process (currently 90% complete)withaviewtoguaranteeingthequalificationoftheportuguesein Europeandpromotingequalopportunityintheaccesstohighereducation, improving levels of attendance and the conclusion of courses, as well as attracting new publics using a life long learning approach and improving schoolsocialservices. 58

94 Accordingly,thefollowingguidelinesandactionsweredefined: o Promoting the creation of university institution consortia, namely with the participation of scientific institutions, and the creation of regionalpolytechnicconsortiaandreorganisingtheirtrainingsupply. o Guaranteeing the internationalisation processes underway in higher education, notably in the ambit of the international partnerships alreadymade. o Supporting the transition to the new foundation system for public institutes that have requested it in the context of the new Legal SystemforHigherEducationInstitutions(RJIES). o Raisethequalityofhighereducation,notablythroughtheworkofthe newnationalevaluationandaccreditationagency. o Improving the conditions for entry and attendance of higher education,including:revisionoftheworking studentstatus,parttime student system, access to attendance of different loose subjects, revision of special access regimes, revision of regulation for social service grants, extension of the loan system with mutual guarantee launched at the end of 2007, guaranteeing its consolidation in Portuguesesociety,extensionofthemeritgranttoprivateeducation, additional social services grant for Erasmus students, systems of curricularandprofessionalworkplacements. o Broadening of the supply of Technological Specialisation Courses (CET) in higher education institutions, with emphasis on Polytechnic Institutes. o Developingandimprovingthenewjobsearchobservationsystemin Portugal, launched in September 2007, with the analysis of courses and institutions of those registered at job centres. The specific obligations in the Legal Regime of Higher Education Institutions for higher education institutions to disclose information on the employmentoftheirnewgraduateswillalsobereinforced. o Launchofthenewuniversityresidenceprogramme. o Revisionofthelegalsystemfordistancehighereducation,aswellas thatofartistichighereducation,inlightofbestinternationalpractices followingtheinternationalevaluationandpublichearing Youthmobility o Promoting Youth mobility. The overall objective is to cultivate the recognition of different cultural identities, fostering the mobility of young people between regions and countries. To this end, the International Field Work (IFW) will continue to take place which organises an exchange programme for young people from different countries and is promoted by variousentitiesandwiththesupportofipjandtheagencyfortheyouthin Action Programme. The international voluntary service is another means of 59

95 promotingthismobility,asistheeffectivearticulationofthesupplyofyouth tourismmovijovem.targetgroup:youthsaged12to30years(18to30years inifw) 5.2. PROMOTING JOB CREATION, PREVENTING AND COMBATING UNEMPLOYMENT Context The promotion of job creation in the context of a lifelong learning approach, attracting and keeping as many people in work, preventing and combating unemployment and in particular youth and long term unemployment, is closely articulated with the programmes and measures developed in the framework of macro and micro economic policies the aims of which include the boosting of the Portugueseproductionsystem,andthecreationofmoreandbetterjobs.Moreover, inthecontextoftheconclusionandimplementationofstrategicreformsinprogress, anumberofspecificinitiativescontinuetobeappliedandimprovedandwhichtryto respondtoconjuncturalproblemsaswellasstructuralquestionsoftheportuguese employment system. In this area, emphasis is given to the active employment measures,executingtherespectiveactivationcomponent whichcontinuestoplay avitalrole inarticulationwithprotectioninunemployment(subjecttorevisionin 2006),takingthemostdisadvantagedpopulationsintoparticularconsideration,and theimprovedactionofthepublicemploymentservices. This challenge also responds to questions associated to preventive and early management, intervening by using a proximity approach in the business restructuringandrelocationprocess. As for the immigrant population, the national immigration policy is currently structured around four axes, namely; i) regulation of the flow of immigrants; ii) promotionoflegalimmigration;iii)fightagainstillegalimmigrationiv)integrationof immigrants.assuch,theresponsesfortheimmigrantpopulation,notablyintermsof receptionandintegration,playavitalroleinsocialcohesionandthedevelopmentof the country, and aim to guarantee the same access to rights and duties that Portuguesecitizenshavewithinaframeworkofequalopportunitiesforall.Portugal has made considerable progress both in legislative responses and also in the concretemeasurespromotedbydifferententities;itisnownecessarytoconsolidate someprojectsalreadyimplementedandactivatesomeinnovativeresponsestothe existingchallengeswhichinvolveallthesociety. 60

96 Measures: ContinuationoftheINSERJOVEMandREAGEinitiatives.Theseinitiatesaim to provide a response to youth and adult unemployment, respectively in articulationwiththenewopportunitiesinitiative soastoavoidaninfluxof Long Term Unemployed and offering a new opportunity within 6 and 12 months at most, respectively. The methodology of the INSERJOVEM component has been strengthened through the early signaling of youth unemployed for three months following the European Council recommendation in spring 2006: it is urgent to improve the situation of youths in the labour market and significantly reduce youth unemployment, outstrippingtheobjectiveof offeringanewopportunityintheformofajob, learning, complementary training or other measure that favours their employabilitywithinamaximumoffourmonthsby2010 ). Pursuit of Intervention Programmes for the Unemployed, taking different approaches according to the specific public: young unemployed aged between years 135,000 targeted in ; young unemployed aged between years 140,000 targeted in ; unemployed aged between years 305,000 targeted in ; qualified unemployed target of 108,000 targeted in and unemployed adultsovertheageof55years 101,000targetedin Specific support for entrepreneurship. This aid comes essentially in the frameworkofaxis5ofthepoph EntrepreneurshipandTransitiontoActive Life (included in the approach of lifelong entrepreneurship, from school to activelife).thisaidstrivestopromotequalityandmobilityofemploymentby means of:(i) motivating the entrepreneurial spirit;(ii) aid for integration of the unemployed person into active life and (iii) support for young people s transition to active life, notably by pledging in work placements, forming a vital resource for a sustainable development policy that also comprehends the objectives of competitiveness and social and territorial cohesion. The maintargetssetfor2010ofnotearethecreationof11,600workpostsand theintegrationof35,000traineesinorganisationsfollowingtheconclusionof theplacement. PlanfortheIntegrationofImmigrantsandinparticularmeasuresforeseen in the work, employment and vocational training area imply the better integrationofimmigrantcitizensintothelabourmarket.theaimistherefore tostrengthenmechanismsdefendingtherightsandinterestsofimmigrants aswellastofacilitatetheiraccesstoopportunitiesinthelabourmarket,beit through training, training and/or recognition of competences and qualifications, the promotion of immigrant entrepreneurship and self employment. o Boosting the UNIVA Immigrant Network (RUI), by conducting 18,000interviews/yearuntil2010withabout50%placements(in workortraining); 61

97 o Recognition of qualifications through the setting up of 6 support officesinuniversities; o Training courses, support for local consortia, reception and integration activities, training activities and awareness initiatives and public awareness campaigns in the scope of POPH reaching about40,020peopleby2010; o Programmefortheinterventionofeveryoneinthelabourmarket targeting unemployed immigrants reaching roughly 38,500 in PursuitoftheModernisationofthePublicEmploymentService.Theaimis toboostworkinstrumentsthatcanleadtoamoreeffectiveservicefromthe perspective of raising diversity, accessibility and quality of the channels of services rendered in the employment area; emphasis goes to: (a) IEFP NET Employment project that includes various valences, notably: the electronic kiosks, a multi channel contact centre, SMS services, electronic application service,amongothers;(b)themanagementandinformationsystemforthe Employment Area (SIGAE); and (c) the Intervention programme with Employers from the perspective of enhancing the relations between the PublicEmploymentServiceandcompanies FOSTERING THE BALANCE BETWEEN FLEXIBILITY AND SECURITY IN THE LABOURMARKETANDIMPROVINGWORKINGCONDITIONS Context TheTripartiteAgreementforanewSystemfortheRegulationofLabourRelations, ofemploymentpoliciesandsocialprotectioninportugalrefersthatthemostcurrent diagnoses of the labour market generally indicate five main characteristics:(1) the limited adaptability of companies and workers; (2) the weakness and the lack of dynamisms in collective work contracting; (3) the formal rigidity of the legal frameworkofthelabourmarkets;(4)theineffectivenessoftheregulatorynormsof thelabourmarketandthe(5)highpercentageofatypicaljobsinemploymentasa wholeassociatedtotheintensesegmentationofthelabourmarket. IntheambitoftheTripartiteAgreement,thesignatoriesunderstandthatinorderto overcomethemainproblemsofthelabourmarket,theremustbeareformofthe Code of Labour in force as well as the adoption of measures in the field of active employmentandsocialprotectionpolicies.thedraftlaw,approvedinthecouncilof Ministers, is framed in a broader strategy of reforms that covers various indispensable instruments for a new sustainable articulation between economic growth, improved business competitiveness, increased productivity, the development of quality employment, the reduction of inequality of opportunities, upgrading of labour relations and a more equitable sharing of the results of economicprogress. 62

98 Accordingly, the Agreement sustains that internal means of adaptability are powerfulinstrumentstomakeworkmoreadaptabletotheneedsofcompaniesand workersandthatitalsohastheadvantageofcontributingtodynamisingcollective bargaining and strengthening the role of social partners in socio economic regulation. Therefore,theeffectivenessofthenormativeframeworkisstrengthenedwhilstalso creatinglegalpossibilitiesfortheincreasedprotagonismofthesocialpartnersinthe negotiatedregulationofeconomicandsocialchanges. IntheambitofthisAgreement,theGovernmentandthesocialpartnersalsoagreed on the appropriate sharing of responsibilities and made it known that they understood that the reform of labour relations required the renewal of public policies coordinated by strengthened dialogue, social coordination and collective bargainingatalllevels,includingthatofthecompany. Parallel to this, the work of the State in the field of prevention and inspection of workingconditionsisencouragedsoastoensurethecompliancewiththestandards andagreementsestablished. Measures Fosteringadaptabilityincompaniesandtheconciliationofprofessionallife withpersonalandfamilylife,byincreasingthepossibilitiesofflexibilisation negotiatedinthecollectiveworkcontractorbycollectivedecisionwithinthe company, of working hours, maintaining the limits on the duration of both normalandsupplementaryworkinghours. The innovative systems include the possibility of creating time banks, timetablesconcentratedinjustsomedaysoftheweek,theincreaseofpaid parental leave, the creation of specific measures in some sectors of activity such as the very short term seasonal labour contract in agriculture, the special holiday system in tourism and the open term intermittent work contract. RighttoVocationalTraining.Promotingtheentitlementtotrainingthrough (i) clarification of the student worker status;(ii) adaptation of the"training clause", so that it becomes mandatory to enrol youths up to the age of 18 andwithoutfullcompulsoryschoolinginthetraining/educationsystemwhen hiring; and (iii) increasing the right to continuous vocational training and adaptation of mechanisms for its implementation, such as treating attendance of RVCC processes similarly to continuing training; allowing the accumulation of the annual minimum training by companies; allowing the arrangementsmadefortrainingtobeadaptedforcollectivecontractingand makingtheissuingofatrainingcertificatemandatory. Promotionofthedynamicsofcollectivebargaining.Emphasisisgiventothe simplification of the administrative requirements in the bargaining process; 63

99 the alteration of the survival system and the expiry of collective working conventions;specificationandimprovementofthearticulationbetweenthe collectiveconventionsandthelaw;broadeningoftherangeofmattersthat canbygovernedbycollectivecontracting. Termination of employment contract. Whilst fully respecting the constitutionalprincipleprohibitingdismissalwithoutjustcause,theproposal simplifies and shortens the disciplinary procedure, increases legal insurance ofthepartiesinthedismissalprocess,guaranteeingaddedprotectioninthe case of a pregnant employee, mothers of newborns or that are breast feeding, and reinforces the infractions foreseen for the violation of proceduralrulesinthecaseofatradeunionrepresentative.amoreeffective normative framework is also proposed by means of the integration and reform of the legislation formed by the Code of Labour and its regulation, reducing uncertainty by making a law that is easier and more accessible to users.inadditiontothesimplificationandsystematisationofthelegalnorms inforce,thesimplificationanddebureaucratisationoftherelationsbetween workers, employers and the Administration is also proposed, and the effectivenessofthelegislationandtheframeworkofsanctionsstrengthened so as to discourage the disrespect of social and labour rights and unfair competition based on non compliance with the social obligations of the companies. Combating precarious employment and the segmentation of the labour market. With the aim of combating illegal precarious employment and reducing legal precarious employment as well as improving the social protection of independent workers and recognising that the recourse to atypicalformsofemployment,necessarytotheactivityofcompaniesandthe development of the economy should not be used as a means of getting aroundthelaw;thealterationofthepresumptionoftheworkingcontractis also proposed and the creation of a new very serious infraction for the concealment of a working contract so as to enable a more effective supervisionandcontroloftheuseof«falsegreenreceipts».theadmissibility of the fixed term contract is limited in the case of newly opened establishmentstothoseincompanieswithfewerthan750workers,andthe lengthoffixedtermcontractsisreducedto3years;thislimitisapplicableto the set of term or temporary contracts for the same work post, or the renderingofservicesforthesamepurpose,signedbetweenaworkerandthe same employer or employers between whom there is an area or group businessrelationship.adaptationofthesocialprotectionsystem.partofthe moregeneralreformofthesocialsecuritybegunin2006,thisforesees: Theincreaseofpossibilitiesofferedtoworkersinthefieldof conciliatingprofessionalwithpersonalandfamilylife.inthis area, special importance is given to a parental system that reduces gender inequality. Hence, in the scope of the Agreement, it was decided to substitute maternity, paternity andadoptionleavewithparentalleave. 64

100 Measures linked to reducing the contributory rate on contractswithoutanyfixedtermandincreaseitinthecaseof fixedtermcontracts. Independent workers: extension of social protection in the same set of eventualities, through the joining of the social protectionssystemssothattherewillbeonlyonesystemwith the scope of protection currently included in the extended protection system (allowances for the family, sickness, maternity, paternity and adoption, occupational diseases, professionalbenefits,invalidity,oldageanddeath). o Revisionofactiveemploymentpolicies,encompassing: Aidfortheconversionofindependentworkintocontractswithno fixedtermforworkersingeneral; Aid for hiring young people on contracts with no fixed term, aid for the conversion of independent work or fixed term contracts intocontractswithnofixedtermandfacilitatingthetransitionto activelife.; Facilitatingtheunemployment employmenttransition,preventing andcombatinglongtermunemployment; Aidfortheentryintothelabourmarketforpeopleover55years ofagewiththeexemptionorreductionofemployercontributions tosocialsecurity; Aid for entry into the labour market of disadvantaged publics, exemptingorreducingemployercontributionstosocialsecurity; Promoting new modes of the progressive approximation to employment in the ambit of the activation of public policies, notably through the creation of the Social Activity Contract that aims to support the temporary insertion of subsidised unemployed persons in social/community activities and of the Employment Insertion Contract, aimed at supporting the temporary insertion of GMI beneficiaries in social/community activities. o National Strategy for Health and Safety at Work Instrument to boosttheprotectionofworkers healthandsafety,thatstrivestoreachthe overallobjectiveoftheconstantandconsolidatedreductionofworkaccident ratesandtheprogressiveandcontinuedimprovementinthelevelsofhealth andwellbeingatworkthroughtwofundamentalpolicyaxesforhealthand safetyatwork:thatreferringtopublicpoliciesandthatofthepromotionof healthandsafetyinplacesofwork. o Continuation of the GLI Programme against undeclared and illegal work. Programmedevelopedwithaviewtoreducinginformalandundeclaredwork throughtheuseofinspectionservices. 65

101 o ContinuationoftheAnnualNationalPlanforthepreventionandCombatof Fraud and Evasion of Taxes and Contributions, aimed at raising the sustainability,rigourandtrustinthesocialsecuritysystem STRENGTHENINGSOCIALCOHESION Context Themodernisationofthesocialprotectionsystemhasbeendevelopedinagradual and sustained manner adopting the logic of the anticipation and response to new needs,fightingpovertyandreproductiveinertia,assuringaccesstosocialandhealth services and facilities in terms of their response and quality and fair territorial distribution and safeguarding intra and inter generational cohesion, whilst also guaranteeingthefinancial,economicandsocialsustainabilityofsocialsecurityand thehealthsystem. Contradicting and reverting social inequalities and the problems associated to demographic changes are the priority interventions areas of the Government. Hence, a set of measures has been adopted that allow for the promotion of social inclusion and prevent situations of poverty and social exclusion, above all in the currentcontextoflesseconomicgrowth. Anintegratedstrategyofactivesocialinclusionisimplicitinthepolicyprioritiesfor the cycle;thisconjugatesthreefundamentalobjectives:improvementof earnings progressiveincreaseintheguaranteedminimummonthlyremuneration; Social Insertion Income; Income Supplement for the Elderly (CSI); increase in the Family Allowances; among others; socio professional integration through the fostering of active employment policies or vocational training; and the improved quality and access to the network of social facilities (PARES, Social Facilities ProgrammePOPH,fortheelderlyandthedisabled)andproximityservices(primary healthcareandrnncci). This perspective favours the development of integrated responses that allow for close articulation between the proposed actions and the specificities of these publics, and rooted in the conviction that the objective of social cohesion is to a great extent one that is transversal in the framework of the PNR and that strengthenseconomicgrowthandemployment. Nevertheless,thisinterventionareamustbeconsideredinclosearticulationwiththe NationalStrategyforSocialProtectionandSocialInclusion ;thepriority axesofthisare:(i)respondtothedemographicimpactand(ii)promotionofsocial inclusion (reduction of inequalities). In particular, the National Action Plan for Inclusion , the priorities of which are to: (1) combat poverty among 12 Ver: 66

102 children and the elderly through measures that assure their basic rights of citizenship;(2) correct the disadvantages in education/ qualification;(3) overcome discriminations, strengthening the integration of specific groups, notably people withdisabilitiesandimpairmentsandimmigrants.inadditiontoasetoftransversal measures, it includes specific measures to respond to each of these priorities(see PNAI ) and which also contribute to the fulfillment of the measures set outinthepnr. Emphasisshouldalsobegiventotheimplementationofintegratedpoliciestargeting specific groups, such as women and youth, with the implementation of the III National Plan for Equality Citizenship and Gender ( ) and the preparation of a National Youth Programme currently underway. The aim of this Programmeis,notably,tostrengthenthecoherenceandeffectivenessofthevarious measures in the sectors targeting this universe, found in this document in the appropriateareas. 13 Measures: o MinimumGuaranteedMonthlyRetribution.Withthepurposeofincreasing families incomes, a progressive increase will be made in the minimum guaranteed monthly remuneration of about 24 % by 2011, following the AgreementontheFixingandEvolutionoftheMinimumGuaranteedMonthly Remuneration,signedwiththesocialpartners. o SocialInsertionIncome(RSI).Thesocialinsertionincomeisabenefitfrom thesolidaritysubsystem;thisinsertioncomponent,aimedattheworkingand socialinsertionofitsbeneficiaries,isintendedtogivearound80,000people new momentum by 2010 through the development in this cycle of training/qualificationactionsand/orinthelabourmarket. o Income Supplement for the Elderly (CSI). The Income Supplement for the Elderly is a benefit form the solidarity subsystem targeting pensioners aged 65yearsandover.Themonetaryvalueofthebenefitisdefinedbyreference toathresholdfixedannuallyandtheattributionisdifferentiatedaccordingto theconcretesituationoftheapplicant.thismeasurealsoprovidesadditional health benefits(dl252/2007) consisting of: a) 50% financial participation in the share of the price of medication not covered by the State; b) 75% financialparticipationinthecostofbuyingglassesandlensesuptoalimitof 100everytwoyears;c)76%financialparticipationinthecostofbuyingand repairingremovabledenturesuptoalimitof 250everythreeyears. o Family Support Policies The boost in the family support policies is given through a series of increases in the social benefits for families, as well as throughtheextensionoftheschoolsocialservices(seepoint5.1) 13 See outcome, micro level, results of actions targeting youth. 67

103 o SocialFacilities.TheboostintheSocialFacilitiesProgrammePOPHtargeting theelderly,thedisabledandimpairedforeseesthecreationof1378placesin facilitiesfortheelderlyby2010(3220placesby2015)andof1408placesin facilitiesforthedisabledby2010(1955placesby2015) o Reform of primary health care. As Primary Health Care is the pillar that sustains the whole health system, the reform consists of an organisational change in health care services provided, developed by multi professional teamsthatareselforganizedandindirectcontactwiththecitizens,forming the first line of a health system that is accessible, efficient, fair and in proximity. TheMissionofPrimaryHealthCare,thestructureresponsibleforconducting thereformprocessatthislevelofcare,establishedastrategicplanfor based on three pillars: 1. Organisational quality and change, that includes four strategic lines: leadership and autonomy of management, better accessibility, evaluation and monitoring, management of ICT; 2. Clinical governance and knowledge management, with three strategic lines: clinical governance, knowledge management and qualification of professionals,innovationandsimplificationincareprovided;3.sustainability and development, which also includes three strategic lines: accreditation of services, financial viability of primary health care, communication with citizensandprofessionals. The reform plan for Primary Health Care foresees that by the end of 2009 (end of MCSP mandate) 250 Family Health Units (USF) will have been installed. By then, the conditions should have been attained for the full operation of the 74 Health Centre Groupings (ACES), framework entities clinically and in management terms of all the operating units providing primary health care; the forms of internal contracting will have been consolidated and the necessary skills obtained by the managers of the new unitsandperformanceevaluationandmonitoringdeveloped. o Development of the National Network of Continued Integrated Care (RNCCI).TheglobalaimoftheRNCCIistoprovidecontinuedintegratedcare to people who, regardless of age, are in a situation of dependence. This provisionofcareisassuredthroughunitforresidentialcare,mobileunits, HospitalTeamsandHomecareTeams. The RNCCI model is based on the rationale of separating functions (purchase/provision) by contracting services and decentralising responsibilitiesofterritorialscope.itisbasedonamodelofthesharedand inter sector financing from the Ministries of Health and of Work and Social Solidarity. 68

104 Following the start up of the implementation of the National Network of ContinuedIntegratedCare,andincontinuityoftheobjectivessetoutinthe PNACE , in the period the priorities are the development of responses (intra hospital and homecare teams and residentialunits)forpalliativecareandforthecontinuedhomecareteams, inarticulationwithprimaryhealthcare. o Promotionofgenderequality.WiththeintentofintroducingtheGender 14 perspectiveintheprioritypolicyareas,genderequalitypoliciesofmeasures oriented towards economic independence and the conciliation of professional life with family and personal life have been pursued and furtheredandnewinitiativeshavealsobeenlaunched,suchas: Gender Observatory, consisting of the development of an information system and the integrated strategic evaluation of genderequalityandviolence. o Implementation of a set of interventions aimed at developing a governance system considering the gender equality dimension, the promotion of gender equality and the integrated prevention of victims of discrimination through support for organisational change, training, information activities and aid for female entrepreneurs (POPH) involving roughly 13,110 people by 2010 andthecreationof1059companiesbywomenuntil2010; ConsolidationofthePeopleTraffickingObservatory; Creation of an Equality Portal to strengthen citizenship and the transversal nature of policies fostering gender equality in the PublicAdministration; Strengthen the gender perspective in Central and Local Public Administration policies, notably through the Sectorial plans for GenderEqualityandtheboostingofLocalPlansforEquality; CreationofanAwardforCitizenshipwithparity; Promoting awareness and the publicising of issues related with GenderEqualityandGenderViolence(POPH); Support for Training in the area Gender Equality and the preventionofgenderviolence(poph); Support for the adoption of Plans for Equality in the State s business sector and in the Central and Local Public Administration(POPHandPOFC). 14 III National Plan for Equality Citizenship and Gender ( ), area 2. 69

105 AREA6 PROMOTINGANINTELLIGENTTERRITORY Context In recent decades Portugal has made significant investments in infrastructures supporting accessibility, urban and rural development and the creation of better livingconditionsforthepopulations. These base investments now enable us to turn our focus to the priority of articulation and taking full systemic advantage of these infrastructures by introducing knowledge and efficiency in the value chain and strengthening the strategic pledge to reaffirm Portugal s place as a global centrality in the economic, socialandculturalnetworks. This strategic assumption led to the European Commission s consideration of a significantpartofthevalorisationoftheterritoryprogrammeincludedinthensrf as earmarking ofthelisbonstrategy. The Logistic Portugal Programme Driver, already integrated in PNACE, will be continuedandrepresentsoneofthemainfactorsofcompetitivenesslinkedtothe territory. TheCitiesPolicydefinedbytheGovernmentisexpressedinthearticulationofpolicy instruments that are embraced in the NSRF , notably in the Regional OperationalProgrammesandtheThematicValorisationoftheTerritoryOperational Programme. These instruments aim to qualify and integrate the distinct spaces of each city, strengthen and differentiate their human, institutional, cultural and economiccapital,qualifyandintensifythecity sintegrationinthesurroundingand innovativesolutionsforurbanrehabilitation. The existence of a National Information System on Territorial Management Instrumentsandtheavailabilityofgeographicandcartographicinformationareboth fundamental conditions for making territorial planning and management processes more effective and developing new services and new ways for the governance structuresatthevariousterritorialscalestoact. Thevalorisationofendogenousresources thesea,thecoast,theruralzones isa fundamental concern and their intelligent integration in the sustainable development and strengthening of their economic value. In this context, the conclusion of PEAASAR II is equally relevant along with all the measures that help protectnaturalresourcesandbiodiversity. In this context, we underline the need to the reinforcement and dinamization of biodiversityandnaturepreservationpolicies.thereformulationandmodernization of the National Authority for Nature Preservation (ICNB I.P.) and a new legal 70

106 framework to the promotion of public private partnerships create the context for newvalorizationandmanagementmeasuresofnaturevaluesinclassifiedareasand totheeconomicandsocialvalorizationofbiodiversity. Ontheotherhand,thecentralobjectiveistopromoteandextend,intheterritory and the cities, the diversified and quality access of citizens and institutions to information and knowledge, valorising education and training for all, whilst also stimulating the social appropriation of knowledge as well as fostering the use of scientificinfrastructures. The aim is to stimulate models of economic growth and territorial competitiveness associated to knowledge in the territory and in the cities, promoting network interconnections,mechanismsandmeansattheserviceofanincreasinglydiversified population. Giving emphasis to the empowerment of the communities and lifelong learning, advantage is taken from behaviour in network which is facilitated nowadays by the ICT. In addition to demonstrating and attempting to experiment new application models of new technologies, new dynamics for mobilising demand should also be facilitated,namelyorientedtostillinfo excludedgroupsofthepopulation. The reorganisation and upgrading of the school network of the 1st cycle of basic education and preschool education are extremely important measures that foster motivating,demandingandrewardinglearningenvironmentswhichareessentialif the qualification level of future generations is to be increased. The definition of a school network which is run at high standards is therefore a priority intervention; preferably,itshouldbeboundtoteachthe1stcycleinarticulationwithpreschool education and given flexible and multi functional spaces the school centre concept from a perspective of rationalising means and optimising resources that can range from new schools buildings to the extension or rehabilitation of existing schools. The measures outlined below translate this pledge in the promotion of intelligent networks that make full use of and manage the territory as a factor of competitiveness,lifequalityandcohesion. Measures 6.1. LogisticPortugalDriver DevelopmentoftheNationalLogisticsSystem o The development of the National Network of Logistic Platforms will allow the country to improve its ranking in the European logistics distributioncentres. o By developing the network of platforms, Portugal will increase its logistics capacity, serving the main traffic of goods from or to the 71

107 national market, covering more than 98% of the economy and population. o TheNationalNetworkofLogisticPlatformswill: Boost current traffic and allow new traffic to be obtained, generatinga16%increaseinthenationalportactivity; Boosttheincreaseintheglobaloverallcargocirculatinginthe countryby3%; Foster the efficiency and productivity of logistics operators, leadingtoa10%reductioninlogisticscostsandconsequently ariseinnationalcompetitiveness; Enabletheeconomytobestimulatedbythecreationofover 15,000workposts; Creates conditions to raise the share of freight transport by railandbysea,contributingtothereductionofemissionsand hencetothecompliancewiththekyototargets. Implementation of the High Speed Rail Network The High Speed Rail Network (RAV) will have a very significant impact on the Portuguese economyanditisforecastthatinaccumulatedtermsandona30yeartime horizon: 56,000permanentworkpostswillbecreated; Privateinvestmentwillraiseby126,000millioneuros; GDPwillriseby121,000millioneuros. Otherbenefitsidentifiedintheprojectarelinkedtotheurbanandterritorial dynamics generated. The main vector of change is introduced by the reduction of distances, measured in the time of the journey, promoting greater social, economic and territorial cohesion. Indeed, the future of the networkwillenablemorethanhalfthepopulationlivinginportugaltomove betweenthemainnationalurbancentresinatraveltimeof2hoursorless andifweusea3hourjourneyasourreferenceabout90%ofthepopulation willbenefitfromthisaccessibility. TheRAVprojectwillmakeastrongcontributiontotheincreaseofmobilityin Portugalandtoregionaldevelopmentandwillleadtoasignificantdeclinein theterritorialasymmetriesthatcurrentlyexist;itwillgivegreatmomentum both to R&D in its areas of technological and industrial intervention and development in Portugal, and also to international trade by bringing PortugalclosertotherestofEurope;itwillhaveasignificantimpactonthe evolution of the quota of rail traffic which could treble in the space of 30 years, considering medium and long distance journeys on the Lisbon/Porto and Lisbon /Madrid lines, and contribute decisively to the sustainable development of the country. The RAV project will lead to a significant reduction in energy consumption, in the polluting emissions and in road accidents. 72

108 Improving the regulation of the port system. The start of operations of a SinglePortWindow(JUP)inthePortofLeixões,LisbonandSinesisahighly valuablestrategicinstrumentforthecompetitivenessoftheports. In addition to the direct operational benefits which significantly reduce the directadministrativecostsoftheeconomicagentsusingtheports,beitthe naval or freight component, there is also a series of benefits that can be appliedwithabroaderstrategichorizon. The SinglePortWindow istranslatedthroughtheexistenceofasingleport system, or one stop shop, that simplifies the interface of the ship owners with the different entities and which reduces the port transit time and customs despatch from 3 or 4 days to just a few hours thanks to the electronicdispatchofgoods. PORTMOS Integration of the port system in the Sea Highways (AEM). Portugalhasanextensiveseaborderandislocatedattheconfluenceofthe mainnorth/southandeast/westroutesofthewestatlanticcoastandithas always been committed to implementing projects related to the Sea Highways (AEM), with the creation and development of the PORTMOS project Integration of Portugal s maritime and port system in the sea highways, approved by the European Commission in the scope of RTE T financing. TheAEMconceptintroducedinWhitePaper TheEuropeanTransportPolicy forthe2010horizon:thetimetochoose approvedin2001,islinkedtothe developmentofintermodaltransportandthepromotionofintra community maritime transport. Using the success factors for the increase in road transportoffreightoverrecentdecades,itstrivestotransposetheprinciples of continuity, standardisation and simplification to maritime transport as these are vital to reducing the operation costs of maritime transport and ensuring its competitiveness and the modal transfer of a large part of the trajectories. The AEM assumed decisive importance in the European Union when they began integrating the Trans European Transport Network(RTE T), identified asprojectsofcommoninterest,basedontheimprovementofexistinglinks and new maritime links, with regularity and predetermined frequency, that couldreducebottlenecksonlandand/orimprovetheaccessibilityofinsular and peripheral regions thereby ensuring cohesion and economic, social and environmental growth within the community space (Decision no /EC). It is therefore important to emphasise that the development of the AEM is linkedtothecohesionandgrowthoftheeuropeanunionasawhole,which intends to strengthen the supply of inter modal transport, in search of the 73

109 most suitable means of transport for the circulation of goods from their startingpointtothedestination,efficientlyandwithoutbreachesincargoor constraints,inalogisticchainwheremaritimetransportplaysakeyrole. Themodaltransferandthereductionofbottlenecksonthemainroadways willbeanaturalconsequenceofthislogisticchainoftransportandarelevant factorforthepromotionofsustainabledevelopment. Vessel Traffic System(VTS) Monitoring of navigation along the Atlantic coast. The VTS system enables the competitiveness of the Portuguese economy to be improved along with the safety of maritime traffic on our coastandterritorialwatersandalsotheaccessibilityfromthesideofthesea totheportsonthecontinent. This system permits the increase in the flow of maritime traffic and monitoring of ships, with the possibility of screening all their movements, thus reducing the risk of collisions and assuring compliance with the internationalconventionsandregulations. It is estimated that a system like VTS can bring about a 65% reduction in maritimeaccidentsonthecoastsofthecontinentwiththeresultingdecline inthelossofhumanlife.ineconomicterms,thevtssystemwill: Improvetheefficiencyofportactivities; Promotethedevelopmentoftheeconomy; Providesupportforthemoreeffectivecontrolandsupervision offishingactivitiesonthecoastandothereconomicactivities; and Contribute to a better use of the Portuguese Exclusive EconomicZone. InthecontextofthemplementationofVTSSystem,therehasbeenanalyzedtheVTS projects in Madeira and Azores islands, in order to provide them the VTS coast system.in2008,itisbeenexpectedthereviewofthestudiestotheenlargementof VTS System of Azores and Madeira islands, aiming the contractualization and installationofvtssystemintheislandsby CitiesPolicy UrbanNetworksforCompetitivenessandInnovation.Thismeasureshapesa processofstructuredcooperationbetweenmunicipalities,publicentitiesand privateentitiesthatproposesdevelopingandimplementingajointstrategic Planforurbandevelopmentcentredontheterritorialfactorsofknowledge, competitivenessandinnovation.itaimstosupporttheaffirmationofcitiesas hubsofknowledge,innovationandcompetitivenessnetworksofnationalor internationalscope,topromoteaboostinthegreatereconomicfunctionsof 74

110 thecitiesbyobtaining,bymeansofnetworking,thresholdsandsynergiesfor the upgrading of technological infrastructures and the development of factors to attract innovative and competitive activities, to stimulate cooperationamongportuguesecitiesandbetweenthesecitiesandscientific institutions and higher education so as to maximise the share of resources, potentials and knowledge and valorising factors of differentiation, to promote the insertion of cities in international networks and reaffirm their international image and to optimise the potential of infrastructures and facilitiesfromanetworkperspective. Partnerships for urban regeneration. This measure configures a structured andformalprocessofcooperationbetweenentitiesthatproposetodevelop and implement a joint Action Programme for the regeneration of a specific area of a city. The aim is to foster cohesion and social inclusion, the integrationandequalopportunitiesofthedifferentcommunitiesthatmake up the city, stimulate the socio economic revitalisation of rundown urban spaces,upgradetheurbanenvironmentandthekeyfactorsforthequalityof life of the population, make the cities more attractive by conserving and valorising the spaces of urban excellence, strengthening citizens participation and innovating forms of urban governance through the cooperationofthevariousurbanactors. Innovative Actions for Urban Development. This measure aims to bring dynamics to innovative solutions responding to urban demands and problems, centred in particular on the efficiency and re use of the existing infrastructuresandfacilities,ontheexploitationofopportunitiesofferedby newtechnologies,ontheempowermentofthelocalcommunitiesandonthe developmentofnewpublic privatepartnerships.itistargetedatthesupport of pilot projects that aim to develop or transfer solutions for application in the Portuguese cities that have not yet been tried out nationally or, where this has happened with positive results, need applying on a larger scale to stimulate their replication. Preference is given to: rendering of proximity services; urban accessibility and mobility; security, risk prevention and combating crime; management of public spaces and buildings; sustainable construction; urban environment; creativity and entrepreneurship in the valorisation of territorial resources; and urban governance with increased participationofcitizensandeconomicplayers 6.3 LandUsePlanning:InformationInfrastructures SINERGIC LAND register National System for the Exploitation and ManagementofGeographicInformation strivestopromoteacoordinated, effectiveandsustainedimplementation,managementandexploitationofthe land register information; this is the basis of the national system of geographic information, providing data that is the base of other kinds of 75

111 statisticsandinformationstructuresinwhichthelocalisationisthecommon referential. The existence of a register serves as a transversal support to numerous kinds of statistics and information structures and is a key vector for the administrative modernisation and debureaucratisation of processes and procedures and for the increase in the transparency of public decision makingprocesses. SNIT/LandUsePlanningandUrbanismPortal.Theaimofthisprojectisthe on line access to territorial planning instruments, the on line availability of systematised alphanumeric and graphic information on the territorial management system in the DGOTDU Website, which will include the possibilityofconsultingtheterritorialmanagementinstrumentsinforceand thecurrentsituationoftherespectivepreparation,alterationandrevisionof procedures, as well as collaborative platforms to monitor the territorial managementprocedures. Virtual maps. Based on the agreement signed between the Portuguese geographic Institute and Microsoft allowing the aerial images of the whole countrytobemadeavailableonthevirtualearthplatform,thecentralpublic Administration benefited from the free licensing of the programming interfaceofvirtualearth,whichisaresourceofenormouspotentialforthe organisation, management and exploitation of Geographic Information by theadministration,fortheinteractionbetweenvariouspublicadministration entities and their relations with citizens and for the development of highly innovativeservices. 6.4 UpgradingandValorisationofEndogenousResources Integrated Operations for the Upgrading and Valorisation of the Coast CoastalPolis Encompassesasetofupgradingandvalorisationoperationsin riskzonesandrundownnaturalareasonthecoast.themainaimsofthese interventions are to strengthen the capacity of the natural resources as a factorofcompetitiveness,bymeansofthevalorisationofeconomicactivities linked to coastal resources, associating them to the preservation of the naturalresources;protectingandupgradingthecoastalzone,withaviewto the defence of the coast, promoting the conservation of nature and biodiversity, the a naturalisation and restructuring of lagoon zones and the preservation of the natural heritage and landscape; preventing and defendingpeople,goodsandsystemsfromnaturalrisks;fosteringthepublic enjoymentofthecoast,supportedontheupgradingofbathingareasandthe environmental and cultural heritage. Three priority intervention areas have beendefined:northcoast,riadeaveiroandriaformosa. PROVERE Programme for the economic valorisation of endogenous resources, aims to stimulate the initiatives of economic agents oriented towardsimprovingtheterritorialcompetitivenessoflowdensityareaswith thepurposeofgivingendogenousresourceseconomicvaluethatwilltendto 76

112 be imitated in the territory: natural resources, historic heritage, traditional knowledge, etc. This instrument, which is specifically targeting territories with fewer development opportunities due to low density population, institutional, economic activities, etc. intends to implement action programmes constructed in partnership and framed in medium and long term development strategies, that make a decisive contribution to strengthening the economic base and to making the target territories more attractive. PROVERE is one of four kinds of collective efficiency strategies foreseen in the NSRF. Each of these strive to stimulate the emergence of initiatives fostering coherent and strategically justified competitiveness, integrated in a plan of action that provides structured stimulus for the appearanceofeconomiesofagglomerationnotablybymeansofcooperation andnetworkoperatingamongcompaniesandbetweenthesecompaniesand otherrelevantplayersforthedevelopmentofsectorstowhichtheterritories inquestionbelong. Continued implementation of the Rural Development Programme for the 2007/2013 period (PRODER), and which comprehends 6 measures and 15 actions aimed at fostering competitiveness ; 4 measures and 19 actions aimedatthe sustainablemanagementoftheruralspace";5measuresand7 actionsaimingat"boostingthedynamicsofruralzones";3measuresand4 actions aiming at "promoting knowledge and the development of skills" 15. Around35%oftheactionsoftheprogrammeinprogress. Implementation of the National Strategy for the Sea encompassing the followingprogrammes: 1. PlanningandOrganisationofMaritimeSpacesandActivities 2. InformationandKnowledgeNetworkfortheSea 3. Surveillance,SecurityandDefencefortheSea 4. CommunicationandRaisingAwarenessabouttheSea 5. InternationalCooperationfortheSea The following Action Plans were launched and are being implemented in 2008: PlanfortheOrganisationofMaritimeSpace; SimplificationofProceduresandLicensingofMaritimeActivities EnvironmentalMonitoringoftheExclusiveEconomicZone; InformationSystemforMarineBiodiversity; NetworkofProtectedMarineAreas Definition of the Terms for the Constitution of the Ocean Consortium;

113 UpdatingoftheCleanSeaPlan; Awarenesscampaignandpromotionactivitiesonthesea; Inclusion of the subject of the Sea in the Project Area and in EducationalResources. InternationalCooperationfortheSea(CPLP) 6.5. WaterandSewerage ContinuedExecutionoftheStrategicPlanforWaterSupplyandSewerage (PEAASAR II) by means of strengthening the water supply and seweragesoastosecuretherightlevelsnecessaryforthepopulationanda servicethatisreliableandofhighquality. ThisPlandefinesobjectivesandproposesasetofmeasurestobedeveloped inordertoachieveeachoftheseobjectives. To this end and with a view to obtaining the most effective solution to the problems that remain, the Strategy proposes an extended model of partnership between the State and Local Authorities, the concentration of which will depend on the interest of both parties. It consists of the integration of the so called lower slope infrastructures in Multi municipal systems that exist or are to be formed; the integration will be made in line withconditionsyettobeagreed.notwithstandingthestrategicrolereserved fortheconcessionarycompaniesofthemulti municipalsystemsoftheadp Group, SGPS, as a public policy instrument for the sector, the strategy also pledges in the private sector for both management and financing. The Strategy will be implemented between 2007 and 2013, and the investment foreseenforthiswillbeassuredbymeansofowncapital(companies),bank loans(nationalbankingandebi)andcommunityfundingthroughthensrf During 2008, the necessary studies will be conducted to define the partnership to be constituted between the State, through AdP, and the various municipalities which showed an interest in a possible partnership with the concessionary companies. These studies will be completed by the endoftheyear. The period will be vital to the success of the creation of partnerships, the implementation of the strategy and will be the start up periodforallthemeasuresadopted Digitalinfrastructure Broadband Promotion and development of New generation Community Networks. Promoting the creation of Community Networks as public broadband networks in disadvantaged regions or where there are shortcomings in the telecommunications market, notably where it is difficult for the market to introducenewgenerationnetworks,whichmustbetechnologicallyneutral 78

114 andsupplyidenticalaccesstoalloperatorsbiddingfortheirexploitation.the aimisalsotodeveloptheuseofthefibreopticnetworksalreadybuiltinthe ambitofthedigitalcitiesandregionsprojects. e Science Infrastructures. Boost and develop new e Science infrastructures accessible throughout the territory and including the high performance networkforresearchandeducation(rcts),thedigitalscientificlibraries,the information repositories and the open access scientific data, the computing Gridandsupercomputing,andtheplatformsfordistanceresearchwork. NetworkofInternetplacesascommunitycentresforsocialisingandlearning newtechnologies,withemphasisontheperipheriesofurbancentres. Development of community spaces based on already existing and new internet places so as to foster the link to urban and rural communities, with both intramural and extramural activities, with a view to new technology basedsocialisationandstimulatingassociativeactivities,electronicdemocracy andlearningbymeansoftheinternet. NetworkofLivingScienceCentres.DevelopmentofLivingScienceNetworkas aninfrastructureforthepromotionofthescientificandtechnologicalculture in the territory, to stimulate the interest of the young for scientific and technical careers and to facilitate the population s appropriation of new technologiesandknowledge SchoolNetwork RehabilitationProgrammeforschools.Thereshapingofthenetworkfrom the perspective of creating school centres involves two distinct kinds of intervention, in accordance with the territorial and social context in which theyarelocated. o Intervention in urban areas. Factors will be analysed such as the existenceornotofanexpansionanddevelopmentplanoftheurban fabric where each school is located so as to justify the decision to build a new school or carry out the structuring upgrading of the schoolspace,namelybyextendingtheexistinginstallations; o Interventioninruralzones.Focusisgiventoupgrading/extendingor buildingoneormoreschoolcentresinareaswhicharegeographically inthecentreofothersmallbasicschoolsofthe1stcycle. The rehabilitation Programme for schools foresees intervention in 600 schoolsby

115 #3 PART OUTCOME OF PNACE EXECUTION Main Results in

116 INDEX Introduction...3 Macrolevel...6 SustainabilityofSocialSecurityDriver...12 ModernisationofPublicAdministrationDriver...13 Microlevel...20 KnowledgeandInnovationNetworksDriver...38 ConnectingPortugalDriver...41 EnergyDriver...45 LogisticalPortugalDriver...49 QualificationEmployment&SocialCohesionLevel...57 ValorisationofPrimarySchoolingDriver...74 NewOpportunitiesDriver...75 ProximityCommunitarianServicesNetworkDriver

117 INTRODUCTION InordertoemphasisetheevaluationoftheimplementationoftheLisbonStrategy National Plan for Growth and Employment and to systematically frame themonitoringofthereformstakingplace,nine impactdrivers weredefinedwithin the Macro, Micro and Employment dimensions, in compliance with the directives of therenewedlisbonstrategy. Therefore,andinaccordancewithwhatwasdefinedbytheEuropeanCommissionin itsguideforthepreparationoftheoctober2008nationalreports,thefollowingisa presentationofaperformanceanalysisofthemainreformprocessesinthelasttwelve months,favouringthose impactdrivers. The performance analysis is structured in those three levels, with the main results beingpresentedineach,organisedinsomecasesbyinterventionareasoastoclarify the evolution of the reform taking place. At the end of each level, the results are developedwithinthescopeofeachdriverincludedinit. Consideringthegoalsset,thesituationisgloballythefollowing: Consolidate public accounts and, in the horizon of 2008, reduce Portugal s publicdeficitto2.6%ofthegdp fromadeficitof6.1%in2005to3.9%in 2006and2.6%in2007. Encourage economic growth, reach a GDP annual growth rate of 2.4% the growthratewas0.9%in2005,roseto1.4%in2006.anactualgrowthof1.9% wasregisteredin2007.however,theinternationalsituationdoesnotallowthe proposed objective to be considered feasible (see macro level results further on). Promote the incorporation of R&D results in the productive processes, reinforce public investment in Scientific Research (up to 1% of the GDP) and triple private investment in R&D, which in 2003 was only 0.24% of the GDP. PublicbudgetforGDPhasdoubledin2008comparedto2003,exceeding1%of thegdpforthefirsttime.astillgreatergrowthofprivateinvestmentinr&dis foreseen,tobeconfirmedbytheresultsofthesurveytonationalscientificand Technological,takingplace. Promote job creation, attract and retain the greatest number of people in employment, reach aglobalemploymentrateof69% theemploymentrate went from 67.5% in 2005 to 67.8% in 2007; this figure makes it difficult to guarantee the established goal in 2008 but is maintained over the EU 27 average(65.4%in2007). Therefore, and considering the four great national priorities, it can be said that it significant progress has been made in each one of them, without undermining the importanceofcontinuedeffortsinthesedomains: 3

118 a)consolidationofpublicaccounts InJune2008,ayearearlierthanforecast,theproceedingsforexcessivedeficittaken againstportugalin2005wasterminated.thebudgetconsolidationprocessinitiatedin 2005allowedaconsiderablepartofbudgetaryimbalancestobecorrected.Thepublic accounts deficit in 2007 was at its lowest for the last 30 years, which allowed the budgetarytargetin2008tobeloweredto 2.2%oftheGDP. b)reformofpublicadministration simplifycompanylife PublicAdministrationreformtookrelevantsteps,bothintheareaofrestructuringand modernising its management and in administrative simplification and the improvement in the relationships of companies and citizens with the Administration wasofparticularsignificance. TheseresultswererecognisedandmadeanimpactonPortugal spositioninginvarious international rankings, namely the European Commission egovernment Ranking on availabilityandsophisticationofonlinepublicservices(2007),whereportugalappears in the 3 rd and 4 th place among EU27. Portugal has also 100% of the services to companiesavailableonline,thesamewhatconcernstothesophisticationlevel. c)s&tandinnovation For the first time in Portuguese history, the public budget for research and developmentexceeded1%ofgdpin2008,reinforcingthecompromisemadebythe Government to give priority to national scientific and technological development (it was 0.78% of the GDP in 2007). This effort, combined with the reinforcement of humanresourcesinscienceandtechnology,bydoublingin thenumberof new PhDs and post PhDs, compared with the last triennial and the promotion of scientificemploymentsupportingthehiringofover700newdoctorates,enabledthe national scientific production to be significantly higher than the last few years, reachingatotalof6,655publicationsreferencedinternationallyin2006(circa630per million inhabitants), which represents a 45% growth in the last three years. Furthermore, the number of Portuguese patents registered in the European Patent OfficeandtheUnitedStatesPatentOfficealsoincreased90%and70%,respectively, between2005and2007.additionallyandculminatingapersistentevolutionsincethe mid 1990s, the monthly figures of the technological balance were systematically positive in 2007, demonstrating the boost in technologically based services export in Portugal and, therefore, the increased technological capacity of the Portuguese companiesandtheiraffirmationinternationally. d)qualification In addition to continuing to implement the New Opportunities Initiative (see New OpportunitiesDriver),theReformofVocationalTrainingandtheReformofPrimary and Secondary Schooling (see Valorisation of Primary Schooling) and the Reform of Higher Education, the Government has been implementing other measures at the 4

119 levelofsustainabilityofeducationandtraining(e.g.theevaluationandautonomyof schools),intermsofquality(teachertraining,nationalreadingplan,amongstothers) and also other measures with an impact only visible in the longer term, such as the broadening and consolidation of pre school, curricular enrichment and the extension ofschooltimetables. In the last twelve months, we note the start up of the implementation of the NSRF, given its strategic importance for the execution of the Lisbon Strategy as the investments foreseen in this area are strongly oriented towards the objectives and goals of this Strategy. Therefore, about 10 months following the European Commission s approval of the NSFR Operational Programmes, of the roughly 10,000 applicationsapproveduntiltheendofaugust2008,totallingaround 3300millionof community investment funds, it is found that 90% of the foreseen investment is included in the categories of expenses that are friends of the Lisbon Strategy ( earmarking ). It is noted that the particularly high figure for earmarking registered to date reflects the fact that the tenders or application periods started at this stage have mainly involvedtheinterventiontypologiescloselyconnectedtotheobjectivesandpriorities ofthelisbonstrategy,namelyregardingthequalificationoftheportugueseandabove all in the framework of the Human Potential OP, as well as to the fostering of innovation and the stimulation of company investment in improving their competitiveness within the scope of Competitiveness Factors OP and also the ContinentRegionalOP. The implementation of the Bologna Process has evolved very significantly in the last fewyears;themajorityofhighereducationcoursesopeningplacesin were already adapted to the Bologna Model. The integral conclusion of this process is foreseen for During this period the number of new graduates from the scientific and technological areas has been increasing significantly, reaching 18.8 per 1000ofthepopulationagedbetween20and29yearsforthefirsttimein2007,thus exceeding the European average; at the same time, the number of new PhDs in scientific and technological areas increased in 2007 to 0.42 per 1000 of population aged25to34years(thefigurefor2001was0.3). 5

120 MACROLEVEL The improvement in the quality of public finances, with emphasis on its long term sustainability, and the creation of a stable macroeconomic environment that favours economic growth, remained as the main strategic objectives within the macroeconomicareainthelastyear. InJune2008,ayearearlierthanforecast,theproceedingsforexcessivedeficittaken againstportugalin2005wasterminated.thebudgetaryconsolidationprocessinitiated in2005enabledthecorrectionofaconsiderablepartofthebudgetaryimbalance.in 2007,thepublicaccountsdeficitwasthelowestforthelast30years.Morethanhalfof the3.5percentagepoint(p.p.),reductioninthedeficitinrelationtogdpregisteredin 2006and2007(from6.1%to2.6%oftheGDP),resultedfromthedecreasedweightof publicexpenditureinthegdp.alsotheweightofpublicdebtinthegdpwasreduced in2007,paralleltotheevolutionofthebudgetarydeficit;thisstoodat63,6%( 1,1p.p. thanin2006),thusinterruptingtheupwardtrendofthesixpreviousyears.giventhe goodresultswhichwereobtained,thebudgetarytargetfor2008wasrevisedto 2.2% ofthegdp(previously 2.4%). On the other hand, the reforms taken in the social security systems, both in the general regime and the social security regime for public servants, enabled the reduction of the sustainability risk associated with the evolution of public expenses which are sensitive to the aging of the population (namely, pension expenses), removing Portugal from the group of high risk countries, favouring the long term sustainabilityofpubicfinances(see SocialSecuritySustainabilityDriver Box),through themaintenanceofthepublicsocialsecuritysystem,thatwillassurethepensionsof theportugueseworkersinthelong run,guaranteeingthesocialsecuritysustainability, protecting the longer careers(through active retirement policies) and protecting low income pensioners (stimulating positive discrimination policies in the pension s calculation. In2007,thePortugueseeconomyacceleratedinrelationtothepreviousyear,withthe GDPgrowing1.9%inrealterms(1.4%in2006).However,theinternationaleconomic situationhassincetakenadownturnmainlyduetotheprolongeddisturbanceinthe international finance markets and to the bullish oil and food prices; this led to a deterioration of the contribution of the net external demand and in a moderate acceleration of the price growth during the first half of 2008 in Portugal. It is worth stressingthatthegrowingrhythmofpricesinportugalhasbeenbelowtheeurozone average and in the last few months the national inflation rate remained the second lowestofthesecountries. The national finance system has maintained a solid financial structure and effective supervision; we note in particular the capacity of Portuguese banks to adapt the unfavourableconditionsofthefinancemarkets. 6

121 The Government has strengthened its focus on the implementation of the National ReformPlan,articulatedwithinthemacroeconomic,microeconomicandemployment areas, in the awareness that Portugal is not able to influence the international economicevolutionandtheexternalstructuralclashes,andthebeliefthatthenational economystillneedstomakerealadjustmentstoitsstructuresoastocreateamore favourableenvironmentforentrepreneurshipandtoincreaseproductivity,economic growthandemployment. Therefore, in the macroeconomic domain, the structural reforms implemented last year concentrated on modernising one of the main vehicles of governing action PublicAdministration inthefieldsofmanagementmethodsandrules,administrative simplificationandimprovedservicesforcitizensandcompanies(see Modernisation of Public Administration Driver Box), in the rationalisation and control of the use of publicresourcesinthehealthsector,fightingfraudandfiscalandtaxevasions,inthe reinforcementofthesustainabilityofthestatebusinesssector,intherevisionofthe budgetaryframeworksandthereductionofthepaymentdeadlinestosuppliersfrom publicentities. Itisalsoimportant,withinthemacrodomain,topointoutasetofactionsandresults, outside the social security and Public Administration modernisation sustainability drivers,ofwhichthefollowingstandout: 1.1. Rationalisation of the Use of Public Resources: Efficiency and ExpenditureControlinHealth With the aim of improving Health care in Portugal and its sustainability, the Governmenthasbeenpromotingarationalisationpolicyintheuseofpublicresources connectedwiththehealtharea,basedoncostcontrolatthemacrolevelandincreased efficiencyatamicrolevel. Of the initiatives within the areas of prevention, access and assistance quality, emphasisgoestotheheath24callcentreandinternetservicewhichaimstoimprove the access to health care and rationalise resources, the investment in information systemstoimproveepidemicvigilanceandthedefinitionofclinicalqualityindicators. Efficiencymeasureswereimplementedatamacrolevelwithaviewtopromotingthe financial sustainability of the National Health Service, such as: reinforcing the contractualprocesswiththeproviders,withquantifiedobjectivesfortheevolutionof costs and results which, if not fulfilled, will carry financial penalties, the electronic centralisation of budgetary control information; the implementation of a strict prescription drug policy, with a reduction in the public selling price (e.g. Ordinance nr.1016 A/2008,ofSeptember8th,determinesthereduction,asarule,of30%ofthe maximum public selling price of the generics approved by 31st March 2008), implementation of rules and procedures for the introduction of innovation, continuationofthehospitaldrugprogrammewithemphasisgoingtotheinstallationof thefirsthospitalpharmacyopentothegeneralpublicdistributingsingle dosepills(in trial mode) and the introduction of monitoring mechanisms for medication expenditure,bothathospitalandoutpatientcarelevel. 7

122 Continuity was given to the implementation of efficiency measures at a micro level, namely the restructuring of the primary care network with a reconfiguration of the current health centres through the creation of family health units(smaller and more flexible structures), 142 operational at this moment, and the aggregation of management resources and structures. The restructuring of the secondary care (hospitals) network is under way with the reform of the national maternity and emergency network. The process of adopting the business management model in hospitalswasalsoreinforcedwiththetransformationintoepeofovertenentitiesin 2007and7entitiesinSeptemberandOctober2008.Anetworkofcontinuingcareis beingdevelopedparalleltothis. The following processes were reinforced: strategic hospital planning, integrated monitoring of performance with electronic availability of management information withamonthlyperiodicityandasystematicfollowupofperformance;internalcontrol model based on the best international practices; introduction of the figure of the internal auditor in each hospital unit and the conducting of external audits on the Hospitals. The use of shared services is also being stimulated with three company complementarygroupingsbeingsetupin2007(wearepeople,wearepurchasesand WeAreBills).ItisforeseenthatthepurchaseandlogisticcentreofSUCHwillachieve savingsof8.2millioneurosin2008,firstyearinoperation. The economic and financial results of the several measures undertaken are noteworthy; in 2006 and 2007, for the first time in decades, it was not necessary to resort to budgets amendments in the NHS which was also the result of realistic budgeting. Therefore, the financial situation of the NHS was close to the budgetary balanceintheselast2years.costcontrolwasnoteworthyatboththelevelofprimary care and the level of hospitals, namely EPE hospitals whose total costs decreased by morethan1%andoperatingcostsgrewlessthan2%in2006comparedwith2005,and unlike the two digit growth of the last few years. In 2007 total costs decreased by 0.6%andtherewasaslightincreaseinoperatingcostsof0.9%. Theefficiencyincreaseintheexpenditureisdemonstratedbythefactthat,parallelto cost control, it was possible to increase citizen access; this was due to increased production, namely outpatient care, and to a 20% reduction in the average time of waiting list for surgery from 2005 to 2006 and a 35% reduction from 2006 to 2007 (about49%of2005comparedwithapril2008) FightingFraudandFiscalandTaxEvasion Strengthening the fight against fraud and fiscal evasion is a priority area within the scopeoffiscalpolicyoverthelastyear,withfocusonthepublication,inthisambit,of Decree law nr.29/2008 dated February 25th, regarding the prevention and fight against abusive fiscal planning, which foresees a set of duties to report, inform and clarify actions with the Tax Administration by promoters of fiscal planning, namely credit institutions and other financial institutions, independent auditors and independent auditor companies, lawyers, law companies, solicitors, solicitor companies,accountantsandotherentitieswhichprovideaccountingservices. 8

123 Consideringtheoutcomeoffightingfraudandfiscalevasionin2007,emphasisgoesto the annual increase in the voluntary regulation of corrections to the tax base (29%) andbacktax(28%),the16%riseintheamountsofbacktaxdirectlyfoundbythedgci Directorate General for Taxation (around 975 million Euros), the additional charges made by the DGAIEC Directorate General for Customs and Excise Taxes of around 24.7 million Euros, the annual rise of 6% in enforced collection(1633 million Euros), theregularisationoffiscaldebtstothesumof242millioneuroswithinthescopeof the process leading to the publication of lists of debtors, and the reduction of the established debt to 3.1 million Euros (resulting from an increase in voluntary payments). Improvementsintheefficiencyofthecollectionofsocialcontributionswascontinued inordertostrengthenthesustainabilityofthesocialsecuritysystem.in2007,within the ambit of the National Plan of the Prevention and Fight against Fraud and Contributory and Service Provision Evasion, special attention was given to the fight againstevasionandtocrime.theresultsfrom2007showa31.7%increaseinthedebt collected(to313.7millioneuros).comparedto2004,thecollecteddebtincreasedby 377%(2004: 65.7m;2005: 129.4m;2006: 238.3m;2007: 313.7m) ReinforcingtheSustainabilityoftheStateBusinessSector Within the scope of the State Business Sector (ESS), the revision process of the legislative framework was continued, aiming for a better control of the activity of companies with State participation, a greater transparency in their relationship with citizensandthelinkbetweenthesalariesofpublicmanagersandtheresultsachieved bythecompaniesbymeansofapreviouscontractsettingouttargetsandobjectives. Therefore, after the approval of the New Statute of Public Manager (decree Law nr.71/2007, dated March 27th), the approval of the good governance principles for companiesfromthestatebusinesssector(councilofministersresolutionnr.49/2007, dated March 28th) and the revision of the juridical regime of the business sector (Decree Lawn.300/2007datedAugust23rd),thestrategicguidelinesfortheESSwere approvedinmarch2008(takingintoaccountthearticulationoftheiractivitywiththe sectorialstrategicpoliciesdefinedbythegovernment,socialresponsibility,respectfor the operation of market rules and for consumers, and economic, financial and environmentalsustainability). Ontheotherhand,theprocessofsettingstrategicobjectivesforEEScompanieswas initiated,withemphasisgoinginthisareatothefiveportadministrations,carris,ctt andep EstradasdePortugal,Parpública,STCP,TAP,Transtejo,NAV,ANAandEDAB, by signing management contracts with the respective management boards in which the annual and pluriannual objectives are defined; this aimed to emphasise management professionalism and the development of a culture geared to performance. Finally,anewjuridicalregimewasimplemented,applicabletotheconcessionofpublic subsidies(decree Law nr.67/2008, of August 26th), which introduces general criteria 9

124 to define financial counterparts attributed from the State Budget to finance entities providingservicesofgeneralinterestandtofinancepoliciesforpromotingeconomic, culturalandsocialactivities.thiscontributestoboostingdisciplineandtransparencyin allocating financial counterparts, particularly in the compensatory sums awarded to serviceprovidersofgeneralinterest.thus,itisforeseenthattheprovisionofageneral interestservicemustbeentrustedtothereferredentitybymeansofacontractsigned with the State which lays down the obligations of the parties, the duration of the contract, the manner of calculating compensation and the procedures and entities responsibleforsupervision,amongotherclauses RevisionoftheBudgetaryFramework:Budgetingbyprogramme Thelongtermsustainabilityofpublicaccountsnecessarilyinvolvesmakingbudgetary consolidationlonglasting.torespondtothischallenge,thegovernmentsubmitteda scheduled plan of works to the Assembly of the Republic in 2006, aiming at restructuringtheproposalforstatebudgetbyprogramme.budgetingbyprogramme consists of a pluri annual cycle of planning, programming, budgeting, control and evaluationofthestate sperformancesoastoguaranteetaxpayers contributionsare better applied, that is, a quality public expenditure that triggers the socio economic effectscapableofimprovingthelevelofwell being. Therefore, in March 2007 the Government formed the Budgeting by Programme Committee(COP)whichdependsdirectlyontheMinisteroftheStateandofFinance; its main mission is to propose a model to the Government and the respective methodologyforthestructuringofthestatebudgetbyprogramme.coppresentedan interim report in May 2007, which was submitted to the Assembly of the Republic following analysis in the Council of Ministers and presented to the Parliamentary CommitteeforBudgetandFinance. Akeyfeatureofbudgetingbyprogrammeisthatthebudgetfocuschangesfrombeing resource centred to result centred. Therefore, the anticipated definition of the objectives associated with the budget allocated to a body takes on a greater importance.thoseobjectiveswilllaterallowtheefficiencyoftheexpenseincurredto be monitored. At the beginning of 2008, the significant step was taken of implementing a new evaluation model of public services (SIADAP), based on QUAR, thusprogressivelyguidingpublicmanagementtowardsperformance. Parallel to the conceptual work of the COP, it proved essential to prepare the implementation and operationalisation of the theme, namely by launching pilots alreadyinthepreparationofthestatebudgetfor2009.theworkgroupforthepilot ImplementationofBudgetingbyProgramme(GTIPOP)wasformedandittookcharge, in articulation with the CBD and with the various services and entities of the Public Administrationwithcompetenciesintheareaofbudgetprogrammingandexecution, of the operationalisation of the three pilot programmes which will be part of the proposedstatebudgetfor2009,namelypilotsintheareasofportuguesecooperation, IntegratedContinuousCareNetworkandSocialActioninHigherEducation. 10

125 TheworkofCOPhasbeencomplementedbyanextensiveanalysismadebytheOECD ontheportuguesebudgetingmodelwhichculminatedinareportonthismatter Decrease of the risks associated with payments in commercial transactions The Programme Paying at the right Time, approved by the Council of Ministers Resolution nr.34/2008 of February 22nd, is aimed at a structural and significant reduction of deadlines for paying suppliers of goods and services provided by public entities,enablingtheimprovementofthebusinessenvironmentinportugal,reducing financing and transaction costs, introducing greater transparency in the setting of pricesandcreatingconditionsforhealthiercompetition. Anaveragepaymentperiodof30to40daysisestablishedasalongtermgoal;thisis considered the optimal time given the regular nature of revenue from public bodies andaneedtoobtaingoodpriceconditionsforthestateinitscommercialtransactions. In accordance with this Programme, the evolution of indicators of the average payment deadline to suppliers is publicised; in case of services of direct and indirect Administration of the State, the goals set for its directors and managers will be associated to this evolution and the level of achievement degree will influence their performance evaluation. For 2008, directors of services where the average payment period is 45 days have been set the goal set of reducing that figure by at least 15%. This publication seeks to increase visibility and transparency linked to payment practicesinthepublicadministration. Paying at the right time foresees the implementation of improvements within the circuitsoffinancialcontrolsoastospeeduppaymenttosuppliers,aswellasauditson the services of direct and indirect administrations of the State which register an average payment period indicator of over 180 days at the end of 2008 so as to evaluatethequalityofexpenditureandtreasurymanagement. Themunicipalitiesandautonomousregionswhichcompliedwiththedefinedeligibility criteria were able to apply for medium to long term financing in order to pay short time debts to suppliers. Thirty six eligible applications were accepted, totalling 335 millioneuros,ofwhich134millionwerefinanceddirectlybythestate. Other legal mechanisms also contribute towards the objectives of the Programme, namelylawnr.67 B/2007ofDecember31st,whichestablishesthemandatoryannual publicationofthelistofcreditorsofthestate scentraladministrationand,inrelation to municipalities, municipal mechanisms for financial clearing and rebalancing, foreseeninthelocalfinancelaw. CITIUSProgramme injunctionsisatoolwhichenablesthetotallyelectronicdelivery, payment and processing of injunction procedures, available from the 5th of March

126 The dematerialisationofinjunctions permitted: a)theelectronicdeliveryofaninjunction,athttp://citius.tribunaisnet.mj.pt,by meansofanonlineformorcomputerfile; b)theelectronicpaymentoftheinjunctioncharges,byatmorhomebanking; c) The electronic processing of the injunction by the National Counter for Injunctions; d) The sending of the Injunction to court by electronic means, where it is opposed; e) The sending of warnings by to the claimant of the injunction so that theprocedurecanbemonitored; f)theelaborationofanelectronicenforcementorderbasedontheinjunction, whichallowsthepresentationofanaffirmativeactionbasedonthatelectronic order. The totally dematerialised injunction procedure is simpler because it enables the delivery and electronic payment of the injunction without the need of any travel. It also makes it unnecessary both to annex the injunction in paper form to the enforcementrequestanddeliverthecertificatesinpaperformforvatrebate. Itisquickerbecausetheautomatedproceduresenablequickerprocessing(electronic notification order, electronic sending for printing and envelope insertion, etc.). It is cheaperbecausethejusticechargeforelectronicdeliveryofaninjunctionhasa50% reduction. Thedematerialisationoftheprocedureandtheelectroniccommunicationswithusers hasdoneawaywithhundredsofthousandtripstojudicialofficesandtheassociated costs. Since 5th March 2008, over 219,000 injunctions have been received electronically throughcitius,representingmorethan95%oftheinjunctionsreceived. Driver1. SocialSecuritySustainability TheSocialSecurityReformAgreement,signedbytheGovernmentandSocialPartnersinOctober2006,tookits firststepwhenthesocialsecurityact(lawnº4/2007,of16thjanuary)cameintoforce.thisactincorporatesthe measuresagreedwithsocialpartners:thenewpensionscheme(decree lawnº187/2007,of10thmay),reviewof thesocialsecuritysystem smodel(decree Lawnº367/2007,of2 nd November),andimplementationofthePublic CapitalisationScheme(Decree Lawnº26/2008,of22 nd February). Measuressuchastheanticipationofthenewruletocalculatenewpensions,thenewruletoupdatepensionsand the additional financial penalisation in the case of early retirement came into force in In turn, the sustainabilityfactorintroducedregardingnewpensionswasappliedasofjanuary2008. ThePublicCapitalisationScheme(RPC),participationinwhichisindividualandvoluntary,isworthyofnoteasitisa new means of topping up retirement pensions that beneficiaries of the Social Security are entitled to, compensating for the effect resulting from the sustainability factor. Thus, and throughout their working life, beneficiaries can make a monthly contribution towards the RPC corresponding to a percentage of the ratable contributoryvalue,whichiscreditedasanindividualaccountinparticipationunits.suchcontributionscapitalise according to the return ensured by the fund s global assets, assuring an investment profile similar to the Social Security s Financial Stabilisation Fund. When the beneficiary retires, the participation units deposited in the beneficiary s individual account are converted into a monthly income for life, which will complement the beneficiary spension. 12

127 Asforpublicworkers SocialSecuritysystems,theadaptationofthemainreformmeasuresoftheSocialSecurity s generalscheme,approvedbylawnº52/2007,of31staugust,cameintoforceinjanuary2008.thistime,there wasagradualincreaseofemployers contributionstowardsthecivilservicepensionfund(cga CaixaGeralde Aposentações),bringingitclosertotheSocialSecuritysystemwhenunderthesamecircumstances(Lawnº53 A/2006,of29thDecember,andLawnº67 A/2007of31stDecember),forautonomousbodiesandthosealready legallyrequiredtodoso. ThereformscarriedoutontheSocialSecuritysystems boththegeneralschemeandthepublicworkers Social Securityscheme placingimportanceontheintroductionofthesustainabilityfactor,therulestoupdatepensions, and the encouragement to active aging, have helped to increase the Social Security systems capacity to face adverse changes to the demographic scenario which, in turn, have helped to reduce the risk of unsustainability associatedwiththeprogressivedevelopmentofpublicexpendituresensitivetoanagingpopulation(pensionsin particular).thus,portugalwasabletoleavethegroupof highrisk countriesinthisrespect,atthesametimethat isguaranteedthesocialsecuritysustainability,protectingthelongercareers(throughactiveretirementpolicies) andprotectinglowincomepensioners(stimulatingpositivediscriminationpoliciesinthepension scalculation. In order to reverse the demographic trend expected in future decades which reflect a significant decline in the birth rate, the Government has continued its policy to encourage an increase in the birth rate. Thus, the State BudgetLawfor2008(Lawnº67 A/2007,of31stDecember)sanctionedtheincreaseinthesupplement,basedon the taxation of collective earnings, of the donations for the creation and maintenance of day nurseries, kindergartensandbreast feedingroomsintegratedintherespectivecompanies,andtheadoptionoftaxincentives forfamilieswithdependentsunderthree,intheformofirs.decree Lawnº105/2008,of25thJune,established social measures to reinforce social protection during maternity, paternity and adoption, extending them to the populationnotentitledtoprotectionunderthesocialsecuritysystembecausetheyareeithernotinthelabour marketorhavemadeinsufficientcontributions. Alsoworthyofnotewithinthescopeofincentivestoincreasethebirthrateistheconstructionofdaynurseries anareaprioritisedwithinthepares(programmetoextendthenetworkofsocialfacilities).inthismanner18650 placeswereapproved,correspondingto418daynurseriesandatotalinvestmentof154millioneuros,82.7million eurosofwhichisfrompublicfunding. Driver2. ModernisationofPublicAdministration ThemodernisationofPublicAdministrationisakeyareaofthestrategyforthecountry sprogressandoneofthe mainvehiclestoimplementpublicpolices.tomodernisepublicadministrationistoimplementreformsaimingto improve the quality of their governance, increasing the efficacy and efficiency of the public service rendered, contributingtowardsincreasingthesatisfactionoftheirusersandmotivationofpublicworkers. OfthereformsundertakeninPublicAdministrationinthelastyear,thosethataimatmodernisingmethodsand rulesofresourcemanagementconnectedtotheiractivityareworthyofnote,asarethosethataimatdirecting Administration towards citizens and companies, simplifying their lives in their relationship with the State and improvinginformationserviceforthepublic. ReformsinManagementMethodsandRulesinPublicAdministration The reforms in the management methods and rules in Public Administration aim at improving the capacities of managersandpublicadministratorsinmanagingandgainingmorevaluefromthepublicresourcesconnectedto theactivityofthebodytheyhead,whetherbyrationalisingandeliminatingwasteorbyplanningandcontrolling theiractivitybetter,alwaysaimingforbetterpublicexpenditure.withthisinmind,inthelastyear,reformofthe publicemploymentschemewasstrengthenedandtheprocessestocontroladmissionsandrecruitingofstaffwere reinforced, the Programme to Restructure the State s Public Administration (PRACE) was concluded and the reorganisation of the local services of the State s decentred action was expanded, implementation of the management of shared resources began(which included the public purchases processes), planning, control and evaluationofpublicservicemechanismsweredeveloped,andthereformofthemanagementofpublicrealestate wasmademorewide ranging. In this last year there have been structural developments in the reform of the public employment scheme and thereforeonthemanagementrulesofhumanresourcesinpublicadministration,withthreeofthelegalpillarsof thisreformcomingintoforce Lawnº66 B/2007,of29thDecember(newIntegratedManagementandEvaluation SystemofthePerformanceofPublicAdministration),Lawnº12 A/2008,of27 th February(newcontractualties, 13

128 careersandremunerationsinpublicadministration),andlawnº59/2008,of11thseptember(newlabourcontract forpublicoffice). Thenewpublicemploymentsystemaimsatbeingclosertothecommonsystemandtriestobringincentives(thus, improvingperformance)ofmanagersandemployeesinlinewiththeneedtoimproveservicestothepublicwith fewer resources. This new paradigm consists of complementing the normal fulfillment of legally determined administrativeprocedureswiththecreationofincentivesformanagersandpersonnelbyevaluatingperformance sothat,throughtheirowninitiativeandtalent,theymaybeabletoreachalevelofexcellenceintermsofpublic servicesrenderedtocitizensandcompanies.therefore,asof2008,forexample,performanceawardsaretobe granteddependingontheperformanceevaluation.withthesameobjectiveofencouragingtalent,quotashave been introduced to classify performance. This is to avoid previous practices in which there was an automatic progressionincareerwhichhadledtoanunsustainabledriftinsalaries. The Contractual Ties, Careers and Remunerations Act was regulated by creating a Single Remunerative Table (Regulation Decree nº 14/2008, of 31st July), which now has 115 positions (instead of 22 tables with 522 positions),andthemergerof1715careersintothreegeneralschemecareers(decree Lawnº121/2008,of11th July). Thelatestmajorlegalpillarofthepublicemploymentreform thenewworkcontractschemeforcivilservants was agreed with by two of the three trade union associations with which the Government negotiated the document.withthisnewdocument,thepublicemploymentschemeisclosertothecommonemploymentscheme by introducing more flexible rules in managing human resources, and the concrete work conditions of the statutory scheme also come closer to those in the private sector. For example, public employment legal relationshipswillnow,asarule,bebasedonacontract,meaningthat,withincertainlimits,anemployeebeing recruited for a certain job can negotiate his/her salary with the employer. Another example is that it is now possible to shorten the normal period of work, or suspend the contract if it becomes temporarily, partially or totallyimpossibletoprovideservice,eitherbytheemployeeorbythepublicemployeranduponagreementby bothparties.afurtherexampleistheintroductionofschemeswhichallowflexibletimetables,part timeworkand telework,whichwasnotpossibleuntilnowwithinpublicadministrationandwhichnowfollowthesolutionslaid downinthelabourcode. The Disciplinary Law for public workers has been reviewed (Law nº 58/2008, of 9 th September). The new Law simplifies and introduces processes to hasten the legal channels of the disciplinary procedures and creates a special procedure the inquiry procedure aimed exclusively at determining if two consecutive negative performanceassessmentsindicatetheexistenceofadisciplinaryinfractionwhich,ultimately,mayleadtodismissal of the appointed employee or demotion to a non supervisory position, to be determined via a disciplinary procedure. Reform of the human resources management in Public Administration also goes through implementing improvements when planning such resources a fundamental area in terms of rationalizing their use. In this manner, services with an excess of human resources should transfer them to more strategic and under staffed areas. This is why the mobility of human resources is an essential mechanism to complement and ensure the efficiencyofhumanresourceplanning,aswellascontributingtosatisfyingworkerslookingfornewprofessional experiences. With this in mind, general mobility mechanisms have been strengthened (transferals, exchanges, requests,secondment,specificassignment,specialassignment)throughlawnº12 A/2008,of27 th February.With regard to special mobility mechanisms, approximately 2,300 employees have been through that situation, and currentlythereareabout1,200employeesinaspecialmobilitysituationawaitingnewfunctions. Strict control of admissions and contracting through the application of the recruitment rule whereby one employeeistakenonforeverytwothatleave,hasenabledareductionofexpenseswithstaffbydecreasingthe number of public workers something that had not happened in decades. Thus, the number of employees fell 2.9%in2006and2.5%in2007,correspondingtoadecreaseof39,373employeesintwoyears(or5.3%intwo years) thismorethanfulfilledtherecruitmentrulereferredto.withinthisperiod,expenseswithstaffsawa1.0 percentagepointfallinthegdp(13.9%ofthegdpin2005to12.9%ofthegdpin2007).theeffectofhospitals becomingprivatelymanagedduringthisperiodwasalsoconsideredwhendeterminingthisfigure. ThePRACEprogramme,whichbeganin2006andfinishedin2007,sanctionedaneworganisationmodelofthe 14

129 ministries centralservices,strengtheningthesupportprovidedtogovernment,aswellastwoorganisationmodels oftheregionaldecentralisedservices(nutsiiandregions),replacingthe30alreadyexistentsolutions.after430 charters were published, there was a reduction of about 25% in the number of existing structures and managementpositionsthroughtheprace. With regard to the reorganisation of the State s decentralised local services, note the results obtained in the reorganisationoftheeducationalnetworkattheprimaryschool(1 st cycle),whereapproximately2,200isolated schoolswithinadequateteachingconditionswereclosedduringthe2006/07and2007/08schoolyears;andthe primarycareandhospitalcarenetworksystemwasrestructured,thehealthcentreswerereconfigured,andfamily HealthUnitswerecreatedandimplemented(142inoperation,coveringabout1.8millionusers).Thesestructures aresmaller,flexibleandcapableofimprovingcitizens accesstolocalcareandlesseningthepressureonthesearch for different health systems at higher average costs. Also, Law nº 52/2008, of 28th August, approved a new organisationandworkingmodelforcourtsoflaw,andreducedthenumberofdistrictsfrom231to39.inthisway, the first step was taken in changing a generic offer in terms of legal responses to one where each of the new districtsnowhavemorespecialisedsolutionsaswellasbettermanagementconditions. TheaimofimplementingsharedservicesinPublicAdministrationistoachievesavingsbyaccomplishingefficiency earnings associated with simplified processes, together with the introduction of new information and communicationtechnologies,andbyreducingthecostsassociatedwitheconomiesofscaleandrange.in2008, GeRAPbeganimplementingthesharedmanagementofresourcesintheaccountancyandfinancialsectorofthe Finance Ministry and Public Administration s integrated service, as a pilot experiment. GeRAP s activity in the financialfieldwillincludethedisseminationofthepublicaccounts OfficialPlan,standardisationandoptimisation ofprocesses,andreportstosupportmanagement.inthesupplysector,thenationalagencyforpublicpurchases (ANCP) has already launched eight public tenders in 2008(from a total of fifteen anticipated for this year). The frameworkagreementformobilecommunicationservicesisonethathasalreadybeenformalized,aswellasthe frameworkforroadfossilfuels.theseframeworkagreementspre qualifysuppliersandestablishconditionsand requirements regarding the supply of goods and services to the State (maximum prices, levels of quality of minimumservices,amongothers),thusencouragingcompetitionbetweencompanies,inparticularsmes.thisnew generation of framework agreements to be celebrated by the State will comprise 75% of the transversal public expenses.intermsofmanagingthestate sfleetofvehicles,thenewlegalschemeestablishedbydecree Lawnº 170/2008,of26thAugust,foreseesthatpurchasesandmanagementbecomecentraltoANCP,aswellascontracts betweenancpandtheuserservicesunderthesameobligationsasthoseallocatedtothevehicles,thecreationof general standards for allocation of vehicles and their classification, and preference for an environmentally advanced fleet of cars. The new scheme aims at eliminating waste resulting from an ad hoc management of approximately29,000vehicles afleetthatisscattered,heterogeneousandold(anaverageof11years). The introduction of the SIADAP and the investment in a new performance evaluation process based on management by objectives has been strengthening an assessment and making officials in Public Administration awareoftheirresponsibilities.therehavealreadybeencreatedpublicdocumentsofevaluationframeworksand Accountability(QUAR),whereobjectiveshavebeenlaiddown,ashaveperformanceindicators,resultsachieved, availablemeans,andthefinalevaluationsoftheservices performanceinapproximately98%ofthestate sdirect and indirect services in Evaluation of the services performance is based on their self evaluation which is thencriticallyanalysedbytheservicewhich,ineachministry,hastheauthorityintermsofplanning,strategy,and evaluation. The Coordinating Committee for the Evaluation of Services, chaired by the Government member responsible for Public Administration was created with the objective of ensuring coordination and encouraging cooperationandthesharingofgoodpractice. AsformanagementoftheState sassetsandfollowingtherevisionofthepublicrealestate slegalsystem(decree Law nº 280/2007, of 7th August) which controls this system and aims at efficient and good use of public resources and compliance with the State s current organisation, and the Registration of Public Administration Property,asignificantamountofsurplusspacewasidentifiedwhencomparedwiththeoccupationratio(average floorareaof50m2perworker)whichhasenormouspossibilities. AdministrativeSimplificationandImprovedServiceforCitizensandCompanies In2008,theAdministrativeandLegislativeSimplificationProgramme(SIMPLEX)reachestheendofitsthirdyear simplifying the lives of citizens and companies and their relationship with the State, as well as improving the internalefficiencyofserviceswithinpublicadministrationitself. 15

130 Of the measures undertaken by the Government, almost 90% were executed in 2006, and, in 2007 this figure reached85%thankstoaprogrammethatincluded235simplificationmeasures. The SIMPLEX 2008 consolidated the strategy to modernise administration by associating administrative and legislativesimplificationwithe Government which,inthecontextofthereformofprovisionofpublicservices, wasoneofthecriticalfactorsofsuccessinresponsetothemodernisationandinnovationobjectivesinthepublic sector.thisprogrammecomprises189measuresdirectedatcitizensandcompaniesandcontinuestoinvolveall the ministries and services of the respective areas of competence, with a common and shared responsibility. Before being defined, an extensive public survey was carried out and a significantly superior response was achievedcomparedtoitspredecessor. The lifeevent conceptwasreinforcedincitizensandcompanies relationshipwiththestate,includingtheonestopservice capableofprovidingintegratedservicesolutions,ensuringthattheperson/companyrequestingthe servicecandosoorobtaintheinformationneededinasinglecontactorinteraction. FollowingarecentOECDevaluation,theopportunitytoestablishaspecificevaluationprocessofthesimplification methodincooperationwiththelocaladministrationwasacknowledged.alsoacknowledgedwastheimportance ofestablishinginstitutionalcooperationaimingatthesimplificationandelectronicadministrationattwolevels centrallyandlocally.thelocalauthoritysimplexprogrammewastheanswertothisrecommendationwhich,as wellasthemeasuresthataretheexclusiveresponsibilityoflocalauthorities,alsoincludesmeasuresthatrelyon thecollaborationbetweenthesetwolevelsofadministration,ormeasuresthatdependonthejointworkoftwoor morelocalauthorities. PortugalrespondedtothechallengelaunchedbytheEuropeanCouncilinMarch2007andundertooktocomply withtheprogrammetoreduceadministrativecostsforcompaniesintheeuropeanunionandtodevelopitsown nationalprogramme.inthisway,apledgetoreduceadministrativeburdensforcompanieswasintegratedinthe SIMPLEXprogramme,withtheobjectiveofa25%reductioninadministrativeburdensimposedbynationallegal andregulatoryrules,by2012,ineventsrelevanttothelifecycleofcompanies. Anumberofpilot projectswerelaunchedin2007withthemainaimoftestingtheapplicationofthestandardcost Modelmethodologytothenationalsituation,usingalimitednumber(6)ofSIMPLEXmeasuresasastartingpoint. The progress achieved in Portugal in the electronic government field has been acknowledged by international institutions. So, as well as the high classification obtained in the Global E Government index(brown University) andintheeuropeanrankingforonlinepublicservices,nowin2008,theglobalinformationtechnologyreport (World Economic Forum) has already acknowledged Portugal as 2nd of 127 countries to place Information and Communication Technologies within the Government s vision for the future modernisation of publicservices. AdministrativeSimplificationtargetingcitizens A new One Stop concept (Citizen Shop 2nd generation shops) was launched these shops enhance the availabilityofpublicservicesfoundedonnewconcepts,suchastheone stopservice inpersonorthroughthe Internet basedonabackofficecooperationbetweenthedifferentpublicservicesinvolvedintheprocesses.the first2ndgenerationshopwasopenedin2007. Withinthiscontextofnewconceptsinthedistributionofservicesatone stopshops,thefirst ILostmyWallet servicewaslaunched.throughthisservice,acitizencanhaveidentificationdocumentsre issuedwithinthepublic Administrationservicesshouldtheybestolenandreporttheoccurrencetothecompetentauthority.Thisservice hopes to respond to over 20% of the enquiries made at the One Stop Agencies. Up till August, over 43,000 documentswererenewedatthetwoagenciesavailable. The Ready House service launched in July 2007 aims at eliminating the formalities of property transfer and registrationbydealingwithallaspectsinonesingleplaceandinonego.thisinitiativeisbasedonanelectronic communicationplatformbetweentheinterveningservicesandbodies(registryoffices,taxadministration,local authoritiesandfinancialinstitutions),ensuringnotonlyswiftnessandsecurityoftheserviceprovided,butalsoa reduction in costs to users (by about 900 euros considering a sale and purchase contract with a bank loan, excludingtaxes,andfollowingthecontractprocedures).thereare83 ReadyHouse agenciesavailableand,by June2008,over12,400 ReadyHouse procedureshadbeenaccomplished. 16

131 The SuccessionandInheritance Projectconcentratesthemainprocessesrelatedtoaperson sdeathandrecord ofinheritanceassets.itisnowpossibletocarryoutalloperationsrelatedtosuccessionandinheritanceatoneof the21agenciescurrentlyinexistence(divisionofassets,paymentoftaxes,andregistrationoftheassetsdivided). The Born Citizen project aims at having children registered immediately after birth at maternity clinics and hospitalswithouthavingtogotoaregistryoffice.67,000childrenhavebeenregisteredatthe32 BornCitizen agenciesalreadyinoperation(76%oftheinfantsborninhealthcentresencompassedbytheproject). The CitizenCard project,whichbeganinfebruary2007,hasbeenextendedoverthelasttwoyears.so,aswellas the nine islands of the Azores archipelago, it is now possible to obtain the Citizen Card in every district countrywide.approximately310,000applicationswereregisteredby15thseptember,170thousandofwhichhave alreadybeendelivered(ofthese,60%haveaqualifiedelectronicsignatureactive). Withinthehealthfield,the AppointmentonTime Projectallowedover327,000requestsforfirsttimespecialist appointments,involvingabout90%ofhospitalsandhealthcentresonthecontinent,inajointefforttoincrease theattendanceefficiencyandquality. Anotherstepforwardincitizens relationshipswiththelabourmarketwasthedematerialisationoftheworkand EmploymentForm(BTE).On lineconsultationmeansthatpaperworkisnolongerneeded,andthisresourcehas becomemoreaccessibletocitizensandcompanies.over284,000accesseshadbeenmadebytheendof2007. Asforthefiscalfield,thegambleusingtheInternetasameansoftransactionhasreceivedafavourableresponse fromcontributorsascanbeseenbytheincreaseinthenumberofaccessestothedgcianddgaiecsites(268% morein2007,thatis,from47.5to127.4millionaccesses).allformssoldatfinanceofficesweremadeavailableon theinternet.uptomay2008,thenumberofirsdeclarationsdeliveredviatheinternetrepresented69%ofthe totalnumberofdeclarationsdelivered(60%in2007).asforfillingindeclarationsbeforehand,approximately82% wereeffectivelydealtwithin2007(1,036,717declarationswerecompletedbeforehandoutofatotalof1,264,165 received via the Internet). Over 72% of the approximately 11.6 million rustic building registrations have been computerised,surpassingtheinitialobjectiveof50%. Withintheinternalsecurityrealm,afastlanehasbeencreatedforthosewithanelectronicpassporttobeallowed tocrossairandseafrontiers.papercheck in/outregistrationatallborderpostswaseliminatedbytheendof2007, and the new automated control system for owners of electronic passports was implemented (Faro, Lisbon and Funchalairports). Administrativesimplificationtargetingcompanies DuringthePortuguesePresidencyoftheEU,theEuropeanUnion scouncilofministersforcompetitiontookthe simplification path: elimination of the dual control of legality, the creation of online registration services, the creationofone stopshopsanddispensingwiththeobligationtoreportthesameinformationtodifferentbodies. InPortugal,theprocessestosimplifyformalitiesandcreatenewservicesforcompaniesareorganisedaroundthe idea of a life cycle, with every phase of a company s existence and activity, from its start up to its extinction, includingtheexpansionandconsolidationofitsbusiness.europeancommissionerfortheinternalmarket,charlie McCreevy,commentedfavourablyonPortugal sevolution,consideringthatthecountrywasabouttobecomea Europeanbenchmarkwithregardtocuttingcontextcostsforcompanies. The Company Portal enables electronic access to a wide number of public services, having become a powerful meansofcommunicationbetweencompaniesandpublicadministration. The Company within an Hour project continues to expand its network of locations from July 2005 to the beginning of 2008, over 48,000 companies were set up at the current 101 agencies available (about 70% of companies presently set up in Portugal). Approximately 2,173 companies had been set up through the Online CompanyRegisterbyAugust2008. Continuingthesimplificationprocessandeliminationoflinkednotaryandtraderegistrationacts,OnlineRegister 17

132 services have been made available on the Internet, through which it is possible to register businesses or other related acts (such as alteration to the company s administration or equity). The new service at where permanent certificates for company registration are available online has already issuedabout875,000certificates,thuseliminatingpaperformats. Over1,286,400publicationsofcompanies lifeeventswerepublishedonline,eliminatingseriesiiiofthediárioda República,andabout93%ofnationalbrandnamerequestsweremadeviatheInternetinAugust2008,through Brand online (1,096 applications). Portugal is one of the European countries where it is quickest to register a brand.in2007,80%ofapplicationswereregisteredin5months.in2006thewaitingtimewas7to8months,and in2002,itwas15months. With regard to the Tax Administration field, several simplification and dematerialisation measures were taken, suchastheexportstatementcopyforthenationalinstituteofstatistics(ine),whichisnowsentelectronically, thusreplacingpaperformatanditisestimatedthatbytheendofthefirsthalfof2008,approximately3,930,000 declarationsweresenttotheineviatheinternet. TheSimplifiedBusinessInformation(IES),combiningfourlegalobligations,previouslymadethroughfourdifferent public bodies, into a single act, received over 405,000 declarations in its first year available (2007). With the adoption of the scheme, the obligation to deliver the annual fiscal and accountancy statement, the record of accountsandinformationforthenationalinstituteofstatisticsandforthebankofportugalcannowbedoneina singleactthroughtheelectronicdeclarationssite. TheDecree LawforthecreationofacompanycardhasalreadybeenapprovedbytheCouncilofMinisters.This single electronic document includes the three relevant numbers for identification of corporate bodies: the collectiveperson sidentificationnumber(nipc),thetaxpayeridentificationnumberforcompaniesandequivalent bodies, and the company s Social Security identification number (NISS). In this way, the legal body card and taxpayercardforcompanies,whichwereissuedbytwodifferentpublicadministrationbodies(theirnandthe DGCI)despitehavingexactlythesameidentificationnumber,havebeeneliminated. Asforaccesstoacompany sactivity,acatalogueoflicensesandauthorisationshasbeencreatedinthecompany Portal this is a one stop shop where it is possible to access relevant information for each sector, such as applicablelegislation,competentauthority,andcontacts. In terms of access to industrial activity in particular, the already adopted simplification models were given continuityandthepromulgationofanewschemefortheexerciseofindustrialactivityisexpected.anumberof alterations is foreseen aimed at simplifying the licensing process based on the principle that the expected complexity of the procedures needed for the exercise of an industrial activity should be proportional to the respectiverisk.inthisway,differentlevelsofcontrolareestablishedpreviouslyaccordingtothepotentialriskand, at the same time, the unnecessary phases of the procedure are eliminated. Thus, the one stop shop was establishedandsothewholeprocesscantakeplaceviaasingleinteractionwithapublicadministrationservice, throughaphysicalordematerialisedchannel.ontheotherhand,thedecision makingperiodsareshorterandthe processesleadingtotheireffectivecomplianceareestablishedthroughtacitdefermentandbasedontheprinciple thatadditionalelementscanonlyberequestedoftheapplicantwithinacertainperiodandbyasingleinterlocutor the coordinating body. The backup information system integrated in the license catalogue among other features, will allow the interested party to see the procedure applied to his/her case beforehand, through a simulator,andfollowthedifferentphasesoftheprocess. The new scheme aims at consolidating the regulation that had, until now, been disperse, reorganising and includingitinasingledocumentoritsannexes,sothatuponrespectiveconsultation,itispossibletoobtainthe informationthatpreviouslyrequiredtheanalysisofseverallaws. AdministrativeSimplificationtargetingPublicAdministration The simplification and modernisation of administrative practices within Public Administration, especially dematerialisingofprocedures,aimatincreasingtheefficiencyofpublicservice. Anylawstobepublishedinseries1and2oftheDiáriodaRepublicamustnowbedeliveredelectronically this hasmeantacompletedematerialisationofrequeststoissuelawsandhasreducedtonsofpaperusedbythe7,000 bodiesregisteredinthenationalmint,aswellascuttingbyhalftheaveragetimetopublishlawsinthediárioda 18

133 República. The information and electronic availability of the Diário da República has been used profusely, with access to legislationandotherlawspublishedasfollows: ThenumberofvisitstothesiteoftheElectronicDiáriodaRepública(counter)increasedbynearly 50%:1styear(July2006toJune2007) 11.8millionvisits;2 nd year(july2007tojune2008) 16.8millionvisits The number of requests made through the Universal and Free Public Service (i.e. document consultation, document downloads, etc.) increased by nearly 100% in its second year of operation:1 st year(july2006tojune2007) 21.1million;2 nd year(july2007tojune2008) 41.9million In2008,duringaconsolidationphaseofthemeasuretoreinforceaccesstotheElectronicDiárioda República, historical usage maximums were reached: Nr of accesses in a day (counter) 158,896(11 Sept 2008);Nrofhitsinaday(clicksperpage)2,749,162(8 Jan 2008); Nrofdifferentusersinaday67,933(2 Jul 2008);Nrofusersaccessingsimultaneously2,907 (5 Feb 2007). With the new Public Contracting Code in force it is possible to use technology to launch public tenders electronically,establishthatcompulsoryevidenceofcompliancewiththequalificationrequirementswillnowonly fallonthebidderawardedthepubliccontracts,and,duringthephaseinwhichproposalsarepresented,bidders nolongerhavetoprovidequalificationdocuments(thiswillonlybenecessaryonthepartofthecontractor). 19

134 MICROLEVEL Inthemicroeconomicsphere,itwaswithdeterminationthatPortugalcarriedonwith theimplementationofpnaceinseveralpoliticalareas,aimingatattainingthegoalset forincreasedcompetitivenessandchangeofthecompetitivebaseoftheportuguese economy. Centred on that goal, work was developed in line with the priorities defined by the European Councils of spring 2006, 2007 and 2008, as well as with the domains identified by the Council as needing special attention ("Future Challenges") in the evaluationofthe2 nd executionreportforpnace. Infact,inlinewithoneofthe FutureChallenges forportugal,theimplementationof the Technological Plan was pursued a plan centred on the boosting of knowledge, technology and innovative capacity favouring the consolidation of the connections betweenresearch,highereducationandindustryandfosteringincreasedparticipation fromtheprivatesector. Some indicators that demonstrate the impact of the technological plan are: the inversion of Portugal s technological balance, which was positive for the first time in 2007; over 32% penetration of mobile broadband in population (with mobile broadbandleadership);theclassificationofportugalinthe3 rd placeoftherakingfor availability and sophistication of on line public services within the framework of the EU; and the return to school of 450,000 Portuguese that signed up for the new opportunitiesprogramme,forvalidationofskillsandre qualification. TheglobalresultsoftheTechnologicalPlancanbeseenparticularlyin6spheres: 1 (1) Network Society: where there are outstanding results in the increase of the coverageandpenetrationofthelandandmobileboardband;inthepercentageof public services available on line; in the increase of regular users of the Internet amongstpeopleagedbetween16and74years;intheincreaseofthecompanies withinternetandboardband;inthegreatincreaseininternationalconnectivityof thenationalresearchandeducationnetwork(rcts). (2)HumanResourcesQualification:aboveall,inthedecreaseinthelevelofearly drop out of the school system, with resulting increase in population between 20 and24yearsofagethathaveatleastfinishedsecondaryschool;intheincreaseof thepercentageofhighereducationgraduatesinthepopulationbetween25and64 yearsofage;intheincreaseperthousandgraduatesinscienceandtechnologyin thepopulationbetween20and29yearsofage;inbroadeningofhighereducation to new audiences and their involvement in professional training; and in the significantincreaseinphds. 1 See Annex on the evaluation of the Technological Plan. 20

135 (3) Science and Technology Infrastructure: the pledge made in scientific and technological development has been visible from the outset in the significant increaseofpublicbudgetaryappropriationsforr&d;intheincreaseofthenumber of researchers, in particular holders of PhDs; in the increasing promotion of R&D activities, namely in partnership and according to theme networks; in the significantincreaseofinternationallyreferencedscientificproduction(publications permillioninhabitants);andintheexpansionofe Scienceinfrastructures(research and education network, digital scientific libraries, open scientific repositories, computinggrid). (4) Financing System: the improvement in access to financing for innovation is shownintheincreaseofinvestmentinventurecapitalasapercentageofgdp,as wellasinthegrowthofthepublicexpenditureinr&dasapercentageofgdp. (5) EconomicActivityConditions:theconditionsoftheeconomicactivityhavealso significantly improved, as seen in the increase in foreign direct investment in Portugal as a% of GDP; the increase of the registering of patents and registered Community trademarks; and in the evolution of the weight of the production of renewableenergiesingrossproductionplusimporterbalance. (6) Entrepreneurship: the results of the technological plan are also felt in the increaseintheentrepreneurialactivityrate(globalentrepreneurshipmonitor)and in the consolidation of the processes that lead to the creation of new technologicallybasedcompanies. (7) Business Capacity: the Technological Plan also has significant effects in terms of business capacity; it is worth noting the increased employment in Knowledge IntensiveServicesinrelationtototalemploymentinservicesactivity;andthehigh proportionofsmethatdeclarehavinginnovatedinproductsandprocesses Scientificandtechnologicaldevelopment For the first time in Portuguese history, the public budget for research and development exceeded the figure of 1% of GDP in 2008, reaffirming the Government'scommitmenttotheprioritygiventonationalscientificandtechnological development(itwas0.78%ofthegdpin2007). This increase in public investment in R&D over the past few years is linked to an estimatedincreaseintheinvestmentofthecompaniesinr&dofabout75%inthe past3years,usingasreferencethefiguresdeclaredbythecompaniesfortaxpurposes in2006,comparedto2003,thelastyearinwhichthetaxincentivesystemoperated untilitwasreinstatedin2006bythepresentgovernment.infact,onlyafter2005did the company investment in R&D exceed the investment from higher education institutions. We now await the results of the National Scientific and Technological 21

136 PotentialSurvey 2007,initsconclusionstage,toconfirmtheexpectationsofavery significantincreaseinprivateinvestment. It should be stressed that this priority given to the rapid scientific and technological development of the country has been accompanied by a strong mobilisation of the national scientific community, with visible results in the impact of its assertion at international level, including the involvement of researchers from Portuguese institutions in European and international science and technology networks. This strengthenedinternationalisationofthescientificcommunityincludedtheincreased cooperation with Spain, namely through the creation of the INL Iberian International NanotechnologyLaboratory,andtheestablishmentofnewinternationalpartnerships in Science and Technology and Higher Education, with the New Partnerships for the FutureProgramme. The national scientific production has significantly increased in the past few years, amounting to a total of 6,655 internationally referenced publications in 2006(about 630permillioninhabitants),whichrepresentsa45%growthinthepastthreeyears;it shouldbehighlightedthattwoofthe5mostquotedscientificarticlesintheeuarecoauthoredbyportugueseresearchers. These development dynamics currently involve about 11,600 doctorate researchers working, in 2007, in R&D centres (measured in terms of full time equivalent ), representing a 25% increase in the past two years and double the number of doctorateresearchersincomparisonwith2000.moreover,duringthepasttwoyears, about20%ofthetotalofthenewdoctoratessince1990obtainedorhadtheirphds recognisedinportugal,andin2007thefigureofabout1,460newphdsperyearwas reached. It should also be stressed that the percentage of the number of new doctorate degrees achieved by women recently exceeded 50%, the highest percentageever.alsoworthmentioningisthefactthatthenumberofnewdoctorate degreesinscienceandtechnologyareascurrentlyrepresentsabouthalf(47.3%)ofthe totalofnewdoctorates,whileintheearly1990 sitrepresentedonly1/3ofthetotalof thedoctoratedegreesawardedatthetime(namely31.3%in1991and32.5%in1992). In addition, and reaching the highest point in a persistent evolution since the mid nineties,themonthlyfiguresofthetechnologicalbalanceweresystematicallypositive in 2007, showing the boost in the exports of technologically based services from Portugal and, as such, the increased technological capacity of the Portuguese companiesandtheirassertionatinternationallevel.alsointhiscontext,thenumber ofportuguesepatentsregisteredintheeuropeanpatentofficeandintheuspatent Officeincreasedabout90%and75%respectively,between2005and2007. Naturally, these results are encouraging the national effort in the investment in people,knowledgeandideasand,inparticular,thecommitmentassumedbyportugal fortheneedtopromotethenationalscientificandtechnologicalcapacity,namelyin the context of the European Research Area, together with the reinforcement and autonomyofthescientificandtechnologicalinstitutions. 22

137 WithinthescopeoffulfillingthePledgewithScience 2 presentedbythegovernmentin March2006,somebasicfactorshavecontributedtotheseimportantresults: The total number of advanced training scholarships, directly awarded by the Foundation for Science and Technology, has been increasing in the past few years, having reached 6,250 scholarships in 2007, of which about 4,900 are doctoratescholarshipsand1,350arepost doctoratescholarships.withinthis scope,thenumberofnewscholarshipsawardedonanannualbasisincreased very significantly, with a 77% increase in doctorate scholarships and 41% in post doctoratescholarshipsinthepasttwoyears. Within the scope of promoting scientific employment, the support for the placement of about 720 new doctorate degree holders has already been agreedwithinstitutionsfromthenationalscientificandtechnologicalsystem, followingcallsforapplicationsforopencontracts programsin2006and2008 by the Foundation for Science and Technology, with a view to supporting the hiringofatleast1,000doctorateresearchersby2009. In2008,theFoundationforScienceandTechnologyhasalreadylaunchedtwo new programmes to boost scientific and technological research, aiming at:(i) supporting the integration in research (in recognised R&D centres) of more than5,000studentsoftheearlyyearsofhighereducation,and(ii)supporting guestresearchchairsinportugueseuniversities. TheFoundationforScienceandTechnologyiscurrentlyfinancingabout4,940 R&Dprojectsinallscientificareas,whichcorrespondstoanincreaseofmore than800newprojectswhencomparedto2005.worthnotingisthefactthatin the last call for applications launched by the Foundation for Science and Technology projects amounting to more than 600 million euros applied for financing,correspondingtoamorethan25%riseinthenumberofprojectsand 100%intermsoffinancingrequested,whencomparedtothepreviouscallfor applications. Since the launch of the Pledge with Science in March 2006, four new AssociatedLaboratoriesweresetupintheareasofBiotechnology(1),Energy andtransportation(1)andnanotechnology(2). The extension of the RCTS in fibre ring to Spain and to the European Geant networkat10gbps,agreedintheportugal SpainSummitinNovember2005,is alreadyconcludedforthenorthasfarastheminho GalizaborderinValença, and will be concluded in the next few months for the East up to the Caia border. This way, Évora University and the polytechnic institutes of Viana do Castelo, Setúbal and Portalegre are also connected to the RCTS fibre cable 2 With ambitious goals for the term, this initiative involves the reinforcement of the scientific knowledge technological competences measured at the highest international level, human resources and the scientific and technological culture, reinforcement of responsibility, organisation in a network of R&D public and private institutions, internationalisation, high performance demand and evaluation, and attainment of economic value from research. 23

138 network.injuly2008,rctswasconnectedtothegeantnetworkat10gbps,a bandwidth8timesgreaterthantheoneavailableinjuly2005. In 2007, the Online Knowledge Library (b on) was extended to all scientific andpublichighereducationinstitutions,andanewfinancingmodelwasput intoeffectthatassuresthelibrary sdisciplinaryunitanduniversalaccess.the b on provides unlimited and permanent access in Research and Higher EducationInstitutionstomorethan16,750internationalscientificpublications, by 16 editors, through subscriptions negotiated at national level with these editors. In 2007, the number of articles downloaded in this library was 4.2 million(3.4in2005and3.7in2006). Inaddition,westressthecontinuationofthesettingupprocessofthePortugal Spain R&D Institute, INL Iberian International Nanotechnology Laboratory, following the decisiontakenbytheportugueseandspanishgovernments. 3 StillinNovember2006, the Portuguese Foundation for Science and Technology (FCT) and the Spanish DirecciónGeneraldeInvestigaciónopenedajointprogramofIberianempowerment in nanotechnology, through a call for applications for scientific research and technologicaldevelopmentprojectsinnanotechnology,withinthescopeofscientific and technological cooperation between Spain and Portugal related to the INL. The competitionwasspecificallyaimedatthefollowingthemes:nanomedicine(diagnostic systems, therapeutic applications and drug delivery ) and nanotechnology for environmentalcontrolandforfoodsafetyandquality.thecompetitionwasdirected towards multidisciplinary research teams of international scientific and technological excellenceinthesethemes,andmixedteams,i.e.involvingresearchersintegratedin Portuguese and Spanish institutions; each project was required to have at least one teamfromeachofthecountries.theevaluationoftheseprojectswascarriedoutby an international panel of independent evaluators established in other countries, appointedbyagreementbetweenfctandthedireccióngeneraldeinvestigaciónfrom Spainandthisisthefirsttimethatthetwocountriesadoptedthisevaluationscheme of bilateral cooperation projects. 10 research projects were selected, with a total amountof2.8millioneuros,involving36researchteamsfromportugueseinstitutions and the same number of teams from Spanish institutions; 15 doctorate scholarships wereinitiallyawardedandtheopeningofanewcallforapplicationsisnowplanned. Therearealsoplanstointegratepost doctoralstudiesinareasofspecificinterestto INL,tobecarriedoutinisinternationallydistinguishedlaboratories. The call for an international tender for the first stage of the construction of the INL took place in March 2008; work on the first facilities is expected to start already in 2009.Thestaffrecruitmentwillalsobegintotakeplacein Institute created by Portugal and Spain in 2005; the first international research laboratory in the Iberian Peninsula within the scope of nanoscience and nanotechnology, aiming at being seen as an institution of international excellence, with about 200 researcher from Spain, Portugal and other countries, and with an annual operational budget of about 30 million euros and additional investment of a similar amount assured in equal amounts by the two countries. 24

139 Establishedin2006,theinnovativeprogramPartnershipsfortheFuture 4 seeksnew internationalpartnershipsinscienceandtechnologyandhighereducation: The first stage of the international partnerships launched in 2006 was successfullyconcluded;,inseptember2007,thefirstdoctorateandadvanced training programs were officially launched, bringing together several Portuguese universities and American universities of great international prestige,namelymassachusettsinstituteoftechnology(mit),carnegiemellon University(CMU)andTexasUniversityinAustin(UTAustin).Forthefirsttimein Portugal,theseprogrammesenabledactualthemednetworksinvolvingawide range of Portuguese institutions to be implemented in 2007, with the aim of stimulating their internationalisation based on oriented projects of advanced training, sustainable plans for the stimulation of new knowledge and valorisation of new ideas, together with companies and institutions of internationalrepute. Within the scope of the MIT Portugal programme 5, launched in September 2006,focusingonEngineeringSystems,intheareasofEnergy,Transportation, Design and Production and Bioengineering, several joint degrees were launched in cooperation with MIT. The new advanced training programmes developed with MIT stimulate the capacity of the Portuguese institutions to attractstudentsfromvariouscountriesandtheyinvolvedabout130students in the first year. During 2008, and for the second year of the programmes, more than 350 applications were received, about 60 new doctorate students and 45 in professionalising master degree courses. Portuguese and MIT professors and researchers have identified more than 30 priority areas in research and development, particularly in complex processes associated to design engineering and industrial production systems, sustainable energy systems, bio engineering systems and transportation systems. In this context, projectsofinterestfortheeconomicsectorinportugalwerelaunched,andthis synergy is also valued by the industrial affiliation programme notably in the automotiveandenergysectors. The CMU Portugal Programme 6, launched in October 2006, in the areas of information and communication technologies, also started the different postgraduationprogrammesinseptember2007thatleadtoajointdegreebetween the Portuguese institutions and CMU. During 2008 and aiming at the second yearofthedoctorateandmasterprograms,24newdoctoratestudentsand55 master degree students have begun their studies. The partnership with the CarnegieMellonUniversityalsoincludesthedevelopmentofresearchactivities in several aspects of information and communication technologies; in particular,duringthepastyearseveralinitiativeswereactivatedwithportugal 4 The Partnerships for the Future aim at inciting the international opening of the universities and stimulating the international excellence of R&D activities and those of higher education in the latest S&T areas

140 Telecom, Nokia Siemens and Novabase within the scope of the Industrial PartnersProgrammewhichalsoincludessomeofthemainnationalsmalland mediumsizesenterpriseswithatechnologicalbase. Within the scope of the UTAustin Portugal Programme 7, launched in March 2007, the main programme areas include: i) digital contents and multimedia production and distribution; ii) advanced computing; iii) mathematics; and iv) science and technology trade, including the design and execution of new corporate projects of scientific and technological base. The main joint degree doctorateprogramsbetweenportugueseinstitutionsandutaustinwillstartin 2008, and the first call for applications for research projects in the areas identified is also open until October Through the establishment of the UTEN network, University Technology Enterprise Network, the aim is also to mobilise centres of innovation and technology transfer and support for the economicvalorisationofscience,alreadyexistinginmostresearchandhigher education institutions, maximising their impact in the strengthening of the scientific base and in the growth and competitiveness of the Portuguese economy. These activities include supporting the incubation and growth of Portuguese technologically based companies in emerging markets in close cooperationwiththeaustintechnologyincubatorati. For the first time in Europe, it was decided to establish the first Fraunhofer InstituteinEuropeoutsideGermanyinPortugal,tobelaunchedbythefaculty of Engineering of Porto University. The director was selected and appointed and the activities begun in June The competitive and international recruitment of about 30 senior researchers is foreseen during the first stage. This Institute will work in the area of Information and Communication Technologies,particularlyinAmbientAssistedLiving.TheestablishmentofR&D consortia and cooperation projects are also foreseen involving Portuguese institutions and Fraunhofer institutes in four themes: i) logistics; ii) biotechnology; iii) advanced production systems with application in the automotiveindustry;andiv)nanotechnologies. The preparation of new international partnerships is underway, particularly a newpartnershipwithharvardmedicalschoolintheareaofmedicalsciences. Thepubliceffortintheinvestmentinscienceandtechnologyalsoledtotheincreasein the intervention of the Live Science Agency and the national and international projection of its work of exceptional public interest thus favouring the promotion of scientificculture;thefollowingactionsmeritspecialmention: The Live Science Agency approved in the past year, and are already in execution, about 1,100 new projects for the reinforcement of experimental teaching of sciences in basic and secondary schools and for actions boosting Scientific and Technological Culture, corresponding to 14 million euros of publicfundingbetween2007and

141 TheLiveScienceCentresNetworkwasincreased,andtodayithas16Centres;it hasstarted6newcentressince2005,representingandinvestmentofabout8.3 million euros. At least 5 new centres are also foreseen to be added in In the past year, within the scope of the Live science in the holidays, there were 856 industrial placements of secondary education student in about 70 institutions of research and higher education, including, for the first time, an exchange between Portugal and Spain, which embraced more than 60 students. This programme has already embraced more than 5,800 secondary schoolstudentssince1997. The mobilisation of thousands of Portuguese in the Summer for holiday activitiesinastronomy,biology,geology,engineeringandvisitstolighthouses, involving about 136 institutions in the past year, which assured more than 2,300 dissemination activities throughout the country. About 17,000 Portuguese have signed up for these activities online, although the total number of participants is much higher, since many activities do not require priorregistration Anewimpulsetoinnovation Ofthemeasurestakentopromoteanewthrustforinnovation,wenotethefollowing, whichhaveenabledtheinterventionoftheinnovationagencytobeextendedto700 morenewcompaniessince2005: The support to eight Competence Networks, involving numerous companies andresearchentities; ThecompletionoftheKnowledgeValorisationNetwork,whichnowcoversall publicuniversitiesandmostpolytechnics; Thecreationof190R&Dcentresincompanies; The support to hiring of Doctorate and Master Degree holders by the companies, which has reached a total of 354 doctorate and master degree holderssupportedinnumerouscompanies; The dissemination of the Scientific Employment Grant for companies, which hasexceededmorethanonethousandsubscribers; TherecoveryofSIFIDE TaxIncentiveSystemforBusinessR&D,from2006on, whichreveals50%moreapplicationsthanthesameperiodofthelastyearthat ithadbeeninforce; 27

142 There launchofthesupporttoconsortiumresearch; Thegreatsuccessinthesupportinthecreationofnewtechnologicallybased companies. In the dissemination of the applied R&D, a large exhibition of results was organised duringthe3 rd InnovationDays,inwhichnewdisseminationtoolswerelaunchedonthe Internet: MontradoPortugalInovador (InnovativePortugalShowcase)and Bolsade OfertaeProcuradeTecnologia (TechnologySupplyandDemandExchange). In the opening of calls for applications oriented towards the goals of public policies, emphasis goes to the cooperation between the Innovation Agency (Adl) and the MinistryofHomeAffairswithinthescopeofthelaunchofthePortugueseElectronic Passport; this led to the development of an innovative device for the collection of biometric data by a Portuguese SME (also already in use in the Citizen s Card) and subsequently control equipment for electronic passports(already in use at Faro and Lisbon Airports); the cooperation of Adl with the Ministry of Health in processes attractingtechnologicallybasedforeigninvestmentandintheidentificationofresults tobevaluedandcompetencesforfuturedevelopments,involvinginnovativeproducts, processesandserviceswhichassuretheincreaseanddepthofthetechnologicalbase; theincreaseinmarketcompetitivenessandthecapacitytoexport. Business R&D has had an accelerated growth, led by a increasing number of companies,asseenintheresultsoftheuseofthetaxincentivesystemforbusiness R&D(SIFIDE) reintroduced in Its impact in the economy s competitiveness is alreadyclearlyvisibleandisreflectedinthetechnologicalbalanceofpaymentsandin thechangedprofileofindustrialexports. The main advances seen in the promotion of the effective use of the ICT and of an inclusive information society are included in the page dedicated to the Connecting Portugalinitiative(ConnectingPortugalDriver) BetterBusinessEnvironment,inparticularforSMEs In the pursuit of a better environment for companies, a set of initiatives is being implemented, of special relevance to the priority action defined in the European Council of Spring 2006: Boosting the potential of companies in particular that of SME. In this context, we note the developments that took place within the scope of the administrative elimination and simplification programme, the results of which are mentioned in the previous chapter (see Modernisation of the Public Administration Driver:simplificationofbusinesslife). 28

143 In particular we highlight the recent measures for the simplification and access to industrialproperty PublicationofDecree law143/2008,ofjuly25 whichapproves different simplification measures and access to industrial property, that strives to reachthreeobjectives:i)thereductioninthetimerequiredfortheconcessionofthe industrial property records; ii) the elimination of unnecessary formalities, which burden citizens and companies; and iii) the creation of new services to stimulate innovation. Reducing deadlines with the goal of enabling trademark registration in just threemonths.in2005,theregistrationofatrademarktook,onaverage,almost 12monthstobegranted.Currently,withtheonlineindustrialpropertyservices ( and several internal simplifications, the trademark registrations take on average about 4 months, as long as there is no litigation involved. Portugal is already one of the quickest countries in Europe for obtaining a trademark registration. In case of drawings and models, the aim is for the registration to take less than four months. Currently, the registration of drawings and models take, at least, about 9 months where there is no litigation. Several formalities that unnecessarily burdened citizens and companies were eliminated. This is the case of the suppression of the obligation to obtain the trademark concession title, which was not required to confirm the trademark registration.theinterestedpartiesnolongerhavetobearthiscost(about22 euros). Another example is the elimination of the obligation to present the declarationofintentiontousethetrademarkeveryfiveyears.thisredundant andunnecessaryformalitycostabout27euros. New services have been created to encourage innovation, such as the provisionalpatentrequest.thisisanewinstrumentthatenablesthepriorityof a patent to be established immediately, in Portuguese or English, with a minimum of formalities and at reduced costs. From this presentation, 12 monthsaregrantedforthepresentationoftherequireddocumentation.thisis a new service that constitutes an encouragement to patent registration by small and medium inventors who can now immediately establish a priority throughasimplifiedactthatinvolvelowercosts. ThesemeasuresenteredintoforceonOctober1,2008. With regard the access to financing, emphasis goes to the implementation of the FINICIA Program, with the creation, from September 2007 to August 2008, of a PlatformintheAzoresandthecreationofFundsofMunicipalscope.Theresultsof the implementation of this programme are mentioned in the Knowledge and InnovationNetworksDriver,inthecontextoftheFINICIAPlatforms. Regardingthepublicinstrumentsforventurecapital,anewlegislationforthesector wasapproved(decree law375/2007,datednovember8). The InovJovem Programme has continued; its aim is the integration of young people withhighereducationqualificationsinsmesanditwasoriginallyconceivedtoinvolve 1000youthsbutithasapproved1149applicationswhichisequivalentto4674youths coveredsincethestartoftheprogramme;4439ofthesehavealreadybeenintegrated. 29

144 Theexecutionin2007wasover90%:almost700traineesandabout80supportsfor integration. WithaviewtoboostingbusinessinvestmentwithinthescopeoftheRecognitionand Monitoring of Projects of Potential National Interest (PIN) (measure 29), 156 investment projects were presented for evaluation and granting the PIN status, of which62(53%)wererecognisedasbeingofpotentialnationalinterest.someofthese projects had waited for more than a decade for licenses and permits for their execution. IntermsofTourism,allprojectsregisteredinthemeasure(42) Reinforcementofthe Tourism Cluster of PNACE, were undertaken; a fundamental instrumental base was set up platforms (PróTurismo, Geographic Information System) as well as new methodologies(newmodelcontractingforpromotion,internationalcooperationfor External Promotion, Tourism Satellite Account, development models for strategic products,internationalcooperationfortraining) essentialtocarryoutthenational StrategicPlanforTourism. TheInternationalisationProgrammeforeseeninPNACE(measure43),whichaimsat the improvement of external competitiveness, integrating four initiatives, was concluded. TheproximitynetworkinSpainwasbuilt,andtherearecurrently4supportpointsin operation Madrid, Barcelona, Vigo and Mérida providing support to company activity. The Brand Portugal project consists of carrying out promotional initiatives in a restricted number of markets, aiming at contributing to the change in perception of theimageofportugalinthosemarkets.imagecampaignswereconductedingermany, Angola, Spain, Russia and Brazil. These initiatives helped to create conditions for the growthofexportsintothesemarkets,inparticularinthecasesofangola,russiaand Brazil. Withinthescopeofthe Increaseoftheexportbasethroughthepledgeinimportant lines, several information, formative and promotional initiatives were undertaken, contributingtotheincreaseinthenumberofexportingcompaniesandthechangein the structure of our exports, based on more innovative and technologically more developedsectors,generating,thus,grateraddedvalueforthenationaleconomy. The Inov Contacto Programme led to 578 industrial placements, 15% more than the initialobjectiveof500placements.inapril2008,thegovernment,throughthecouncil ofministersresolutionno.63/2008,launchedanewstageboostingtheprogramme. Inthisway,itwasestablishedthattheInvContractshouldprovideanannualaverage of550industrialplacementsduringthenext3years. Alsoaimedatdevelopingtheeconomicuseofendogenousresources,thestructurefor theboostingoftheseastrategywaslaunchedwiththecreationoftheinterministerial CommitteeforSeaMatters,asaresultoftheResolutionfromtheCouncilofMinisters 40/2007;theobjectiveistocoordinate,monitorandevaluatetheimplementationof 30

145 the National Strategy for the Sea, assuring its articulation with other strategies, planning instruments and programmes of a clear transversal scope. The InterministerialCommitteeforSeaMattersdefinedthefollowingprogrammesinthe contextoftheimplementationofthenationalstrategyforthesea: 1. PlanningandOrganisationoftheMaritimeAreaandActivities 2. InformationandKnowledgeNetworkfortheSea 3. Surveillance,SecurityandDefencefortheSea 4. CommunicationandAwarenessRaisingfortheSea 5. InternationalCooperationfortheSea TheseProgrammesaretheembodimentofstrategicactivitiesincludedintheNational StrategyfortheSeaandincludesasetofPlansofActionwhichenabletheproposed objectivestobereached.for2008,thefollowingplansofactionwerelaunchedwithin thescopeoftheseprogrammes: PlanningtheMaritimeAreaPlan; ProceduralSimplificationandLicensingofMaritimeActivities; EnvironmentalMonitoringintheExclusiveEconomicZone; InformationSystemforMaritimeBiodiversity; NetworkofProtectedMaritimeAreas; DefinitionoftheTermsofConstitutionoftheOceanicConsortium; UpdatetheCleanSeaPlan; SeaAwarenessRaisingCampaignandPromotion; InclusionoftheSeaThemeintheProjectAreaandEducationalResources; InternationalCooperationfortheSea(CPLP). In addition, in accordance with the commitment presented in the programme of the 17 th Constitutional Government, also included in the first primary action of the NationalStrategyfortheSeaandintheobjectivesofthisInterministerialCommittee for Sea Matters, the creation of a Permanent Forum for Sea Matters was approved. TheForumwaslaunchedonMay7,2008. TheaimofthisForumistoassureanincreasedparticipationofthecivilsocietyinthe decision processes, the creation of consultation mechanisms of the public entities to non governmental organisations, companies and citizens, the monitoring of the activities, measures and policies adopted, the boosting of the sea economy and the disseminationandaccesstorelevantinformationwithinthescopeofseamatters. These initiatives are in full alignment with the lines of action presented in the Blue PaperfortheEuropeanMaritimePolicyadoptedbytheEuropeanCommissionduring theportuguesepresidency. With regards the extension of the Portuguese continental platform beyond 200 nautical miles (proposal), the exploratory hydrographical surveys have been concluded in the area of Continental Portugal and Madeira archipelago and 95% of these surveys were made in the area of the Azores archipelago. The seismic 31

146 exploratorysurveysareincludedfortheareaofthegalizabank,swofmadeiraandse of the Azores archipelago. This data, which covers an area of more than 1.2 million square metres, enables the preparation of formal documents that constitute the proposaltoextendportugal scontinentalplatform;thisdocumentwillbedeliveredto the Commission for the Continental Platform Limits, created within the scope of the UnitedNationsConventionontheSeaLaw,inMay2009. WiththeacquisitionoftheROVLuso,withadivecapacityof6000metres,additional surveyshavebeencarriedouttodemonstratethegeologiccontinuityofspecificareas of the extended platform. The execution of hydrographical surveys will also be undertaken to check and complement, notably, the definition of the whole of the bathymetricextensionof2500metresandsaturationinareasalreadyselectedwhilst alsocarryingoutadditionalsurveysformagnetismandgravimetry FosteringEntrepreneurship Inwhatconcernsthepromotionofentrepreneurship,theinterventionlogicinPortugal has been to dynamise an all embracing approach, including several measures, assumedinthecontextofinterventionfromthedifferentministriesandwhichactin anintegratedwayduringthewholelifecycleofpeople.inthisframework,therehas beenapledgeinthecreationanddevelopmentoftheenterpreneurialspiritandinthe promotion of qualified entrepreneurship, aimed at the emergence of new managers andnewcompaniesinstrategicareasofstronggrowthpotentialandinnovation. The promotion of an entrepreneurial culture, through the creation and development oftheentrepreneurialspiritfromthemoreelementarylevelsofcompulsoryschooling, hasrepresentedasignificantpartoftheeffortundertakeninportugal. Therefore, entrepreneurship represents a fundamental interface activity between education/training/insertion in the labour market, in the current educational system andconstitutedthevehicleforharmoniouslymatchingtheeducationalsystemandthe economicandproductivesystem. Thefollowinginitiativesstandout: Project Education for Entrepreneurship developed within the framework of the Ministry of Education (DGIDC). The mission of this programme is to guarantee that young students have access to an education which motivates their entrepreneurship, through the development of competencies integrated incriticalandcreativethinking,orientedtowardschangeandproblemsolving. This programme is directed at students, management bodies, teachers and other education and school guidance technicians, as well as the remaining beneficiaries and active intervening parties (students / teachers / parents / technicians/localcommunity). 32

147 At a local level, the sustainable development of the project was achieved throughtheinvolvementofpartnerswhoactivelyparticipateinallstagesofthe project,forexample,thetechniciansoftheregionaldirectorateforeducation, ParentAssociations,CentralBusiness(CB)andBusinessInnovationCentre(BIC). ThisprogrammewasinitiallydevelopedasapilotversionbetweenSeptember 2006 and September 2007, involving 23 pilot schools, 143 projects completed and involving 1,681 students (from basic to secondary Schooling) and 119 teachers,involvingatthisstage99schools.fromaugust2007itwasextended toallschoolsofthecontinent. ENE Project Enterprise at School in the scope of the EQUAL initiative, developed between June 2002 and October 2004 by BIC Algarve Huelva, in partnership with local/ regional authorities, amongst which the Algarve RegionalDirectorateofEducation. In2006,theprojectwasspreadtothewholeoftheContinentalPortugalandit is currently in the appropriation stage in several schools. The aim of this initiative was to provide a complementary response to the curricular programmes of secondary schooling, especially favouring the active participationofstudentsandtheiraccountabilityindesigningtheirownpaths. The ENE, for students aged between 15 and 19 years, the majority of whom attending technological courses at secondary school, was applied in ten secondaryschoolsinthealgarveasanonformallearningprogramme,working with subjects such as Business Organisation Techniques and administrative Works or, transversally, in the Project Area with an average duration of 3 hoursweekly. It is basically a learning programme set around the preparation of a Business Planduringoneschoolyear,assistedbydidacticmaterialsandbyadiversified range of activities which include, amongst others, teacher training, visiting companies, competition of ideas, pitching of business ideas, company internshipsandtransnationalcooperation. Programme Think Industry, which was considered to be a good practice regardingyoungpeople sawarenesstoindustrial basedactivities. Within a framework of a greater scope and transversality, the efforts in promoting entrepreneurshipinportugalalsoinclude thestrategicstimulationofthecreationof new business ideas and the emergence of new managers with a new vision of business which enable their future sustainability. Emphasis goes to the following initiatives: Programme enterprise +, which integrated a set of actions based on the followingobjectivesandresults: 1. Inductionofattitudesandbehavioursleadingtothedevelopmentofan innovative,technologicalandenterprisingculture cycleof30seminars, of a regional and thematic nature, in partnership with universities, polytechnicsandotherknowledgecentres); 2. Development of competencies for entrepreneurship, through the creation of an entrepreneurship lab, stimulation of the packet of ideas and means and by the implementation of a programme of 33

148 Training for Entrepreneurs, providing management tools at different levels.inthescopeofthisaction,themainresultsareasfollows: providing access to specialised consultancy support for the preparation or strengthening of business plans (125 business planswerebackedin2007and2008); boostingcompetenciesinprojectpresentationtechniques; organisation of missions abroad to participate in events of reference. 3. Dynamising of private investors networks (BA Business Angels), in whichcooperationwasestablishedwiththeexistingbanetworks; 4. Fostering the start up of new companies and supporting the beginning ofactivitybymeansof: 1. Providing coaching to 14 emerging companies with innovating characteristics/technologicalbase; 2. Enablingaccesstoincubationprocessesto6companies;and 3. Enabling access to sources of financing Enterprise Market of IdeasandFinancing(RiskCapital,BusinessAngels,banksandother privateinvestors). Programme NEOTEC (new technology based companies), launched in 2005, aimsatthevalorisationoftheentrepreneurialpotentialandthestimulationof aninnovationculture.untiltheendof2007,116projectswereapprovedand 61 technology based companies were formed in the areas of biotechnology, electronic, automation and robotics, amongst others, with emphasis on the factsthattheentrepreneurialteamsinvolvearound145doctorates,94masters and138graduatesandthat74%oftheseentrepreneurialteamsareaimedat theworldmarket.becausetheyconcentrateonactivitiesofhightechnological intensity, developing and producing in the great majority of cases means of production for other sectors, the importance of these technology based companiesismultipliedbyitsdiffusinginnovationeffecttotheentrepreneurial fabric. Programme NEST (Technological Support Companies), which fosters technology basedentrepreneurshipthroughthecreationandstrengtheningof a capital network with capacity to invest in existing technology based companiesandthroughenablingadialoguewithcompaniesspecialisinginrisk capital.around40companiesweresupported. Competition of ideas, by creating conditions for the formalisation of good business ideas, which in many cases would otherwise be retained in the intensionsofthepromotersandatr&dcentreswheretheyoriginatefromand investmentforums;itconsistsofthecreationof spaces withtheobjectiveof bringing entrepreneurs, investors and managers together to debate and stimulatetheinvestmentintheseedingandstartupstageoftechnology based companies. 34

149 Equally directed towards entrepreneurship, mention must also be made of measures more directed towards specific publics, which promote the creation of selfemployment, such as Local Employment Initiatives (ILE), backing for Employment Projects promoted by beneficiaries of unemployment benefits (APE) and also Microcreditsupportedbydifferententities(IEFP/ANDC/ANJE). LocalEmploymentInitiatives 8 (ILE) measurewiththeobjectiveofsupporting the projects leading to the creation of new entities and which originate net creation of new jobs, contributing towards dynamising local economies by meansofsmallinvestments. ExecutionoftheILEbetween st ofdec st ofdec st Dec2007 Covered Payment Covered Payment Covered Payment ILE 3,889 24,681, ,377 27,955, ,162 28,413, Source:IEFP ActivityReport. Covered(n.ofPeople);Payments(Euros). BackingofEmploymentProjectspromotedbybeneficiariesofunemployment benefits 9 (APE) aimed at backing employment projects promoted by beneficiaries of unemployment benefits, as long as they guarantee the promotersafulltimejob. ExecutionofAPEbetween stDec stDec stDec2007 Covered Payment Covered Payment Covered Payment APE 1,608 3,379, ,705 3,514, ,766 3,390, Source:IEFP ActivityReport. Covered(n.ofpeople);Payments(Euros). GiventheirimportancewithinthePortuguesecontext,theseinitiativesareplannedto continue in the period, namely within the framework of the Human PotentialOperationalProgramme,throughaxis5 SupportingEntrepreneurshipand Transition into Active Life, specifically in the Supporting Employment intervention typology.afterafirstevaluationoftenderscompletedby15 th April2008,5applications weresubmittedinarequestedamountof48,060,000. Still in relation to these specific publics, mention goes to Microcredit, based on a partnershipbetweenthreeentities:thestate,throughtheinstituteofemploymentand VocationalTraining(IEFP),whichsuppliestechnicalandfinancialsupport,theNational AssociationfortheRighttoCredit(ANDC)whichoperatesasmediatingentitybetween technicalsupportandfinancing;andseveralbankorganisationsprovidingmicrocredit. 8 Alteration with Ordinance n.196-a/2001 of March 10th and the initial creation of Decree-Law n.189/96 of October 8th. 9 Creation with Ordinance n.196-a/2001 of March 10th. 35

150 Themaximumamountofsupportsuppliedisof12,000Euros(30timestheguaranteed minimummonthlyremuneration).sinceitbeganin1999anduntiltheendof2007,747 companieswerecreated,withagreedcreditofover3millioneuros. Following the promotion of Microcredit, a protocol was established between the PortugueseGovernmentandtheImamatIsmailiinDecember2005,forthecreationof amicrocreditbankasanonprofitagency,withtheaimofhelpingthepeoplewhoare moreexposedtosituationsofpovertywhenpreparingtoparticipateintheextended economyandaccessinghealthcareandeducation. Additionally, focus goes to a line of credit especially designed to finance young and smallprojects,amountingtoatotalof250,000,withan80%limitonthevalueofthe totalinvestment. Parallel to this, focus goes to the action among other underprivileged public in the labourmarket,includingwomen,theprisonpopulationandimmigrants. Women:Measure SupportingFemaleEntrepreneurship 10 measureaimed at assisting the creation of support networks to female entrepreneurship and thevocationaltrainingadaptedtothecreationandconsolidationofmicroand small companies, favouring the access to self employment. This measure was centredintheapprovalofvocationaltraining/consultancyactions,aimedatthe creation,developmentorconsolidationofmicroandsmallcompaniesmanaged bywomen. By2007,(November)around142projectswereapproved,correspondingtoan investmentofaround9,889,484.around3,728womendidvocationaltraining and 1,050 received consultancy. It is important to mention that around 387 womenwereaidedinsettingupacompany. ThisisexpectedtocontinuewithinthescopeofPOPH,throughaxis7 gender Equality, intervention typology 7.6 regarding Supporting Entrepreneurship, associationsandthecreationofentrepreneurialnetworksofeconomicactivities managedbywomen. Prison Population: Project Entrepreneurship for the Social Reinsertion of Prisoners with the strategic object of creating conditions for the socioprofessional (re)insertion of the prison population and avoiding their relapse into crime, through a pledge with the development of competencies of entrepreneurship, led by the General Directorate of Prison Services (DGSP), integratedinthe Managetoinnovateintheprisonservices partnershipand co financed by the Community Initiative Equal, with a budget of one million, fivehundredandforty eightthousandeuros. The possible options at the end of this project are freelancing, creating one s business,workingforsomeoneelse,returningtoschoolorvocationaltraining. 10 Operational Programme Employment, Training and Social Development, financed by the European Social Fund. 36

151 The pilot project lasted a total of 12 months and took place in five prison establishmentsspreadovercastelobranco,leiria,sintraandbeja. The project was implemented for the first time in May 2006, involving 50 professionals(directors,headsofprisonguards,subheadsandprisonguards, Technicians and Teachers) and 50 prisoners. Currently a second edition of the projectisbeingpreparedatthepilotprisonestablishmentsand,from2008,the projectwillbeextendedtothewholeprisonsystem(52prisons). Immigrant Population: At the end of 2006, a Nucleus of Support for Entrepreneurship (NAE) was opened in order to stimulate entrepreneurship among immigrants by supporting: i) entrepreneurial initiatives; ii) company start up process and iii) existing products in the financial system. A Support Guide for the Entrepreneur is being prepared; the aim of the High CommissionerforImmigrationandInterculturalDialogue(ACIDI)istointensify the articulation with the National Association for Credit so as to improve the supportintheconcessionofmicrocredit Energymarket Intheenergydomain,alsoinlinewithoneofthe FutureChallenges dealtwithinthe first part of this Report, the move has been towards a liberalised and competitive market, with the following legislative acts having been published regarding the functioningoftheiberianelectricitymarket: Decree Law 264/2007, of 24 July, which alters Decree Laws 240/2004, of 27 December, and 172/2006, of 23 August, putting in place a number of measures aimedatimplementinganewstageintheconsolidationandfurtherexplorationof the Iberian Electricity Market, dealing with the process for early stoppage of the PowerPurchaseAgreementsreferredtoinDecreeLaw240/2004,of27December, and altered by Decree Law 199/2007, of 18 May, for the purchase of electricity by thesupplieroflastresortandthecreationofapowerguaranteemechanism Order nr /2007, of 4 December, by the Energy Services Regulatory Authority approvingthejointrulesforcontractingportugal Spaininterconnectioncapacity; Governmentordernr.57/2008,of11January,whichdefinestherulesapplicableto the sale of electrical energy via virtual capacity auctions of electrical energy production; Ordernr.2838/2008,of5February,regardingtheelectricityvirtualcapacityauctions bythesellersactuatingwithintheiberianelectricitymarket. Thevirtualcapacityauctionshavecontributedtowardsincreasingtheliquidityofthe market.frominceptionuntiljune2008,theaccumulatedelectricalenergytradedhas been44458gwh,withatotalvalueof2,361.9m. 37

152 Portugal is already an example to follow in promoting the liberalised, competitive market: PortugalisoneofthethreeEUcountrieswithfullunbundlingoftheelectricityand gasnetworks,withassetsconcentratedinthesamecompany; It has one of the most ambitious objectives in the EU for interconnection capacity, morethan20%in2010,currentlyalreadyover10%; Portugal is one of the six countries with the lowest public capital among market players,togetherwiththeunitedkingdom,germany,belgium,spainandireland; TheIberianElectricityMarketisthesecondregionalelectricitymarketimplemented intheeu,witharound30millionconsumers. Inadditiontotheobjectiveofpromotingaliberalisedandcompetitivemarketinthe energy sector, the Government established another two objectives, environmental compatibilityandsupplysafety,whichareenshrinedinthenationalenergystrategy. Thisisanambitiouspolicythatisanimportantfactorforthesustainedgrowthofthe Portugueseeconomyanditscompetitiveness.Thedevelopmentsinthissectorareset outintheenergydriver. Driver3.Informationandinnovationnetworks Globalisation and the rapid changes in technology that characterise today s society have made it necessarytopromotetheeffectivediffusionofknowledgeanditseconomicappreciation,keyfactors forinnovationandcompetitiveness. The Information and Innovation Networks, established on a partnership basis and on specialised sub networks within the different segments in the process for generating the economic appreciation of knowledge, are recognisably important instruments for encouraging economic activity. The emphasis giventothedevelopmentofinformationandinnovationnetworks,withaviewtoexcellencebasedon the collaboration of institutions in the scientific and technological system, higher education and the economic fabric, is a powerful instrument for improving the match between technology supply and demand,aswellasfacilitatingaccesstofinancingforinnovation. Activity in this domain includes the setting up of initiatives aimed at supporting the creation and galvanisation of R&D Thematic Networks, namely via the MIT Portugal, CMU Portugal and UTAustin Portugal programmes, together with the formation of the Competitiveness and Technology Centres, groupingsofcompanies,teachingandtrainingestablishmentsandresearchunitsgearedtowardsthe developmentofinnovativeprojectswithhighcollectiveefficiencyandstronginternationalvisibility. Inthiscontext,concreteandcomplementarymeasureshavebeenputintopractice,including: ThematicnetworksandR&DconsortiaintheNewPartnershipsfortheFuture InanunprecedentedmoveinPortugal,thenewinternationalpartnershipsinScienceandTechnology andforhighereducation,launchedin2006and2007,havemadeitpossibletoimplementnewr&d consortia throughout 2007 via thematic networks, involving a wide range of Portuguese institutions, 38

153 with the objective of stimulating internationalisation, and based on advanced training supervised projects,sustainableplansforstimulatingnewknowledgeandappreciatingnewideasincollaboration withrenownedinternationalinstitutions. Inthiscontext,researchersatPortugueseinstitutionsandatMITaredevelopingjointR&Dactivitiesin priorityprojectsandthemes.thethematicnetworksinclude: IntheMIT Portugalprogram,apartnershipestablishedwiththeMassachusettsInstitute oftechnology(mit),focussingonengineeringsystems,theareasof(i)sustainableenergy Systems,(ii) Transport Systems,(iii) Advanced Conception and Production Systems and (iv) BioengineeringSystems IntheCMU Portugalprogram,apartnershipestablishedwiththeCarnegieMellonUniversity (CMU), focussing on ICTs, the areas of Software Engineering, Information Networks, InformationSafety,LanguageTechnologies,SensorandRiskManagementTechnologiesand NetworksincriticalInfra/structures,andEngineeringandPublicPolicies. IntheUTAustin Portugalprogram,thepartnershipestablishedwiththeUniversityofTexasin Austin (UTAustin), the areas of Digital Contents, Advanced Computation, Mathematics and the marketing of science and technology, including support for the conception and concretisation of new business projects with a scientific and technological basis (via the UTEN,UniversityTechnologyEnterpriseNetwork). Through the setting up in Portugal of the first Fraunhofer Institute in Europe outside of Germany,theareaofAmbientAssistedLiving,withplansafoottoalsoestablishconsortiaof R&D cooperative projects involving Portuguese institutions and Fraunhofer institutes four areas: i) logistics; ii) biotechnology; iii) advanced production systems applicable in the automobileindustry;andiv)nanotechnologies. In response to the Programme projects relevant for the Portuguese industrial community, a wide groups of companies have adhered to and participated in the programmes as Industrial Affiliates, amongthemsomeofthemajorcompaniesintheenergyandautomobilesectorsinportugal,andfrom the ICT and multimedia contents sector, including big national and international companies and new technology basedcompanies. These R&D activities are also supported by the advanced training programmes of each partner, involving researchers, lecturers, PhD and post graduate students, engineers and technicians, both nationalandforeign,ininstitutionsandcompanies. So as to further the opportunity launched by the UTAustin Portugal program, the UTEN, University Technology Enterprise Network, will be extended to the various programmes of the international partnerships in progress, with the aim of guaranteeing the gradual development of a consolidated networkoftechnologytransferandmarketingofficesinpublicandprivatetechnologyinstitutionswith relevantr&dtechnologyinportugalinclosecollaborationwithinternationalpartners. NetworksofCentresofExcellence Followingthecreationofthe8NetworksofCentresofExcellencein2006,organizedaroundspecific areas(bio Energy,HealthcareandMedicine,DematerializationofTransactions,MouldMicromachining, Mobility, Polymers, the Agro forestry and Food Sector, Telecommunications and Information Technology),interimassessmentbeganin ,toprovidefollow upandmonitoringtoensure that the objectives were being met and expected results achieved. The Networks of Centres of Excellence consist of consortia of companies, research centres and institutes, technology centres, 39

154 universities,polytechnicsandotherhighereducationinstitutions,publicbodiesandbusinessorsector associations,withaviewtocreatingcollaborativenetworksaimingforexcellence,whilesimultaneously allowing for the development of innovation clusters and intensive knowledge, contributing to the developmentoftheeconomicandsocialfabricofaregionand/orsector.altogether,theyincludethe participation of 100 companies and associate companies, 5 technology centres and 53 scientific and highereducationinstitutions. CompetitivenessandTechnologyCentres With a view to creating and invigorating the Competitiveness and Technology Centres, the following initiativesweresetup: i)clustermappingandtherespectiveterritoryintersectiongrid:inprogress; ii)launchofapilotphasethroughsupportingexperimentalcases:underpreparation; iii)launchofimplementationphase;underpreparation; iv) Holding meetings with stakeholders representing the economic aggregates and/or sectors with a view to divulging and galvanising initiatives to encourage collective efficiency strategies (CompetitivenessandTechnologyCentresandotherClusters); v)frameworkrulesandregulationsforthecollectiveefficiencystrategiesprogrammeofthenational StrategicReferenceFramework; vi) Launch of the first Competition for the Recognition of Competitiveness and Technology Centres andotherclusters,withinthescopeofthenationalstrategicreferenceframework. FINICIAPlatforms ImplementationoftheFINICIAProgrammeisbasedonthecreationofpartnerships(calledPlatforms) betweentheinstitutionsofthescienceandtechnologysystemandlocaldevelopmentagents. 14platformshavebeencreated(13onthemainlandand1intheAutonomousRegionoftheAzores) involving all of the public Universities and Polytechnics, covering over 160 public and private bodies (namely,banks,venturecapitalcompaniesandmutualguaranteecompanies,scienceandtechnology ParksandMunicipalCouncils)toexpeditetheprocessesforscrutinisingideasandprojectsforcreating innovativecompanies. Threecreditlineshavebeencreatedfornewbusinessprojects,providedbytheBPI,Millenniumand BST banks, these are supported by a Mutual Guarantee, guaranteeing up to 75% of the value of the creditgranted. 73 municipal FINICIA funds were created, 14 of them between October 2007 and August 2008, in collaboration with banks and local authorities. These were for micro credit operations for setting up micro and small companies. The total value of the Funds already created comes to a million Euros,ofwhich2.925millionEurosisrelatedtofundscreatedsinceOctober2007. BytheendofAugust,453creditandriskcapitalfinancingoperationshadbeenapproved,ofwhich390 have been implemented or are at the implementation stage. The number of credit operations approved, supported by Mutual Guarantee, is 295, which corresponds to an overall investment of 23.23millionEuros.95riskcapitaloperationswereapproved,49ofwhichhavebeenrealised,involving aglobalinvestmentestimatedat26millioneurosandriskcapitalfinancingtothesumof7.8million Euros. BusinessAngels(BA)Networks Within the scope of the Empreender+ Programme, an initiative was launched to stimulate the introduction of the Business Angels (BA) activity in Portugal, contributing to the creation of 10 BA networks. KnowledgeEnhancementCentresandBusinessPotentialEnhancementCentres Following on from the approval of the 22 Knowledge Enhancement Centres (Technology And Knowledge Transfer Workshop) in 2006, which provided an environment for University Company cooperationwiththeaimofidentifyingandfosteringthetransferofinnovativeideasandconceptsto the business fabric, the networking of this group of structures, involving Technology Centres, University/Company interface structures (e.g., INEGI, INOV INESC, UNINOVA), Industrial Property 40

155 Support Offices, IRC/EIC Innovation Relay Centres / European Info Centres, Technology And Knowledge Transfer Workshops, is now being promoted. In addition to the entrepreneurial support activities in the Technology And Knowledge Transfer Workshops, 12 VPE nuclei (Valorização do Potencial Empresarial Business Potential Enhancement Centres) as part of the NEOTEC initiative, involvinghighereducationinstitutionsandotherbodiesconnectedwithpromotingentrepreneurship. Driver4.ConnectPortugal AnActionPlantomobilizetheInformationandKnowledgeSociety InJuly2005,theGovernmentadoptedtheConnectPortugalinitiative,whoseactionsincluded: MakingiteasierforFamilieswithStudentstoBuyComputers:50%oftheamountspentonbuyinga personalcomputer,includingsoftwareandterminalequipment,istaxdeductible,uptoalimitof 250 inpurchases,between1december2005and31december2008.indecember2005,offersappeared onthemarketallowingforthepurchaseofcomputerswithinternetconnectionfor200 or250,after theaforementionedtaxdeduction. BroadbandInternetConnectionforStateSchools:inJanuary2006allStateSchoolsfromthe1stto the12thyearhadbroadbandinternetconnection(oneyearbefore,only18%hadbroadbandinternet connection). Portugal was thus one of the first EU countries to ensure broadband connection for all stateschools,asithadbeenapioneerinconnectingallschoolstotheinternetviaisdnin2001,andall schools from year 5 to year 12 in In 2007, school connection bandwidths were increased significantly,generallytotwicethepreviousbandwidth. Approval,on16August2007,oftheEducationTechnologyPlan,whichhasthefollowingtargetsfor 2010:toachieveanaverageof2studentspercomputerwithinternetaccess(in2006therewere9.6 studentspercomputer),toequipallclassroomswithvideoprojector,toguaranteeinternetaccessinall schoolsat48mbpsminimum;toadopttheelectroniccardforallstudents;makepubliclyavailablethe useofelectronicmeansofcommunication,givingallstudentsandteachers addresses,ensuring that90%ofteachersand50%ofstudentshavetheiractskillscertified. Launching,in2006,theMinistryofEducation sschools,teachersandportablecomputersinitiative, reinvigorating1,100schoolswith26,000portablecomputers,and,in2007,launchingtheprogramme e.escola,givingstudentsandteachersinprimaryandsecondaryeducation,andadultsandyoungadults inthenewopportunitiestrainingprogramme,portablecomputerswithmobilebroadbandconnection atreducedcosts(150eurosupfrontand15eurospermonth,andlessforstudentsonschoolbenefits), withover200thousandpeoplehavingalreadybenefited. Launching,inJuly2008,theprogrammee.escolinhas,viawhicharoundhalfamillionprimaryschool studentswillreceiveanew,low costcomputer,assembledinportugalinpartnershipwithintel. Considerably increasing the bandwidth for universities, polytechnics and research institutions: in 2005thebandwidthfortheRCTS thesciencetechnologyandsocietynetwork morethandoubled, reaching2.5gbps,and,injuly2008itwasquadrupledto10gbps,resolvingaproblemthathadbeen draggingonforseveralyears,thatofportugalbeingtheonlycountryintheeu15,exceptforgreece, withnoconnectionatthisbandwidthtotheresearchandeducationnetworksintheothercountries. The connection between Lisbon and Braga was greatly improved with the acquisition of a fibre optic linkbetweentheuniversityoflisbon,thetechnicaluniversityoflisbon,thenewuniversityoflisbon, theuniversitiesofcoimbra,aveiro,portoandtheminho,benefiting,intermsofstudentnumbers,60% of the higher education system and 78% of universities with research units approved by the internationalassessmentsofthefst FoundationforScienceandTechnology,andalsoincreasingthe bandwidth connections for the Polytechnics Institutes of Coimbra and Porto. The Lisbon Braga researchandeducationnetworkwasthusspeededupto10gbps. ConnectionoftheRCTSinfibre opticringtospainandtheeuropeannetworkgéant2at10gbps:at the Portugal Spain summit in November 2005 it was decided that each country would complete its educationandresearchnetworktotheminho GalizaandAlentejo Estremaduraborders,withmutual benefits in increased international connectivity and connection safety in the event of a break in the line, and much greater connectivity to the European Géant2 network. The northbound fibre optic section to the Minho Galiza frontier in Valença was concluded in 2007, also ensuring the fibre optic 41

156 connection for the Viana do Castelo Polytechnic Institute. The Lisbon Setúbal Évora Portalegre Alentejo/Estremadura Border progressed in 2008 and is almost concluded, and will also provide 10 Gbpsfibre opticconnectionfortheuniversityofévoraandthepolytechnicinstitutionsofsetúbaland Portalegre.ThereisalsoafibreopticconnectioninprogressforthePolytechnicofSantarém.Thus,in termsofstudentnumbers,morethan70%ofthehighereducationsystemand82%ofuniversitieswith researchunitsapprovedbythefsthaveconnectionsofupto10gbpsinapublicsectorownedfibre opticnetwork. High usage of the Online Knowledge Library (b on): b on provides unlimited permanent access in research and higher education institutions to over 16,750 international scientific publications by 16 publishers,viainternationallyagreedsubscriptions.in2005thenumberofarticlesdownloadedinthis librarywas3.4million,comparedto2.1millionin2004,numbersthatdemonstratedveryhighusage.in 2006, the number of downloads rose to 3.7 million, and in 2007 to 4.2 million. In 2007, the Online Knowledge Library (b on) was extended to all public higher education systems and also to State Laboratoriesandnon/profit/makingresearchinstitutionsapprovedintheFSTinternationalassessment processes, and a new financing model was put in place, ensuring disciplinary unity for and universal accesstothelibrary. The development, in 2008, of a platform to integrate the open access scientific information repositoriesinthecountryintoonecoherentnationalmetadatasystemfreelyavailabletothescientific and higher education institutions wishing to house their repositories there and safeguarding the individual nature of the respective corporate identities. Currently, the following institutions have repositoriesofthistype:theuniversitiesoftheminho,portoandévora,iscteandthenationallibrary (dissertationsandtheses)withatotalofover5,000records. The launch in April 2006 of the National Grid Initiative (INGRID) promoting a Computation Grid in Portugal, and approval at the Portugal Spain Summit of November 2006 of the bilateral initiative IBERGRID to integrate in a coherent network the computational grid infrastructures of the two countries, with the objective of achieving significant computation grid critical mass on a European scale.in2007,withinthescopeoftheibergridinitiative,thebilateraltechnicalcommissionprepared adesignbasesdocumentforacommoniberiandistributedcomputationinfrastructureplan.portugal andspaincomingtogetherinibergridhasallowedthemjointlytocreateanetworkrecognisedinthe project EGEE Enabling Grids for E science in Europe by the Southwest Europe Federation, which currently has over 1,500 CPUs and has come to play an important role in the Computational Grid infrastructureofeurope.thisprojectbringstogetherscientistsandengineersfromover240scientific institutionsin45countriestoprovideapermanentcomputationgridinfrastructurewith41,000cpus and 5 Petabytes of disc (5 million Gigabytes), and keeps 100,000 computational processes running. Portugal was initially involved in the project through the LIP Particle Experimental Physics and InstrumentationLaboratory(LisbonandCoimbra),butparticipationwasextendedtotheuniversitiesof PortoandtheMinho,thePlasmaPhysicsCentreoftheInstitutoSuperiorTécnico,theElectronicand Telematic Engineering Institute (IEETA) of the University of Aveiro, and the Universidade Lusíada (Famalicão), all of whose computational grid infrastructures were already contributing to the total EGEEinfrastructure. Promotingandsupporting,aspartoftheINGRIDprogramme,15R&Dgrid/basedprojects,withtotal financing granted by the FST of around 1.7 million Euros, which were approved by a public tender launched in November 2006 which received 37 bids and was assessed internationally, with ComputationGridapplicationsgearedtoareasrangingfromthesimulationandanalysisofhighenergy physicsdatasuchasthosethatwillbeproducedbylhcandbyplasmaphysicsandnuclearfusion,to predicting the evolution of the coastline, simulating forest fires, mapping atmospheric pollution, simulatingproteinstructure,repositoriesformedicalapplications,brainimaging. Supporting the construction, in of a main node for the Grid infrastructure with the creationofalarge,400m2datacentreforthecomputationgrid,andtheincreaseoftheportuguese Gridinfrastructuretoaround400CPUsinMay2007,650CPUsinJune2008andover1,200CPUsby the end of 2008, attaining a dimension in Portugal that is of relevance at European level, and also a prominentroleinthecouncilofpoliciesforthe2 yeareuropeanprojectinitiatedin2007toprepare thecreationandorganisationmodelfortheegi EuropeanGridInitiative,involvingthenationalGrid Initiativesof38countries,includingtheEU27.AlsoworthyofmentionisPortugal sparticipationin the CERN project LCG LHC Computing Grid ( ) that created the largest computing grid system in the world to store and analyse data from CERN s new LHC Large Hadron Colider experiment, which marked the 2008 scientific year with its fundamental importance, with the LIP 42

157 operatingoneofaround60tier2worldcentres(thelcgalsohas11tiercentres1andthetier0centre operated directly by the CERN). In less than two years from launching INGRID, Portugal entered the European Computation GRID map and established the conditions for participating in an influential positioninthedecisionsonthefutureoftheeuropeangridinitiativeandtheenormouscomputation GRIDsystemthatisbeingbuiltinEurope. Forecasting the components of strategic interest for new developments in the Information and Knowledge Society within the scope of international partnerships especially in Information Safety, CriticalInfrastructuresandSensorNetworksintheCMU PortugalProgrammeinitiatedattheendof October2006,inAdvancedDigitalContentsandDistributedComputationintheUTAustin Portugal programmeinitiatedinmarch2007,inintelligentenvironmentssupportinglifequalityandinclusion and the development of the Internet of Things in the Fraunhofer Portugal Programme launched in April2007,inthedevelopmentofContentsinPortugueseonHealthcareandResearchmadepublicly availableintheharvard PortugalProgramme,preparationforwhichwaslaunchedinApril2007. VirtualCampus HigherEducationWirelessNetwork(e U):In2005,thenumberofhighereducation institutions with wireless networks went from 8 to 57, achieving coverage, in terms of students enrolled,ofover85%ofallhighereducation,asetofschoolswithover310thousandstudents.since this network has inter institution roaming, the integration of all higher education institutions is therefore ensured in a single Virtual Campus, allowing a student of teacher who is temporarily at another university or polytechnic to access the resources of his own establishment as if he were actuallythere.in2006and2007theplannedextensionofservicesandcontentsforthecorresponding projects took place, increasing the number of users. Extending the roaming within the scope of the European network Eduroam, and in 2008 the infrastructures and services installed were certified, includingaccessforcitizenswithspecialneeds. HighGrowthinBroadbandPenetration:AccordingtoANACOMdata,broadbandpenetration(fixedor mobile)inthepopulationwasthreetimesgreaterinthe2ndquarterof2008thanthe1stquarterof 2005.Thefiguresforthesecondquarterof2008were33%,ofwhich15%werefixedconnectionsand 18%mobileconnections.Therewasasteepgrowthinbroadbandpenetration,especiallywithregardto mobileconnections,which,inthesecondquarterof2008were11timesgreaterthantheyhadbeen twoyearspreviously,radicallyalteringthepanoramaofportugalandmakingittheeucountrywiththe highestmobilebroadbandpenetration.broadbandpenetrationamongfamiliesgrew50%from2005to 2007(1stquarters). Registerof.ptdomains:Thenumberofinternetdomainswith.pt,coveredbytheFCCN Foundation for National Scientific Computation, grew by 36% in 2005, to around 80 thousand domains, At the beginning of March 2006 new rules came into force that made it easier to register domains and allowed cost cutting by 40% through adopting a totally on line registration system. As a result, in August2006therewereover100thousanddomainsregistered.In2007domainnameregistrationwas made more flexible and electronic receipts were adopted for the respective payments, which has alreadyachieved40%useraccession.inseptember2008thenumberofdomainsregisteredexceeded 234thousand,correspondingto2.3timesthenumberfortheendof2004. Approval, in April 2007, of 4 Community Network projects - tras Rede Comunitária do Distrito de Évora,Rede Comunitária do Vale do Minho,Valimar Net. The CommunityNetworksarebroadbandpublicnetworksinless favouredregionsorwheretherearegaps in the telecommunications market, and they must be technologically neutral and provide identical accessforalloperatorsintendersfortheiroperation.theseprojectsjointlyinvolvetheinstallationof over 1,000 Km of fibre optic connections. The projects are now in progress, with over 300 Km of technicalcablingalreadyinstalled. Promotion of Digital Inclusion: Around 327 Internet Spaces are up and running at points spread around the country, with special social equipment in local authorities, and over 187 in municipal libraries, allowing free broadband internet access to anyone, with personal support. These are an importantpartofatotalofover1,170internetspacessetupinothersettings,namelyindigitalcity and Region projects and social solidarity institutions. The Internet Spaces Network was set up in November2006toensurecoordinationofinitiativesandthesharingofgoodpracticeforthispowerful instrumentforsocialintegration.anngonetworkforsocialsolidarityismaintained RedeSolidária with a specific presence on the Internet, 240 broadband Internet access points, 650 electronic mailboxes, 13 video conference connections between schools and hospitals. The 3rd Generation Schools Programme, which functions in collaboration with the High Commission for Immigration and 43

158 InterculturalDialogue,hasdonenotableworkonsocialinclusion,involvingover400localinstitutions, around400techniciansandthesupportof48,000childrenandyoungpeople,includinginitsover130 DigitalInclusionCentres.(111from3rdGenerationand21from2ndGeneration). Significant increase in the availability of information at hospital Internet sites from 2004 to 2006, namelytheduplicationofsiteswithinformationonpreventionandhealthcare(availableon50%ofthe sites) and four times the number of sites indicating what to do in the case of a medical emergency (availableon30%ofsites). Growth in the number of companies with broadband connections, which in 2006 included 98% of largecompanies,90%ofmediumcompaniesand62%ofsmallcompanies. Improved availability of Online Public Services: On 20 September 2007 The European Commission published new assessment data on the online availability of basic public services, now regarding the situation in April May The figures for Portugal were significantly improved, whether for the servicesophisticationindicatororforfullonlineavailability,whichbothstoodat90%andwiththese indicators for companies being 100%. Portugal rose once again in the ranking of the 31 countries considered, going to 4th place on the sophistication of provision indicator and to 3rd place for full online availability. It was the biggest rise registered among all 31 countries. Bearing in mind the improvementsmadeinthe2006assessment,fromoctober2004toapril May2007Portugalroseon bothindicators,from11thto2ndintheeu15countries,andfrom11thand13thto4thand3rdinthe EU 27,respectively,fortheindicatorsofsophisticationandfullonlineavailability.Theprogressmadein electronicpublicadministrationincluded:thecreationofcompletelyonlinecompaniessincejune2006, onlinetrademarkregistrationsincedecember2006whichhasbeenusedsincetheninaround80%of cases,cuttingto1/3theresponsetimetoarequestforregistration,makingportugaloneofthefastest countriesfortrademarkregistration,provisionoftheelectroniccitizen scardwithaccessto5public servicessincefebruary2007,theonlinesimplifiedbusinessinformation(ies)servicesinceapril2007 whichhasalreadyreceivedover158,000renderingsofaccountsbythismeans,theoptiontoregister patentsonlinefromseptember2007,themakingofaround70%oftaxreturnsviainternetin2008and theprocessingofallvatviainternetsince2005,thefreeonlineprovisionofthediáriodarepública sincejune2006,saving27tonnesofpaperperday,andthesinglevehicledocument. The decision, by Resolution of the Council of Ministers in October 2007, to give all citizens with specialneedsaccesstoallgovernmentinternetsitesandthoseofcentralgovernmentpublicservices andbodiesinaccordancewiththedirectivesoninternetcontentaccessibilityoftheworldwideweb Consortium (W3C), thus extending a 1991 Resolution of the Council of Ministers to ensure Internet accesstothesitesofpublicbodies(whichdidnot,however,defineanenforceablestandard)whereby Portugal was the first country in Europe and the 4th in the world to approve legislation with this objective. National Programme of Electronic Purchases: At the end of 2006 this involved all 16 ministries(as opposed to 8 in Jan 2005), around 920 bodies (19 in Jan 2005), 12 categories of products (4 by Jan 2005),103aggregationandnegotiationprocesses(27inJan2005).Totaltradedvolumewas41million euros, with a saving of around 20%. The programme accelerated sharply, with electronic public purchasing for 2006 being more than double the amount accumulated in the three previous years, sincethestartoftheprogrammein2003,andafterhavinggrownmorethan33%during

159 Driver5.Energy Energypolicyisincreasinglybecomingadriverforeconomicgrowth,especiallythankstoitscapacity forgeneratingnewinvestmentinprojectswithhightechnologyinputandforcreatingjobs. The Government has adopted an ambitious energy policy, set out in the National Energy Strategy (Resolutions of the Council of Ministers, October 2005), establishing three main objectives for the sector: - Encouragingcompetition; - Guaranteeingenvironmentalcompatibilityforthewholeenergyprocess; - Guaranteeingthesafetyofenergysupply. TheGovernmenthasbeentakingastronglyproactivepolicyintheareaofrenewableenergies.Hence, initssustainabilityframework,in2007itdefinednewcommitmentsfor2010inpromotingrenewable energysources,reinforcingthemeasuresalreadyestablished. ENCOURAGINGCOMPETITION The Government established a central objective of stimulating the energy sector, creating liberalised and competitive markets. The reorganisation of the whole legal and regulatory framework, with the publication of framework laws and complementary legislation for electricity, natural gas and petroleum,wasthefirstconcretestepinimplementingthisstrategy. Withregardtotheliberalisationofthemarkets,themeasuresadoptedintheelectricitymarketgaveall consumers effective right of choice, as from 4 September 2006, placing Portugal among the EU countries that have achieved total liberalisation in this market. In the natural gas market, the Governmenthasforestalledthepreviouslyagreeddatesforderogation,bringingforwardbytwoyears theliberalisationperiodfordomesticconsumersandbyoneyearforindustrialconsumers. The defined policy also included the creation of two large competing operators in the gas and electricity sector: EDP Energias de Portugal, S.A., entered the natural gas business forming the companyedpgás,sgps;andgalpenergia,sgps,s.a.,whichwasalreadyactiveintheexplorationand production, refining and distribution of petroleum products, in the areas of supplying, selling and distributingnaturalgasandproducingelectricalenergyforlargeindustrialclients. To allow for equitable and transparent network access, the Government created a single gas and electricitytransportationoperator.inthiscontext,inseptember2006,ren RedeEléctricaNacional, S.A.acquiredthegastransportationassetsownedbyTransgás.Anewholdingcompanywascreatedto meetthisnewmission RedesEnergéticasNacionais,SGPS,whichmanagesthenationalelectricityand gastransportationsystemthroughthefollowingcompanies: RENGasodutos,S.A., RENArmazenagem,S.A.; RENAtlânticoTerminaldeGNL,S.A.; REN RedeEléctricaNacional,S.A. ThismeasureplacedPortugalamongthefiveEuropeancountrieswithtotalunbundlingofthetransport networksandamongthethreewhohavetheseassetsinthesamecompanystructure. Themainmeasurestoencouragecompetitioninthesupplymarketswere: early termination of the Power Purchase Agreements, thus freeing up around 80% (approximately7.100mw)ofallproductionpreviouslypledged; thegrantingoflicencesforbuildingnewcombinedcyclegasturbineplants(ccgts); earlyliberalisationofthenaturalgassupplymarket. TheGovernmentalsomadetheIberianElectricityMarketareality.ItbeganoperatinginJuly2006,with thestartofomiptransactions.theiberianelectricitymarketisthesecondintegratedregionalmarket implementedineurope,witharound30millionconsumers. 45

160 GUARANTEEINGENVIRONMENTALCOMPATIBILITY TheGovernmentapprovedawide rangingsetofmeasurestolimitthecarbonintensityoftheenergy mix with a significant contribution to the diversification of the energy supply, through promoting renewableenergyandenergyefficiency. Intheareaofrenewableenergies: Portugal invested particularly in the development of wind and hydro energy, biomass, biofuels and solarthermalconversion. To promote wind energy, a phased tender was launched, to attribute up to 1950 MW rated load associatedtothecreationofanindustrialcluster.in2006thefirstphasewasawardedwithatotalof 1200 MVA rated load and construction began on the industrial cluster for the wind energy sector; investmentwasaround1750m andledtothecreationofaround1700directjobsand4500indirect jobs. The tender also led to the creation of a 35 M fund to support innovation in the area of renewableenergies.in2007thesecondphaseofthetenderwasawardedtoattributeupto600mva capacityandin2008the3rdphasewasbegunfortheattributionof200mvacapacity. With regard to forest biomass, tenders were launched to attribute a total of 100 MVA of electricity production, destined for 15 forest biomass thermal power plants, with an estimated investment of around 225 M and the creation of around 700 jobs. Four power plants have already been awarded andanother8areattheawardstage. For biofuels, a tax incentive was created, with exemption from fuel tax for products destined to substituteroadfossilfuels.thismeasurefavoursthedevelopmentofanewagriculturaltierbasedon biofuels, and the creation of industrial units, for esterification of vegetable oils, with an estimated investment of 100 M. In 2006, five industrial units began producing biodiesel, two large and three small, with a total capacity of tonnes/year. In 2007, two new plants began operating with additional biodiesel production capacity of 150 ktonnes/year, making a total of 350 ktonnes/year installedcapacitybytheendofthatyear.in2008,twomoreunitsareplannedtostartoperating,with aninstalledcapacityof77.5ktonnes/year. Tosupportthesustainabilityoffishfarms,inparticular,aspecialtariffwasdefinedfortheproduction ofelectricityfromthebiogasobtainedfromanaerobicdigestion. Forwaveenergyaseazonewascreatedtoinstallpilotprojectswithoperatingpotentialofupto250 MW, with a view to developing new technologies and regulatory legislation was drawn up for the respectivelicences. At the level of hydro electricity two reception pints were awarded for 922 MW from new large HydroelectricPlants,withaforecastinvestmentofover1000M. Forphotovoltaicenergy,licenceswereawardedtosetuptwolargepowerplants:onewithinstalled power of 46.4 MW and forecast production of 56 GWh/year, entailing overall investment of 250 M andincludingthecreationofaphotovoltaicmodulefactory,thecreationofaround100jobsandthe setting up of a research laboratory. The other, with an installed capacity of 11 MW and forecast productionofover18gwh/year,entailsaninvestmentof62m. To reinforce the already established measures, in the framework of promoting renewable energy sources,in2007thegovernmentdefinednewcommitmentsfor2010: 45%ofallelectricityconsumedshallbeonarenewablebasis; thebiofuelsusedintransportshouldaccountfor10%ofroadfuelconsumption; 5to10%ofthecoalusedinelectricalpowerplantsshallbesubstitutedbybiomassorwaste. Newobjectiveswerethereforeestablishedforthevarioussourcesofrenewableenergy: Windenergy:increaseinstalledcapacityby1950MWby2012,makingatotalof5100MW(of which600mwshallbefromequipmentupgrade),thecreationofatechnologyclusterandthe investmentassociatedwithwindenergy; 46

161 Hydro/energy:Bringingforwardthecapacityincreaseinexistinghydroelectricinfrastructures, toachieveinstalledcapacityof5575mwin2010,575mwmorethanpreviouslyforecast,and achieve70%utilizationofnationalhydropotential; Biomass: Attribution of over 100 MW of installed capacity by 2010, to a total of 250 MW, fosteringarticulationwithforestresourcesandfirepreventionpolicies; Solar: Construction of the biggest photovoltaic power plant in the world the Moura power plant,andlinkupwithsolarhotwaterandmicro generationpoliciesandtargets. Biogas:Targetof100MWofinstalledpowerinanaerobicwastetreatmentunits; Micro generation:promotetheinstallationof50000systemsby2010,withincentivestoinstall SolarHotWaterinbuildings. Biofuels:By2010reachthetargetof10%biofuelstobeincorporatedinroadfuels. Intheareaofimprovingenergyefficiency: The Government launched an important set of measures aimed at cutting energy consumption, especiallyinbuildings,industryandtransport. TheBuildingEnergyCertificationSystemwascreated,applicablesinceJuly2007,accordingtowhich allbuildingswillhaveanenergyconsumptioncertificategivinginformationonenergyconsumptionfor the building and measures to reduce it. New regulations were also approved(rsece Regulation of Building Energy and Air conditioning Systems and RCCTE Regulation of Building Thermal Behaviour Characteristics). Thislegislativepackageisafundamentalstepforincreasingtheenergyefficiencyofbuildings,putting newdemandsonconstruction,namely,makingitobligatorytoinstallsolarpanelsinnewbuildings. The Intensive Energy Consumption Management System (SGCIE) was created with the objective of promotingenergyefficiencyandmonitoringenergyconsumptionininstallationswithintensiveenergy consumption (CIE). It defines the type of plant considered to be an intensive energy consumer and establishes a diversified and administratively simplified regime for companies already committed to reducingtheco2emissionsdefinedinthepnale(nationalplanforattributingemissionlicences). TheSystemprovidesforobligatoryenergyauditsoftheconditionsforenergyutilisation,andthedesign andstateoftheplant,forplantswithanenergyconsumptionof1000toe/yearormore,tobecarried everysixyears,andeveryeightyearsforplantswithenergyconsumptionof toe/year. Operators are obliged to draw up Energy Consumption Rationalisation Plans(PREn), establishing the targetsforenergyandcarbonintensities,which,afterapprovalbythedirectorate GeneralforEnergy and Geology (the supervising and monitoring body of the System For Managing Intensive Energy Consumption(SGCIE)),arecalledEnergyConsumptionRationalisationAgreements(ARCE). Regardingthetransportsector,in2007theGovernmentbeganafundamentalalterationatthelevelof car tax: 10% of car tax now depends on the emission of greenhouse gases. This measure, which the Government aims to extend progressively, establishes an economic incentive to buy more energy efficientvehicles. Portugalwasconsideredbytheinternationalcommunityasoneofthemostprogressivecountriesas regardscuttingcarbondioxideintheautomobilesector,andevenbecamea studycase. Withtheapproval,in2008,oftheNationalActionPlanforEnergyEfficiency(PNAEE),called Portugal Eficiência 2015, a set of measures are considered with the target of achieving, by 2015, improved energyefficiencyequivalentto10%inendconsumptionandinenergyservices. The Plan is geared to the management of energy demand, in collaboration with the National Programme for Climate Alterations (PNAC) and the National Plan for Attributing Emission Licences (PNALE). The PNAEE covers four specific areas: Transport, Residential and Services, Industry and State, In addition,itestablishesthreetransversalworkareas Behaviour,Taxation,IncentivesandFinancing.For theseareas,12actuationprogrammeswerecreatedinthevariousareasofenergyefficiency: CarRenewal, 47

162 UrbanMobility, TransportEnergyEfficiencySystem, HouseandOfficeRenewal, BuildingEnergyEfficiencySystem, InstantRenewablesandSolarProgramme, IndustryEnergyEfficiencySystem, EnergyEfficiencyintheState, Programme Mais (behavioural), OperationE(schoolsandyoungpeople), GreenTax, IncentivesandFinancing(EnergyEfficiencyFund). The Plan also complements a set of new energy efficiency measures that are already at the implementationstage,suchas: reviewofcartax, creationofataxoninefficientlightbulbs, InstantRenewables, buildingenergycertification((seepnrnewcycle). andintroducesnewmeasures,including: thelaunchofabenchmarkawardforbestpracticeintheareaofenergyefficiency; anaward/2.5%reductionintheelectricitytariffforlowconsumersofelectricityandatariffbasedincentiveforthelessefficient; attribution of an Efficiency Cheque for 2 years to the value of 10% or 20% of annual electricity costs to consumers who have made reductions of 10% or 20%, respectively, to investinenergyefficiency; thecreationofasubsidizedcreditlinewith 250M/yearforinvestmentsinenergyefficiency measures,withstrongfocusonurbanrehabilitation; the launch of a programme for renewing large white goods (e.g. an incentive of 100 for substitutinganoldfridgeforanewoneofclassa++); thecreationofaregimeofaccelerateddepreciationforinvestmentinenergyefficiencyatthe levelofindustryandservices; thecreationofenergyrationalisationagreementswithindustry; energy certification for all State buildings and the launch of a big programme to optimise publiclighting; thecreationofafleetof greentaxis withreducedemissionlevels; the development of an innovative traffic management system for Lisbon and Porto using nationaltechnology. GUARANTEEINGTHESAFETYOFENERGYSUPPLY The implementation of all of the above measures contributes to achieving the objective of guaranteeingsupply,sincetheyputintopracticethenationalenergystrategy,whichincludes: thediversificationofsupplysources; abetteruseofendogenousrenewableenergysources; improvedenergyefficiency; optimisation of the running an development of gas system infrastructures, storage and GNL terminals;and theimplementationofeffectivesolidaritymechanismsbetweenmemberstatesinthecaseof anenergycrisis. 48

163 Driver6.PortugalLogistico LogisticsSystemandExternalConnectivity Thefollowingareprojectsinthedriver PortugalLogístico : DevelopmentoftheNationalLogisticsSystem(seePoint1) ImplementationoftheHighSpeedRailNetwork(seePoint2) ConstructionoftheNewLisbonAirport Improveportsystemcontrol(seePoint3) PORTMOS IntegrationoftheportsystemintheSeaHighways(seePoint4) MonitoringofnavigationalongtheAtlanticcoastline VTSVesselTrafficSystem(seePoint5of NewCiclereport) Evolvementof PortugalLogístico included: 1.DevelopmentoftheNationalLogisticsSystem On 9 May 2006, in Porto, the Government publicly presented the Plano Portugal Logístico, thus establishing the fundamental principles of the system, the concept, network, sites of the various platforms,howitfunctions,financialviabilityandthegovernment smodusforcollaboratingwiththe wholesector. The National Logistics Platforms Network ( RNPL ), Portugal Logístico s hardware, structured on the main urban centres, national ports and frontier and regional routes will allow Portugal to be transformedintoanatlanticplatformforinternationalmovementintotheiberianmarketandraisethe countryintherankingofeuropeanlogisticsdistributioncentres. ItshouldbestressedthattheRNPLwillpromotetheefficiencyandproductivityoflogisticsoperators, allowing for an average reduction in logistics costs of around 10%, with the consequent increase in nationalcompetitiveness. The RNPL consists of 12 logistics platforms complemented by 2 air cargo centres(porto and Lisbon). Theplatformscanbesplitupinto4distinctcategories: Urban national platforms (Maia/Trofa and Poceirão) the main objective of these is to galvanisethecountry seconomicactivitybycreatinglargedistributioncentresandreplanningof logisticsandtransportflows; Portplatforms(Leixões,Aveiro,FigueiradaFoz,LisbonandSines) locatedclosetothemain nationalports,theirmainobjectivesaretoboostportactivityandexpandtheirareaofinfluence, namelytospain,aswellastoencourageintermodalityandtheuseofrailtransport; Cross border platforms (Valencia, Chaves, Guarda and Elvas/Caia) these seek to galvanise regionaleconomyandcaptureflowsofindustrialinvestment,aswellastoextendintospainthe currentporthinterlands; Regionalplatforms(Tunes) theirmainobjectiveisthereplanningoflogisticsandtransport flows,aspartofanetworkcohesionstrategy. 49

164 Many contacts were made with business groups, both national and foreign, who were interested in taking part in the realisation of Portugal Logístico, and also with local authorities, or groups of local authorities,interestedincontributingtoimprovingtheprojectpresented. Total investment has been altered as the projects have been concretised, with total investment currentlybeingestimatedatover1,600millioneuros,includinglandaccess. We would like to draw attention to the important agreements made between the Government and private promoters for creating the Castanheira do Ribatejo and Poceirão platforms involving private investmentof270and500millioneuros,respectively. Therearelogisticsplatformsreadyforuse,attheinfrastructuresstage,atthedesignandstudystage andunderdiscussion.ingreaterdetail,thecurrentstateofaffairsforthenationalnetworkoflogistics Platformsisasfollows: Alreadyconcluded:thecross borderplatformsofchavesandguardaandthesinesharbour platform(nodea); Creating infrastructures: the Aveiro harbour platform (Aveiro Cacia node) and the Lisbon harbourplatform(castanheiradoribatejonode); Atthedesignstage:thenationalurbanplatformofPoceirão,theLeixõesandAveiroharbour platforms(portofaveironode)andtheelvas/caiacross borderplatform; Understudy:theMaia/Trofanationalurbanplatform,theValenciacross borderplatform,the TunesregionalplatformandtheharbourplatformsofFigueiradaFozandSines(nodeB). ItmustbestatedthatPortugalLogísticoisessentiallyaprivateinitiativeplan,withtheStateassuminga regulatoryandfacilitatingpositioninitsimplementation. In this context, the necessary legal framework was created for developing Portugal Logístico. This 50

165 includesthepublicationofdecreelaw152/2008,of5august,whichapprovedthelawandjurisdiction forthenationallogisticsplatformsnetwork.thecreationofaspecificregimeforthesemattersisin fact necessary and appropriate, since it provides a clear legal framework for the development of logisticsactivities. TheGovernmentalsodeemeditnecessarytoenshrinethe PortugalLogístico projectinthenational territorialmanagementinstruments,bydrawingupasectorplandefiningthestrategicframeworkfor planning of the national logistics platforms network, establishing the directives to be considered in regional and municipal planning. The Government thus entrusted the Instituto da Mobilidade e dos TransportesTerrestreswithdrawingupa PortugalLogístico sectorplan,whichshouldbeconcluded soon. 2.ImplementationoftheHighSpeedRailNetwork StudiesoftheLisbon Porto,Lisbon MadridandPorto Vigolines,forthewholetracklength(around600 km), have been contracted up to the Conceptual Design and Preliminary Design/Project Execution stages. Subsequent to the Business Model presented on 21 June 2007, a Public Private Partnership (PPP) contractingstrategywasdefinedforthe3prioritycorridors.consequentlythestudiesforthelisbon Porto, Lisbon Madrid and Porto Vigo corridors will only be developed by RAVE up to the Conceptual Design stage, so as to obtain the Statement of Environmental Impact, required for the launch of the PPPtenders. Thus,thefollowingcontract/acquisitionprocessesweredefined,gearedtowardsdevelopingtheRAVE businessplan: PPP1,Poceirão Caiasection,fortheinfrastructure(Lisbon Madridcorridor); PPP2, Lisbon Poceirão section (includes TTT), for the infrastructure (Lisbon Madrid corridor); PPP3,Pombal Portosection,fortheinfrastructure(Lisbon Portocorridor); PPP4,Lisbon Pombalsection,fortheinfrastructure(Lisbon Portocorridor); PPP5,Braga Valenciasection,fortheinfrastructure(Porto Vigocorridor); PPP6,forSignalsandTelecommunicationsforallcorridors; ContractfortheLisbonStation(Oriente)andadjacentstretches; ContractforthePortoStation(Campanhã)andadjacentstretches; AcquisitionofRollingStock. WithregardtothedevelopmentofConceptualDesignsandproceduresforobtainingtheStatementof EnvironmentalImpact,cfthefollowingstateofplay: Lisbon Portocorridor Lot D (Lisbon Alenquer) The Conceptual Design and the Environmental Impact Study weresubmittedtotheportugueseenvironmentagencyon19june2008forassessment ofenvironmentalimpact. LotD/C1 TheConceptualDesignandtheEnvironmentalImpactStudyweresubmittedto the Portuguese Environment Agency on 29 July 2008 for Assessment Of Environmental Impact). LotC1(Alenquer Pombal) TheConceptualDesignandtheEnvironmentalImpactStudy were submitted to the Environment Institute in September 2006 for Assessment Of Environmental Impact, receiving a favourable Statement Of Environmental Impact in December2007; Lot B (Pombal Aveiro) and Lot A (Aveiro Porto) The Conceptual Designs and EnvironmentalImpactStudiesarecurrentlyatthefinalvalidationstage,submittedtothe Portuguese Environment Agency to begin the Process for Assessment Of Environmental Impactatthestartofthesecondsemesterof2008. Lisbon MadridCorridor Lot TTT Environmental Impact Assessment in progress, having been initiated on 2 July

166 Lot 3A2 (Moita/Montemor o Novo), Lot 3B (Montemor o Novo/Évora), Lot 3C (Évora Elvas),LotLTF(Elvas/Caia) EnvironmentalImpactAssessmentalreadyconcluded,with favourable Statement of Environmental Impact having been issued, allowing for the launch on 2 June of the Public Private Partnership Tender for awarding the design, construction,financing,maintenanceandprovisionofrailinfrastructuresforthepoceirão Caialine. Porto VigoCorridor InlightofthedecisionsintheStrategicGuidelinesfortheRailSectortransmittedon28 October2006,asafirststep,theconnectionbetweenPorto(Campanhã)andBragawillbe effectedusingtheexistinginfrastructures,completedwithanewstretchtobebuiltfrom scratchbetweenbragaandvalencia. Lot1B(Braga/Valença) SubmissionoftheEPandEIAinthe2 nd Semestreof In December 2007, the European Commission presented the community funding proposals for the Trans European Transport Network (TEN T) for the period, according to which millioneurosareallocatedforhighspeedrailandthefollowingpriorityprojects: Porto VigoConnection(priorityprojectnr.19) o Cross border Section Ponte de Lima Vigo: M (Portuguese part M ) Lisbon MadridConnection(priorityprojectnr.3) o Cross bordersectionévora Mérida:312.66M (Portuguesepart191,43M ) o TagusCrossinginPortugal:51.31M The amount proposed for Portugal for the High Speed Network comes to M, which correspondstoaround10%ofthe3.9billioneurosavailableforthe27europeanunioncountries,in thewholefundingfortherailsectorofthetrans EuropeanTransportNetwork. In the previous community support framework ( ) Portugal received around 1.75% of communitysupportwithinthetrans EuropeanTransportNetwork. Submissionofapplications,twooftheminconjunctionwithSpain,withinthescopeoftheEuropean EconomicInterestGrouping HighSpeedSpain Portugal,wastheresultofextensivepreparatorywork whichincludedpresentationsbyravetovariouslevelsoftheeuropeancommission,withthesupport ofthegovernment. InadditiontotheTEN Tcreditline,theHighSpeedprojecthasguaranteedfundingof955millioneuros from the National Strategic Reference Framework National Strategic Frame of Reference, via the CohesionFund. 3.Improvingportsystemcontrol Theobjectiveofimprovingportsystemcontrolistoenableandencouragecompetitivepracticesthat willbenefitexternaltrade.relatedmeasureswillbe:thedrawingupofaparentactforawardingpublic andprivateuseportfacilities,there structuringoftheworkforce,relaxationofcustomspracticeinthe useofportugueseportsandthefosteringofnewinformationandcommunicationtechnologiesatthe ports.asaresult,weenvisagegreaterappealforthemaritimeoptioninexternaltradeactivitiesand extensionofnationalports hinterlands. With respect to the Law on Ports, this aims to codify the legislation for port related and logistics activities,includingaccessory,complementaryorsubsidiaryactivitiesintheportareasthatcomeunder thejurisdictionoftheportauthorities,includingtheartisanalfishinggroundsandexpansionareas,and alsotoauthorizemodernsolutionsthatallowforefficientmanagementoftheportsectorandrender ourportscompetitive.tothisend,themostimportantlegislationapplicabletotheportareashasbeen integrated, existing regulatory solutions have been improved and the gaps that inevitably exist in separatelegislationhavebeenfilled. 52

167 ApprovaloftheLawOnPortscreatedaregulatoryframeworkforthemaritimeandportsector,which provideslegislativesimplificationandestablishedtransparent,harmonised,sustainableandflexible planning,guaranteeingoverseascompetitivenessforournationalports. Intermsofstateofplay,thePreliminaryDesignfortheLawonPortsisattheconsolidationphase.A public discussion period is planned for October December 2008, within the scope of the public presentation sessions that will take place at the main ports. The statute should be approved in the AssemblyoftheRepublicin2009. In relation to the relaxation of customs practice in using Portuguese Ports and the fostering of new information and communication technologies in ports, we would draw attention to the Sole port windowproject. TheSoleportwindowissupportedbysimplified,harmonisedproceduresinelectronicmedia,providing asinglecontactforinteractionwitha node wheretheinformationisplacedonceonlyandsenttoall bodies that provide a service for that node, whether in terms of transport or goods, obtaining the respectiverepliesonthesamechannel. TheprojectsthatallowfordevelopmentoftheSoleportwindowinnationalportsare: ThePcomproject,whichwillallowforthedefinitionanddevelopmentoftheinfrastructure required for running the Sole port window at three of the main national ports (APDL/APL/APS) and officially integrate the Portuguese Customs Services in this electronic relationship,abodyofsupremeimportanceintheprocessesofshipsandgoodsintheports; ThePIPeprojectwhich,basedontheresultsofPCom,willguaranteeimplementationofthe Sole port window model at all national ports and the simplification/harmonisation of procedures with all economic agents and other Authorities (Maritime, Health, Veterinary, BorderandPolice),withallportshavingaharmonised modusoperandi. TheSoleportwindowisalreadyupandrunningattheportsofLeixões,LisbonandSines,andshouldbe fullyoperationalatallmajorportsbytheendof PORTMOS IntegrationoftheportsystemintheSeaHighways TheGovernmentdevelopedthePORTMOSprojecttointegratethePortugueseportsintheNetworksof Sea Highways, within the scope of the Trans European Transport Networks. This project includes identifyingasetofcriteriaandrequirementsconsideredtobeindispensablefortheretobearticulation between national and European ports, guaranteeing door to door transportation, without the constraintsofphysicalarticulationinthetransportchain. Thisprojectisdividedintothreephases: 1st Phase Definition of concept/model and organisational, operational, infrastructure and info structure requirements, together with the procedures associated with the integrationofthenationalmaritime portsystemintheseahighways. 2ndPhase DesignanddevelopmentoftheSeaHighways.Supportinfrastructure 3rd Phase Pilot actions, allowing for the definition and subsequent demonstration of new activities with the participation of various international partners and of ports includedinthealreadydefinedcorridors. The 1st phase of the project culminated, In February 2006, with the "Assessment of the impact of integrating the Portuguese ports into the Sea Highways" and the elaboration of a publication in PortugueseandEnglishdedicatedtotheresultsofthisphasecalled Definitionoftheconcept/model andrequirementsoftheseahighwaysandintegrationofthenationalmaritime Portsystem. The2ndand3rdphasesoftheprojectwereconcludedon31December2007,withthepilotsdefinedin the 3rd phase being based on services, using the infrastructure developed in the 2nd phase. The conditions were established to assess performance changes resulting from the use of this new tool, 53

168 especially in the light of the set of requirements and criteria established in the 1st phase for a Sea HighwayservicewithportsofcallinthePortugueseportsystem.Thetwopilotsaretheservices: Leixões Tilbury Rotterdam Leixões,operatedbySAMSKIP; Sines LaSpezia Sines,operatedbyMSC. Based on the experience already accumulated from the pilots and the respective use of the infrastructure, the new final report for the project is being written to be presented to the European Commissioninthe2 nd Semesterof2008,asagreedwiththeCommissionrepresentatives. 5.MonitoringshippingalongtheAtlanticcoastline(VTS VesselTrafficSystems) The main general objectives of this project, which allows for the control of all sea traffic up to 50 nautical miles from the coast of mainland Portugal, are to improve safety and security, manage sea trafficandpreservetheenvironmentalheritageinthenationalcoastalzone. ImplementationoftheVTSSystemisessentialforachievingthe3Governmentpolicies: Safety/SecurityPolicy; o IncreasethesafetyofvesselsinPortuguesecoastalwatersandintheCabodaRoca andcabodes.vicentetrafficseparationschemes; o Increasesafetyforhumanlife; o Supporttheorganisationofcoastalsearchandrescue; o Guaranteemorenationalsecurityanddefenceconditions; o Support anti intruder measures and those to prevent the landing of illegal persons andillicitactivitiesincoastalwaters;and o Supportfuturemanagementsystemandmaritimesurveillancedevelopments. EnvironmentalPolicy; o Protectandimprovethemarineandcoastalenvironment; o o Guaranteegreaterapplicationoftheprincipleofpolluter payer;and Ensure that the transportation of dangerous merchandise is kept away from the coast. EconomicPolicy. o Improveportactivityefficiency; o Encourageeconomicdevelopment; o Providesupportformoreeffectivecontrolandsupervisionofcoastalfishingactivities andothereconomicactivities;and o ContributetoabetteruseofthePortugueseExclusiveEconomicZone; TheVTSSystembasicallyconsistsofasetofcomponentssuchasradars,shipautomaticidentification system(ais),meteorologicalsensors,vhfvoicecommunicationsystems,dataprocessingandmerging systems, inter alia, which integrate in a complex way to allow for the monitoring and control of sea traffic. WiththeVTSSysteminstalledonthecontinent,twolevelsofservicebecameavailable: TheCoastalservice,coveringthewholeofthecoastformainlandPortugal;and The Port service, covering the ports of Aveiro, Figueira da Foz, Viana do Castelo, Faro and Portimão. In coastal VTS, detection, communication and control capacity, by means of radars, ship to shore communication and the new automatic identification system(ais), extends to a distance of 50 miles offshore,withconstantcoverageandpermanentcontrol roundtheclock,365daysperyear. InportVTS,thesametypeofsensorswillcovertheapproximationzonesuptoaround15milesoutside therespectivelimits,theauthorisedanchorages,thebarsandnavigationwithineachport,facilitating evenmoreapproachoperationsandentryintonationalports. Budgetedatover100millionEuros,themainlandVTSprojectisofhightechnologicalcomplexity.The systemconsistsof: 54

169 Eightcoastalstations(fromMinhototheAlgarve); Eightportstations(threeinAveiro,twoinFigueiradaFoz,oneinVianadoCastelo,oneinFaro andoneinportimão); AControlCentreinPaçodeArcos; AreserveControlCentreinFerragudo; APortControlCentreinAveiro;and Atotalof33coastal,portandcommunicationsstationstransportinginformation. Thewealthofinformationcollectedbythesystem,whichwillbestoredinaNationalMaritimeShipping Database, may be made available to other competent bodies, whether national or foreign, allowing, through ongoing data exchange, for effective increase in the safety and security of Portuguese and Europeanwaters. The integration of the information from the Portuguese VTS System in the Community Vessel MonitoringandInformationSystem,setupbyCommunityDirective2002/59/CEof27June,fallsinto thiscontext. TheVTShasbeenprojectexemplifyingintegrationandcoordinationbetweenthevariousGovernance areas, making use of the VTS infrastructure to provide information for other institutional agents connected with the sea Port Authorities, The Navy, Air Force and National Guard of the Republic, interalia. Inthisrespect,wewoulddrawattentionto: The integration of components of the Global Distress Communications and Maritime Safety SystemintheMainlandVTSSystem; TheintegrationofcomponentsoftheIntegratedCoastalVigilanceSystemoftheFiscalBrigade ofthenationalrepublicanguardinthemainlandvtssystem;and UsebytheInstituteforPortsandMaritimeTransportofPortugueseAirforceinstallationsand the sharing of broadband communications equipment, thus reinforcing the communications networkoftheportugueseairforce. Theseareclearexamplesoftheefforttooptimisepublicinvestment,towhichthefollowingsynergies areadded: Interconnection with the port systems for exchange of information with the port administrations systems;and InteroperabilitywithEuropeansystems,inparticularwithSafeSeaNetandAISMediterranean, togetherwiththeexchangeofinformationwiththespanishvtssystems. Itisalsoplannedtomakeinformationfromthenationalmaritimeshippingdatabaseavailabletoother bodiessuchasthedirectorate GeneralforFishing,theAliensandBordersService,CriminalPolice, PublicSecurityPolice,andintegrationofAISinformationfromtheAzoresandMadeiraisalsobeing studied. TheVTSSystemhasbeenpartiallyoperatingsinceJanuary2008,andhasbeenfullyoperationalsince July

170 56

171 QUALIFICATION,EMPLOYMENTANDSOCIALCOHESION Following the successive recommendations to Portugal in the area of Life Long Learning(LLL),governmentactioninthisfieldhaspledgedtopromoteastrategywhich strivestoreachallcitizensandresultsinlearningobtainedinformal,notformaland informalenvironments,therebyraisingtheemployabilitylevelsofpeopleatallstages oftheiractivelife.thisstrategyalsoincludesincentivesfor: - strengtheninginnovationandentrepreneurship, - competitiveness,fosteringasustainedandsustainabledevelopmentprocess, - theupdatingandaccumulationofskills, - thereductionofthesegmentationofthelabourmarket, - increasingproductivity. Itiswithinthisbaseframeworkthat,inthecontextofthechallengeof"modernising the labour market, fostering the creation of jobs, preventing and combating unemployment", in the scope of which Portugal seeks to respond to one of the conclusions of the 2007 Spring Council which states that it is equally necessary to strengthenthelifecyclebasedapproachtoworkinordertoimprovetheaccesstothe labourmarket.thegovernmentactiononthismatterhasbeendoneinharmonywith theconclusionsofthe2007springcouncil,inparticularwiththeguidelineformember States in the sense of developing policies that foster [ ] the role of the youth, notablyintheirtransitionfromschooltoworkinglife,oftheelderlyandofpeoplewith lowqualificationsasactiveparticipantsintheeconomyandinthelabourmarket,with the aim of using all their potential to contribute towards the economic and social developmentofoursocieties. ThesegmentationofthePortugueselabourmarket,theobjectofaRecommendation to Portugal, today constitutes an essential challenge by introducing the need to promoteandadoptanintegratedstrategywhichfirstandforemosttakesintoaccount thecitizenswiththegreatest(re)integrationdifficultiesinthelabourmarket,adapting answers in terms of active employment policies, as well as intensifying an LLL policy capableofincreasingemployability,particularlyofthosewhoareweakestintermsof professionalqualifications. Theequalityandcitizenshippolicy,notablywithregardtogenderequality,deserves special attention considering that fostering the employment of women can be an important factor for competitiveness and sustainable development. While, in quantitativeterms,portugalhasalreadyexceededthegoalsetbythelisbonstrategy for 2010 for the rate of female employment, in qualitative terms there is still a long way to go. Indeed, the highest and best academic qualifications achieved by women have not resulted in an improvement of their participation in the labour market and we continue to register a strong horizontal and vertical segregation of the labour 57

172 market with negative reflexes, notably in the access to leadership positions and equalityofremunerations. 11 The adaptation of work and social protection legislation to the new realities are fundamental pillars in order to respond to the duality of the labour market and the resulting situations of enormous imbalance. Therefore, within the scope of the Tripartite Agreement for a new regulation system for labour relations, employment andsocialprotectionpolicies,weshouldhighlightthemeasureslinkedtothechange in the presumption of the work contract and the creation of a very serious new administrative offence for feigning a work contract in order to enable an efficient controloftheuseof"falsefreelanceworkerpaymentreceipts".stillinthisfield,andin the area of social protection and employment policies, the Agreement also foresees variousmeasures(seeitem5.3andresponsetocsr). TheLisbonStrategyrevampedin2005,re focusedongrowthandemployment,upholds thatsocialprotectionistobeunderstoodasaproductivefactor.itisinthiscontextthat PNAIisincludedinaspecificway,whoseprioritiesare(i)combatingpovertyofchildren and the elderly through measures that ensure their basic citizenship rights; (ii) correctingthedisadvantagesinqualificationlevelsasameansofpreventionexclusion and stopping the cycle of poverty; (iii) overcoming discrimination through the integration of disabled persons and immigrants. The National Strategy for Protection andsocialinclusionarticulatespolicymeasuresofsocialinclusion,pensionsandhealth careandcontinuedcare(seeproximityservicesdriver) ImprovedQualificationsofthePortuguese In addition to the implementation of the New Opportunities Initiative (see New Opportunitiesdriver),theReformofVocationalTrainingandtheReformofBasicand SecondaryEducation(see"ValorisationofBasicEducation driver)andthereformof Higher Education, the Government has been implementing other measures at the levelofthesustainabilityofeducationandtraining(e.g.theevaluationandautonomy of schools), at the level of quality (teacher training, National Reading Plan, among others) and also other measures whose impacts will only be visible in the longer terms, such as the broadening and consolidation of pre school education, the curricularenrichmentandtheextensionofschooltimetables. Wehavealsowitnessedastrongcommitmenttoextendschoolsocialaction,whichis nowincludedinthesetofsocialpoliciesandexpressedjointlywiththefamilysupport policies. This change will enable access to school social action to 450,000 more childrenandyoungpeoplerelativetotheregimewhichhasnowbeenrevised.atthe same time, the standardisation of support to children who attend pre schools and students of basic education is fostered and assistance to those attending secondary educationisincreases,inconformitywiththeaimofgeneralisingschoolingatthislevel 11 See National Strategy for Equality and Citizenship

173 of education. It is estimated that the level of secondary education the number of beneficiarieshasincreasedto130,000. FollowingthesigningoftheAgreementontheReformofVocationalTrainingwiththe majority of social partners on 14 March 2007, Resolution of the Council of Ministers no. 173/2007 of 7 November was published, approving the Reform of Vocational Training.ItaimstocreatetheconditionsfortheexecutionoftheNewOpportunities Initiative and respond to all the objectives and concerns expressed in the Bipartite Agreementof2006.Broadeningaccess,ensuringthatalltrainingguaranteesacademic and professional progress and boosting its relevance for the modernisation of companies,placingqualificationatthecentreofdevelopmentoptions,requiresaction infivefundamentalareas:(1)structuringarelevantandcertifiedoffer;(2)reforming institutions and the regulation of training; (3) defining priorities and adequate financing models; (4) fostering the quality of training; and (5) facilitating access and fosteringdemandfortraining. Within the scope of the reform, Decree Law no. 396/2007 of 31 December was published, which establishes the legal regime of the National Qualification System (SNQ).ItassumestheobjectivesthathavealreadybeensetintheNewOpportunities Initiativeandpromotestheinstrumentsnecessaryforitseffectiveexecutioninliaison with financial instruments, namely the National Strategic Reference Framework. This system adopts the principles established in the Agreement entered into with social partnersandrestructuresvocationaltrainingthatformspartoftheschoolsystemand thatwhichformspartofthelabourmarket,integratingthemwithcommonobjectives andinstrumentsunderarenewedinstitutionalframework.thefundamentalstrategy includesensuringtherelevanceoftrainingandlearningforpersonaldevelopmentand forthemodernisationofcompaniesandtheeconomy,guaranteeingatthesametime that all the national effort in training is effectively valorised for the purposes of the academic and professional progress of the citizens, both directly, through dual certification training as part of the National Catalogue of Qualifications (CNQ), and indirectly, through New Opportunity Centres (CNO) and the process of recognising, validatingandcertifyingskills. The quality of the National Qualification System is the central aim of the various elementsthatformthissystem,namelythroughthecertificationoftrainingbodiesand the qualification of trainers and other training staff. The Operating Programme for HumanPotentialisacentralinstrumentofthepublicfinancingoftheeducationand training policies. In this sense, the Reform of Vocational Training plays a key role in creatingmoreeffectiveandefficientconditionsfortheapplicationoftheseresources. Onlywithbetterpreparedpeoplewillitbepossibletoassurethattheperformanceof the labour market with quality job creation is sustainable, following a period of considerable business restructuring and relocation. Within this scope, in October 2007, Portugal submitted to the European Commission a request for intervention as partoftheeuropeanglobalisationadjustmentfundintheamountof2.4millioneuros intended to help 1,549 workers in the automobile industry who lost their jobs and requiredsupporttofindnewwork.theselayoffstookplaceinthreecompanies:onein 59

174 the region of Lisbon(Alcoa Fujikura, which manufactures electrical components) and two in the region of Alentejo (Opel Portugal, a factory for assembling trucks, and Johnson Controls, which produces automobile seat covers). Fostering entrepreneurship may also serve as a response for mitigating the effects of restructuringprocessesandithasbeenencouragedinportugalfromanearlystage(at theleveloftheschoolsystemandtraining),boththroughthemeasuresprovidedby SPEandothers,suchasEmpreender+,FINICIA(seechapterMicro). The significant improvement in the qualification level of the Portuguese population requirescontinuedandconstantworkbothbyprovidingyoungstudentswithquality education with equal opportunities and by recovering, for education and training, significantstrataoftheadultpopulationwhodroppedoutoftheschoolsystemearly andwhoalsohaverelativelylowlevelsofparticipationinvocationaltraining.relevant indicatorsthatallowustoassesstheresultsofthiseffortare: - the increase in the number of students registered in the different levels of education,implyinganincreaseofaround21,000studentsinthesystem,aboveall invocationallyorientedschools,especiallyatthelevelofsecondaryeducation; - the increase in the number of students who returned to the higher education system(around7,000morethaninthepreviousyear); - thereductionofrepetitiondropoutratesinbasicandsecondaryeducation(inbasic education, the rate dropped from 11.5% in 2004/05 to 10% in 2006/07 and in secondaryeducation,forthesameyears,theschoolrepetitionratedroppedfrom 31.9%to24.6%); - thereductionofdropoutrates(in2007,thedropoutratewas36.3%incomparison with38.6%in2005); - the increase in the percentage of young people between 20 and 24 years of age whocompletedatleastsecondaryeducationfrom49%in2005to53.4%in2007; - thecertificationof143,010adultswithschoolqualifications. Theseindicatorsdemonstratethatalthoughitisknownthateducationandtrainingare relativelylongprocesses,itispossibletoobtainpromisingresultsintheshorttermas longas,ononehand,theymakebasicandsecondaryeducationattractiveand,onthe other, provide citizens with new opportunities for real personal and professional valorisation. Asregardstheeducationofyoungpeople,setsofinitiativeswerelaunchedbetween 2005 and 2008, of which one is especially aimed at improving the quality of basic education(cf.valorisationofbasiceducationdriver). Pre school education has been progressively extended to children of three and four yearsofageandhasbeengeneralisedforchildrenoffiveyearsofage. As regards secondary education, the measures sought to boost the attractiveness of thislevelofeducation.thesemeasuresrangefromthediversificationoftrainingson offer, in liaison with the Ministry of Labour and Social Solidarity (the percentage of 60

175 secondaryeducationstudentsattendingvocationalcourseshasincreasedfrom10%in 2005 to 40% in 2008) to the launching of an ambitious programme for the requalificationofsecondaryschools(providingtheseeducationalestablishmentswith spacesthatrespondtocurrentandfuturerequirements,inaccordancewithmodern school architecture standards). They also range from the supply, at a low cost, of laptop computers with broadband Internet connections to 11th and 12th grade students (e.escola programme) and all teachers (e.professor programme, including earlychildhoodteachers)totheapprovalofnewrulesforschoolmanagement,which is now based on a new system for evaluating teachers (that includes monitoring of classes), whose career has been given a hierarchy by the creation of the position of tenure teacher (which can only be reached by teachers who satisfy a set of prerequisites). Furthermore, they range from the installation of more than 110,000 computersin2ndand3rdcycleandsecondaryschools(sothatin2009therationof five students per computer can be achieved) to the extension of school social action support to secondary education students and the launching, in liaison with the Ministry of Science, Technology and Higher Education, of a tender for research projectsaboutsuccessatschool. Thesesetsofinitiatives(atotalof70)willcontinuetobecarriedoutinthenextthreeyear period ( ), considering the excellent results that have so far been achieved. The School Libraries Programme, which has already been completed, is another exampleofputtinginpractice,consideringthatallthe2ndand3rdcycleschoolsnow boastthisimportantspaceformakingeducationalresourcesavailable. In the higher education policy field, continuity was given to the concretisation of measures aiming to assure the goals defined in the PNACE are met, namely (i) guaranteeing the qualification of the Portuguese in the area of the European Union, implementing the Bologna process, a unique opportunity to stimulate higher education attendance, improving the quality and relevance of training offered and fostering mobility and internationalisation, (ii) promoting equal opportunities in the access to higher education, improving attendance levels and conclusion of degree courses, attracting new groups using a lifelong learning approach, broadening the involvement of higher education institutions in vocational training activities and promotingschoolsocialaction,and(iii)promotingpost graduateeducation,especially atthephdlevel. Hence,criticalmeasuresfortheprocessofreforminghighereducationhavebeenput intopracticeoverthelastthreeyearswithresultsthatarealreadyvisibleinsomemain indicatorsinthisfield. We should highlight that in the school year, the declining trend of new students in higher education was inverted (95,431 in against 84,363 in and82,720in ).Thistrendwasaccentuatedin witha 17%increaseinthenumberofnewstudentsenrolled(6,820more)onlyinthenational competition for access to public higher education. Special emphasis falls on polytechniceducationwherethegrowthreached24%.consequently,in2007,forthe 61

176 first time since 2002, the total number of students attending higher education in Portugalincreased. On the other hand, the number of new graduates in science and technology has significantly increased in the last years, having reached for the first time in 2006 the valueof18.1per1,000amongthepopulationbetween20and29yearsofage(above theeuropeanaverage).atthesametime,thenumberofnewphddegreesinscience andtechnologyincreasedto0.42per1,000amongthepopulationbetween25and34 yearsofagein2007(itwas0.3in2001). Followingtheimplementationofthefullregulationthataimstobringhighereducation in Portugal in line with the Bologna process that took place in 2006, with a view in particular to the new legal system of degrees and diplomas, the opening of higher education to new groups and the development of post secondary education without conferringacademicdegrees(viathetechnologicalspecialisationcourses CET),very significant results achieved since 2006, especially in the past school year, areknown. ThesuccessoftheimplementationoftheBolognaprocessandtheattractingofnewgroupstohighereducation,withaviewto lifelonglearning Afterpresentingthefullregulationatthestartof2006whichaimstobringhighereducationinPortugalinlinewiththeBologna process, with regard to the initial training courses that offered places in the school year, about 90% are already organisedinaccordancewiththebolognaprocessprinciples(includingpublicandprivatehighereducation). Theopeningofhighereducationtonewgroupsthroughthenewaccessregimeforthoseover23yearsofageresultedinthe number of adults entering higher education by this means rising to roughly 10,850 in the school year, having also increasedto11,775inthe schoolyear,againstaroundjust900adultsthatstartedtheirstudiesinhighereducationinthe schoolyear. Alsointhecontextofattractingnewgroupstohighereducationinstitutions,weregisteredaverysignificantriseinthenumberof TechnologicalSpecialisationCourses(CET)operatinginhighereducationinstitutionsaswellasthetotalnumberofnewstudents inthesecourses.atotalofmorethan4,800newstudentsadmittedin2007wasreached(againstalittleover1,000in2005),ina totalofaround150coursesofferedinhighereducationestablishments. Special emphasis should be given to the implementation of the system of loans for higher education students with mutual guaranteeassuredbythestate,broughtintoeffectinseptember2007,andcomplementingtheschoolsocialactionsystemfor higher education students, and the broadening of the scope for granting scholarships to students enrolled in technological specialisationcoursesandmasterdegreecourses,therebyprovidingnewconditionsforallstudentstoaccessandattendhigher education. ThesystemofloanslaunchedbytheGovernmentattheendof2007includedmorethan3,100studentsattheendofthefirst academicyear( ),havingsurpassedallinitialexpectations.Atthesametime,itwasrecognisedinternationally,namely byevaluatorswhoanalysedtheportugueseeducationsystemforoecdin2006/07,asinnovativeandsuitablefortheneedsof strengtheninghighereducationinportugalandineurope.wenowplantodoublethenumberofstudentscoveredbytheseloans in the next academic year, while at the same time the Government will again reinforce the School Social Action Fund for the needieststudents. Thereformofhighereducationwascontinuedin2007,basedontheimplementation of a set of central measures in the reform and following the recommendations from the OECD and ENQA in accordance with assessment studies made by these internationalinstitutionsin2006,withemphasison: The new Legal Regime of Higher Education Institutions (RJIES), approved by Law no. 62/2007 of 10 September, which aims to regulate notably, (i) the organisationprinciplesofthehighereducationsystem,(ii)theautonomyofthe UniversitiesandPolytechnicInstitutes,(iii)theorganisationandmanagement 62

177 principles of higher education institutions, (iv) the legal regime of public and private higher education institutions, (v) the regulation and planning of the public network, (vi) the requirements for the creation and transformation of highereducationestablishments,(vii)andtheresponsibilityandsupervisionof theinstitutions. ThenewLegalRegimefortheEvaluationofHigherEducation(RJAES),approved by Law no. 38/2007 of 16 August, which aims to create an evaluation system compatible with the best international practices in which exterior and independent evaluation is mandatory and is the basis for the accreditation processoftheinstitutionsandtheircourses. TheformingoftheEvaluationandAccreditationAgencyforHigherEducation, through the Decree Law approved in August 2007, which aims to boost the quality of higher education, namely through evaluation and accreditation procedures of higher education establishments and their study cycles, as well astheperformanceofthefunctionsinherenttotheinsertionofportugalinthe Europeansystemofguaranteeingthequalityofhighereducation. ThenewRegulationoftheRegimesfortheChangeofCourse,TransferandReentryinHigherEducation,approvedbyGovernmentOrderno.401/2007of5 April,thataimstofacilitatetheentryofhighereducationstudentsinPortugal tocontinuetheirstudies,withrapidandobjectiverecognitionoftheschooland vocationaltrainingacquired,andtocreateasimplifiedregimeofre entryinthe same or other educational institution with accreditation of the school and vocationaltrainingacquired. The new legal regime of recognition of higher foreign degrees through a Decree Law approved in August 2007, aimed at simplifying the system of recognising foreign degrees in Portugal, including the various study cycles (bachelors,master sanddoctorate),basedonthealreadyexistingmechanism for the doctorate level, namely (i) speeding up the procedure for fixing the range of degrees to which it applies; (ii) extending the mechanism to the bachelorandmasterdegrees;(iii)andincludingforthesedegreesanautomatic conversionprocedureforclassifications. Theimplementationofamechanismformonitoringtheprogressofputtingthe Bologna Process in practice, through Decree Law no. 107/2008 of 25 June, whichaimstoguaranteewaysofsupervisingthetransitionfromaneducational system based on the transmission of knowledge to a system based on the development of the skills of the students, in which the components of experimentalworkorprojects,amongothers,andtheacquisitionoftransversal skillsshouldplayadecisiverole. Thesimplificationanddebureacratisationofproceduresandmakingaccessto higher education more flexible, also through Decree Law no. 107/2008 of 25 June. This includes: the possibility of any interested individual enrolling in isolated subjects with the guarantee, in the case of approval, of certification and also accreditation, if and when they enrol in a course which offers them; the possibility for students attending a higher education course to enrol in subjects that are not part of the curriculum of their course in any higher education establishment, with the guarantee, in the case of approval, of 63

178 certificationandinclusioninthesupplementtothediploma;andthepossibility ofenrollinginahighereducationcourseasapart timestudent. WeshouldespeciallyhighlighttheimplementationofanewLegalRegimeforHigher EducationInstitutions(RJIES)byhighereducationinstitutions,whichhasbeencarried out successfully and in accordance with expectations. Namely, all the processes for drawing up and approving new statutes are in the conclusion phase, which will be followedbytheimplementationofnewgovernanceschemesinallinstitutions. Theprocessofstrengtheningtheautonomyofhighereducationinstitutionswasamply recognised in the analysis presented by OECD in April 2008, in the study entitled "Tertiary Education for the Knowledge Society", a comparative analysis of tertiary education policies involving 24 countries, primarily at the level of legislative reform introducedbythenewlegalregimeforhighereducationinstitutionsandespeciallyin optingforthecreationofpublicfoundationsunderprivatelaw. This study also clearly shows the reform progress achieved in Portugal, namely with regard to the extension of the recruitment base in higher education, i.e. through an innovative system of loans and the attraction of new groups, the stimulation of internationalisationinhighereducationandthescientificcommunity,theopeningof higher education institutions to society and the labour market, the reform of the evaluation and accreditation system, and the strengthening of scientific and technologicalcapacity. In particular, the strengthening of the scientific and technological capacity of institutions was also impelled through the Promotion of Scientific Work Programme launched by the Foundation for Science and Technology, which has already enabled entering into agreements with institutions from the national scientific and technologicalsystemforsupportingthehiringofaround720newphdgraduates.this mechanismhasenabledtherenewaloftheteachingstaff,whichhasbeenimpelledby thisnewprogrammeforsupportingthehiringofnewphdgraduates. In the scope of the advanced training of human resources, in fulfilment of the ambitious goals defined in the Pledge in Science, the total number of advanced training scholarships directly granted by the Foundation for Science and Technology hasbeenontheriseoverthelastyears,havingreached6,250scholarshipsin2007,of whicharound4,900weredoctoralscholarshipand1,350post doctoralscholarships.in this scope, the number of new scholarships awarded annually has increased very expressively.doctoralscholarshipsincreasedby77%(fromaround1,170to2,080new scholarshipsawardedannually)andpost doctoralscholarshipsincreasedby41%(from around640to900newscholarshipsawardedannually)inthelasttwoyears. Furthermore,followingthenewinternationalpartnershipsofhighereducationandin scienceandtechnologyestablishedduring2006and2007,namelywithmit,carnegie MellonUniversityandtheUniversityofTexasatAustin,throughthelaunchoftheMIT Portugal Programme, CMU Portugal Programme and the UTAustin Portugal Programme respectively, the advanced training programmes foreseen in all the 64

179 thematic areas (including post graduate and doctoral programmes) have already started in the academic year, thus complementing the R&D programmes and activities underway. Also underway is the preparation of new international partnerships with higher education S&T international institutions of reference (e.g. HarvardMedicalSchoolandothers).Thesepartnershipsstrivetoactasastimulusfor theinternationalopeningofuniversitiesandboosttheinternationalexcellenceofr&d activities and advanced training in the leading S&T fields (see highlights in "InvestigationandDevelopment"chapter) Fosteringjobcreation,preventionandcombatingofunemployment: ActiveEmploymentPolicies In these priorities, we also note policy measures such as the Social Insertion Income (RSI),theSolidaritySupplementfortheElderly(CSI),theExtensionoftheSocialFacility NetworkProgramme(PARES(sic).IntheinterventionareaofthePublicEmployment Service(SPE),wehighlighttheroleplayedbytheINSERJOVEMandREAGEInitiatives (targeting youngsters and adults, respectively), whose intervention methodologies havebeenprogressivelyadjustedtorenderthemproactivetotheneedsofthelabour market and different groups, particularly those most exposed to exclusion from the labourmarketandsociety. Newformatshavebeenimplementedintheframeworkofthemodernisationofpublic servicestoenableabettercoverageofdifferentgroupsbasedoncriteriasuchasage, qualifications and disadvantage relative to employment. This contributes to a better focusonthosewithgreatestinsertiondifficultiesandactionthatismoretargetedto thespecificitiesofeachgroup.inaddition,procedureshavebeenimplementedthat foster the active search for jobs by the unemployed. The simplification of administrative procedures for supporting technical interventions, as well as a faster communication with unemployed persons, namely by sending information about job offers by SMS, and the increase in services available over the Internet, i.e. NETemprego,bothfortheunemployed(browsingjoboffersinPortugalandintheEU; directapplicationtojoboffers;browsinginformationonpotentialemployingbodies; disseminationofthecvanditssubmissiontobodieswhichhaveannouncedjoboffers; information on job searching techniques; information on services, programmes and measure provided by the Employment and Vocational Training Institute), and for employers (communicating job offers, browsing CVs registered online, electronic submissionofapplicationstovocationalprogrammes),havecontributedtowardsthe staffbeingmoreavailabletointerveneduringtheinitialphaseofunemployment.at thesametime,thereinforcingofsomemeasures,suchasprofessionalinternshipsand initialdualcertificationtraininghaveenabledmoreyoungpeopletohaveaccesstoa newopportunityinashorterperiodoftimeafterapplyingforajob. Withinthisframework,thePersonalEmploymentPlan(PPE)facilitatedthefostering ofproactiveattitudesonthepartofunemployedyoungpeoplewhoarebeneficiaries ofunemploymentprotectionservicesbyintroducingfortheseunemployedpersonsan obligatory stage of Active Job Seeking, indicating the actions, frequency, periodicity 65

180 and means of proof of the actions undertaken with a view to entering the labour marketbytheirownmeans. Following the conclusions of the 2006 Spring Council "it is urgent to improve the situationofyoungpeopleinthelabourmarketandsignificantlyreduceunemployment amongst the young" particularly to fulfil the goal of offering a new opportunity to youngpeopleinthemaximumperiodofsixmonthsuntiltheendof2007(andfour monthsuntil2010),thespesteppedupitsactionintheareaofinserjvemandreage methodology through the early detection of the young unemployed people at 3 months and adults at 6 months, with visible results in 2006 and good performances withregardtoadults(reageinitiative). Thesituationoftheeconomyandthelabourmarketinparticularjustifiedthelaunch ofinterventionprogrammesforspecificunemployedgroups inthemostextensive framework of the set of active employment policies which are in a reform and rationalization process designed and implemented according to age group, education/qualificationlevelsandalsotogreaterexposuretotheriskofexclusion.the development of these programmes contributed to a more adjusted and dynamic executionofthesepolicies,namelybygivingrisetoasignificantgrowthinitsnumber ofbeneficiaries. InterventionProgrammesfortheUnemployed Execution InterventionProgramme 12 Physical Financial Unemployed Young People (15 22 years ofage) 134thousand 413M YoungPeople(23 30yearsofage) 109thousand 165M Unemployedpersons(31 54yearsofage) 216thousand 263M Highlyqualifiedunemployedpersons 76thousand 190M UnemployedAdults(over55yearsofage) 22thousand 17M InclusiveLabourMarket 47.8thousand 118.2M DisabledPersons 36.9thousand 191.4M UnemployedImmigrants 23.5thousand 13.5M Source:EmploymentandVocationalTrainingInstitute(IEFP) Giventheparticularsensitivitiesofsomegroupsexposedtotheriskofexclusionfrom thelabourmarketandsocietyingeneral,andtherecurrenceoftheconclusionsofthe SpringEuropeanCouncilswhichemphasisetheneedto"increasetheparticipationin the labour market, especially [...] that of people with disabilities and also legal migrantsandminorities"(2006),aswellas"toreinforceeconomicandsocialcohesion throughout the Union" (2007), we highlight with regard to disabled and impaired persons: - TheInformationandMediationSystemforDisabledandImpairedPersons(SIM PD) (database with information on legislation, existing resources and services destinedfordisabledorimpairedpersons,theimplementationin18districtsofthe Information and Mediation Service and the functioning of the National CoordinationUnitoftheSIM PD); 12 InterventionprogrammessolelyundertheresponsibilityoftheexecutionoftheEmploymentandVocationalTraining Institute. 66

181 - TheNationalPlanforthePromotionofAccessibility, 13 whichfostersthecreation of accessibility in buildings, transport and information and communication technologiesandsupportingtechnologiestoallcitizenswithoutexceptions. - The Portuguese Sign Language Programme (LGP) which consisted of creating programmes for basic and secondary education, thus ensuring deaf children and young people access to learning Portuguese sign language in public educational establishments: pre school education; 1st, 2nd and 3rd cycle of basic education andsecondaryeducationin The signing of 5 protocols for the creation of New Opportunity Centres for the developmentofareferentialinstrumentinthervccprocessuntilbasiceducation, adapted to disabled and impaired persons. From June 2007 to June 2008, 582 disabledandimpairedpersonswereincluded. InPortugal,countlessactivitieshavebeendevelopedtoimplementinclusivepolicies, especially within the framework of the National strategy for Social Protection and SocialInclusion ,inwhichwestressinparticulartheNationalActionPlan for Inclusion (PNAI) due to its strong interaction with PNE. We should mention the approval of the Action Plan for the Integration of the Disabled and Impaired in 2006 andoftheplanfortheintegrationofimmigrantsin2007;thesehaveamoresectorial dimensionandreinforcethenationalprioritiesforprotectionandsocialinclusion. The Lisbon Strategy revamped in 2005, re focused on growth and employment, upholdsthatsocialprotectionistobeunderstoodasaproductivefactor.itisinthis context that PNAI is included in a specific way, whose priorities are (i) combating poverty of children and the elderly through measures that ensure their basic citizenshiprights;(ii)correctingthedisadvantagesinqualificationlevelsasameansof preventionexclusionandstoppingthecycleofpoverty;(iii)overcomingdiscrimination throughtheintegrationofdisabledpersonsandimmigrants.thenationalstrategyfor ProtectionandSocialInclusionarticulatespolicymeasuresofsocialinclusion,pensions and health care and continued care (Proximity Services Network driver) and Local Social Development Contracts (CLDS), which are done in close cooperation with the SocialNetworkProgramme. TheIntegratedInterventionOfficeforBusinessRestructuring(AGIIRE),whosemission is speeding up the transition and restructuring process of companies and lessening eventual negative impacts on social and territorial cohesion resulting from restructuring processes through the activation and putting into practice of existing instruments.theworkofthisofficeintheareaofbusinessrevitalisationarisesfroma favourable assessment of the economic potential and regional and social interest of manycompanieswhich,albeitpassingthroughalessfavourablephase,haveskillsand resourcesthatarecapableofassuringasuccessfulturn aroundifdulyprovidedwith an adequate strategy and consistent management. In this way, it aims to overcome frequent"marketfailures",avoidingthelossoftheeconomicvalueofrelevantassets andguaranteeingworkpostsandtheproductionofwealth.thus,withinthescopeof theactivityofagiire,atotalof6,270contactswereregisteredin2007.intervention processes were carried out (dialogue with creditors) in 255 companies, involving 13 Resolution of the Council of Ministers no. 9/2007 of 17 January. 67

182 12,500workposts.Furthermore,twoprocesseswereapprovedwithinthescopeofthe Integrated Systems of Incentives for Business Modernisation and Revitalisation (SIRME) 14 and91withinthescopeoftheextrajudicialconciliationprocedure(pec) 15. In relation to AGIIRE, focus goes to the intervention of the Rapid and Personalised Intervention Nuclei. In this context, it is also important to mention the role of the consultancy training programmes for micro and small companies, which have been promoted by various public and private bodies(e.g. business associations) as is the casewiththegerirprogrammeandredeprogramme.thegoaloftheseprogrammes is to contribute towards increasing management capacity and improving the companies organisationandcompetitiveness.currently,thisformofinterventionhas beenconsideredasanexampleofgoodpracticesinthetrainingareaforthissegment, which represents a large portion of the business fabric and which traditionally has greatdifficultyinandevenresistancetoaccessinginformation. Withaviewtoimprovingtheeffectivenessandefficiencyofthesemeasures,arevision process of the general principles of employment policies is under way, including its concentrationintoareducedsetofprogrammeswithinternalcoherenceandclarityin relation to recipients and operators, making it more transparent and known and aiming to increase its scope and effectiveness in combating unemployment. At the same time, it seeks to guarantee the flexibility required to bring it in line with the specificities of the different target groups and territories, combining preventive and corrective aid. This process is currently in the final discussion phase in the social dialogue, after which the respective legislative framework will be altered, a new promotion and monitoring system will be introduced together with the periodic evaluation of the respective measures (at least biannually) in order to guarantee labour market needs and effectiveness are permanently being upgraded in line with theresults.thus,theproposaloftheschemeofactiveemploymentpoliciesisbased onthreetypesofprogrammes:i)generalprogrammes;ii)specificprogrammesandiii) Territory based programmes. The general programmes cover the whole country and all groups and sectors, using the following types of intervention: a) Programme for stimulatingthecreationofself employmentandentrepreneurship;b)programmefor stimulating the quality of third party work and; c) Programme for stimulating job seeking.thespecificprogrammesareaimedatparticularsegmentsoftheunemployed population,whiletheterritory basedprogrammesareaimedatspecificregions/areas Improvedworkingconditions The modernisation effort and the reform of the labour relations system started in 2006werecontinued.TheconstantdiagnosisoftheGreenBookonLabourRelations and the identification of the principal problems of the Portuguese labour relations system,expressedinthewhitebookonlabourrelations,representthekeybasesfor 14 Assumed as a financial instrument based on the Fund for the Revitalisation and Modernisation of the Business Community,whichintervenesasafinancialpartnerintheacquisitionormergingofcompanies. 15Forsituationsinwhichthecompaniesareconfrontedbydebtsituations,thePEC,mediatedbyIAPMEI,directsitsaction towards enabling an agreement between the company and its creditors, so as to render its recuperation viable. This instrumentisonlydestinedforcompanieswhichareincircumstancesoflegallyrequestinsolvency,inthetermsofthecode ofinsolvencyandrecoveryofcompanies. 68

183 the proposal put forward by the Government to Social Partners of a tripartite agreementforanewsystemforregulatinglabourrelations,employmentpoliciesand socialprotectioninportugal.thenegotiationofthisagreementoriginatedinthedraft Billapprovedon26JunebytheCouncilofMinisters,whichwillgiverisetothereform. TheGovernmenthasalreadypresentedtheproposalinParliamenttoenterintoforce on1january2009(partii,item5.3.). Withaviewtogivingtemporaryworkersbetterprotection,thenewlegalregimefor temporary work was approved, which, in addition to making work contracts admissiblefortemporaryassignmentsforanundeterminedperiod,alsogivesgreater penalisation to temporary work companies when illicitly assigning workers and prohibitsclauseslimitingthefreedomofwork. The fostering of social dialogue and collective bargaining continues to warrant the special attention of the Government and Social Partners, who have in a joint effort assumed strategic goals around the essential issues of the competitiveness and modernisation of companies and the improvement of workers living conditions, notably by increasing the Guaranteed Minimum Monthly Income and vocational training. In this context, a Tripartite Agreement was signed in 2006, as part of the socialdialogue,betweenthegovernmentandallthesocialpartners, Agreementon the Fixing and Evolution of the Guaranteed Minimum Monthly Income (GMMI). In addition to fixing the respective amount for 2007, it includes the commitment made for the first time by those involved towards the gradual evolution of the minimum salary,soastoreach450eurosin2009,whilethemid termgoalassumedfor2011is 500Euros.Hence,theGMMIisnolongerindexedtotheamountofpensions;instead its updating takes the evolution of the cost of living, productivity gains and the real economicgainsintoaccount. Theissueofundeclaredwork,inturn,continuestobethetargetofspecialattention bythegovernment,notablywithintheframeworkofinterventionbytheauthorityfor WorkingConditions,consideringtheseriousconsequencesfortheworkersintermsof socialrights. The organisational restructuring that resulted in the joining of the functions of fostering the improvement of work conditions, preventing vocational risks and inspectioninonesinglebody theauthorityforworkingconditions(act) 16 enables the creation of synergies of sharing information, rationalising means, action effectivenessandconsequentlytheimprovementofworkingconditionsingeneral,as wellasboostingtheorganisationofinspectionactivitiesatthenationallevel,namely asconcernsundeclaredwork. The development of join actions with other national inspection bodies, i.e. Social Security,theMinistryofFinanceandtheForeignersandBordersService,hasenabled the obtaining of more articulated and significant results, whose nature is defined by 16TheAuthorityforWorkingConditions(ACT)wassetupwithinthescopeoftheguidelinesdefinedbytheProgrammefor the Restructuringof the State's Central Administration (PRACE) and the aims of the Programme of the XVII Government withregardtoadministrativemodernisationandtheimprovementofthequalityandefficiencyofpublicservices.thebylawsofactwereapprovedbydecree Lawno.326 B/2007of28September. 69

184 both prevention and monitoring and repression, reverting this work of mutual cooperationinbenefitsfortheworkersasregardsthelegalisationofcontractswithall the advantages associated with it in terms of social rights. Hence, using fixed term work contracts and temporary work outside the conditions stipulated by law (illegal domesticandforeignworkers)havebeenaffordedspecialattentionbytheinspection services,attentivetothefactthatthesetypesofcontractingareassociatedwithahigh level of precariousness. Due to their extent, these actions have a strong power to preventfuturenon complianceonthepartoftheemployersthathavebeeninspected, aswellaspotentialinfringers,thusrepresentinganindisputablepreventivemeasure. Theresultsobtainedfromjointactionshavebeensatisfactoryinthefieldofimproving workingconditions,insofarastheyhaveenabledtheregularisationofthesituationof workers in companies, the insertion of more workers in Social Security, the Tax Departmentandconsequentlytheguaranteeoftherightsrelatedtowork.In2007,an overall amount of 4,421,622 was identified in favour of Social Security and 12,032,380 with regard to salaries due to 8,177 workers, a large part of which was fromundeclaredwork.intermsofnumbersrelatedtotheregularisationofworkers, 47,900companiesweremonitoredbetween2005and2007andthelaboursituationof 11,495workerswasregularised,ofwhich7,950hadcontractswithillegalfixed terms, 1,840 had illegal temporary work contracts, 402 had false contracts and 1,303 were undeclared.thetotalamountofpenaltiesandfinesissuedwas 13,480, Modernisationofthesocialprotectionsystem TheEuropeanSpringCouncilsof2006and2008declared"theprimordialimportance offightingpovertyandsocialexclusionandthefosteringofactiveinclusion..."and,at the same time, the Portuguese system of social protection, as is the case in the majority of developed countries, stands before strategic challenges that impose the needtoreformandmoderniseinastructuralmannerthesystemsofsocialprotection, takingintoaccountsocial,economicandfinancialsustainabilitybasedontheprinciples ofinterandintragenerationalsolidarityfromtheperspectiveofsocialcohesion. In this context, with the consensus of the majority of social partners, government actionfocuseditsinterventiononthreefundamentalareas: - TheBasicLawonSocialSecurity(Lawno.4/2007of16January),whichintroduced, amongseveralchanges,thefollowing:thesustainabilityfactor,anewformulafor calculating pensions; new mechanisms for updating pensions; strengthening incentives for active ageing; the convergence of special social protection regimes and the strengthening of mechanisms for combating fraud and tax evasion, contributingtoanimprovementinthefinancialsituationofsocialsecuritysystems and benefiting the long term sustainability of public finances. As regards the evolution of the disbursement of pensions and the long term sustainability of public finances in the context of the EU, Portugal's position has recently been reclassified from a high risk country to a medium risk country as a result of the expectedimpactofsocialsecurityreforms. 70

185 - The strengthening of actions concerning citizens and families that encounter the greatest difficulties in adapting to changes, combating poverty and social exclusion, especially through the measures contained in the National Plan for Inclusion ,thePlanfortheIntegrationofDisabledorImpairedPersons, the Plan for the Integration of Immigrants (PII) and the investment in the broadening of the network of facilities and services for children, the elderly and disabledpersons. - The fostering of policies which stimulate childbirth and support for families, aimed at stimulating personal and family choices that are more conducive to generational renewal through the effective conciliation between professional activity and family and personal life, new incentives at the level of transfers to familiesintheperiodbeforebirthandduringthefirstyearsoflifeofthechildren and a substantial reinforcement of the network of social facilities for supporting earlyinfancy InclusionPolicies InPortugal,countlessactivitieshavebeendevelopedtoimplementinclusivepolicies, especially within the framework of the National strategy for Social Protection and SocialInclusion ,inwhichwestressinparticulartheNationalActionPlan for Inclusion (PNAI) due to its strong interaction with PNE. We should mention the approval of the Action Plan for the Integration of the Disabled and Impaired in 2006 andoftheplanfortheintegrationofimmigrantsin2007;thesehaveamoresectorial dimensionandreinforcethenationalprioritiesforprotectionandsocialinclusion. In these priorities, we also note policy measures such as the Social Insertion Income (RSI),theSolidaritySupplementfortheElderly(CSI),theExtensionoftheSocialFacility Network Programme (PARES) and Local Social Development Contracts (CLDS), the latterinclosecooperationwiththesocialnetworkprogramme. Asregardsimmigration,Portugalhasdevelopedoverthepastyearsasetofinitiatives thatputitin2ndplaceinacomparativestudycarriedoutin28countries(25european Union Member States, Canada, Norway and Switzerland) by British Council and MigrationPolicyGroupstaff,supportedbytheEuropeanCommission 17.Fromthesewe should highlight the creation of the Plan for the Integration of Immigrants by a ResolutionoftheCouncilofMinisters(in2007)andtheamendmentstotheCitizenship Law (in 2006) and the Law on the legal regime of entry, stay, exit and removal of foreignersinandfromnationalterritory(in2007). The first defined a set of 112 measures distributed by sectoral and transversal areas with goals to achieve by 2009 by 13 Ministries. The Plan for the Integration of Immigrants represents a crucial instrument in the hosting and integration policies of 17 Information available at 71

186 Portugal, responding objectively to the challenges that are posed to both the host societyandtheindividualswhohavechosenourcountryasaplacetoliveandwork. Thelegislativeamendmentsmentionedenabledtheopeningofnewopportunitiesfor acquiring nationality, guaranteeing full citizenship to thousands of individuals, especially children and young people who do not know any other country except Portugalorwhohavealreadylivedhereforseveralyears.Ontheotherhand,thesocalled Immigration Law, which forms part of a more humane vision of the phenomenon of migration, seeks to facilitate legal immigration and establish mechanismsfordefendingandsupportingvictimsofhumantrafficking.thisisusedto fight the social exclusion and precarious situations in which many individuals find themselves and also to seek to bring migration policies in line with the workforce requirementsofthelabourmarket. Inthefieldofgenderequalitypolicies,theIIINationalPlanforEquality Citizenship and Gender, the III National Plan against Domestic Violence and the I National Plan against Human Trafficking were approved. In this context, we should highlight the followingresults: The fostering of a new approach to the issue of gender equality as a questionofcitizenshipthatinvolvesmenandwomen,putintopractice in the fulfilment of PRACE through the creation of a Commission for CitizenshipandGenderEquality(CIG),whoseattributions,inadditionto thoseofthecommissionforequalityandwomen'srights,alsoinclude thestructureofthemissionagainstdomesticviolenceandthoseofthe Commission for Equality at Work with regard to the promotion of equality; The identification of the fostering of gender equality as one of the fundamental factors of the National Strategic Reference Framework through the establishment of Point 7 of the Operating Programme of Human Potential, as well as through the recognition of the role of womeninthecompetitivenessoftheeconomyviatheintroductionofa systemofincreasingincentivesforfemaleentrepreneurshipwithinthe OperatingProgrammeofCompetitivenessFactors. Inclusion, supervision and monitoring of the principle of transversality ofgenderequalityinthenationalstrategicreferenceframework; ApprovaloftheResolutionoftheCouncilofMinistersno.49/2007of28 March,whichestablishestheprinciplesofgoodgovernanceofthestate businesssector,namelyitsobligationtoadoptequalityplans; Approval of Regulatory Decree no. 1/2006 of 25 January on the social structuresforsupportingandshelteringvictimsofdomesticviolence; The amendment of the instrument which establishes the regime of subscription charges for access to health care services in the scope of thenationalhealthsystem,pursuanttodecree Law79/2008of8May; Solutions which enable speeding up and making more efficient the mechanismsoflegalprotectiontovictimsofdomesticviolence,namely 72

187 the amendment to the Penal Code and the Law on the Access to the legalsystem YouthPolicy With regard to youth policy, Portugal is preparing an integrated strategy, while we shouldalreadyhighlightasetofrelevantmeasuresfocusingonyoungpeoplethatcan beemphasisedasresults: The creation of an Agency for the Youth in Action Programme, the main instrumentofthepolicyoftheeuropeancommission,whoseheadofficeisin Braga,thedistrictwiththehighestpercentageofyoungpeople.Itisfinancially and operationally controlled by the Portuguese Youth Institute and has been afforded autonomy to decide so as to place community funds more at the serviceofyoungpeopleandtheirassociationalstructures. ThepublicationoftheLegalRegimeforYouthAssociationsandtherespective regulation of financial aid for youth associations, making them more transparentandprovidingthemwithequityintheirattribution. The launching of the Formar Programme whose aim is to supply heads of associations with more knowledge to be able to manage their associations moreefficiently. The e Juventude initiative was launched in partnership with the e Escolas initiative,whichwillenableyouthassociationsaccesstocomputersunderthe sameconditionsase Escolas. Structural work was done on the training and infrastructure network of information technology for young people, bringing public administration and youth closer together through the implementation of a network of shops, called PONTO JÁ, with a friendly image and service, and developing an information system in order to integrate and provide information in multiple channels:on the spot,youthportalandcontactcenter/youthline. Biginvestmentandboostingactivitiesweredonewithregardtoyouthhostels and youth mobility, such as the INTRARAIL Card, in a partnership between MovijovemandCP. o TheframeworkforthesupportofYouthHomeRentingwasrestructuredand Porta65waslaunched,whichbroughtmoretransparencytothesupportgiven. Actions which moved tens of thousands of young people throughout the country were carried out as part of the pledge in civic participation (volunteering,health,justice,forests,immigration,etc.)andactivecitizenship. Inthescopeofsectorialactivities,weshouldhighlightthecreationofasetof structuredprogrammesbasedontheinovcontactoapproach,namely:inov Art,VascodaGamaandothers. TheFiniciaJovemprogrammewaslaunchedaspartofapartnershipbetween theportugueseyouthinstitute,theinstituteforsupportingsmallandmedium CompaniesandInnovation(IAPMEI)andtheMutualGuaranteeSociety.Itisa derivativeofthefiniciaprogrammeofiapmei,butisaimedatpromoterswho arebetween18and35yearsofage. 73

188 ThePEJENEProgrammewasstrengthenedthroughaclearagreementbetween the Portuguese Youth Institute and the Youth Foundation to grant financial supporttotheprogramme. The National Strategic Reference Framework Competitiveness attributed an increase of 10% in rating innovation projects, whose promoter has been confirmedbytheportugueseyouthinstitutetobeyoungerthan35. The Foundation for the Dissemination of Information Technology created in partnership the GET IT Programme aimed at boosting entrepreneurship throughicttraining The Entrepreneurship in Schools programme launched by the Ministry of Education The "CUIDA TE" (take care of yourself) Programme was launched by the Portuguese Youth Institute together with a vast number of partners. Its purpose is to provide young people with an integrated confidential support serviceconsistingofseveralareas:humanmobility,nutrition,sexuality,whose aim is the prevention of risk behaviour and the fight against obesity, complementingtheworkdonebytheministryofhealth. The launching of the"critical Neighbourhoods" Initiative in partnership with localgovernments,aimedtowardsthesocialandhealthyintegrationofyoung people,makingthemactivelyparticipatein"mentoring"theirpeers. Fostering a higher capacity of young people to use information technologies: ICT workshops, carried out by the Foundation for the Dissemination of Information Technologies; the Safe Internet Programme, resulting from the jointworkoftheministryofjustice(judiciarypolice),theministryofeducation and the Portuguese Youth Institute, aimed at providing young people with informationonusingandbeingpartofvirtualsocialnetworksinasafemanner. Driver7.ValorisationofBasicEducation ThevalorisationofbasiceducationwasapriorityoftheMinistryofEducationfortheperiodbetween 2005 and Hence, an integrated set of measures were carried out, aiming to both improve the qualityoflearningandreducefailureratesatschool.thiscontinuedandconsistenteffortresultedinan increaseinthenumberofstudentsenrolledincompulsoryeducationduringthisthree yearperiod.in additiontootherinitiatives,weshouldhighlight: a.curricularenrichment currently,theofferofcurricularenrichmentactivitiesisensuredin99.6%of basiceducationschools(1stcycle).inparticular,theofferoftheseactivitiesinschoolsisdistributedin the following manner: study support, 98.1%; English for the 3rd and 4th grade of schooling, 98%, English for the 1st and 2nd grade of schooling, 51.2%; physical and sports education, 96.8%, musical education,81.4%oftheschools. b. Continuing Teacher Training the continuing training programme for 1st cycle teachers in Portugueselanguage,MathematicsandExperimentalScienceEducationincluded6000,7000and8200 teachers during the school years of the three year period in question, respectively. Teaching training was carried out with the monitoring of University and HigherSchools of Education and took place in basiceducationschools. c.1stcycleschoolnetwork sincethestartofthereorganisationprogrammeofthe1stcycleschool network, 2507 schools were closed(192 in 2005, 1611 in 2006 and 704 in 2007). The students from 74

189 these schools were transferred to schools with better conditions in terms of environment and socialisation and appropriate meals are also guaranteed in accordance with the Programme of GeneralisedSupplyofMealstofirstcyclestudents.Thetransportofstudentstothehostschoolshas alsobeenensured. d.stabilityofteachingstaff theteacherallocationsystemwaschangedandtheynowstayinschools for3or4yearperiodswithaviewtoensuringmorestabilityintheeducationalprojectandcreating strongertiesbetweenstudentsandtheirteachers. e.informationandcommunicationtechnologies giventhatallfirstcyclebasiceducationschoolshave broadbandinternetconnections,trainingactionswerelaunchedwiththeaimofpromotingtheuseof ICT in schools from the first year of the first cycle of basic education. Hence first cycle schools were equippedandthegoalofonecomputerperclassroomwasreached.thebasicskillsprogrammeinict isunderwayspecificallyfocusingonbasiceducationstudents.teachershavealsoreceivedtrainingin ICT. f. Experimental Science Education in the 2006/2007 and 2007/2008 school years, around st cycle basic education teachers were included in the continuing training programme relative to experimental science education. The training was done in collaboration with higher education institutions. g.actionplanformathematics thisplanincludesfinancingschoolprojectsforimprovingthequalityof learningmathematics,particularlyin2ndand3rdcycles.itincludedaround400,000studentsand8,000 teachersperyear,inthe period.TheActionPlanforMathematicsincludesotheractivities, suchasthecreationofanitembankontheinternet(witharound5,000questions),thedrawingupofa newprogrammeaimedatimprovingthecooperationbetweenthethreecyclesofbasiceducation,the assessmentofschoolbooksbyexperts,etc. h.nationalreadingplan thisplanaimstodevelopthetasteforreadingin1stand2ndcycleschools by establishing an obligatory daily hour of reading. Protocols were signed with city councils and the financingofbooksforclassroomshasbeensecured. i.leveltests inthe2006/2007and2007/2008schoolyears,allbasiceducationstudents publicand private enrolledinthe4thand6thgradeofschooling,tookleveltests.thesetests(togetherwiththe national exam of the third cycle) are analysed by class and the results returned to the teachers for reflections and future improvements in teaching practices. The tests are done specifically for mathematicsandportugueselanguage. j.educationtrainingcoursesforbasiclevelii diversificationofthetrainingofferinbasiceducation aimedatyoungpeoplewhopersistentlyfailatschoolandwhodonotcompleteobligatoryeducation beforereachingtheageof15.thesecoursesareaimedatreducingdropoutratesandearlyexitfrom theschoolsystem,providingvocationaltrainingatthesametime. Driver8.NewOpportunities TheNewOpportunitiesInitiative, 18 whichwaslaunchedin2005asajointactionstrategyinresponseto theprofoundlackofqualificationsamongtheactivepopulation,aimstoreachallagegroupsandforms oflearning,therebyraisingtheemployabilitylevelsinallthestagesofpeople sworkinglives.hence, theinitiativeisbasedontwointerventionpillars youngpeopleandadults.intheformer,thefocusis on combating failure at school and the early exit from the school system, while the latter seeks to (re)qualifytheactiveadultpopulation. This strategy introduces new and intensive dynamics to the upgrading of adult qualifications, as the

190 timely recovery from the country s historic delay in this field will only be possible with a strong structuralinterventionaroundthetwopillarsoftheinitiative. Threemajortargetsmustbemetby2010: Makingthe12thyeartheminimumtrainingreferenceforall; Placing50%oftheyoungpeopleinsecondaryschooleducationondualcertificationtrainingpaths; Qualifying 1 million of the working population i.e. about 20% of the active population using recognitionprocesses,validationandcertificationofskillsforthedevelopmentofdualcertification training(schoolandvocational)whichtheyneedtoreachthesecondaryeducationtraininglevel. NewOpportunitiesforYoungPeople Atthelevelofbasiceducation,around44,129youngpeople(2007)wereenrolledindualcertification courses,anumberwhichrepresentsagreatincreasesince2005.astronginvestmentineducationand TrainingCoursescontributedtothisincrease,whichin2007sawariseinthevacanciesinpublicand private schools, registering around 2,090 courses for basic education(800 more than in the previous schoolyear). Atthelevelofsecondaryeducation,around120,764youngpeoplewereenrolledindualcertification courses in The relative value of young people attending secondary vocational courses already represents40%. TheimpactoftheNewOpportunitiesInitiativeforyoungpeople(2006and2007)isvisibleatthelevel of: - theincreaseinthenumberofstudentsregisteredinthedifferentlevelsofeducation,implyingan increase of around 21,000 students in the system, above all in vocationally oriented schools, especiallyatthelevelofsecondaryeducation; - the increase in the number of students who returned to the higher education system (around 7,000morethaninthepreviousyear); - thereductionofrepetitionanddropoutratesinbasicandsecondaryeducation(inbasiceducation, theratedroppedfrom11.5%in2004/05to10%in2006/07andinsecondaryeducation,forthe sameyears,theschoolrepetitionratedroppedfrom31.9%to24.6%); - thereductionofdropoutrates(in2007,thedropoutratewas36.3%incomparisonwith38.6%in 2005); - theincreaseinthepercentageofyoungpeoplebetween20and24yearsofagewhocompletedat leastsecondaryeducationfrom49%in2005to53.4%in2007. NewOpportunitiesforAdults TheNewOpportunitiesInitiativehasastrongattendancebytheadultPortuguesepopulation,visiblein theparticipationofbetween10and15%oftheactivepopulationthathasnotcompletedsecondary education.fromthestartoftheinitiativetoaugust2008,morethan516,000portugueseadultswere coveredbythenewopportunitiesinitiativeandmorethan183,000adultswerecertified. From the beginning of 2007 to August 2008, 447,774 candidates were enrolled in the New OpportunitiesCentres,ofwhich92,351obtainedaschoolcertificate.Fromthisnumber,4,021obtained acertificationatthesecondarylevel. The demand for the New Opportunities Centres 19 is broken down as follows: (i) the aim of around 52.2%ofadultsisbeingcertifiedatthelevelofsecondaryeducation(233,884),whobelongbyalarge majoritytotheagegroupbetween25and34(37%)and3%ofthoseenrolledhavebetween55and64 19Adultsenrolledbetween2007andAugust FormerRecognition,ValidationandCertificationofCompetencesCentres 21InJune Structureswhichaimtorespondtopopulationqualificationneeds. 23MainlandPortugalandtheAutonomousRegionofMadeira. 24Thekitscontainedbookletsthatweredestinedonlyfortheyoungtarget groupandvariousdidacticmaterials. 76

191 yearsofage;(ii)theaimof47.8%ofadultsistobecertifiedatthelevelofbasiceducation(213,890), with the majority of those enrolled belonging to the age group between 35 and 45(36%); 10% have between18and24yearsofageandonly1%are65yearsofageorolder;(iii)theyarelargelywomen; (iv) they are unemployed; and (v) they mainly come from the North, Centre and Lisbon by order of importance. More than 500 protocols and cooperation agreements were signed with the aim of mobilising employersandworkers(around600thousandpeople)forthepurposeofqualification. Theyearof2008witnessedtheExtendingoftheRVCCprocessestothesecondaryeducationleveland to professional competences (in addition to school competences), thus raising the integrating frameworkofthervccsystemanditsdualcertificationapproach schoolandvocational.in2007,the vocational RVCC was being tested in 16 vocational careers and 43 Vocational Training Centres of the Employment and Vocational Training Institute. It is estimated that from 2008, this offer will be progressivelygeneralisedtoallvocationalcareersincludedinthenationalcatalogueofqualifications andwillfunctionwithinanetworkofcentrescoveringtheentirecountry. In 2008, we registered a strong expansion and consolidation of the network of New Opportunities Centres 20 (CNO) with around centres 22 that ensured coverage of the entire territory, 23 thereby exceedingbyfarthetargetsetfor2008(157morethanhadbeenplanned).weshouldhighlightthe factthatthereareoffersofdualcertificationtrainingsforadultsafterworkinghoursinthemajorityof NewOpportunitiesCentreswithaviewtoprivilegingaccessoftheemployedpopulationandextending thepossibilityfortraining. StructuringMeasuresoftheNewOpportunitiesInitiative - The National Catalogue of Qualifications (CNQ) which currently containsaround240qualificationsthatarenotatthelevelofhighereducation.atthesametime, morethan5,000shorttrainingunitsweresetup,whichcanbecertifiedautonomously,ofwhich 800 promote mobility within and outside the areas of education and training, and all enable a higherflexibilityinaccesstoqualifications. - The Diversification of Opportunities for the Qualification of Young People e.g. the reorganisation of Technological Specialisation Courses(CET), the creation of responses for those who attended (and did not complete) training courses at the level of secondary education (AlternativeWaysofCompletingSecondaryEducation),therevisionofthecurricularstructureof learningcoursesandtheregulationoftheprocessofreorientingthetrainingpathofstudents. - TheReferentialSystemofKeyCompetencesforEducationandtheTrainingofAdultsattheLevel ofsecondaryeducation itenablesthepossibilityforallnetworkcentrestocertifyadultsatthe level of secondary education and at the same time, the launching of the Adult Education and TrainingCoursesatthelevelofsecondaryeducationwithinthescopeofdualcertification. - The dissemination of the use of the Access Guide to Secondary Education an instrument that containsinformationaboutalleducationandtrainingoffersavailabletoyoungpeopleandadults. - The Information and Management System of the Education and Training Offer (SIGO) a key instrumentformanagingandmonitoringdemand,processesandresults,fundamentalfordirecting andguidingyoungpeopleandadultstotrainingoffersthatenablethemtodeveloptheircertified skills,thusallowingthedecentralisedmanagementofthetrainingoffer. - Theimplementationofmechanismsforthesimplificationanddecentralisationofadministration in terms of the functioning of Adult Education Training Courses and the consolidation of local monitoring structures in the scope of the regional services of the Ministry of Education and of LabourandSocialSolidarity. - The execution of Technical Guidelines that articulate public and community financing strategies andthestrategiesandresultsdefinedforthenewopportunitiesmeasure. - The Quality Card of New Opportunities Centres, as an instrument for the regulation and orientationofitsactivity,aimingtofosterdemand,clarifyactionstrategiesandservicelevels.this QualityCarddefinesthemission,structuralprinciplesandthedifferentareasofinterventionofthe New Opportunities Centres. In addition, the Quality Card includes a System of Referential IndicatorsforQuality,whichdefinesservicelevelsandresultstobeobtainedineachoftheareas 77

192 ofintervention. - As a complement to the monitoring and evaluation covered by the Quality Card, a process of external evaluation, long and profound, of the New Opportunities Initiative and Network of CentreswaslaunchedinJanuary2008withtheaimofsupervisingitseffectivenessandefficacy. - The carrying out of various Information and Awareness Campaigns for qualification in 2007, namelyinthemedia(television,radio,press)withtheobjectiveofpromoting12thyearschooling andthesocialvalorisationofschoolsandvocationaltraining,asameanstoobtainaqualification that enables better opportunities for employment and personal fulfilment. This campaign was accompaniedbythedistributionofbookletsdestinedforeducationworkersandyoungpeople,i.e. studentsaged14 15,theageatwhichtheychoosetheirsecondaryeducationcourse.Atthesame time,newopportunitieskitsweredistributed24toschools. TheContributionoftheEU sstructuralfundstothenewopportunitiesinitiative The steps already taken in the implementation of the New Opportunities Initiative have benefited greatlyfromstructuralfundsupport,inparticularthatoftheeuropeansocialfund(esf)inthescopeof the CSF III, which required a strategic reorientation of the planned investment in the field of employment and training policies in line with the strategies and targets defined in the framework of thisinitiative. This strategic guideline was heavily stressed in the National Strategic Reference Framework. The qualificationofportuguesemenandwomenisacentralpriority,expressedbytheincreaseoffinancing directedforthispurpose.forthisreason,theesfrepresentsaround37%ofthesetofstructuralfunds fromwhichmainlandportugalwillbenefit,increasingby10percentagepointsitspositionrelativeto CSF III. This corresponds to an amount above 6000 million Euros, 70% of which are allocated to the implementationofthenewopportunitiesinitiative. Driver9.ProximityCommunityServicesNetwork The Proximity Community Services Network is formed by a set of projects, responses and social and health facilities, whose aim is to ensure the continuity of the provision of care(health and social) to people who are in a situation of dependency for various reasons, in such a way as to promote their overallrecovery(viacontinuousrehabilitation,readaptationandreintegration),givingspecialattention tosocialexclusion. Inmostcases,itsworkisdevelopedusingacooperationmodelbetweentheStateandCivilSocietyand targets particularly the following intervention areas: i) childhood and youth; ii) the disabled; iii) the elderly;iv)familyandcommunity;v)drugaddicts;vi)peopleinfectedwithhiv/aidsandtheirfamilies; vii)otherinterventionareas(mentalhealth,integratedsocialresponses). Thepledgeintheexpansionandupgradingoftheproximityservicesnetwork,intermsofnumberof responses, quality and equity in territorial distribution, is not only an important instrument to foster conciliation between the professional activity and the personal and family life and equal gender opportunities, the reduction of absenteeism, but it will also contribute to generating numerous new jobs in the tertiary sector. Hence, the Government proposes to use the "Extension of the Social Facilities Network Programme" 25 and the "Support Programme for Investment in Social Facilities" to: 26 (i) increase the installed capacity of crèches by ,161 places (to reach the Barcelona commitment:33%);(ii)improvesocialresponsesfortheelderly,creating19,000newplacesby2009; (iii) provide 4,600 places in integrated continued care network facilities by 2008 and; (iv) add 1,850 25GovernmentOrderno.426/2006of2MayandOrderno.10516/2006of11May. 26GovernmentOrderno.869/2006of29August. 78

193 places in social responses to the disabled by The total investment planned in the scope of the PARESProgrammeby2009is450millionEurosandthecreationofaround15,000newworkposts. In the 3 stages of PARES, 618 facilities were approved, corresponding to 1,049 social responses and 38,470 places. The total investment in these facilities is million Euros, of which million Euroscomefrompublicfinancing.Withthesenewresponses,theGovernmentplanstocreatearound 10,300 new work posts. As regards crèches in particular, around 18,650 places in 418 crèches and a total investment of 154 million were approved, of which 82.7 million stem from public financing (provisionalamounts). The fight against poverty and social exclusion is not only based on services and social and health facilities,butalsoondevelopingproximitynetworkswhich,byidentifyingthecharacteristicproblems andspecificitieswithinacertainterritory,developsadjustedinterventionstrategies.inthiscontext,the CLDS Local Social Development Contracts (Government Order no. 396/2007 of 2 April) are introduced.theirterritoriesarepreviouslyselectedaccordingtotheexistingneedsandtherespective municipalitiesinvitedtodevelopaprojecttogetherwithacoordinatingngo,whichisorganisedfrom thelocalsocialnetworksthroughinterventionpartnershipsatstrategicpoints:familyandcommunity; employmentandtrainingandaccessibilityandinformation. At the level of social minimums, a number of alterations were made in the legislation on the RSI SocialInsertionIncomeduetothealterationsconferredbyLawno.45/2005of29August,aswellas theinterventionstrategyitself,strengtheningtheinsertioncomponentofthebeneficiaries,intermsof bothsocialandprofessionalintegration.theinterventionlogicofthersiisbasedonthemonitoringof families by partners from the Local Insertion Nuclei and the IPSS with specific protocols for this purpose, pledging in taking full advantage of community resources in supporting the so called situationsofextremeneed.in2006,106,167householdsand beneficiarieswerecoveredand 49,394 integration agreements were signed, while in 2007, 117,740 households and 341,149 beneficiarieswerecoveredand68,173integrationagreementssigned,.relativeto2008(august),this measure covered around 341,149 beneficiaries and 128,915 families, and 73,693 integration agreementsweresigned. Alsointheareaofsocialprotectionforthemostneedy,theSolidaritySupplementfortheElderly(CSI) wascreatedbydecree Lawno.232/2005of29December.Itrepresentsaspecialbenefitforcombating thepovertyoftheelderlyandispartofthesubsystemofsolidarityaimedatpensionersover65years of age, assuming the character of a supplement to the pre existing income. Its value is defined by reference to a threshold that is defined each year and its attribution varies in accordance with the concrete situation of the pensioner who requests it. The Solidarity Supplement for the Elderly was introducedprogressivelyforthreeyears,i.e.itwasestablishedthattheageforrecognisingtherightto thesolidaritysupplementfortheelderlywouldbe80yearsin2006,70andabovein2007,and65and abovein2008.asattheendofthefirstquarterof2008,70,400elderlypersons(themajorityofwhom werewomen)benefitedfromthismeasure.expressedinfigures, 27 thegradualimplementationofthe measure covered 18,275 beneficiaries in 2006, of which 74% were women(only the elderly aged 80 andabove).in2007,thenumberofbeneficiariesincreasedtoaround55,771(theelderlyaged70and above) and in 2008, persons aged 65 years and above were included in the measure. In September 2008, the measure covered about beneficiaries. Between 2006 and 2007, a variation of the averagepaymentwasregisteredbetween75and79euros,havingagrowingtrendinlightofthenew referencethreshold. TheNationalNetworkofIntegratedContinuedCare 28 (RNCCI),createdbyDecree Lawno.101/2006 of6june,withinthescopeoftheactivityoftheministriesofhealthandoflabourandsocialsolidarity, isbasedontwofundamentalpillars,thenationalhealthserviceandthesocialprotectionsystem,and strivestocovertheallofmainlandportugal.itisbasedontheproximitycommunityservicesinorder , 2007, beginning of Pilot study until July 2007 when it started covering the entire territory of mainland Portugal for women and 72 for men. 30 Government Order no. 376/2008 of 23 May. 31 Government Orders 1087-A/2007 of 5 September and no. 189/2008 of 19 February. 79

194 to respond to its primary goal of providing integrated continued care to people who, irrespective of theirage,areinasituationofdependency,seekingtoensurecontinuityofoutpatienttreatmentsafter hospital discharge. This decentralised intervention model fosters effective dynamics of regional and localpartnershipsbetweenpublicandprivatesectorbodies(non profitandprofit).itisinnovativein thatitisanintegratedandarticulatedmodelofhealthandsocialsecuritywithapreventative,recovery andpalliativecharacter. Since the start of the National Network of Integrated Continued Care, 20,332 users were referenced and14,239attended.duringthefirsthalfof2008,anincreaseof183%wasregisteredincomparison toapril2007,characterisedbytheincreaseinthenumberofplacescreatedinresponsetoresidential careofaround2,539,whileitisplannedtomake4,600placesavailablebytheendof2008. The RNCCI model defines four types of residential care, while the occupancy rate in convalescence unitsis92%,inmediumandshorttermstayunits97%andinpalliativecareunits83%. The profile of the users of the National Network for Integrated Continued Care is as follows:(a) the majorityofthemarewomen(58%);(b)theiraverageageis73; 29 (c)themajorityofuserswhoareolder than80arewomen(57%)incomparisontomen(20%);and18%oftheuserslivedalone. Weshouldhighlightthedevelopmentandimplementationoforganisationalmeasures,namely: The implementation of the online registration and monitoring system of the network at the nationallevel. ThegrowthofthepolicyofequalitywithmonitoringvisitsstartedbytheLocalCoordination Teams,whichperformed80visits.Atthesametime,parametersfororganisationalauditsby externalauditorsandqualityindicatorswithemphasisonresultsweredefined. The identification of 12 referential units with training provided in the workplace to 38 professionals in liaison with similar units in Catalonia; visits by guardians to the referential units with the holding of workshops; the organisation of a seminar/workshop entitled "Building a Plan for Improvement: A path to quality" for a number of units and the identificationofopportunitiesforimprovementintheshort termforeachunit.internshipin Cataloniabyrepresentativesofthe5regionalstructuresofRNCCI. Thecreationofasingleinstrumentforbio psycho socialassessments(iab)andtheprovision oftrainingstoallnewrncciworkersinatotalof215hoursoftraining. The strengthening and development of other professional skills in 15 trainings that covered 361traineesinatotalof383hours.Thirteentrainingswerealsocarriedoutwhichincluded 476participantsduringatotalof156hours.Thetotalityofthecoordinating,referentialand service instances of RNCCI were covered, including all professional profiles and the entire geographicalareaonwhichrncciisimplemented. ThedrawingupofaguidelinemedicinerecordforRNCCI,madeavailableatthesite,aboutthe problemsrelatedtomedicinesfortheelderly. The creation of the "Modelar Programme" a public investment programme for the "modelling" 30 offacilitieswithsupportforthecreationofnewplaces. NewGovernmentOrdersestablishingthepricesofRNCCIresponses. 31. ThepublicationofNormativeOrderno.34/2007ontheco participationofbeneficiariesinthe NationalNetworkofIntegratedContinuedCare. ThepublicationofOrderno.28941/2007of20DecemberwhichsetsuptheWorkingGroup for putting the objectives mentioned in the National Programme for Palliative Care into practice. ThepublicationofOrderno.1408/2008of11JanuarywhichidentifiedtheUnitswhichform partofthenationalnetworkofintegratedcontinuedcare. We should point out that a study on the Assessment of the Satisfaction of Hospitalised Users was carried out this year in cooperation with the Higher Institute of Work and Business Sciences. Its conclusionswereasfollows:(i)96.6%ofthoseinterviewedaffirmedthatthecareprovidedattheunit wasgood(71.4%)orverygood(25.2%);(ii)80%ofthoseinterviewedconsiderthattheyhavegotten bettersincetheyarrivedattheunit;(iii)98%ofthoseinterviewedaffirmthattheywouldrecommend theunitinwhichtheycurrentlyreside. Among the users who had already been released, 45% considered the care provided very good and 80

195 47%considereditgood,around96%oftheuserssaidthattheywouldrecommendtheunitinwhich theywerehospitalised,and90%oftheusersconsiderthattheirstaytherehasimprovedtheirhealth. 81

196 ANNEXES 1

197 INDEX 1.MeasuresGrid(SEPARATEFILE) 2.LinkstoconnectedProgrammesandrelevantinformation StudyofimpactindicatorsofTechnologicalPlan Role of the National Strategic Reference Framework(NSRF) in the Portuguese NationalReformProgramme(NRP) TheRuralDevelopmentandFisheriesProgrammesandthePortugueseNational ReformProgramme(NRP )

198 LINKSTOCONNECTEDPROGRAMMESANDRELEVANTINFORMATION RELEVANTSWEBSITES: LisbonStrategy TechnologicalPlan EducationTechnologicalPlan ElectronicDiáriodaRepública State selectroniccertificationsystem e InitiativesandeSchoolinitiative NewOpportunitiesInitiative CompanyPortal CitizenPortal CompanyinanHour BrandinanHour Electronicdeclarations financas.gov.pt OnlineAutomobile ReadyHouse NewonlineCompanyRegisterServices os/mj/comunicacao/outros_documentos/ _mj_doc_registo_comercial_online.h tm CivilRegisterSimplificationprocedures os/mj/comunicacao/outros_documentos/ _mj_doc_registo_civil.htm OnlineCompanyregisterandpermanentcertificate os/mj/comunicacao/outros_documentos/ _mj_doc_registo_online.htm SimplifiedBusinessInformationandotherSimplificationmeasures NationalReadingPlan(Read+) DirectSocialSecurity social.pt/consultas/ssdirecta/ NewBorderControlSystems RAPID Netemmployment HospitalMedicationProgramme 7D5E 4EE9 AC9B 1D0928B070B0/0/Programa_Medicamento_Hospitalar.pdf SustainabilityReportofSNSFinancing os/ms/comunicacao/programas_e_dossiers/ _ms_doss_financiamento_sns.htm SocialCharter MODERNISATIONOFTHEPUBLICADMINISTRATION "Payingattherighttime"Programme financas.pt/inf_geral/default_ppth.asp EvaluationSystemofServices/EvaluationFrameworksandResponsibilisation(SIADAP1/ QUAR) SIMPLEXProgramme SIMPLEX:Balance ReformofContractualTies,CareersandRemunerationinthePublicAdministration os/mf/comunicacao/programas_e_dossiers/ _mfap_doss_regimes_ap.htm 3

199 OnlineLandRegister: CITIUS MobilityinthePublicAdminsitration os/mf/comunicacao/programas_e_dossiers/ _mef_doss_mobilidade.htm SharedServicesinthePublicAdministration os/mf/comunicacao/outros_documentos/ _mef_doc_servicos_partilhados.htm RestructuringProgrammeoftheState scentraladministration OrganicLaws os/mf/comunicacao/programas_e_dossiers/ _meai_prog_prace.htm PrinciplesofGoodGovernanceofCompaniesintheState sbusinesssector os/mf/comunicacao/outros_documentos/ _mef_doc_governo_see.htm R&DANDINNOVATION FINICIAProgramme art 02.php?id=234&temaid=9 FINICRESCEProgramme mstplindex.php?msid=6 InovarPlatform t=1 INOFIN t=1 InnovationScoring CohitecInitiative os/mei/comunicacao/intervencoes/ _mei_int_seaii_cohitec.htm InovJovemProgramme InovContactProgrammes InovVascodaGamaProgramme TaxIncentiveSystemforBusinessResearchandDevelopment InovCapital SuccessfulPartnershipsforInnovation ConnectingPortugalProgramme CMUPortugal MITPortugal UTAustinPortugal PledgewithScience BDPhDsinCompanies ScientificEmployment ConnectingPortugalProgramme InformationSociety,ICTandNanotechnology NetworkofInternetSpaces AccessProgramme DigitalCitiesandRegions CommunityNetworks 4

200 NEOTEC NewTechnologicallyBasedCompanies E Science InformationSocietyReportsandStatistics Itemid=171 INLIberianInternationalNanotechnologyLaboratory ENERGY,ENVIRONMENTANDLANDUSEPLANNING NationalStrategyforEnergy NewtargetsfortheEnergySector os/mei/comunicacao/outros_documentos/ _mei_doc_metas_energia.htm NationalDamProgramme Nacional%20de%20Barragens%20com%20Elevado%20Potencial%20Hidroel%C3%A9ctrico NationalPlanfortheAttributionofCO2EmissionLicences C8A7 485A 8D4A 0DB6CBE4C300/0/PNALE2.pdf PortugueseCarbonFund NationalActionPlanforEnvironmentandHealth PolíticadeCidades,PolisXXI StrategicPlanforSolidUrbanWaste E C7 58BB005B367D/0/PERSU_2.pdf StrategicPlanforwatersupplyandsewerage LogisticsPortugalPlan Stratgiesforthemaritime portsector A3 8DA D1DCE/0/Estrategia_Sector_Maritimo_Porturario.pdf PENT:NationalStrategicPlanforTourism doturismo/anexos/pent%20ver%20ingles.pdf NationalStrategyfortheSea os/mdn/comunicacao/programas_e_dossiers/ _mdn_prog_estrategia_mar.htm RuralDevelopmentProgramme(ProDeR): NationalStrategicPlanofRuralDevelopment: EuropeanAgriculturalFundforRuralDevelopment(FEADER): NationalRuralNetwork: OperationalProgrammefortheFishingSector(PROMAR): agricultura.pt EuropeanFishingFund(FEP): agricultura.pt MINISTRIES 5

201 MinistryfortheInteriorwww.mai.gov.pt MinistryofAgriculture,RuralDevelopmentandFisherieswww.min agricultura.pt MinistryofScience,TechnologyandHigherEducationwww.mctes.pt MinistryofCulturewww.min cultura.pt MinistryofNationalDefencewww.mdn.gov.pt MinistryofJusticewww.mj.gov.pt MinistryofHealthwww.min saude.pt MinistryofFinanceandPublicAdministrationwww.min financas.pt MinistryofPublicWorks,TransportandCommunicationswww.moptc.pt MinistryoftheEnvironment,LandUsePlanningandRegionalDevelopment MinistryofForeignAffairshttp:// MinistryofLabourandSocialSolidarityhttp:// MinisterofthePresidencyhttp:// GovernmentPortalhttp:// MinistryoftheEconomywww.min economia.pt MinistryofEducationhttp:// edu.pt/ OTHERPUBLICENTITIES LisbonStrategywww.estrategiadelisboa.pt TechnologicalPlan UMIC ScienceandTechnologyFoundation DirectorateGeneralofEnergyandGeology CompetitionAuthority AICEP GlobalCapital SupportInstituteforSmallandMediumEnterprises ADI InnovationAgency AgencyforAdministrativeModernisation(AMA) NationalAgencyforQualifications(ANQ) VineandWineInstitute(IVV): agricultura.pt NationalForestryAuthority: agricultura.pt/portal QUALIFICATIONANDREFORMOFVOCATIONALTRAINING NationalQualificationsCatalogue Despachonº1356/2008,DR93,SérieII,de approvestheinitialversionofthe NationalQualificationsCatalogue. LegalSystemoftheNationalQualificationsSystemandstructuresthatregulateits operation Decreto Leinº396/2007,DR251,SérieI,de Vocationaltrainingreformmeasures,agreedbythemajorityofthesocialpartnerswith seatsonthepermanentcouncilforsocialcoordination ResoluçãodoConselhodeMinistrosnº173/2007,DR214,SérieI,de CreationoftheNationalVocationalTrainingCounciltosubstitutetheNationalAdvisory CouncilforVocationalTraining Decreto Leinº39/2006,DR36,SérieI A,de ReformofVocationalTraining 6

202 os/mtss/comunicacao/programas_e_dossiers/ _mtss_doss_reforma_formacao_ Profissional.htm LaunchoftheTechnologicalPlanforEducation 16F0 4EC1 BA F76D64B/0/Plano_Tecnologico_Educacao_DR.pdf os/me/comunicacao/programas_e_dossiers/ _me_prog_ptecnologico_educacao.h tm ProgrammefortheModernisationofSecondarySchools edu.pt/np4/?newsid=7&filename=moderniz_tecnologica.pdf e schools:programmeforaccesstocomputersandbroadband os/moptc/comunicacao/programas_e_dossiers/ _moptc_doss_programase.htm ExpansionofProfissionalizingEducation 7D5B 471E 9AF5 8A485EE64084/0/Expansao_Ensino_Profissionalizante.pdf Boostingthepracticalandexperimentalcomponentinsecondaryschools os/me/comunicacao/outros_documentos/ _me_com_curricula_secundario.htm Reportontheevolutionofeducation2006/2007/IGE D55E 4E9C 98FB 8E7EF3E0077A/0/Rel_Org_Ano_Lectivo_2006_2007.pdf Positiveresultsinthefightagainstlowachievementanddroppingoutofschool edu.pt/np4/?newsid=271&filename=txsret.pdf os/me/comunicacao/outros_documentos/ _me_doc_estatisticas_escolares.htm ReformoftheTeachingCareerinBasicandSecondaryEducation os/me/comunicacao/programas_e_dossiers/ _me_doss_reg_ecd.htm SupportforSecondaryEducationintheFightagainstEarlySchoolLeaving2007/08 os/me/comunicacao/outros_documentos/ _me_doc_medidas_2007_08.htm ContractsfortheDevelopmentofSchoolsinDifficultSocialMilieus os/me/comunicacao/outros_documentos/ _me_doc_escolas_meio_dificil.htm Recognitionofcompetenciesatsecondaryschoollevel os/me/comunicacao/outros_documentos/ _me_doc_competencias_secundario.h tm AdjustingHigherEducationfortheBolognaProcess os/mctes/comunicacao/outros_documentos/ _mctes_doc_bolonha.htm NewEvaluationSystemforHigherEducation os/mctes/comunicacao/outros_documentos/ _mctes_doc_regime_avaliacao_e nssup.htm CreationofHigherEducationEvaluationandAccreditationAgency GeneralReformofLegalsystemofHigherEducationInstitutions Evora.pdf SystemofLoansforHigherEducationStudents os/mctes/comunicacao/programas_e_dossiers/ _mctes_doss_emprestimos_estu dantesens_sup.htm 7

203 NationalReadingPlan Outcomeofthe1stYearoftheNationalReadingPlan os/me/comunicacao/outros_documentos/ _me_doc_pnleitura.htm WORKINGRELATIONS LawthatchangestheLabourCodehttp:// /Comunicacao/Outros_Documentos/ _MTSS_Doc_Altera_Codigo_Trabalho.htm WhitePaperonLabourRelationshttp:// os/mtss/comunicacao/publicacoes/ _mtss_pub_livro_branco_rel_laborais.htm AgreementontheFixingoftheGuaranteedMinimumWagehttp:// _Salario_Minimo.htm LabourMediationSystemhttp:// os/mj/comunicacao/outros_documentos/ _mj_doc_mediacao_laboral.htm ReformofActiveEmploymentPolicieshttp:// os/mtss/comunicacao/outros_documentos/ _mtss_doc_politicas_emprego.htm ProgrammeforthePreventionandEradicationoftheExploitationofChildLabour SOCIALCOHESION/EQUALOPPORTUNITIES/PROXIMITYSERVICESNETWORK AidfortheFamilyandBirthhttp:// os/mtss/comunicacao/programas_e_dossiers/ _mtss_prog_natalidade.htm ReportontheMonitoringofthePilotExperimentsoftheNationalNetworkofIntegrated ContinuedCare os/ms/comunicacao/outros_documentos/ _ms_doc_rel_experiencias_rncci.ht m FirstphaseoftheapplicationtothePARES os/mtss/comunicacao/outros_documentos/ _mtss_doc_candidaturas_pares.ht m PresentationofLocalSocialDevelopmentContracts os/mtss/comunicacao/outros_documentos/ _mtss_doc_clds.htm NationalStrategyfortheInclusionofBeneficiariesoftheSocialIntegrationBenefit os/mtss/comunicacao/outros_documentos/ _mtss_doc_insercao_rsi.htm NationalActionPlanforInclusion(PNAI) os/mtss/comunicacao/programas_e_dossiers/ _mtss_prog_pnai.htm NetworkofSocialReintegrationEducationalCentres os/mj/comunicacao/outros_documentos/ _mj_doc_centros_educativos_reinser cao.htm 8

204 9 NewOpportunitiesCentreforthementallyhandicapped os/mtss/comunicacao/notas_de_imprensa/ _mtss_com_novas_oportunidades. htm

205 STUDYOFTHEIMPACTINDICATORSOFTHETECHNOLOGICALPLAN SUMMARY It is 3 years since the launch of the Technological Plan (PT) and some quantified informationshouldthereforebeprovidedonitsimplementationanditseffectsasa driverofsocialandeconomicchangesinourcountry.atatimewhenthemajorityof the planned measures have already been implemented or are in a relatively advancedstageofimplementation,anewphaseofreportingshouldbeadoptedon the progress achieved so far and the signs of what impacts the PT will make in Portugal;itwillonlybepossibletomeasuretheseimpactsinthemedium/longterm. To this end, together with the additional motivation resulting from the discussions that took place in the meetings of the PT Advisory Council, two Portuguese academicswereaskedtoconductastudythatidentifiedanddefinedimpactchains andindicatorsbyestablishingrelationsbetweentheareasofapplicationofthept and also forecast the identification and respective quantification of the execution indicators and results that demonstrate the path followed and the signs of the PT futureimpacts. BRIEFSUMMARY A study was conducted by two eminent Portuguese academics João Caraça and Vítor Corado Simões in order to identify impact chains and define a set of appropriate indicators to gauge the economic results and impacts of the TechnologicalPlan(PT). ItshouldbenotedattheoutsetthatwhenwespeakoftheimpactsofthePT,dueto theirverynature,wearereferringtoaspectsthatcanonlybemeasuredeffectively in the medium/long term; however, this does not prevent the immediate identificationofcertainindicatorsofexecutionandresultsthatcanactassignificant signs(sensors)forthelaterevaluationoftheeconomicimpactofthept. With this line of reasoning, it is important however to distinguish between three kindsofindicatorsconsideredinthestudy: (1) ExecutionindicatorsrelatedtotheimplementationofthePTmeasures; (2) Resultsindicators,theaimofwhichistoidentifytheresponsesofeconomic agentsinthedifferentapplicationareasofthept;and (3) Impact indicators, expressed in absolute or relative monetary terms and aimed at measuring the economic value generated as a result of the implementationofthept. The conclusions of the first phase of the study were presented at the PT Advisory Council on 23rd November 2007; they began with the relationship between the 10

206 three pillars of the PT (Knowledge, Technology and Innovation) and the so called KnowledgeTriangle andmadeananalysisandreclassificationoftheptmeasures in accordance with five criteria: Scope of interactions, Relevance, Time Horizon, IncidenceandAreaofApplication. ThisledtotheorganisationofthePTmeasuresinto7analysisdimensions(following figure): Network Society, Qualification of Human Resources, S&T Infrastructure, Financing System, Conditions of Economic Activity, Entrepreneurship and Business Capacity. Figure1:InitialperspectiveoftheRelationsbetweentheApplicationAreasofthePT This figure opens the path to a new distinction between the various indicators identified,namelybetweenintermediateindicators(definedasthosethatdonotas arulehaveanymonetaryexpression,andwhichtransmitresultsassociatedtothe Areas of Application upstream of Conditions of Economic Activity and Business Capacity) and Impact Indicators (characterised as those aimed at expressing the consequences or alterations in the economic fabric of a specific set of policy measures,alsodistinguishedbetweenthoseofthefirstlevelthatareclosertothe results and those of the second level that have a monetary expression and which bestexpresstheconsequencesoftheptintermsofeconomicchange). Theconclusionsofthesecondphaseoftheworkwerepresentedatthemeetingof theacon15july2008.theaimofthisphasewastobuildonthepreviousphaseby identifying impact chains. A methodological procedure was adopted for the presentation of a proposal of result and impact indicators which involved the analysis of the affects of each measure on the analysis dimension of which it was part, as well as on the remaining dimensions/areas of application identified; the Clustering of measures according to the potential impacts observed; the constructionofaframeworkofinteractionsbetweenthesevenanalysisdimensions; 11

207 theidentificationofthemostrelevantconnections;aproposalofabatteryofresult indicatorssoastocapturethemostrelevantconnections;and,finally,aproposalof impactindicators. The first impression drawn from observing the framework of interactions after the measureswereorganisedintoclustersisthateverythingisrelatedwitheverything. However, there is a significant variability and it is pertinent to underline that 12 interactions represent almost one third of the interactions observed between the various Areas of Application. These selected interactions therefore permit the definition of a structure of the strongest relations between the Areas of Application;thisstructureconstitutestheframeworkofthecentralimpactchainsof thept(followingfigure). Figure2:DiagramofInteractionsbetweentheAreasofApplicationofthePT Onobservingthisfigure,themainaspectthatstandsoutisthecentralpositioningof theconditionsofeconomicactivityinthedeterminantimpactchains.indeed,seven of the twelve selected interactions involve the Conditions of Economic Activity, makingthisarealikea turntable thatreceivesinfluencesfromalltheotherareas upstream and then distributes them to the S&T infrastructures, Entrepreneurship and,aboveall,businesscapacity. Accordingtotheauthorsofthestudy,inordertofullyunderstandandevaluatethe influence and the impacts of the various Measures, it is necessary to observe how theptworksinthelongtermbecausethemaindynamicsofbusinessinnovationand changeinportuguesesocietyemergefromtheseinteractions.inotherwords,itwas 12

208 necessary to think in terms of the foreseen execution of the PT and of the set of interactionstriggeredbyitandwhich,inturn,willcreateaneweconomicandsocial situation in a ten year frame. The following figure presents the new diagram that enablestheintegratedeffectoftheptinthelongtermtobeunderstood. Figure3:Diagramofinteractionsinthelongterm Theconclusionstakenfromanin depthanalysisofthisfigureareasfollows: 1. There is a dilution of the importance of the Network Society and Financing SystemAreasofApplication; 2. Theroleoftheinteractivetriangleemergesverystrongly,thethreevertices ofwhicharethequalificationofhumanresources,s&tinfrastructuresand theconditionsoftheeconomicactivity; 3. Thepledgeincertainlinesofbusinessleadstoanaddeddemandforteaching and vocational training activities which can result in virtuous circles of boostingcompetences; 4. Inthelongterm,wewillobtainastructuringtriangle,theverticesofwhich are the same as the Knowledge Triangle, where the Education vertex correspondstothequalificationofhumanresources,the Research vertex is expressed in the S&T Infrastructure and the Innovation vertex is transmittedintheconditionsoftheeconomicactivity; 5. Articulation between the three defining Areas of Application of the KnowledgeTriangleandthethreepillarsofthePT,wheretheQualification/ 13

209 S&T Infrastructure side can be conceputalised as Knowledge and reflecting the interactions between these two dimensions, the S&T Infrastructure/ Economy side can be expressed as Technology and the Qualification/Economy side can be understood to express the Innovation dimension. Thisstudyfinishedbypresentingalistof32resultindicators(ANNEX)and9impact indicators,someofwhichcomeupagainstsignificantshiftsintimeor,inothercases, the non existence of the actual indicator which the authors stress should be obtainedinthenearfutureduetoitsimportance.withregardtheimpactindicators, thestudyindicatesthatthefollowingshouldbemonitored: Relation between the total amount negotiated in the State s Electronic PurchasesProgrammeandtheGDP,expressedasapercentage; RelationbetweentheamountoftransactionsmadeviaElectronicTradeand thegdp,expressedasapercentage Earningsofscientificandtechnologicalservicesorganisationsresultingfrom servicesrenderedtocompanies,expressedasapercentageofturnover Proxy:OwnearningsofStateLaboratories publicbudgetaryappropriations for R&D as a % of the total Revenue of the Technological Balance of Payments,expressedasapercentageofGDP Productivity of work, measured using the ratio between the GVA and the activepopulation GVA of High and Medium/High Technology Industries and of knowledge intensiveservicesasapercentageofgdp ExportofHighandMedium/HighTechnologyproductsasapercentageofthe totalexportsofgoods Export of knowledge intensive services as a percentage of total service exports GVA generated by new technology based and/or knowledge intensive companiessetupinthelastthreeyears,asapercentageofgdp 14

210 ANNEX ResultsIndicators 15

211 RESULTSINDICATORS (ExistingandProxyIndicators) NETWORKSOCIETY Broadbandpenetrationrate,fixedandmobile Percentageofpublicservicesavailableonline PercentageofregularInternetusersamongindividualsinthe16to74year agegroup Percentageofregularemployedinternetusers Percentageofindividualsin16to74yearagegroupwhouseelectronictrade Companieswithbroadbandinternetaspercentageoftotalnumberof companies QUALIFICATIONOFHUMANRESOURCES Levelofearlyschoolleaving Percentageofpopulationbetween20and24yearsoldwithatleast secondaryschooling PercentageofhigherEducationgraduatesinthe25to64populationProxy: PopulationresidentinPortugal(15 64years)withHighereducation PercentageofstudentsenrolledinScienceandTechnologyAreasinrelation tototalstudentsenrolledinhighereducation PhDsinScienceandTechnologyperthousandofthepopulationbetween25 and64years (*)participationinlifelongtrainingofthe25 64yearagegroup SCIENCEANDTECHNOLOGYINFRASTRUCTURE Scientificproductionreferencedinternationallypermillioninhabitants EuropeanscientificproductionwithPortugueseparticipationexpressedasa percentageoftotaleuropeanscientificproduction Proxy:percentageofco authorednationalscientificproduction (*)TotalpersonnelinR&D(ETI)perthousandofactivepopulation (*)Researchers(ETI)perthousandofactivepopulation FINANCINGSYSTEM InvestmentinriskcapitalasapercentageofGDP (*)PublicexpenditureonR&DasapercentageofGDP (*)CompanyexpenditureonR&DasapercentageofGDP CONDITIONSOFTHEECONOMICACTIVITY 16

212 ForeigndirectinvestmentinPortugalasapercentageofGDP (*)EPOpatentsregisteredpermillioninhabitants Communitybrandsregisteredpermillioninhabitants Communitydesignspermillioninhabitants Weightofrenewableenergyproductioninthegrossproductionplusimport balance ENTREPRENEURSHIP NewcompaniesinHighandMedium/Hightechnologyand/orknowledge intensivesectoraspercentageoftotalcompanystartupsinlastthreeyears Proxy(*)StartupofcompaniesinHighandMedium/hightechnologysectors aspercentageoftotalcompanystartups RateofEntrepreneurialactivity BUSINESSCAPACITY EmploymentinHighandMedium/Hightechnologyindustriesinrelationto totalemployment EmploymentinKnowledgeIntensiveindustriesinrelationtototal employment SMEsthatdeclaretheyhaveinnovatedinproductsorprocessesasa percentageofgdp Observation(*)indicatesthatnorecentfiguresi.e.post2005,areavailableforthe indicatorinquestion 17

213 THE ROLE OF THE NATIONAL STRATEGIC REFERENCE FRAMEWORK (NSRF)INTHEPORTUGUESENATIONALREFORMPROGRAMME(NRP) ThedefinitionofthepriorityareasofthisnewcycleoftheLisbonStrategyreflects the strong convergence of its implementation and the NSRF 2007/2013, as the centralfinancinginstrumentforalargeproportionofthemeasuresincludedinthis Plan. TheexecutionoftheLisbonStrategy(macro,microandemploymentcomponents), notablyinthisnewcycle ,iscoherentwiththecohesionpolicy,ensuring growth that strengthens social and territorial cohesion through sustainable development measures, boosting the social dimension, the valorisation of the development of an intelligent territory (area 6.), respecting diversity, empowering endogenous resources and contributing to the availability of infrastructures that generatewellbeinganddevelopment,namelyfromtheperspectiveofconcludingor improving the national infrastructure networks in various fields and the link to strategiceuropeanand/ortransnationalnetworkse.g.europeantransportnetworks. Indeed,thestructuralfundsandthecohesionfundhaveprovidedanimportantlever forthepursuitofthelisbonagendabothinthelastcycleandinthisnewcycle,in particularintheconvergenceregions(north,centre,andalentejo,azores)thanksto thegreaterdimensionofthesefundsintherespectivedevelopment,butalsointhe competitiveness and employment regions (Lisbon, Madeira, Algarve) where the Lisbon Agenda encounters fertile terrain even though the size of the funding is significantlysmaller. ButitisnotedthatthePNRcontainsasetofobjectives,measuresandactionsofa legislativeandregulatorynatureinvariousfields,aswellasincentivesandsupport measures targeting private agents or their surroundings. With regard the NSRF, therefore, it is a Plan that comes to the aid of a wide range of instruments and interventiontypologies. ItisalsonotedthatthetimereferenceframeworksofPNRandofNSRF,2008/2010 and2007/2013respectively,donottotallycoincide.however,throughoutthenext cycletherewillbeakeyinfluencebetweenthetwoprocesseswhichrequirescareful articulation between the respective coordination structures, foreseen in the governance model of the NSRF, namely by means of the participation of the NSRF ObservatoryintheproductionofannualreportsontheimplementationofthePNE and also the appraisal of these reports in the framework of the Ministerial Coordination Committee, as well as in the monitoring model of the PNR, with the participationofthensrfobservatoryintherespectivefocalpoints. Thefollowingfigureillustratesthecoherentandconsistentassociationbetweenthe priorityareasofthenewcycleofthepnrandthestrategicprioritiesofthensrf, 18

214 which determine the definition of the three thematic operational agendas of the NSRF Human Potential, the Economy s Competitiveness Factors and the Valorisation of the Territory and then the conception of the Operational Programmes(OP)witheachoneofthemarticulatingmoredirectlyorintenselywith someoftheagendasandstrategicprioritiesofthensrf. Inthiscontext,theThematicOPs HumanPotential,theEconomy scompetitiveness Factors and the Valorisation of the Territory were clearly oriented in line with these three agendas and the strategic priorities of the NSRF most intensely associatedtothem qualificationoftheportugueseandsocialcohesioninthefirst case, sustained growth and efficiency of governance in the second and the qualification of cities and territories in the last case. The Regional OPs of the Continent are essentially related to the strategic priorities linked to the Competitiveness Factors Agenda and the Valorisation of the Territory Agenda and more tenuously linked with the Human Potential Agenda, in this case particularly from the perspective of fostering social cohesion; the boundaries between the intervention of these Regional POs and the Thematic POs that clearly respond to eachoftheseagendasarewelldefined. Inshort,thePOiswellarticulatedwiththepriorityareasofthePNR in line with the respective intensity of the relation of each of these areas with the strategicprioritiesofthensrftowhichtheseprogrammesrespond. 19

215 In this context, in accordance with article 9 of the regulation that lays down the generalrulesgoverningtheerdf,theesfandthecohesionfundforthe period, the agenda defined for the Lisbon Strategy must be pursued by complying with the minimum targets of fixed expenses(earmarking): 60% of the Operational ProgrammesframedintheConvergenceObjective(includingtheonerelatedtothe Transitory/Phasing Out System) and 75% of the set of Operational Programmes framed in the Regional Competitiveness and Employment Objective (including the onerelatedtothetransitory/phasinginsystem).inthensrf,theindicativetarget foreseen for the period it is in force exceeds these minimums imposed by the communityregulationforearmarking 83%intheconvergenceregionsand81%in thecompetitivenessandemploymentobjectiveregions andthedataacquiredon the foreseen investments in the applications approved up to August this year indicatesthatthesetargetswillbeexceeded(seechapteriii). AstheNSRFassumesakeyroleinthefundingofpublicpolicieswithinthePNR ,itisalsoobviouslyvitalthattherespectiveaidfromthestructuralfundsand thecohesionfundisconcentratedintheactionsandinvestmentsthatproducethe results and impacts sought after through implementing the Lisbon Strategy in Portuguesesociety.Tothisend,theNSRFpledgesinconcentratinginterventionsand 20