Miranda Sarmento fears past mistakes in public investment and explains why she wants more Autoeuropas

For Joaquim Miranda Sarmento, “it is absolutely essential for Portugal to bring two or three large industrial projects. Autoeuropa represents about 1% of GDP, is the second or third largest national exporter and employs four thousand people. Just because of its size, three of these projects were significant in themselves ”.

Joaquim Miranda Sarmento, president of the PSD National Strategic Council, explained tonight why he considers it “fundamental” for the structural change of the Portuguese economy that “two or three large industrial projects” such as Autoeuropa be created and warned of the danger of European funds are channeled into the mistakes of the past that have been made in public investment.

At the conference will of the PSD National Strategic Council that addressed the topic of “Public Investment in the Post-Crisis”, the finance specialist and adviser of Rui Rio explained the three reasons that led the PSD to defend the creation of more industrial projects of the Autoeuropa dimension in the economic program.

“It is absolutely essential for Portugal to bring two or three large industrial projects. An industrial project like Autoeuropa does three things. First, dimension. Autoeuropa represents about 1% of GDP, is the second or third largest national exporter and employs four thousand people. Just because of their size, three of these projects were significant in themselves, ”said Joaquim Miranda Sarmento.

Secondly, he argued, such a project creates more production because "it allows the creation of a business chain, namely in the suppliers of this great project".

“Portugal today has a significant position in the automotive components industry thanks to Autoreupa and a set of suppliers from Autoeuropa that were created and started to supply that project, but that today, due to the level of demand of that customer, supply several customers to world level, ”said the president of the PSD National Strategic Council.

"The third reason is that they give a very significant change in scale and efficiency," he said.

In relation to the current context, at a time when the European Union is preparing to start negotiations on the Recovery Fund, Joaquim Miranda Sarmento was concerned about the use that Portugal might give them.

"It is concerned that the European response is channeled to the mistakes of the past, such as large public works, which then leave high costs for the following decades", warned the finance specialist.

In the past, the economist explained that there was a large public investment in highways, making Portugal the “second or third country in the world with the largest network of highways”. It happens that, some of them are “without enough traffic for a motorway profile, which are about 12 thousand vehicles per day”.

“In the last 2 years, economic stagnation is very much associated with bad investment decisions”, a problem that the economist does not want to see replicated.

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