NRP Portugal

LISBONSTRATEGYNATIONALPLANOFREFORMS(PNR)‐PORTUGALCabinetoftheNationalCoordinatoroftheLisbonStrategyandtheTechnologicalPlanReportontheimplementationofthePNACE2005‐2008PNR–NewCycle2008‐2010OCTOBER2008R u a d a L a p a , 7 3 1 2 0 0 ‐ 7 0 1 L i s b o a w w w . e s t r a t e g i a d e l i s b o a . p t | w w w . p l a n o t e c n o l o g i c o . p t http: / / v i d e o s . s a p o . p t / p l a n o t e c n o l o g i c o

PRESIDÊNCIADOCONSELHODEMINISTROSGABINETEDOCOORDENADORNACIONALDAESTRATÉGIADELISBOAEDOPLANOTECNOLÓGICO|INDEXIntroduction Part1–PNACE2005/2008;aprogrammeinFullImplementationandinlinewithEuropeanUnionRecommendationsPart2‐PNR/NewCycle(2008/2010);ConsolidatingReformsPart3–OutcomeoftheimplementationofPNACE2005/2008AnnexesandusefulLinksOutubro20082

PRESIDÊNCIADOCONSELHODEMINISTROSGABINETEDOCOORDENADORNACIONALDAESTRATÉGIADELISBOAEDOPLANOTECNOLÓGICO|INTRODUCTIONThe Renewed Lisbon Strategy approved by the Spring European Council in 2005envisagedthateachMemberStatewoulddevelopandimplementaNationalReformProgrammefocussedonGrowthandEmployment,basedon24guidelinesthatcovertheMacro,MicroandEmploymentdimensionsandtobeappliedbetween2005/2008.PortugalapprovedanambitiousreformprogrammeandpresentedittotheEuropeanCommission. It is entitled the National Action Programme for Growth andEmployment(PNACE2005/2008)andisstructuredinto4targets,7prioritiesand125measures.Therehasbeenahighlevelofcomplianceandalsoresultsintheimplementationofthe programme as set out in the first and third parts of this report; the evaluationreport approved by the European Commission in this year’s Spring Council hasclassifiedPortugalasacountrythatismaking“GoodProgress”intheimplementationofitsPNR.Fromtheveryfirst,theimplementationoftheRenewedLisbonStrategyfocussedonexecutionandresultsandhadthejointinvolvementofpublicpoliciesandcivilsocietyinitiatives.Inthiscontext,andbearinginmindthestrategicconformitythathasbeenseen,therecommendations and warnings from the European Commission were alwaysinterpreted as a boost and stimulus to increase the quality and intensity of theexecutionofthePNACE2005/2008.Theresultoftheconvergenceeffortandresponsearepresentedinthefirstpartofthisreport.Theimpactassessmentisafundamentaltoolfortheeffectivenessofpolicies.Hence,inadditiontothecontrolofthelevelofexecutionandcompliancewithtargetsandobjectives, the concept of impact “drivers” was also introduced. The nine “drivers”selectedareusedinthethirdparttoshowthemainlinesofexecutioninthelastyearoftheimplementationofthePNACE2005/2008.The second part of this report also presents the strong lines for the launch andrealisationoftheNewCycleoftheLisbonStrategyinPortugal.Anewcycleforthe2008/2010periodwasapprovedintheSlovenianPresidencyofthe European Union but the contribution made to its design by the PortuguesePresidency in the second semester of 2007 has been recognised as extremelyrelevant; this cycle boosts the country’s commitment to the future of a EuropeanStrategy that is able to empower the Union to overcome the challenges ofglobalisationinacontextofeconomic,socialandenvironmentalsustainability.Outubro20083

PRESIDÊNCIADOCONSELHODEMINISTROSGABINETEDOCOORDENADORNACIONALDAESTRATÉGIADELISBOAEDOPLANOTECNOLÓGICOThisreportframesabroadenedandambitiousvisionoftheapplicationoftheLisbonStrategy in its dual national and European dimensions as an internal and externalstrategy of the positioning and action of Portugal and the European Union in theglobal economy, which is especially important at a time of international crisis andchangeofparadigm.Hence, the structural funds and the cohesion fund in the context of the NationalStrategic Reference Framework (NSRF) will be assumed as fundamental supportinstruments for the implementation of the Lisbon Strategy in Portugal in the2008/2013period.The preparation of this document has been supported by extensive interaction andfeedbackfromtheInterMinisterialNetworkfortheCoordinationandImplementationof the Lisbon Strategy and from the economic and social partners, and fromcoordinated work with the ESC (Economic and Social Council) and with the CNADS(NationalCouncilfortheEnvironmentandSustainableDevelopment).BilaterallinesofworkwerealsodevelopedwiththepermanentmembersoftheESCwhoproducedspecificcontributionsfortheformulationofthedocumentduringthepreparatoryvisitmadebythedelegationfromtheEuropeanCommissiontoPortugalinJulythisyear.ThetimehorizonofthisnewcycleoftheLisbonStrategyis2010.Althoughthisisarelativelyshortperiod,arigiddefinitionoftheNationalReformProgrammes,whichhavestructuralgoalsandplayavitalroletowardsgeneratinganewmomentumforeconomic growth, is both unnecessary and inappropriate given the need to beattentivetothewaythecontextevolves.Hence,thestrategicmeasuresidentifiedwillofcoursebeadaptingsystematically 1 .ThesuccessoftheNewCycleimpliesthattheLisbonAgendawillbeprojectedtoasubstantiallybroaderhorizon.Weareconfidentthatthiswillbetheconclusionofthedebate taking place on the post 2010 Lisbon Agenda and we have included thisconvictioninourassumptionswhendrawingupthisreport.1 ThisdocumenthasbeenapprovedintheextraordinaryCouncilofMinistersof12 th ofOctober.DuetothepreliminarydiscussionoftheGovernmentBudgetfor2009occurredinthatCouncil,theexpectationsaretotheinclusionofspecificmeasuresinordertorespondtotheinternationalcrisesinfinancialmarkets,namelytheonesaimingthestabilizationofthefinancialmarketsand,inparticular,whatconcernstoSMEandfamiliessupport,thedecreaseofIRCtaxestocompaniesandtheincreaseoftheSMEAidFund,aswellastheenlargementofspecificsocialtransfers.Outubro20084

#1PARTPNACE2005/2008AProgrammeinfullimplementationandalignedwithEuropeanUnionRecommendations

|INDEXIntroduction................................................................................................................3Recommendation1–Reorientationofpublicexpenditure.......................................5Recommendation2‐Improvequalifications..............................................................7Recommendation3‐Moderniselegislationandemploymentprotection...............13FutureChallenge4–Sustainabilityofpublicaccounts.............................................16FutureChallenge5–ImplementationoftheTechnologicalPlan.............................17FutureChallenge6–Competitionandregulation....................................................20FutureChallenge7‐BetterRegulationProgramme...................................................22FutureChallenge8–TranspositionofEuropeanUnionlegislation...........................24FutureChallenge9–Reductionofgreenhousegasemissions.................................27FutureChallenge10‐Factorsthreateningsocialcohesion......................................282

|INTRODUCTIONPNACE2005/2008isanagendainfullimplementation,asseeninthethirdpartofthisreportandtherespectiveannexes.Followingtheexecutionoftheprogramme,4goalswereset:reductionofthebudgetdeficit from 6.8% (projection for 2005) to 2.6% of GDP (starting from a stagnantsituation in 2005), increase in the employment rate to 69%, doubling the publicinvestmentandtreblingtheprivateinvestmentinR&D.Thefirstgoalwasreachedoneyearearlierthanforecastandthepublicdeficitin2007was2.6%ofGDP.TheactualgrowthofGDPin2007was1.9%whichenabledthisgoaltobefullyachieved.However,inMaytheinternationalcrisisledtoareviewofthegrowthprojectionsfor2008toarateof1.5% 1 .Forthesecondquarterof2008,thegrowthoftheGDPwas0.7%(0.9%inthefirstquarterof2008).The employment rate was 67.8% in 2007 and reached 68.6% in the 2 nd quarter of2008.Theemploymentrateforwomenwentupto61.9%in2007and62.3%inthe2 ndquarterof2008.Forseniorworkers(55‐64yearsold)therateamountedto50.9%in2007and51.2%inthe2 nd quarterof2008.Thenetjobcreationreachedavalueofnearly133,800betweenthe1 st quarterof2005andthe2 nd quarterof2008.Finally,thepublicinvestmentinR&Dwasdoubledoneyearaheadofforecastandwasreflected in the State Budget of the current year. The results of the survey on thescientificandtechnologicalpotentialincoursearenowawaitedsoastoconfirmtheexpectationsofaverysignificantincreaseinprivateinvestment,correspondingtothegoalofitstrebling.These results were reached within the framework of a strong alignment with theRecommendations from the European Union which systematically validated theprioritiesdefinedandactingasincentivesnottoslowdowngiventheirambitionandimpact.In the evaluation of the 2007 report, the recommendations to Portugal can besummedupinthreelinesofaction:1. Toreorientatethepublicexpendituretowardsthereinforcementoftheeconomicgrowthpotential,keepingastrictcontrolofoverallexpenditure,withinthecontextofthecorrectionsincourseofbudgetimbalancesandthePublicAdministrationreform;2. Tosignificantlyimprovetheefficiencyoftheeducationsystem,namelythroughtheincreaseofthequalificationlevelsofyouth,fightingagainsttheearlydroppingout1 Meanwhile, and due to the international crises in financial markets, the projections for GDP growth to2008 was reviewed to 0,8%.3

fromschoolandprovidingavocationaltrainingsystemthatisadaptedtothelabourmarketneedsandthatisbaseduponthe“NationalQualificationsFramework”;3. Topursuetheeffortstomodernisethelabourprotectionmechanism,namelythelegislation, in order to reduce the significant segmentation of the labour market,withintheframeworkoftheFlexicurityapproach.Inputtingtheselinesofactionintoeffect,theEuropeanCommissioninvitesPortugaltopayparticularattentiontothefollowingfuturechallenges:4. Tocontinueboostingthelongtermsustainabilityofthepublicfinancesandthesustainedreductionofthecurrentbalance;5. To pursue the application of the Technological Plan, consolidating theconnections between research, higher education and industry, fostering increasedparticipationfromtheprivatesector;6. To assure effective competition, namely in the energy markets and financialservices;7. TopursuetheapplicationoftheBetterRegulationprogrammeand,inparticular,thereinforcementoftheimpactevaluationsystem;8. ToreducethedeficitinthetranspositionofEUlegislationtonationallaw;9. Toprepareandapplythemeasuresrequiredtoreducegreenhousegasemissions;10. Tocontinuethefightagainstfactorsthreateningsocialcohesion.TheserecommendationsandfuturechallengesareinfullalignmentwiththestrategicandoperationalprioritiesassumedfortheimplementationofthePNACE2005/2008andwillbefollowedinthePNR–NewCycle2008/2010.The main constraint on the improvement of Portugal’s economic, social andenvironmentalsustainabilityinthepastfewyearshasbeentheinsufficientlevelsofeconomicgrowthand,inparticular,thelimitedpotentialgrowthinducedbythelowproductivityofthefactors.Hence, and in compliance with the European Commission Recommendations, thepledge in the quality of public finances and the allocation of the resources of theNational Strategic Reference Framework (NSRF 2007/2013) has been achieved byfocusing on a mobilising agenda towards growth and competitiveness – theTechnological Plan – driven by the mobilisation of the Portuguese society and theconcentration of public policies on resolving the factors blocking Portugal’s thepotentialgrowth.The Technological Plan (PT), together with the Stability and Growth Pact (PEC), theNational Employment Plan (PNE), the National Strategy for Social Protection andSocialInclusion(EPSIC)andtheNationalLandUsePlanningProgramme(PNPOT),inthe wider framework of the National Strategy for Sustainable Development (ENDS2015), the Pledge with Science initiative and the Connecting Portugal Programme,amongstother,constitutethefoundationfortheapplicationoftheLisbonStrategyinPortugal, whose earmarking, acknowledged in the National Strategic ReferenceFramework(NSRF),isof83%.4

Within this strategic framework, Portugal believes it has already been acting in linewith the recommendations and future challenges indicated by the European Unionwith many of the measures integrated in PNACE 2005/2008, and it is ready toreinforcetheseconcernsinthePNR–NewCycle2008/2010 2 .Withinthiscontext,thereadingoftheresponsestotherecommendationsandfuturechallengesissuedbytheEuropean Union, presented below, must be complemented by comprehensive andmoredevelopedinformationinthePNR–NewCycleandtheOutcomeofthelastyearofexecutionofPNACE.ItshouldbestressedthattheimplementationofPNACE2005/2008followedamatrixlogicthat,takingintoaccountthecentralaxessetbytheguidelinesoftherenewedLisbon Strategy at the Macro, Micro and Employment levels, also reflected thedifferentpoliciesintransversalapproachesoncriticalspheresforthepromotionofaninclusivesociety,suchasqualifications,innovation,youthandgenderequality.It was this matrix approach that provided strength to the implementation of thePNACE 2005/2008, enabling a positive outcome in the way global responses weregivenandconsistentwiththeEuropeanCommissionrecommendations.|1. REORIENTATION OF THE PUBLIC EXPENDITURE: FOCUS ONPRODUCTIVITY AND EVALUATION, FOLLOW‐UP AND MONITORING OFPUBLICEXPENDITURE 3 Recommendation:“Toreorientatethepublicexpendituretothereinforcementoftheeconomicgrowthpotential,keepingastrictcontrolofoverallexpenditure,withinthecontext of the corrections in course of budget imbalances and the PublicAdministration”Since 2005, the budget policy has been mainly directed towards the responsiblemanagementofpublicfinanceswithaviewtopromotingitslongtermsustainabilitythrough the process of budget consolidation. The balance of the public finances isessential for the provision of a favourable environment for entrepreneurship,productivity and economic growth. Therefore, Portugal will pursue the budgetconsolidationeffortbasedonthecontrolofpublicexpenditure.Morethanhalfofdeficit’sreductionby3.5percentagepoints(p.p.)oftheGDPseenin2006 and 2007 (from 6.1% to 2.6% of the GDP) resulted from the decrease in the2 Besides the direct responses included in this part of the report, please see Part III, results of 2007-2008, and Part II, PNR – New Cycle, new measures.3 Complete with the underlying information of the measures included in Part II, Quality of PublicFinances, and in the results Part III, macro level.5

weight of public expenditure on the GDP (1.9 p.p. of the GDP, i.e., from 47.7% to45.8%).Inaddition,theweightofthepublicdebtontheGDPreducedin2007,inlinewiththeevolutionofthebudgetdeficit,standingat63.7%(‐1.0p.p.thanin2006),interruptingtheevolutioninthegrowthseenintheprevioussixyears.Thisdynamicofthepublicfinancesenabledthereleaseofresourcesfortheprivatesectoranditisestimatedthatthecorporateinvestmentincreased1.5%in2006and14.7%in2007.Inacontextofbudgetconsolidation,theweightofthepublicinvestmentinthetotalprimaryexpendituredeclinedin2006from9.5%to7.8%,andrecoveredto8.1%in2007.Itshouldbenoted,however,thatincoherencewiththedevelopmentstrategyadopted by the Government, despite the contention of public investment, this hasbeen redirected to areas and projects that are associated to a greater economicgrowth potential namely in the areas of knowledge and the qualification of humanresources. This is the case of the Ministry of Science and Technology and HigherEducationallocationtoinvestmentinScienceandTechnology,whichincreased61%in2007and14%in2008 4 .In addition, the governance model of the National Strategic Reference Framework(NSRF),whichfosterscompetitionandtheselectivechoiceofinvestmentprojects,theinvolvement of stakeholders and monitoring and evaluation, enables communityfundstobemanagedinlinewiththepromotionofthecompetitivenessfactors,thegrowth of human capital and the endogenous territorial factors that stimulatepotentialgrowthandtheincreaseinthelevelsofcohesion.Asaresult,notonlyarethe large majority (83%) of NSRF community funds directed towards the LisbonStrategy priorities of promoting competitiveness, job creation and the increase ofeconomic,socialandterritorialcohesion,buttheyarealsoimplementedinlinewiththefocusingandselectivityprinciplesoftherespectiveinvestmentssupported.ThispledgeinqualityisseenintheapprovalrateoftheapplicationspresentedtoNSRFbyAugust 2008, during calls for applications or application periods that have alreadyclosed,whichisonlyabout50%.The reform of the budget process underway is aimed at the structuring byprogrammes and is the Government’s main pledge to structurally improve publicexpenditure capacity to be effectively channelled towards its goals, in particulartowards the activities that stimulate the potential of economic growth. In fact, thisreform aims at assuring the budget choices are aligned with the social‐economicimpactsintendedbytheGovernment,inviewoftherespectivepoliticpriorities.Thisreformwillenabletheeffectiveandsystematicdefinitionofprioritiesintheallocationofpublicexpenditure.4 The last data available about the functional classification of the public expenditure (COFOG) datesback to 2006, hindering an updated analysis of the evolution of the functional composition of thepublic expenditure in Portugal.6

|Responsetorecommendation1:• Thegreatmajority(83%)oftheNSRFcommunityfundsisdirectedtowardstheLisbonStrategypriorities;• Thereformofthebudgetprocessincourse,aimingatitsstructuringbyprogramme,inordertostructurallyimprovethepublicexpenditurecapacityandbeeffectivelychannelledtowardstheactivitiesthatstimulatetheeconomicgrowthpotential.Mainresultsalreadyobtained:• Reorientationofpublicexpendituretowardsinnovation,scienceandtechnology;theMinistryofScienceandTechnologyandHigherEducationallocationtoinvestmentinScienceandTechnologyincreased61%in2007and14%in2008.• Thereductionofthedeficitby3.5percentagepoints(p.p.)oftheGDPseenin2006and2007(from6.1%to2.6%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%in2007.2.IMPROVEQUALIFICATIONS:BOOSTINGSTANDARDSOFCOMPETENCEACQUISITIONLIFELONGLEARNING 5 Recommendation:“(…)Tocontinuetotakemeasurestosignificantlyimprovetheefficiencyof the education system, namely through the increase of the qualification levels ofyouth,fightingagainsttheearlydroppingoutfromschoolandprovidingavocationaltrainingsystemthatisadaptedtothelabourmarketneedsandthatisbaseduponthe“NationalQualificationsFramework”ThepledgeinthequalificationofthePortuguesepopulationcontinuestorepresentanessentialstrategicchallengeforthepromotionofthecountry’seconomicgrowthand social cohesion. The urgency in the recovery of the deficits in education andtraining,accumulatedoverseveralyearsandthesignificantreductionofearlyschoolleaving, led the Government to embark on a wide set of reforms that include thedifferent levels of education and the vocational training system. To increase theirimpact,differentpublicandprivateentitieshavealsobeenmobilised.5 Complete information with measures Part II, 5.1. Qualifications and results Part III, employmentlevel, qualifications section.7

Inthiscontext,duetoitsscopeandimpact,emphasisisgiventothelaunchoftheNewOpportunitiesInitiativeinSeptember2005.Thisconstitutesafirmanddecisiveresponsetothequalificationchallengeofthepopulation,throughanintegratedsetofstrategic measures in terms of education, training and certification, which aims atgeneralisingthesecondarylevelasareferencegoalforthequalificationofyouthsandadults.Thestrategyofthisinitiativeliesontwomainpillars:- Theimprovementofthebasictrainingofyouth,namelybythediversificationoftheeducationandtrainingsupplies,throughthestrengtheningofvocationalcourses,the fight against non‐achievement and early drop out rates in the educational andtrainingsystem;- The improvement of the base training of the adult population, recognising,validatingandcertifyingtheskillsalreadyacquiredbymeansofeducation,training,professional experience or other, thereby structuring qualification paths that matchtherealityofeachcitizen,guidedtowardshis/herpersonaldevelopmentandtowardstheneedsofthelabourmarket.The mobilisation of the population and the results achieved in the meantime areencouraging(seeNewOpportunitiesInitiative).Thesereflectthepriorityofthepublicpolicies in terms of education and training, with a rise of more than 10 percentagepointsintheweightregardingtheEuropeanSocialFundofthesetofstructuralfundsfor the period 2007‐2013, to a total of about 8.9 billion euros, of which roughly 6billioneuroswillbeallocatedtothedevelopmentofpoliciesthatintegratetheNewOpportunities Initiative, namely through the Human Potential Thematic OperationalProgramme.Equally, following the broad consensus achieved between the Government and themajorityoftheSocialPartners,thereformofthevocationaltrainingsystemreformconstitutes a fundamental instrument essential to the successful pursuit of thequalificationstrategydefinedwithinthescopeoftheNewOpportunitiesInitiative.In the framework of this reform, Decree‐law 396/2007, dated December 31, waspublished,establishingthelegalsystemoftheNationalQualificationsSystem(SNQ),which assumes the aims already stated in the New Opportunities Initiative andpromotes the required instruments for its effective execution with the financialinstruments. This system adopts the principles sanctioned in the agreement signedwith the social partners and restructures the vocational training integrated in theeducationsystemandinthelabourmarket,incorporatingthemwithcommonaimsand instruments and under a renewed institutional framework. The fundamentalstrategy aims to assure the relevance of training and learning for personaldevelopmentandforthemodernisationofcompaniesandtheeconomy,whilstalsoassuring that all the national effort in training is actually valorised in terms of theschool and professional progression of the citizens, both directly, through dualcertificationtrainingwithinthescopeoftheNationalQualificationsCatalogue(CNQ),and indirectly, by means of the New Opportunity Centres and the process ofrecognition,validationandcertificationofcompetences.8

Thestructuresthatmakeupthesystemare:(i)theNationalQualificationAgency 6 ,whichassumesacentralroleinthemanagementoftheNewOpportunitiesCentresnetwork, in preparing, and updating the CNQ, in planning and rationalising thetraining supply and disclosure of information and in providing guidance in terms ofqualificationsandemployment,thusassumingacentralroleinthepursuitofthegoalsandfulfilmentofthetargetssetintheNewOpportunitiesInitiative;(ii)theNationalCouncilforVocationalTraining 7 ,responsiblefortheevaluationandglobalapprovaloftheelementsincludedintheCNQ;(iii)theLocalAdvisoryCouncilsforQualification 8 ,whichpermanentlyidentifytheCNQupdatingneedsandcooperatewithANQ;(iv)theNew Opportunities Centres; (v) the Basic and Secondary Education Establishments;(vi) the Direct Management and Protocol Vocational Training and RehabilitationCentres; (vi) the Poles of Excellence that are created from training operators thatdistinguishthemselvesforthequalityoftheirtraininginterventions,namelyfromthevocational training protocol centres; as well as (vii) other entities with certifiedtrainingstructures.Within the scope of this system, the following are formed: (a) the CNQ, a strategicmanagementinstrumentofqualificationsnotatthehigherlevel,whichintegratesskillbasedqualificationsaccordingtoadualcertificationlogic,identifyingtherespectivetrainingskillsreferentialandthequalificationlevelforeachoneinarticulationwiththe National Qualifications Framework (QNQ); (b) the individual skills booklet,mentioned in CNQ, which is an instrument that registers all life long skills that theindividual acquires or develops, as well as all the remaining training programmesconcluded,otherthanthosethatgaverisetotherecordedskills;and(c)theQNQ,aninstrument that structures the qualification levels in accordance with the EuropeanQualificationsFrameworkforlifelonglearning.Stillinitsfinalstagesofapproval,afternational public consultation 9 , the draft for the decree‐law regulates the System fortheRegulationofAccesstotheProfessions,aswellasthedifferentdraftsofdecreesthat,resultingfromtheNationalQualificationsSystem,regulateQNQ,themodelofthe individual skills booklet and its recording process, the vocational trainingcertificate, the guidance towards qualification and employment and, also, thecertificationoftrainingentities.The quality of the SNQ is one of the main objectives in the different elementsconstituting it, namely through the certification of the training entities and thequalificationofthetrainersandothertrainingtechnicians.6TheNationalQualificationAgency,establishedin2007,isundertheMinistryofLabourandSolidarityandtheMinistryofEducation.ItscreationstrengthensthecoordinationandexecutionoftheeducationalandtrainingpoliciesinPortugal.7Oftripartitecomposition.8 The local advisory councils for qualification integrate, amongst other, specialists appointed by the Ministry for therespectiveactivitysector,tradeunionsandemployersassociationsrepresentativeofthecorrespondingactivitysectors,referencecompanies,trainingentitieswithgreaterlocalorregionalspecialisationandindependentexperts;theyshouldnotexceed10members.9 Cf.BoletimdoTrabalhoedoEmpregono.5–Leaflet,of9August2007.9

Atthesametime,allmeasuresconnectedtotheimprovementoftheefficiencyandeffectiveness of the basic and secondary educational systems continue to assumetheirrelevance,namelythosethataimatreducingnon‐achievementratesatschoolandearlyschooldropouts(seeBasicandSecondaryEducationDriver).The most remarkable aspects of the Portuguese educational system (K‐12), in the2005‐2008 triennium, are the increase in the number of students and theimprovement in the quality of learning, within a framework of greater systemefficiency,withthereductionofthenumberofteachersandschools.Thedecreaseinthe repetition rate and early school drop outs, the recovery of students that hadalreadyabandonedtheeducationalsystem,theincreaseinthenumberofstudentsentering higher education, as well as the improvement of school results in nationalexaminationsandtests,showtheeffectivenessofthemeasuresthatwerecarriedout;futureprogressdependsontheircontinuity.Mostmeasuresimplementedareconsolidated:thefulloccupationofschooltime(bysubstitutingabsentteachers);fulltimeschoolinthefirstcycleofbasiceducation,withcurricular enrichment activities (offering English, Study Support, French, PhysicalEducationandSports,MusicalEducation,amongstother);theclosingofsmallschoolsandtheresultingreorganisationoftheschoolnetwork;wideningthetrainingsupplyat the secondary education level; the availability of computers connected to theInternetatlowcostforstudentsandteachers;teachingICT;thehierarchisationoftheteachingcareerwiththecreationofthetitularteacherposition;theintroductionofthe new teacher evaluation system; the allocation of teachers for several years;amongstother.Thesemeasureswillcontinueineffectforthenextthreeyears,withtheirscopewidenedordeepenedwhenjustified.Anewsetofabouttwentymeasuresispresentedforthenexttriennium,2008‐2010.Theseinitiativesinclude:greatersupporttothefamiliesoflowsocial‐economiclevelsby means of developing educational projects guided towards school reinsertion ofstudents; the modernisation of school buildings with interventions in one hundredsecondary schools, and the upgrading of the pre‐school and first cycle educationnetwork;theconclusionoftheschoollibrariesprogrammewiththegeneralisationoflibraries 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 forEducation,evenmoreambitiousintermsofresourcequalityandquantityavailableinschools. These new initiatives articulate with the ones already launched in thetrienniumnowending,consolidatingthemandraisingtheireffect.Between 2005 and 2007, Portugal undertook a deep‐seated reform of highereducation, introduced in the current European movement of the modernisation ofuniversities and polytechnics for the development of knowledge societies andeconomies,notablybyimplementinglegislativemeasures,whichlaydownnamely:(i)the new Legal Regime of the Higher Education Institutions (RJIES); (ii) the qualityassurancesystem,includingaccreditationrulesofthestudycycles,thelegalsystemforthequalityevaluationofhighereducationandthecreationoftheEvaluationandAccreditation Agency for Higher Education; (iii) the creation of conditions for the10

nationalandinternationalmobilityofstudentsandgraduates;(iv)theestablishmentof new rules that facilitate adult admission in higher education and make it moreflexible; (v) the widening of the scope of non‐refundable scholarships awarded tostudents enrolled in technological specialisation degrees and master degrees,promotingnewconditionstoenterandattendhighereducationbyallstudents;(vi)andtheimplementationofagrantsystemtohighereducationstudentswithmutualguarantee,whichcomplementstheschoolsocialservicessystemforhighereducationstudents.The fulfilment of this process of reform was widely acknowledged in the analysispresentedbyOECDinApril2008,inthestudy“HigherEducationfortheKnowledgeSociety”–comparativeanalysison“TertiaryEducation”policies,whichinvolved24countries–mainlyatthelegislativereformlevelintroducedbythenewLegalRegimeof the Higher Education Institutions, of the widening of the recruitment base ofhighereducation,namelybymeansofaninnovativegrantsystemandattractionofnewgroups,theincentivetotheinternationalisationofhighereducationandofthescientificcommunity,theopeningofhighereducationinstitutionstosocietyandthelabour market, the reform of the evaluation and accreditation system and thereinforcement of the scientific and technologic capacity of higher educationinstitutions.It should also be stressed that in the academic year of 2006‐2007, the downwardtrend in new higher education students was inverted; this inversion was alsoconfirmedin2007‐2008.Asaresult,in2007,forthefirsttimesince2002,thetotalnumber of students attending higher education increased in Portugal. On the otherhand, the number of new graduates in scientific and technologic areas hassignificantly increased in the past few years, having reached the figure of 18.1 per1,000 in the population aged between 20 and 29 years for the first time in 2007,(abovetheEuropeanaverage),whilethenumberofnewdoctoratesinscientificandtechnological areas increased to 0.42 per 1,000 in the population aged between 25and34years,in2007(havingbeen0.3in2001).11

Responsetorecommendation2: • Priorityofpublicpoliciesineducationandtraining:ariseofmorethan10percentagepointsinthe weightregardingtheEuropeanSocialFundofthesetofstructuralfundsfortheperiod2007‐2013,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 schoolnetwork; widening and diversifying the training supply in secondary education; new teacherevaluation system; modernisation of school buildings; upgrading of the pre‐school and first cycleeducationnetwork;newschoolmanagementrules;greaterschoolautonomyandboosttoleadership;TechnologicalPlanforEducation. • Continuation of the higher education reform: the new Legal Regime of the Higher EducationInstitutions(RJIES);thelegalsystemforqualityevaluationofhighereducationandthecreationoftheEvaluationandAccreditationAgencyforHigherEducation;thecreationofconditionsforthenationalandinternationalmobilityofstudentsandgraduates;theestablishmentofnewrulesthatfacilitateadultadmissioninhighereducationandmakeitflexible;thewideningofthescopeofnon‐refundablescholarshipsawardedtostudentsenrolledintechnologicalspecialisationdegreesandmasterdegrees;theimplementationofagrantsystemtohighereducationstudentswithmutualguarantee.Reformofthevocationaltrainingsystem:• theNationalQualificationsSystem(Decree‐law396/2007,datedDecember31),whichrestructuresthe vocational training integrated in the education system and in the labour market, incorporatingthemwithcommonaimsandinstrumentsandunderarenewedinstitutionalframework;• theNationalQualificationsCatalogue(CNQ),adynamicinstrumentforthestrategicmanagementofqualificationsnotatthehigherlevel,essentialforcorporatecompetitivenessandmodernisationandtheproductivebelt,andforthepersonalandsocialdevelopmentoftheindividual;• the National Qualifications Framework (QNQ), which is an instrument that structures thequalificationlevelsinaccordancewiththeEuropeanQualificationsFramework;• theindividualskillsbooklet,whichregistersalllifelongskillsthattheindividualacquiresordevelops,mentionedintheNationalQualificationsCatalogue,aswellasalltheremainingtrainingprogrammesconcluded,otherthanthosethatgaverisetotherecordedskills;• theSystemfortheRegulationofAccesstotheProfessions,whichestablishestheprinciplesofthesystemfortheregulationofaccesstoprofessionswhoseaccessdoesnotdependonqualificationsbornebyhigherlevelcoursesandregulatesthestructuresresponsiblefortheirpreparation,follow‐upandevaluation;• NewGovernanceModel:CreationoftheNationalQualificationAgency,thusassumingacentralroleinthepursuitofthegoalsandachievementoftargetsestablishedintheNewOpportunitiesInitiative;NationalCouncilforVocationaltraining;LocalAdvisoryCouncilsforQualification.Mainresultsalreadyobtained:• Thedecreaseintherepetitionrateandearlyschooldropouts• Therecoveryofstudentsthathadalreadyabandonedtheeducationalsystem• Theimprovementofschoolresultsinnationalexaminationsandtests• Theincreaseinthenumberofstudentsthatenteredhighereducation,in2007;forthefirsttimesince2002,thetotalnumberofstudentsattendinghighereducationincreasedinPortugal• Thenumberofnewgraduatesinscientificandtechnologicalareashassignificantlyincreasedinthepastfewyears• Thereturntoschoolof450,000PortuguesethatsignedupfortheNewOpportunitiesprogrammeforvalidationofskillsandre‐qualification• Increaseofstudentsinqualifyingcourses• Increaseofthepercentageofstudentsagedbetween20‐24yearsthathaveconcludedsecondaryschool12

|3. MODERNISING LEGISLATION AND EMPLOYMENT PROTECTION: THEIMPLEMENTATION OF A NEW CODE OF LABOUR IN A FLEXICURITYFRAMEWORK 10 Recommendation: “To pursue the efforts to modernise the labour protectionmechanism,namelythelegislation,inordertoreducethesignificantsegmentationofthelabourmarket,withintheframeworkoftheFlexicurityapproach”In 2006, the government begun a process moving towards the reform of thenormative framework of labour relations, in order to make it simultaneously moreflexible and secure – both for workers, and for employers – and adequate to thecurrent economic and labour market needs. The diagnosis included in the GreenPaperonLabourRelations,aswellastheidentificationofthemainproblemsofthePortugueselabourrelationssystempresentedintheWhitePaperofLabourRelations,constitutedthemaingroundsforaproposalmadebytheGovernmenttotheSocialPartners – a tripartite agreement for a new regulation system of labour relations,labourpoliciesandsocialprotectioninPortugal–whosenegotiationgaverisetothedraftlawapproved,onJune26,bytheCouncilofMinisters,providingthestructurefor the reform. The proposal was already presented by the Government to theParliament,toenterintoforceonJanuary1,2009.Hence, and taking into account the recommendation presented by the EuropeanCouncil to Portugal in terms of carrying on with the efforts to modernise theemployment protection device, namely the legislation, in order to reduce thesegmentation of the labour market, within the framework of Flexicurity, theGovernmenthascontinued,widenedanddeepenedtheintegratedstrategyintermsof revision of the active labour policies and the strengthen of Life Long Learning(ALV),associatedtothelabourreformandthemodernizationofsocialprotection,withtheprimaryobjectiveofassuringamorebalancedlabourmarketforall(seePartIII.Area5.3.).In fact, the Government and the Social Partners understood that the reform of thenormativeframeworkofthelabourrelationsandtheadequatebalanceoftheactiveemployment policies and social protection are mutually beneficial and constituteindispensable instruments for the virtuous articulation between economic growth,improvedcorporatecompetitiveness,increasedproductivity,improvedemployability,employment quality development, reduction of inequality, particularly ofopportunities between men and women, and the more equitable allocation of theresults of economic progress. The reform of the labour relations normative10 Complete information with measures Part II, 5. Positive Mobility, and Part III, employment level.13

frameworkandrebalanceoftheactivepoliciesofemploymentandsocialprotectionthus constitute essential responses to the fight against precarious employment andthesegmentationofthelabourmarkets.Also, taking into account the recommendation given to Portugal in respect of theAgreementreached,mentionmustbemadeofsomeofthemeasuresagreed,whichconstituteintegratingelementsoftheintegratedFlexicuritystrategy,whichhasbeenundergoingprogressivedevelopment.Hence,emphasisisgiventothemeasuresrelatedtothechangeintheassumptionofthe labour contract and the creation of a new very serious infraction for theconcealmentofalabourcontract,toenableamoreefficientcontroloftheuseofthe"fakegreenreceipts”.Inadditionthereisthelimitationoftheadmissiblefixed‐termemploymentandthereductionofthedurationoffixedtermcontractstothreeyears,applyingthislimittothesetoffixedtermortemporarycontractsforthesamejobpositionorserviceprovisionforthesameobject,signedbetweenaworkerandthesameemployerorcorporategroup.Still in this context, and in the area of social protection and active employmentpolicies,theAgreementforeseesdifferentmeasuresaimedat:• supportingtheconversionofindependentworkintoafixedtermcontractforworkersingeneral;• supporting indefinite employment of young people, defending the conversion ofindependentworkorfixed‐termcontractsintoindefiniteemploymentcontractsandfacilitatingthetransitionintoactivelife;• facilitatingthetransitionunemployment/employment,topreventandfightLongTermUnemployment(DLD);• supportingtheentryintothelabourmarketofactivecitizensover55yearsofage;• supportingtheentryintothelabourmarketofdisadvantagegroups;• promotingnewtypesofprogressiveapproachestoemploymentwithinthescopeofpublicpolicies.14

Responsetorecommendation3:Consolidationofthefollowinginitiatives:Alterationsinthenormativeframeworkofthelabourrelations: • ChangeintheassumptionofthelabourcontractFuturechallengesforPortugal(Point‐to‐watch–PTW)| • LabourRelationsReform:draftlawapproved,onJune26,bytheCouncilofMinistersfollowingtheTripartiteAgreement.TheproposalwasalreadypresentedbytheGovernmenttotheParliament,toenterintoforceonJanuary1,2009.• Revisionoftheactivelabourpolicies• ReinforcementofthepledgeinLifeLongLearning• Modernisationofsocialprotection• Thecreationofanewveryseriousinfractionfortheconcealmentofalabourcontract,toenableamoreefficientcontroloftheuseof"fakegreenreceipts”• Thelimitationoftheadmissiblefixed‐termemployment• Thereductionofthedurationoffixedtermcontractstothreeyears• Facilitatingtheproceduralrequirementsfordismissal,duetoafactattributabletotheemployeeModernisationofsocialprotection:• Definitionofgeneralbasisofthesocialsecuritysystem• BoostingSocialprotectionmeasuresinmaternity,paternityandadoption• Promotionofpoliciesencouragingchildbirthandsupporttofamilieswithfewerresources• RevisionofthelegalsystemforprotectionoftheunemployedActiveEmploymentPolicies:• Tosupporttheconversionofindependentworkintoafixedtermcontractforworkersingeneral• Tosupportindefiniteemploymentofyoungpeople,LTU,workersover55yearsofageandunprivilegedgroups• Tofacilitatethetransitionbetweenunemploymentandemployment,preventionandfightLTU• Tosupporttheentryintothelabourmarketofactivecitizensover55yearsofage• TosupporttheentryintothelabourmarketofdisadvantagedgroupsReinforcementofthepledgetowardsLifeLongLearning:• ContinuationoftheNewOpportunitiesInitiative• Adaptationofthetrainingclause• Reinforcementoftherighttocontinuousvocationaltrainingandadaptationofitsexecutionmechanisms15

|4.SUSTAINABILITYOFPUBLICACCOUNTS 11 Challenge:“Tocontinuereinforcingthelongtermsustainabilityofpublicfinancesandsustainedreductionofthecurrentaccountsdeficit”One of the major strategic objectives of the budgetary and taxation policy is toimprovethequalityoffinancialaccounts,inparticular,longtermsustainability.InJune2008–ayearearlierthananticipated–theprocedureagainstPortugalin2005for excessive deficit was closed. The budget consolidation process, which began in2005, corrected a considerable part of the budgetary imbalance, and thus, in 2007,thepublicaccountsdeficitwasthelowestofthelast30years.Inturn,thereformsthattookplaceinthesocialsecuritysystems,boththegeneraland the public workers’ systems, enabled a decrease in the risk of unsustainabilityassociatedwiththedevelopmentofpublicaccountssensitivetoanageingpopulation(namely, expense with pensions), removing Portugal from the group of “high risk”countries,benefitingthesustainabilityofthepublicaccountsinthelongterm,atthesametimethatismaintainedthesustainabilityofsocialsecurity,stimulatinglongerworkingcareersandprotectingtheoneswithlowerreformspayments.The public accounts reform and the strict budgetary policy will continue to pursuebudgetary balance in the mid‐term and implementing measures that reinforce thelong term sustainability of public finances. Consolidation of public accounts willcontinue to be based on reducing the structural weight of the primary currentexpenditureandonincreasingfiscalandtaxpayingefficiency.Theprogressiveimprovementintheprimarybalance(whichwasalreadypositivein2007),associatedwiththepolicytoreducestructuraldeficitandtheimpactsoftheimprovementofexternalcredibilityofourpublicfinanceswhendebtisplacedontheinternational markets, will facilitate a reduction of the public debt in the GDP.Furthermore,thenewpublicdebtmanagementmodelwillalsobeafactorinreachingthistarget,aswillitsimpactonincreasingthemanagementefficiencyoffundingofState activities, in particular by reducing circulating stock and consequent expensesfortheState.TheState’smainlineofactionintryingtoreducethePortugueseeconomy’sneedforfunds is the increase in public sector savings associated with the budgetaryconsolidationprocessandlongtermstabilityofpublicfinances.However,theState’sroleintryingtoreducethePortugueseeconomy’sneedforfunds,andwithrespecttothefreedomofeconomicagents,shouldalsoentailthepromotionoffinancialliteracyof economic agents with a view to fighting the excessive debts of families and11 Complete information with New Cycle, part I.1. Quality of Public Finances and Outcome Part III,macro level.16

companiesbyattractingproductiveinvestment,promotingexports,promotingenergyproductionbasedonrenewableendogenoussources.|ResponsePtW1:• Pursuebudgetarystabilityinthemediumtermbycontinuingthepublicfinancesreformandapolicyofbudgetarydiscipline;• Consolidation of the reforms undertaken in the social security systems – both thegeneralandpublicworkers’system.MainResultsalreadyobtained:• Portugal is no longer in the group of “high risk” countries, benefiting from long termsustainabilityofpublicfinances.• TheprocedureagainstPortugalin2005forexcessivedeficitwasclosedinJune2008,andin2007thepublicaccountsdeficitwasthelowestforthelast30years.5.IMPLEMENTINGTHETECHNOLOGICALPLAN 12 Challenge: “pursue the application of the technological plan, consolidating the linksbetween research, higher education and industry, and encouraging greaterparticipationbytheprivatesector”TheTechnologicalPlanisamobilisingagendaandapledgetotakeactionfocusedonknowledge,technologyandinnovation.CoordinationoftheTechnologicalPlanistheresponsibility of the National Coordinator for the Lisbon Strategy and for theTechnologicalPlan(CNELPT)andtheCoordinationCabinetoftheLisbonStrategyandtheTechnologicalPlan(GCNELPT).ThedifferentMinistriesandpublicbodiestogetherwithanactiveinvolvementofcivilsocietyensurethatthePlanisimplemented.Inordertosupportitsimplementation,an inter‐ministerial network of focal points operates together with GCELPT withpersonal representatives of every Minister and an Advisory Council made up of 40eminentfiguresfromcivilsociety,especiallyfromthebusinessworld,academicsandfrominstitutionsofasocialnature.Launchedwiththepledgetoundertake68measures,theTechnologicalPlancurrentlyincludes142directmonitoringmeasures.ThepoliticallegitimacyoftheTechnological12 See further information on part II, New Cycle, especially point 5.3 R&D and Innovation and point5.5 Positive Mobility, considering the transversal character of the Technological Plan.17

PlanasameasurewithintheGovernment’sprogrammehasthesamehorizonsastheactualGovernment’splanofaction.Nevertheless,thePlan’sstructuralcharacterhasbeenacknowledgedbyPortuguesesocietyingeneralanditisthereforeexpectedthat,albeitwithsomeamendments,itwilleventuallytakeonatleastthesameperspectiveastheNSRF2007/2013withwhichitisinfactstronglyco‐related.The Technological Plan’s Monitoring System (SM.PT) is constantly updated by thefocalpointsmakingitpossibletoseethestateofthePlan’sexecutionandtheresultsof its implementation at any given time. A global execution report is issued andpubliclyavailableeverysixmonths.ThesitefortheTechnologicalPlanhasupdateddataregardingperformanceandresults,andtheNetworkMembersandtheMembersof the Advisory Board can access the Monitoring Platform continuously andinteractivelyparticipateinthePlan’sevaluation.TheEvaluationoftheTechnologicalPlan’simpactisbasedonagridofindicatorsthatclosely follows the European Union’s Innovation Scoreboard. However, consideringthe EIS’ weaknesses in terms of global coverage of impacts and updated data, theGNELPTcommissionedtwowell‐knownPortugueseacademicstoconductastudyonimpactindicatorswhichthenledtoascoreboardbasedonsevenareasandfocusedonpromotingentrepreneurshipandentrepreneurialcapacity.TheresultofthisstudywaspresentedtothenetworkandtotheTechnologicalPlan’sAdvisoryCouncil.ThestudiesundertakenbyGCNELPTshowanincreasedawarenessandconsiderationof the Technological Plan as an important or very important agenda for Portugal,reachingmorethan90%ofthepopulationinthesurvey.Althoughitsformathasnotbeeninstitutionalised,theimplementationmechanismsoftheTechnologicalPlanmadeitpossibletobuildanintegratedandflexibleplatformtoboostcompetitionandobtainverysignificantresults.Within the PNACE 2005/2008 framework, public investment in R&D doubled andprivateinvestmentexperiencedastrongstimuluswhichshouldbepickedupbythesurvey currently taking place into the scientific and technological potential. Thisincreaseinpublicinvestmentallowedforthedevelopmentofoutstandingcompetitivenetworks, with emphasis on the launch of new R&D consortia around thematicnetworks. These consortia are made up of bodies from the national scientific andtechnologicalsystem,includingcompanies,andpartnershipswithknowledgecentresof worldwide renown, such as the MIT and Carnegie Mellon University, TexasUniversityinAustinandtheFraunhoferSociety.Themainnetworksthathavealreadybeen set up include namely the fields of energy, the automobile sector, transportsector,bioengineering,ICT,multimediacontentsandadvancedcomputingsectors.Atthe same time, by strengthening its international cooperation with Spain, anInternationalIberianNanotechnologyLaboratory(INL)wascreated.ImpactindicatorswithinthescopeoftheTechnologicalPlanincludetheinversionofthe Country’s technological balance which was positive for the first time in 2007;broadband availability among over 32% of the population (in particular, mobile18

oadband); Portugal was ranked third in terms of availability and sophistication ofonlinepublicserviceswithintheEUframework;and,450000Portuguesecitizenswhoreturnedtoschoolhavingenrolledinthenewopportunitiesprogrammetovalidateskillsandobtainfurtherqualifications(seeexecutionreportpartIII.MicroLevel).ResponsePtW2:• TheTechnologicalPlancurrentlyincludes142directmonitoringmeasures• EnsuredbythedifferentMinistriesandpublicbodiesandanactivepartnershipwithcivilsociety.• Inter‐ministerialnetworkoffocalpointswithpersonalrepresentativesfromallMinisters• AdvisoryCouncilmadeupof40prestigiousfiguresfromcivilsociety,especiallyfromthebusinessworld,academicsandsocialinstitutions.• Monitoring: Integrated Monitoring System of the Technological Plan (SIM.PT) is continuouslyupdatedbythefocalpointsandbymeansofwhichitispossibletoknowthestateofexecutionandtheresultsofthePlanatanygiventime.• Continuing development of outstanding competitive networks with emphasis on the launch ofnewR&Dnetworksaroundthematicnetworks,madeupofbodiesfromthenationalscientificandtechnologicalsystem,inpartnershipwithknowledgecentresofworldwiderenown.MainResultsalreadyobtained:• InversionoftheCountry’stechnologicalbalancewhichwaspositivein2007forthefirsttime• PublicinvestmentinR&Ddoubledandprivateinvestmentwasstronglyencouraged,whichshouldberegisteredbythesurveybeingcarriedoutonthescientificandtechnologicalpotential.• Over32%ofthepopulationhaveaccesstobroadband(mobilebroadbandrankingfirstintheEU)• PortugalrankedthirdintermsofavailabilityandsophisticationofonlinepublicserviceswithintheEUframework• ThePlan’sstructuralcharacterhasbeenacknowledgedbyPortuguesesocietyingeneral,• Studyregardingimpactindicatorswhichledtothepreparationofasevenpointevaluationgridandfocusedonpromotingentrepreneurshipandentrepreneurialcapacity.19

|6.COMPETITIONANDREGULATION 13 Challenge:“toensureeffectivecompetition,inparticularintheenergyandfinancialservicesmarkets”EnergymarketThe Government set the stimulation of the energy sector as a central objective,creatingliberalisedandcompetitivemarkets.Fromthisaspect,Portugalisalreadyanexample 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 theelectricityandgasnetworks,withassetsconcentratedinthesamecompany;• It has one of the EU’s most ambitious objectives in terms of interconnectioncapacity,over20%in2010,andalreadyover10%;• Itisamongthesixcountrieswiththelowestpubliccapitalinfluenceonmarketagents,togetherwiththeUnitedKingdom,Germany,Belgium,SpainandIreland;• The Iberian Electricity Market (MIBEL) is the second regional electricity marketimplementedintheEUandhasapproximately30millionconsumers.Encouraging competition in the energy sector will remain a priority, and MIBEL willcontinuetobeimplementedasindicatedinprioritydomain2ofPart2ofthepresentReport.FinancialmarketsWithin the realm of financial services markets, Portugal’s financial sector isconsidered to be evolved from an international standpoint, with innovative,internationalised and highly efficient banking models. This has been recognised byinternationalinstitutions,suchastheInternationalMonetaryFund.Somecommunitydirectivesinthefinancialservices’fieldhavebeenintroducedinthenational legislation and contributed positively towards effective competition in thefinancial services market. Examples of such directives include those regarding theabuse of privileged information and market manipulation; the prospectus to bepublishedinthecaseofpublicofferofsecuritiesortheiracceptancefornegotiation;contracts at a distance regarding financial services signed with consumers; furthersupervision of credit institutions, insurance companies and investment companieswithinafinancialcluster,andtheoperationofpensionfundsandmanagingbodiesofpension funds. Other legislation initiatives to encourage competition on financialmarketshavealsobeenimplemented,suchasDecree‐Lawsnº240/2006dated22nd13 For more information see New Cycle, part II.2 Business Environment20

December,andnº171/2007dated8thMay,whichestablishrulestotheroundingofcalculationsofinterestratesformortgagecontractsandothercontracts,respectively.Furthermore, considering the challenges in terms of supervising the behaviour ofcredit institutions and financial corporations, the review of the General Scheme forCreditInstitutionsandFinancialCorporationswhichwascarriedoutatthebeginningof the year (Decree‐Law nº 1/2008, dated 3 rd January) gave the Bank of Portugalfurtherpowerstodefendtheinterestsofclientsoffinancialproductsandservices.Asthe conduct of institutions regarding their relationship with clients and theinformationthoseclientsfindavailablewhendecidingtocontractfinancialproductsandservicesaretwokeyfactorsfortheefficiencyoffinancialmarkets,theBankofPortugal has now added processes to ensure that credit institutions and financialcorporations comply with the rules of conduct, either via official procedures, or byanalysing complaints made by clients. Initiatives such as the Portal for the BankingClient,theBehaviouralSupervisionReportsoftheBankofPortugalandseverallegalmeasures appear within this context, aimed at regulating the supply of financialproducts 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• Inclusionofsomecommunitydirectivesinthenationallegislationcontributingtowardseffectivecompetitioninthefinancialservices’market.• ReviewoftheGeneralSchemeforCreditInstitutionsandFinancialCorporationscarriedoutatthebeginningoftheyear• PortalfortheBankingClient,theBehaviouralSupervisionReportsoftheBankofPortugalandseverallegalmeasuresaimedatregulatingthesupplyoffinancialproductsandservices.MainResultsalreadyobtained:• Portugal is among the three EU countries with total unbundling of the gas and electricitynetworks,withassetsconcentratedinthesamecompany;• IthasoneoftheEU’smostambitiousobjectivesintermsofinterconnectioncapacity,whichwillbeover20%in2010,andiscurrentlyalreadymorethan10%;• Itisamongthesixcountrieswithlowestpubliccapitalinfluenceonmarketagents,togetherwiththeUnitedKingdom,Germany,Belgium,SpainandIreland;• TheIberianElectricityMarket(MIBEL)isthesecondregionalelectricitymarketimplementedintheEU,withabout30millionconsumers.• Portugalhasanevolvedfinancialsectorintheinternationalpanorama,withinnovative,internationalisedandhighlyefficientbankingmodels.21

|7.BETTERREGULATIONPROGRAMME 14 Challenge:“topursuetheapplicationofthe“BetterRegulation”programmeand,inparticular,toreinforcetheimpactanalysissystem”Despite most measures foreseen in the Resolution of the Council of Ministers nº63/2006, which approved the Better Regulation Programme, already in fullyimplementation, the Government expects to continue its efforts to legislate betterduring the 2008‐2009 period, with greater justification, suitability and quality oflegislative measures, and paying greater attention to simplifying and ensuring thetransparencyofproceduressoastoeliminateStatebureaucracyandfacilitatethelifeofcitizensandcompanies.During the 2008‐2009 period, priority will be given to concluding and consolidatingthe measures laid down in the Better Regulation Programme directed especially atdeveloping inter‐operability processes between DIGESTO’s legal data bases(treatmentandanalysissystemoflegalinformation)andtheState’streatmentoflegalinformationdatabases,aswellastothedefinitionofatechnologicalmodelfortheelectronicreconstitution(substantialconsolidation)oflegaltexts,theimplementationandconsolidationofopenconsultationprocedurestobedevelopedwithcitizens,thecapacity of promoting effective participation of citizens and companies, andpreparation of a practical guide for the drawing up of the Government’s legalmeasures.Specialattentionwillalsobegiventoenhancingtheevaluationsystemoftheimpactof the Government’s legal measures, by taking advantage of the national pledge toreduceadministrativeburdensby25%,followingtheproposalmadebytheEuropeanCouncilinMarch2007toMemberStatesandwhichapprovedtheActionProgrammetoReduceAdministrativeBurdensintheEuropeanUnion.Althoughthisnationalcompromiseisonlydirectedatadministrativeburdensimposedbylegalandregulatorymeasuresofnationalorigininrelevanteventsofcompanies’life‐cycles, the Government will be using the processes and methods to reduceadministrative burdens equally for all legal measures submitted for the approval ofthe Council of Ministers, whether they affect the life of companies or the life ofcitizens.The principle already established in the Better Regulation Programme approved bytheResolutionoftheCouncilofMinistersnº63/2006,whichdeterminesthatnolegalmeasure can create new administrative burdens or aggravate existing ones withoutfirstbeingquantified,willbereinforcedfromtheoutset.Secondly,withinthescopeofthe Government’s legislative process and by using the SIMPLEX trial, administrative14 For detailed information, see New Cycle part II.1 3. Improving the Legislative Process22

urdens maintained, eliminated, reduced or created by rules laid down in thedocumentsapprovedbytheCouncilofMinisterswillbeidentifiedandquantified.ThecurrentSIMPLEXtrialistobereviewedandadjustedsothattheStandardCostModelcanbeadoptedasabasemethodofmeasuringadministrativeburdenswithdueadjustmentssoastointegratethequantificationofopportunitycostsassociatedwiththewaitingtimesanddelaysinadministrativedecisions,aswellastheimpactoninterveningpublicservices.Inordertoaidtheministriesresponsibleforpreparinganddevelopingtheinitiatives,a Practical Guide for Prior Assessment of the Administrative Burdens of theGovernment’sLegalMeasureswillbelaunched.The results of the assessment of the impact of legal measures through the newSIMPLEX trial model will be presented by the Government and be subject to publicscrutinyeveryyear.Also noteworthy with regard to measures planned to reduce, facilitate or eliminatelicenses:• Simplificationoftheindustriallicensingscheme–subjacenttotheprinciplethatthecomplexityforeseenfortheproceduresneededtocarryoutanindustrialactivitymustbeinproportiontotherespectiverisk,anumberofalterationshavebeenputforwardaimedatsimplifyingthelicensingprocess.Amongotherfeatures,thebackupinformation system will allow the businessperson to use a Simulator which willindicatebeforehandtheprocedurethatappliestotheircase,andwillalsoallowthemtofollowthedifferentphasesoftheprocedure.• Dematerialisation of relationships between companies and the State – OnlineRegistration services are now available through which it is possible to registercompanies via the Internet; the Simplified Business Information (IES) system meansfour legal obligations which had been handled by different Public Administrationbodiesarenowdealtwithbyoneasof2007;thepre‐fillinginoftaxdeclarationsin2008wasalsoextendedtomorethan80%;itisnowpossibletoobtainanelectronicPermanentCertificatethroughtheInternet,continuouslyupdated,inPortugueseorEnglish,atwww.empresaonline.pt;registeringabrandnameorapatentorautilitymodelisnowpossibleatwww.inpi.pt;registeringthepurchaseorsaleofavehicleisalsopossibleviatheinternetatwww.automovelonline.mj.pt;anonlinecatalogueoflicensesandauthorisationswascreatedinthecompanyportalthatwillworkasaonestop‐shopto obtain licenses and authorisations; special reference goes to the newdematerialisedprocesstolicencetheindustrialactivitywhichwillbeapilotprocessofthisinitiative.In2009,thisone‐stop‐shopwillalsoincludeaface‐to‐faceservice.The Resolution of the Council of Ministers that establishes a 25% target in thereductionthecostswithinthecontextoflegalproductionforcompanieswillsoonbescheduledfortheCouncilofMinisters.23

|ResponsePtW4:• ConclusionandconsolidationofthemeasuresforeseenintheBetterRegulationProgramme• SteppingupoftheevaluationsystemoftheimpactoftheGovernment’slegalmeasures,takingadvantageofthenationalpledgetoreduceadministrativeburdensby25%• StrengtheningoftheprinciplealreadyestablishedintheBetterRegulationProgramme,approvedbytheResolutionoftheCouncilofMinistersnº63/2006,thatnolegalmeasurecancreatenewadministrativeburdensoraggravateexistingoneswithoutbeingpreviouslyquantified.• Identificationandquantificationoftheadministrativeburdensmaintained,eliminated,reducedorcreatedbyruleslaiddowninthedocumentstobeapprovedbytheCouncilofMinisters.• AdoptionoftheStandardCostModelasthebasemethodusedtomeasureadministrativeburdens,• ThelaunchofaPracticalGuideforthePriorAssessmentofAdministrativeBurdensoftheGovernment’sLegalMeasures.• Simplificationoftheindustriallicensingscheme• ContinuingthedematerialisationofrelationshipsbetweencompaniesandtheState• 25%targetforreductionofcostswithinthecontextoflegalproductionforcompanieswillsoonbescheduledforapprovalbytheCouncilofMinisters.8.TRANSPOSITIONOFEUROPEANUNIONLEGISLATION 15 Challenge:“reducedeficitinthetranspositionofEUlegislationtonationallaw”The transposition of community directives to the internal legal system representspersistentlegaladaptationwork.Asarule,allMinistries,aswellastheAssemblyoftheRepublic,areinvolved.The Government will be maintaining its pledge laid down in the Resolution of theCouncilofMinistersnº63/2006,whichapprovedtheBetterRegulationProgramme,toensurethat,withregardtomattersrelatedtothetranspositionandadaptationofcommunity laws to the internal legal system, the transposition of directives ismonitored on time, within a framework of close cooperation between the ForeignAffairsMinistryandthePresidencyoftheCouncilofMinisters.15 For detailed information, see New Cycle, part II.1.3 Improvement of the Legislative Process and 2Business Environment.24

The ministries’ commitment to this legal procedure is carried out through variouscoordinatingactivities:• Preparation of continuously updated lists describing the current situation, perministry,ofalldirectivesabouttobetransposed,takingintoaccounttherespectivestate, either because the term for its adoption has elapsed (phase of the EuropeanCommunitiesCourtofLaw,phaseofareasonedopinion,phaseofnotificationofnoncompliances,administrativeletterphase),orbecauseitsadoptionisstillunderway;• Monthly distribution of these lists to the different ministerial cabinets andrepresentatives of the ministries at the Inter‐ministerial Committee for ForeignAffairs;• Regularmeetings–atleasteverytwomonths–withtheinterestedministries,toevaluatethesituationofeachdirectiveintherespectivelist,definingtheobjectivestodecreasethedeficitbytransposingdirectivesandassessingthewayswithwhichtoovercomepossiblesetbackswiththetranspositionproceduresduringthecommunitypre‐litigiousandlitigiousphases;A new methodology was adopted in 2008 within the scope of the Government’scomputernetworksystem.Awarningsystemwascreatedfordeadlinesregardingtheadoption of the legal projects concerning directives. This online system, which isaccessibletotheministerialcabinets,warnsandinformsofthefixeddeadlinesandintermediatephaseuptotheapprovalofthelegislationbytheCouncilofMinisters.Alsowithinthisrealm,intermsoftranspositionandadaptationofcommunitylawstotheinternallegalsystem,theGovernmentwillnowtakeintoconsideration,identifyandquantifytheinformationrequirementsresultingfromthetransposition,inexcess,ofcommunitylaws,normallyknownas‘goldplating’.Ontheotherhand,dueattentionwillalsobegiventobetterconsolidationbetweenthecommunitylawtobeimplementedinthenationallegalsystemandthelegislationalready in force in Portugal, with identical material schemes. In this manner, theGovernmentwillpreventthephenomenonusuallyknownas‘double‐banking’,makingcommunityandnationalschemesmorecoherent,byconsolidatingprinciples.Finally, the Government will ensure control of the transposition of the simplifiedEuropean legislation within the framework of the 2005/2009 simplificationprogramme, the fast tracks initiated in 2007 and the Action Programme to ReduceAdministrative Burdens in the European Union. Obligations to inform will also beidentifiedandquantified,resultingfromthetranspositionofthesimplifiedEuropeanlegislation to the internal legal system within the scope of the said Europeanprogrammesandverificationoftherespectiveoutcome.The Portuguese situation has progressively improved as proved by the resultspublishedinthelatestInternalMarketscoreboards:Scoreboard17,July2008–1.9%deficitcorrespondingtoaglobalfigureof32non‐transposeddirectives;Scoreboard25

16bis,February2008–2.3%deficit,correspondingto37non‐transposeddirectives;Scoreboard 16, July 2007 – 4.4% deficit, corresponding to 71 non‐ transposeddirectives.InthemostrecentdatapublishedbytheCommissioninAugust2008,basedonthelatest 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 cooperationbetweentheForeignAffairsMinistryandthePresidencyoftheCouncilofMinisters.• Severalinter‐ministerialactions:preparationofcontinuouslyupdatedlistsindicatingthecurrentsituation, per ministry, of all directives about to be implemented; regular meeting with theministriestoassessthesituationforeachdirective,etc.• AnewmethodologyadoptedwithinthescopeoftheGovernment’scomputernetworksystem,with a system to warn of deadlines regarding the adoption of legal projects related to thedirectives.• Combat‘goldplating’–theGovernmentwillnowtakeintoconsideration,identifyandquantifytheinformationrequirementsresultingfromtheimplementation,inexcess,ofthelawslaiddownincommunitydirectives.• Avoiding double‐banking – better consolidation between the community legislation to beimplementedinthenationallegalsystemandthelegislationalreadyinforceinPortugal• Control of the transposition procedure of the simplified European legislation within theframeworkofthe2005/2009simplificationprogramme,ofthefasttracksinitiatedin2007andtheActionProgrammefortheReductionofAdministrativeBurdensintheEuropeanUnion−−−Scoreboard17,July2008–1.9%deficit,correspondingtoaglobalamountof32non‐transposeddirectives;Scoreboard16bis,February2008–2.3%deficit,correspondingto37non‐transposeddirectives;Scoreboard16,July2007–4.4%deficit,correspondingto71non‐transposeddirectives.26

|9.REDUCTIONOFGREENHOUSEGASEMISSIONSChallenge: “preparation and application of the measures needed to reducegreenhousegasemissions”NewpoliciesandmeasuresrecommendedintheNationalClimateChangeProgrammehavebeendeveloped.Withregardtotheenergyfield,continuousinvestmenthasbeenmadeinrenewableenergyresources,especiallywindpower,licensingofnewnaturalgas combined cycle plants, which are more efficient in producing electricity. TheRegulationontheThermalCharacteristicsofBuildings(RCCTE)hasbeenapproved,ashastheRegulationconcerningEnergySystemsandAir‐ConditioninginBuildings(RSECE)andtheNationalEnergyandQualityofAirinBuildingsCertificationhasbeencreated.AsfortheTaxReformonRoadVehicles,anenvironmentalfactorisnowtakenintoaccountwhencalculatingthetaxassociatedwithcarbondioxideemissionsofvehiclesto discourage the purchase of the more polluting vehicles. Within the transportsector,theproceduresforthescrappingofvehiclesattheendoftheirlifecyclehasbeen simplified, acquiring a new one is encouraged, and the restructuring of therailwaysystem(CP)availablehasledtoanincreaseinthenumberofpassengersusingthismeansoftransport.Thetaxondieselfuelforheating(ISP)hasbeenincreasedsoastoencouragetheuseofotherlesspollutingsourcesofenergy(Decreenº16‐C/2008,dated9 th January).Within the decarbonising sector of the Portuguese economy, the PNALE 2008‐2012hasbeenapproved–thisimpliesafurtherandeffectiveefforttoreducegreenhousegasemissionsfrominstallationscoveredbytheEuropeanEmissionTradingSchemeupto2012.WithregardtheinvestmentmadeinflexibilitymechanismsoftheKyotoProtocol,in2007 the Portuguese Carbon Fund (FPC) subscribed/invested a total of 25 millioneurosinseveralcarbonfundsthatinvestinprojectsrelatedtoflexibilitymechanismsoftheKyotoProtocol. ResponsePtW6:• NationalActionPlanforEnergyEfficiency(PNAEE)–toreachanimprovedenergyefficiencyequivalentto10%ofthefinalconsumptionofenergy,regardingtheefficiencyofthefinaluseofenergyandenergyservices,by2015.• ImplementtheManagementSystemforIntensiveEnergyConsumptionwhichdeemsitcompulsorythatenergyauditsarecarriedout.• OperatorsareobligedtoprepareEnergyConsumptionRationalisationPlans(PREn),establishingtargetsregardingenergyandcarbonintensitiesandthespecificconsumptionofenergywhich,onceapproved,arecalledEnergyConsumptionRationalisationAgreements(ARCE).• ContinuedinvestmentindevelopingrenewableenergiesandimplementingtheNationalStrategyforEnergy(see“Energy”chapter,partII)27

MainResultsalreadyobtained: |• TheNationalEnergyandQualityofAirinBuildingsCertificationhasbeencreated(SCE)‐(Decree‐Lawnº78/2006)• TheRegulationconcerningEnergySystemsandAir‐ConditioninginBuildings(RSECE)hasbeenpublished–itaimsatimprovingtheenergyefficiencyofbuildingsandreducingtheconsumptionofenergyandCO2emissions(Decree‐Lawnº79/2006).• TheRegulationontheThermalCharacteristicsofBuildings(RCCTE)hasbeenpublished–itestablishestherulestobecompliedwithwhenprojectingallresidentialandservicesbuildings,withnocentralisedairconditioningsystems(Decree‐Lawnº80/2006).• NationalPlanforEnergyEfficiency(ResolutionofCouncilMinistersnº80/2008)• ManagementSystemofIntensiveEnergyConsumptionandaccessoryRegulation(D.L.nº78/2008,15.04)• Chargesonhighenergyefficiencylightbulbs(oD.L.nº108/2007,12.04)• TaxReformonRoadVehicles10.FACTORSTHREATENINGSOCIALCOHESIONChallenge:“continuingthefightagainstfactorsthreateningsocialcohesion”Promoting every citizen’s access to a number of social rights, such as minimumincome,thelabourmarket,socialprotection,educationandtraining,housing,healthcare,socialservicesandfacilities,amongothers,isastrategicchallengethatPortugalhas been gradually responding to in an articulate and cohesive manner, throughpoliciesespeciallydirectedatgroupsthatshowgreatervulnerabilityandgreaterriskofsocialexclusion,therebystrengtheninginclusionandsocialcohesiononanational,regionalandlocallevel.ArticulationofthescopeandmeasuresincludedinthePNACE,integratinggrowthandcompetitiveness, qualification and employment and social and environmentalsustainability, with the National Strategy for Social Protection and Social Inclusion,whichintegratestheNationalActionPlanforInclusion(PNAI),theNationalPensionsStrategy and the National Plan for Health Care and Long‐Term Care, which in turn,operatesinconjunctionwiththevariousspecificplans,suchas:theActionPlanfortheIntegration of Disabled or Impaired Citizens (PAIPDI), the National Plan to PromoteAccessibility (PNPA), the Plan to Integrate Immigrants (PII) and the National Planagainst People Trafficking and the National Equality Plan – Citizenship and Gender,togetherwiththeNationalPlanagainstDomesticViolence,allthesestrengthensocialcohesion and inclusion and contribute immensely to reducing poverty and socialexclusion.The continued reforms in public finances and a policy of budgetary discipline areimportant factors in ensuring the continuity of the social cohesion policies. In thesameway,allongoinginitiativestoimproveaccessandmaintenanceofabusiness‐28

friendly environment (including access to funding, to R&D and encouragement toentrepreneurship), especially with regard to the SME, contribute towardsconsolidatingthesocialcohesionpolicies.Concurrently, considering that there are several factors threatening social cohesionandwhich,together,encourageexclusionandincreasesituationsofextremepoverty,anactiveinclusionperspectivehasbeengainingparticularrelevanceasmeasuresarebeing directed at access to minimum income, to the labour market and to qualitysocialservices,asdecisiveintegrationandsustainabilityfactorsfortotalinclusionandequalopportunitiesforallintermsofsocialandeconomicdevelopment.However,itis worth pointing out that the investment in education and training, which, as astructuring strategy from the very first years of life, is a determining factor inpreventing situations of poverty and social exclusion (see New OpportunitiesInitiativesandmeasureswithinthescopeofEducation).Insertioninthelabourmarketisoneofthemostinclusivefactors,andaqualityjobisthe greatest guarantee of sustainable and complete social inclusion. The followingwere included in the intervention programmes for the inclusion of everyone in thelabour market, between 2005 and 2007: i) Inclusive Labour Market Programme –47.800 people with special insertion difficulties entered the labour market; ii)Professional Training and Employment for the Disabled Programme – 36.900handicappedpeopleand,iii)InterventionProgrammeforUnemployedImmigrants–23.500 immigrants. It is expected that in 2010 these Programmes will embrace153.000,46.000and38.000people,respectively.Furthermore, access to the network of social services and facilities is of majorimportance and is a determining factor of inclusion, equal opportunities, andconciliation of professional, personal and family life, contributing unquestioninglytowardssocialinclusion.WorthyofnoteistheProgrammefortheExtensionofSocialFacilitiesNetwork(PARES),whichsupportsearlychildhood,peoplewithdisabilityandtheelderly,andtheNationalNetworkofIntegratedContinuedCare(RNCCI),aimedatprovidingcontinuousandintegratedhealthcareandsocialsupporttopeoplewho,regardless of their age, are dependent on others (see Driver Proximity CommunityServicesNetwork).Ontheotherhand,accesstothehealthsystemisanundeniablerightofcitizens.Ifaccesstothisrightisfacilitated,itwillguaranteeinclusion,equalrights,qualityoflifeandsocialcohesion.Therefore,alsonoteworthyisthe HealthCentreServicewhichwas implemented and which registered 1077 consultations per day in 2007; thelaunchoftheConsultationonTimeProgramme,whichtriestoensurethatthefirsthospitalappointmentsareeffectedwithinapre‐determinedtime.SchedulingoftheappointmentsisfirstmadethroughprimaryhealthcareservicesandthenviatheGPso as to facilitate citizens’ access to hospital infrastructures, especially the moredisadvantaged citizens. The creation of the Oral Health Cheques Project has alsorepresentedamajorprogressinaccesstobasichealthcare,asitmakesitpossibleforcertainsegmentsofthepopulationwithlowerincome,especiallychildren,pregnantwomenandtheelderly,tohavehealthyteeth.29

AlsoworthhighlightingistheSocialIntegrationIncome,whichprovidespeopleandfamily members with support adapted to their personal and family situation,contributing towards fulfilling basic needs and at the same time helping to ensureprogressive labour, social and community insertion. 106,167 families and 286,837beneficiaries benefited from this scheme in 2006, and 49,394 insertion agreementswere signed; and in 2007, the programme included 117,740 families, 341,149beneficiaries and 64,982 insertion agreements were signed. In August 2008, thismeasure embraced approximately 341,149 beneficiaries and 128,915 families and73,693 insertion agreements were signed. Also, the Supplement for the Elderly,aimedatpensionersover65withanincomebelowthatlegallyestablished,benefited18,275pensionersin2006(theyearinwhichitwascreated);andin2007thisfigureincreased to approximately 55,771. This measure also includes additional healthbenefits, such as: i) financial participation of 50% of the price of medicines notsubsidisedbytheState;ii)financialparticipationof75%oftheexpenseforspectaclesand lenses up to a limit of € 100, for every two‐year period; and iii) financialparticipationof76%oftheexpenseforthepurchaseandrepairofdenturestoalimitof€250,foreverythree‐yearperiod.The role played by the social protection system, in particular by positivedifferentiation of benefits, which gives more to those more in need, is a powerfulsocialcohesionandpovertyreducingfactor,bymeansofwelfaretransfers.Examplesof this are: i) increase of the child allowance for children and youngsters in largefamilies;ii)updateoffamilybenefitsbasedontheprincipleofpositivedifferentiationinfavourofeconomicallyfragilefamilies;iii)introductionofanincreaseinthechildallowance for single‐parent families; iv) a number of social measures to reinforcesocial protection during maternity, paternity and adoption period, extending to theunemployed or those whose contributions have been insufficient and areeconomicallymorevulnerable.The right to proper housing is another essential factor for full social inclusion andequal rights. Thus, the various existing Housing Support Programmes areconfirmationoftheworkthathasbeencarriedouttoprovidethosewhoaremorevulnerable, such as youngsters, families, and the elderly, with access to better andmore affordable conditions. Mention should also be made of the Programme toSupport Housing Construction at Controlled Costs (PCHCC); the Special Re‐housingProgramme (PER); the Pilot‐project Initiative for Urban Rehabilitation andReinsertionofCriticalNeighbourhoods;thePorta65Programme;PROHABITA;theHousingRehabilitationPilot‐projectfortheElderly.The promotion of social cohesion at a regional level has evolved through SocialNetworks,aslocalstructures,inpartnershipwithpublicandprivatebodies,workingasarticulationplatformsinSocialActionLocalCouncils,soastobetterrespondtotheneeds of the population taking into account the proximity and profitability ofresourcesonalocalscale,andarefoundin277ofthe278boroughsonthecontinent.Duringthefirstquarterof2008,about96%oftheboroughshadfinishedtheSocialDiagnosis, at least, 88% the Social Development Plan and, 79% of the Action Plans.30

The Local Social Development Contracts Programme (CLDS) focuses on moredepressed areas, with a view to obtaining greater regional cohesion, developingpartnerships with local bodies, fighting poverty and promoting social inclusion ofthosemorevulnerable,throughactivitieswithintheemploymentfield,trainingandqualification, family and parent intervention, and empowerment of the communityandinstitutions.19CLDShadbeensignedbyApril2008,whichincludes22boroughs.ResponsePtW7:Macroeconomicpolicy- Publicfinancereform- Budgetarydisciplinepolicy Microeconomicpolicy- Accesstofunds- R&Dpolicies- EncouragingentrepreneurshipStrengtheningsocialcohesionandinclusion,reducingpovertyandsocialexclusionbyestablishingthefollowingPlans:• National Strategy for Social Protection and Social Inclusion (which integrates the National Action Plan for Inclusion (PNAI), theNationalPensionsStrategyandtheNationalPlanforHealthCareandLongTermHealthCare)• NationalEqualityPlan–CitizenshipandGender• NationalPlanagainstDomesticViolence• PlanofActionfortheIntegrationofPeoplewithDisabilitiesorImpairment(PAIPDI)• NationalPlantoPromoteAccessibility(PNPA)• PlanforImmigrantIntegration(PII)• NationalPlanagainstPeopleTraffickingContinuedinvestmentineducationandtrainingIntegrationinthelabourmarket:continuedimplementingthefollowingprogrammes:• InclusiveLabourMarketProgramme• ProfessionalTrainingandEmploymentofDisabledPeopleProgramme• InterventionProgrammeforUnemployedImmigrantsAccesstothesocialservicesandfacilitiesnetwork• ProgrammetoExtendtheSocialFacilitiesNetwork(PARES),supportingearlychildhood,thedisabledandtheelderly• NationalNetworkofIntegratedContinuedCare(RNCCI)Accesstohealth• HealthCareCentre• ‘AppointmentonTime’Programme• CreationoftheOralHealthChequesprojectSocialsecuritysystem• SocialIntegrationBenefit,whichgrantsaidtopeopleandtheirfamiliesaccordingtotheirpersonalandfamilysituation• IncomeSupplementfortheElderly,forpensionersover65whoseincomeisbelowalegallyestablishedamount.• Positivedifferentiationofbenefits(e.g.increaseinchildallowanceforchildrenandyoungstersgiventolargefamilies;updateoffamilybenefitsbasedonthepositivedifferentiationprincipleinfavouroffamiliesthatareeconomicallyvulnerable;additionalchildallowanceforchildrenandyoungstersofsingleparentfamilies;establishmentofanumberofsocialmeasurestostrengthensocialprotectionduringthematernity,paternityandadoptionperiod).AccesstoHousing• HousingSupportProgrammes,• AidtotheConstructionofHousingwithControlledCostsProgramme(PCHCC);• SpecialRe‐HousingProgramme(PER);• Pilot‐projectInitiativeUrbanQualificationandReintegrationofCriticalNeighbourhoods;• Porta65Programme;• PROHABITA;Pilot‐ProjectforHousingRehabilitationfortheElderly.Promotionofsocialcohesiononaregionalandlocallevel• LocalContractsforSocialDevelopmentProgramme(CLDS)31

#2PARTNATIONALREFORMPLANNEWCYCLE2008‐2010ConsolidatingReforms1

|INDEXIntroduction................................................................................................................3Area1–QualityofFinancesandPublicServices........................................................9Area2‐AFavourableBusinessEnvironment,especiallyforSME............................24Area3–BetterInnovationSystemandmoreR&D..................................................34Area4–CombatingClimateChange,PledginginRenewableEnergiesandinEnergyEfficiency..................................................................................................................45Area5–MorePositiveMobilitythroughQualifications,EmploymentandSocialCohesion....................................................................................................................50 Area6–PromotinganIntelligentTerritory..............................................................70 2

|INTRODUCTIONDespite the economic and social problems that have resulted from the difficultstartingpointin2005andtheimpactofthecurrentinternationalcrisisinternational,theNationalActionProgrammeforGrowthandEmployment(PNACE2005/2008)isanambitiousprogrammeofreformsthathasproveditselftobebothappropriateandviableandahighlyeffectivemeansofobtainingresultsandmeetingthedefinedtargets.ThedepthofthestructuraldeficitsandthedemonstrationoftheadequacyoftheresponseshaveledPortugaltogivingunequivocalpriorityinthisnewcycleofthePNR2008/2010tothecontinuationandfurtheringofthereformsalreadyunderwayinthescopeofthePNACE2005/2008.The results already obtained and in particular the consolidation of the publicaccounts and strengthening of the competitive base allow for an even moreambitious programme, introducing new transversal approaches and takingadvantageoftheconvergencewiththeNSRF2007/2013.In its PNR ‐ New Cycle 2008‐2010, Portugal assumes four Areas defined by theEuropean Council as the Priorities of the Lisbon Strategy, namely IntensifyingResearch, Development and Innovation; Improving the Business Environment,notably for the SMEs; Investing in People – Qualifications, Labour Market andSocial Protection and Economic and Ecological Conciliation– Energy and ClimateChange, taking into account their relevance to the national challenges and theweight already represented by these areas in the implementation process of thePNACE2005/2008.Inaddition,thePNR–NewCycle2008‐2010alsoassumesspecificpriorityareas,theQualityofPublicFinancesandtheModernisationofthePublicAdministrationandthe Valorisation of the Territory, given their strategic importance in theconsolidationofthecountry’smodernisationprocess,recognisedinmanyaspectsinthe actual recommendations and warning of future challenges from the EuropeanUnioninitsappraisalprocessofthereformsinPortugal.Inthiscontext,theupdatingoftheNationalReformProgrammeinPortugalintheframework of the New Cycle of the Lisbon Strategy revolves around six priorityareas:Area1–QualityofFinancesandPublicServicesNow that the ambitious targets defined in the PNACE 2005/2008 of consolidatingpublic accounts, the sustainability of the social security system and the3

modernisation of the public services have been reached, in the PNR 2008/2010Portugal will place greater focus on improving the quality of public finances ininterventionareasthatboostthecountry’spotentialgrowthandemployment,andimprovetheproductivityoffactorsinaccordancewiththeguidelinesoftheLisbonStrategy.Area2–AFavourableBusinessEnvironment,especiallyforSMEsThe PNACE 2005/2008 enabled reforms to be undertaken that made Portugal anexampleofgoodpracticesintheareasdebureaucratisingprocedures,transparency,fosteringentrepreneurshipandthedevelopmentofcomprehensiveresponsestotheneedsofcompaniesandSMEsinparticular.PrioritywillbegiveninthePNR2008‐2010totheareaoflicensing,integrationofproceduresamongthevariouslevelsofdecisionmakingandthechannelingofthehumanresourcesavailableintheNSRFtocreate competitive contexts that are more favourable to companies andentrepreneurs.Area3–MoreR&DandBetterInnovationSystemsIntheframeworkofthePNACE2005/2008,publicinvestmentinRDdoubledandasignificant momentum was seen in private investment which should be caught bythe enquiry into scientific and technological potential in 2007. There was anunprecedentedboostinS&Thumanresources,competitivenetworksofexcellenceweredevelopedandpartnershipspromotedwithinternationallyrecognisedcentresofknowledge.InthePNR2008–2010,prioritywillbegiventotheconsolidationofnetworks as competitiveness and technology poles or clusters, fostering collectiveefficiency as an instrument of innovation and the creation of the competitivedimensionatEuropeanandworldlevel.Ontheotherhand,continuitywillbegiventoboostinghumanresourcesinS&T,tothedevelopmentofthematicR&Dnetworksand consortia with scientific institutions, and the creation and participation ininternational knowledge networks, as well as to the stimulation of privateinvestment in R&D. After consolidating a new level of investment in the scientificandtechnologicalsystem,specialattentionwillbefocusedoncreativeinnovationinthecontextofthedifferentvaluechains.Area4–CombatingClimateChange,PledginginRenewableEnergiesandinEnergyEfficiencyPortugal is one of the leaders in the promotion of renewable energies, givingsequencetooneofthestructuringdriversofthePNACE2008/2010.ThePNR2008/2010 pledges in the priority of energy efficiency as a way of reducing carbonemissions and increasing competitiveness in the processes and Portugal will makethe renewable energies sector a key pledge both in terms of the incorporation4

targets and through research into new sources of renewable energy and throughinvestmentintheproductionsystemsofnewgenerationrenewableenergies.Area 5 – More Positive Mobility through Qualifications, Employment and SocialCohesionIn a country with low qualification levels and significant asymmetries in thedistribution of wealth, the PNACE 2005 – 2008 has made qualifications a priority,namely with the reform of basic education and the improvement of vocationalqualification levels through the New Opportunities programme. The PNR 2008 –2010 strengthens this priority, taking advantage of the significant increase in theresources allocated to human potential in the NSRF, in particular for theimprovementofqualificationsandforsocialprotection,boostingpositivemobilityinacontextofthemodernisationofthelabourmarketandtheimprovementofsocialcohesion, in articulation with the principles of flexicurity and in a climate ofconfidenceandarticulationwiththesocialpartners.Area6–PromotinganIntelligentTerritoryThe territory’s ability to attract qualified populations to settle down and to makeinvestmentsinsectorswithhighaddedvalueisacriticalfactorforraisingPortugal’sgrowthpotentialandtoimproveproductivityindicatorsinaframeworkofregionalsocial cohesion. The PNACE 2005‐2008 incorporated the development ofinfrastructuresthatledtoariseinthevalueofactivitiesdevelopedinPortugalinimportantareassuchasTourism,TechnologicalServicesandEnergy.ThePNR2008‐2010willplacepriorityoninfrastructuresthatboosttheeconomiccentralityofthePortuguese territory and do away with the costs of the periphery such as newgenerationnetworks,portandairportinfrastructuresandthemodernisationoftherailway as well as the networks of basic service infrastructures, notably those ofeducation and of science and technology, in the framework of a city and urbannetworkpolicythatfostersintegrateddevelopmentandcohesion.The definition of these priority areas also reflects the strong convergence of theimplementationoftheLisbonStrategywiththeNSRF2007/2013.The implementation of the Lisbon Strategy (macro, micro and employmentcomponents),notablyinthisNewCycle2008‐2010willtakethecohesionpolicyintoaccount,ensuringgrowththatwillenhancesocialandterritorialcohesionthroughthekindofeconomicdevelopmentmeasures,theboostingofthesocialdimension,and the valorisation of the development of an intelligent territory (Area 6.),respecting diversity, empowering endogenous resources and generating theavailabilityofinfrastructuresthatbringdevelopmentandwellbeing.Incarryingouttheactionsthatwilldriveeachoftheareas,theexternaldimensionassociatedtotheLisbonAgendawillbetakenintoaccount,namelythefosteringofbusinessandinstitutionalcooperation,aswellasthedevelopmentofstrategiesthat5

are transversal to all areas such as cohesion, cultural and youth policies and thepromotionofequalopportunitiesandcitizenship,notablygenderequality.ThedefinitionofthepriorityareasofthePNRNewCyclealsotakesintoaccounttheneedforconvergenceoftheimplementationoftheLisbonStrategywithoneofitsmaininstruments,theNSRF2007/2013.BoththepreviousandthecurrentcycleoftheLisbonAgendafindthestructuralfundsandthecohesionfundtobeasignificantlever for action, in particular in the convergence objective regions (North, CentreandAlentejo,Azores),asthefundingofthisdevelopmentisgreater,butalsointhecompetitiveness and employment regions (Lisbon, Madeira, Algarve) where theLisbonAgendafindsaparticularlyfertileterrainalthoughthefundingisless.ButitisnotedthatthePNRcontainsasetofobjectives,measuresandactionsofalegislativeandregulatorynatureinvariousareas,aswellasincentivesandsupportmeasures 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 andinterventiontypologies.ItisalsonotedthatthetimereferenceframeworksofPNRand of NSRF, 2008/2010 and 2007/2013 respectively, do not totally coincide.However,throughoutthenextcycletherewillbeakeyinfluencebetweenthetwoprocesses which requires careful articulation between the respective coordinationstructures.ThefollowingfigureillustratesthecoherentandconsistentassociationbetweenthepriorityareasoftheNewCycleofthePNRandthestrategicprioritiesoftheNSRF,setforalltheOP. 1 1 Forgreaterdevelopmentseeannex“TheroleoftheNationalStrategicReferenceFramework(NSRF)inthePNR”.6

ThesuccessfulimplementationofthePNACE2005/2008waslargelytheresultoftheimpetusprovidedbytheTechnologicalPlan,astrongpolicyideathatgaverisetoamobilising agenda for the Portuguese society and a commitment to governmentactionfocusedonthepromotionofknowledge,technologyandinnovation.TheTechnologicalPlan,recognisedbythemajorityofthePortuguesepopulationasan important or very important agenda, allows the transversal governance ofpolicies to be strengthened and promotes public/private partnerships, as well ascreatingafavourableenvironmentforthelaunchofnumerousinitiativesthatprovethemselvestobeinlinewiththePlan’sagenda.ThePNRNewCycle2008/2010willcontinuetobeimplementedintotalarticulationwith the Technological Plan, taking advantage also of the fact that they have thesameheadofficeandcoordinationstructure.The Technological Plan is a dynamic agenda which evolves to adapt itself to theneedsandprioritiesofthepublicpoliciesandprivatedynamicsofthePortugueseeconomyasawhole.7

In its current formulation, the application of the Technological Plan is centredaround nine plans focused on new generation networks, collective efficiencystrategies, the pledge in science, policies supporting the SMEs, administrativesimplifications,health,justice,educationandsustainablemobility.Asignificantpartof the structuring measures of the PNR New Cycle 2008/2010, in particular in thedimensionsfosteringgrowthandcompetitiveness,integratetheTechnologicalPlan.The PNR New Cycle 2008/2010 is also aligned with the National Strategy ofSustainableDevelopment(ENDS2015)inforcesince2006.8

PRIORITYAREASEach priority area is implemented through the continuation of measures from thePNACE 2005‐2008 which remain in the New Cycle 2008‐2010 either due to theirnature or because their impacts will be particularly visible in this period and alsothrough new measures that demonstrate the focus and commitment to reformsimplicitinthenewlyestablishedsixpriorities.|AREA1–QUALITYOFFINANCESANDPUBLICSERVICESIn the New Cycle of the National Reform Plan 2008‐2010, the implementation ofstructuralreformswillbefocusedonimprovingthequalityofpublicfinancesandoncontinuingwithmodernisationofthePublicAdministration,oneofthemainvehiclesfortheimplementationofpublicpolicies.Inaddition,initiativeswillbetakentoimprovethelegislativeprocessinitscontent,impactandmethodologies.1.1. QUALITYOFPUBLICFINANCESContextThereformofpublicfinancesandtherigorousbudgetpolicywillcontinuewiththepursuit of a balanced budget in the medium term and the implementation ofmeasuresthatstrengthenthelongtermsustainabilityofthepublicfinances.Infact,the existence of structural budget deficits and the dynamics associated to theexpected evolution of expenses that are sensitive to the ageing of the populationmakesiturgenttoguaranteetheintergenerationalfinancialbalancethatdoesnotputthecontinuityofpublicpoliciesatrisk.Theconsolidationofthepublicaccountswillcontinuetobebasedonthestructuralreduction of the weight of the primary current expenditure, benefiting from thebudgetreformprocessesunderwaythatimprovethecapacityofbudgetarycontrol,andontheincreasedefficiencyoftaxpayingandcontributions.Theprogressiveimprovementintheprimarybalance(whichhadalreadyreachedapositivefigurein2007),inconjunctionwiththepursuitofthepolicytoreducethestructuraldeficit,andtheimpactsoftheimprovedexternalcredibilityofourpublicfinancesintheconditionsforplacingdebtontheinternationalmarkets,willmakeitpossible to reduce the weight of the public debt in the GDP. Moreover, thedevelopmentofthenewmanagementmodelofpublicdebtwillcontributetothis9

objectivealongwithitsimpactsontheincreasedefficiencyinthemanagementofthefundingofStateactivities,notablybyreducingthestockincirculationandtheresulting financial burdens for the State. These developments will be pursuedthrough better programming of financing, increased negotiating capacity with thefinancial system, better control of credit and liquidity risks, the minimisation ofoperational risks, and the extension of the State’s central treasury to entitieshithertoexcludedfromit,benefitingalsofromthepursuitofthepolicyallocatingtheresultofthesaleofpublicparticipationstotheamortizationofthepublicdebt.Inparticular,withregardtheprivatisationpolicybasedonthereorganisationofthepublicparticipationsportfolio,participationsincompaniesinactivitysectorswhichdonotjustifytheState’sdirectpresencefromthepublicinterestviewpointwillbedisposed of, as will participations where the State has a residual shareholderposition and which were obtained as a result of business restructuring processes.ThereductionoftheState’sweightinthebusinesssectorwill,inturn,enablegreatercompetitionthusfavouringtheefficientapplicationofeconomicresourcesandtheincreaseofcompanycompetitiveness.The improved financial sustainability of the State’s business sector is one of themain vehicles of public policies; as such, it makes a positive contribution to thesustainability of public finances. In fact, the accumulation of negative results anddebt by public companies can become an additional risk for the sustainability ofpublic finances as in the case, for example, of the State needing to assume theliabilities of a public company in order to guarantee that the latter honours itscommitmentsthusensuringitssurvival.In the area of Public – Private Partnerships that follows up on the measuresimplementedin2006and2007andtakestheintergenerationalequityprincipleintoaccount,theplanningandcontrolmechanismsofthisimplementationinstrumentofpublicpolicieswillbestrengthened.Theconsolidationofpublicaccountsandtheirsustainabilityareessentialtoimprovethe competitiveness of our economy, by orienting resources to more productivepurposessoastostrengthenfinancialstabilityandconfidenceinthefutureofthePortuguese economy, creating conditions for increased private investment, and toguaranteethesustainabilityofsocialpolicies.The evolution of the composition of the public expenditure should reflect itsprogressive orientation to increasing competitiveness and employment, inaccordancewiththeguidelinesoftheLisbonStrategyandtheNationalReformPlan,aswellastheneedtoconfrontthestructuralincreaseoftheexpendituresensitivetotheageingofthepopulation.Hence, in relation to previous years, the weight of public investment in humancapital,inR&D(inducingprivateinvestmentinR&D),inscienceandtechnology,andinpublicinfrastructuresofhighaddedvalue,notablywiththesectorialtechnologicalplans,shouldbeincreasedasaproportionofthetotalprimaryexpenses.Hence,the10

contributionofthestructuralfundsresultingfromthecurrentimplementationoftheOPs that are part of the NSRF is extremely relevant due to its obvious focus (inquantity and, from the perspective of greater selectivity, in quality) on thesetypologiesofpublicinvestment.Equally,theweightofthecurrentexpenditureshouldbedecreasedovertheNewCycle; for that purpose, the operational expenditure will have to more thancompensate for the expected increase in expenditure related to the ageing of thepopulation.Theseevolvingdynamicswillbelinkedtothereductionoftheweightofexpenditureonpersonnelasaresultofthecontinuationofthepoliciescontrollingrecruitment,thepromotionofbetterplanningandinternalmobilityandthecontrolof the evolution of the total payroll in the Public Administration, as well as therationalisation of the acquisition of goods and services to which the work of theNationalAgencyofPublicPurchaseswillcontribute.In addition, there will continue to be a policy to increase the efficiency ofexpenditure,inparticularintheprioritysectorialareas(e.g.health,education,socialbenefits), rationalising and eliminating waste in the use of public resources whilstalsoraisingtheeffectivenessandqualityofthepublicservicerendered.The behaviour of the public entities as purchasers of goods and services has asignificantimpactontherunningofsomemarketsandonthebusinessenvironmentin general. More specifically, when public entities make extensive delays inpayments, suppliers are required to have greater working capital (and thereforefinancial costs). Hence, public entities will pursue a policy of reducing paymentdeadlines.Theincreaseintheeffectivenessandefficiencyofthetaxandcontributionsystemwillcontinuetobeatargetwiththeaimofassuringinafairmannerappropriateandsufficient income to implement public policies, increasing and supporting thevoluntarycompliancebytaxpayerswiththeirobligationsandcombatingfraudandtaxandcontributionevasion.A good budgetary framework, notably with regard the institutions and rulesassociated with the process of preparing, executing and evaluating the publicbudgets can benefit the credibility, transparency and quality of public finances.Thereshouldthereforebegreaterbudgetarydisciplinebasedonmechanismsthatmakebudgetaryconsolidationmorelonglastingwithaviewtothesustainabilityofpublicfinances.11

Measures1.1.1. ConsolidationandSustainabilityofPublicFinances• Definition of debt limits for public companies. In order to develop morerigorous financial management, especially with regard optimising financingand investment decisions, ceilings are to be fixed each financial year forpubliccompanies’debtbearinginmindtheproposedinvestmentplan,thecurrentdebtandfinancingcapacity.• Launchofrestructuringprogrammesoftransportcompanies.Withaviewtomedium/long term financial restructuring of public companies in thetransport sector, opportunities to improve internal efficiency will beidentifiedinrelationswiththeState(particularlywithregardthecontractingofpublicservices)andinthemanagementofthestockofcurrentdebt;theseopportunities will be expressed in management contracts to be signedbetweentheStateshareholderandtherespectivemanagementboards.1.1.2. CompositionandEfficiencyofPublicExpenditure• Running of the “Paying at the Right Time” Programme with a view toreducingtheindicatorfortheaveragepaymentperiod(PMP)by30daysinthe public sector (registered at the end of the fourth quarter of 2008) by20101.1.3. EfectivenessandEfficiencyofIncome• Use of information as a lever to combat fraud and tax and contributoryevasion. An integrated information system will be implemented in the TaxAdministration to support tax inspections in its planning, control andproceduressothattaxinspectioncanbecomemoreefficientandtargetthecontrol of risk tax payers and enable detection through the use of ITprogrammes.1.1.4. BudgetaryInstituitionsandRules• DevelopmentofProgramme‐basedBudgeting.FollowingtheCommission’sworkforProgrammebasedBudgetingandtheBudgetReviewoftheOECD,pluri‐annualprinciplesandtheevaluationofresultswillbeintroducedintothebudgetprocessandnewbudgetingprogrammeswillbeconceived;thisisa follow up to the three pilot programmes (in the areas of Cooperation,Continued Health Care and Social Services in Higher Education) that theGovernment will now present in the State Budget Report for 2009. Thepledge in the management by objective model will improve the budgetplanningandcontrolcapacityandcreateabasetomonitorandevaluatetheperformanceofthebudgetaryservicesandprogrammes.12

• Reformulationofthefinancialmanagementprocessesinthepublicsector.Thecurrentfinancialmanagementprocessesinthepublicsectorarenotinlinewiththebestfinancialmanagementpracticesandthepotentialprovidedby information and communication technology. The redesign of financialprocessesatthedifferentphasesofthebudgetplanningandcontrolprocess– preparing the budget, implementing the budget and reporting – isthereforeapriorityforthefirstcycle.Giventhebestpracticesinthisarea,the redefinition of the financial processes and circuits should be based onthree fundamental principles: the definition of a plur‐iannual expenditureframework, the transparency of processes and autonomy in managementandresponsibilsationfortheresults.• IntroductionofaccrualandanalyticaccountingusingtheRIGOREsoftwareintheintegratedservices.Inordertoincreasecontroloftheassumptionofexpense, to provide support information for management decision makingandtoincreaseclarityandtransparencyinthemanagementofpublicmoneyand financial relations of the State, the target has been set to introducereporting in the State Official Audit Plan using RIGORE software in 50integratedservicesoftheState’sDirectAdministrationby2010.1.2. MODERNISATIONOFTHEPUBLICADMINISTRATIONContextThe modernisation of the Public Administration is one of the main vehicles forimplementingpublicpoliciesanditwillcontinueasoneofthetransversaldriversoftheimplementationoftheNationalReformPlan.The reforms in the Public Administration express the recognition that publicresource management guided by the criteria of efficiency and effectiveness isessentialforacompetitiveeconomynotonlybecauseofthesignificantweightofthepublic sector in the Portuguese economy and the possibility of reducingadministrative costs imputed to the private sector, but also because by acting asleader in the promotion of the quality governance of organisations and bestmanagementpractices,thepublicsectorcanobtainsignificantindirectbenefitsduetoitsimprovedperformance.The successful modernisation of the Public Administration necessarily impliesadvancingwithreformsinmanagementmethodsandrules,soastoimprovethemanagementskillsofpublicmanagersandexecutivesanddrawgreatervaluefromthe public resources allocated to the activity of the entity they are leading, byimprovedplanningandcontrollingoftheactivity,rationalisingandeliminatingwastewiththeconstantaimofahigherqualitypublicexpenditure.13

In the scope of the planning, control and evaluation of the management of thePublicAdministrationentities,thereisincreasedorientationtowardsmanagementbyobjectivesalongwiththeinterconnectionofthecurrentevaluationmechanismsofservices(QUAR)andtheevaluationofexecutivesandfunctionariesandalsothecapacity of management information systems to provide timely, relevant andreliable information that enables executives and functionaries to take the bestpossible decisions. Using objectives to support management is intended tocommunicate clearly what the service strives to achieve, defines prioirities, givesexecutives and functionaries guidance so that they concetrate their efforts andresourcesonwhatisimportantandontheresultstobeobtainedandalsocreatesabase to monitor and evaluate the perfomance of the service. Furthermore, itprovidesexecutiveswithapowerfultooltocommunicatetheirvisionandstrategyandmotivatetheirteamstoreachtheobjectives.Therationalisationandeliminationofwasteintheuseofpublicresourcesfocuseson the implementation of shared services in the accounting, finance and humanresourcesareas,ontheconsolidationofanationalpublicpurchasingsystemandanewmanagementmodelfortheState’sfleetofvehiclesandonthemanagementofthepublicrealestateassets.Inthescopeofpublicemployment,withtheentryintoforceofthethreepillarsofthe new system, created over the last three years (Law nr 66‐B/2007, dated 29December, which approves the New Integrated Management and PerformanceEvaluation System in the Public Administration, Law nr. 12‐A/2008, dated 27February, that lays down the new systems of contractual ties, careers andremuneration in the Public Administration, and Law nr. 59/2008, dated 11September, which establishes the new work contract system in public offices),evaluation of performance and management by objective provides the basis for amore productive human resources management that motivates executives andfunctionaries and therefore fosters excellence in the public services rendered tocitizensandcompanies.Hence,performanceevaluationwillbeconsolidatedinthePublic Administration, as well as the planning and mobility capacities of humanresources. Lastly, the New Cycle has made a commitment to increasing thequalificationsandprofessionaltrainingofworkersinpublicoffice.ThesecondlargevectorofPublicAdministrationmodernisationisthatoforientingthe Administration towards simplifying and improving the service provided tocitizens and companies.Thus, and following on from the programmes in previousyears, the Simplex Programme 2009 will proceed to work towards makingadministrative procedures simpler, more transparent and more rapid so as tofacilitate the lives of citizens and companies, consolidating the strategy thatassociatessimplificationandelectronicadministrationasoneofthekeyfactorstomoderniseandinnovateintheconceptionanddistributionofpublicservices.The simplification measures targeting small and medium enterprises will havespecialrelevance.14

Withregardthecreationofnewintelligentchannelsofaccesstopubicservices,thestrategy of implementing proximity services will be continued and the range ofservicesavailableinthephysical,andwhereverpossiblevirtual,onestopshopwillbe broadened in articulation with the sectorial technological plans; greaterintegrationofservicesdealingwiththe“lifeevents”ofcitizensandcompanieswillbefosteredandattendancewillbereorganised sothatonecontactorinteractionwill be enough for the interested party to act or obtain all the documents andinformationrequired.In relation to the modernisation of Public Services, the measures in the health,justiceandeducationwhichhavespecifictechnologicalplansarenoteworthy,withtheiraimofimprovingservicesrendered,takingmaximumadvantageoftechnologyandrationalisingstructuresandprocesses.Measures1.2.1. ReformsintheManagementMethodsinthePublicAdministration• Implementationofsharedservicesintheareasofaccountingandfinancialmanagementandhumanresources.TheimplementationofsharedservicesintheareasofaccountingandfinancialmanagementandhumanresourceswillleadtoachangeinthewayPublicAdministrationentitiesundertaketheiradministrative processes (back‐office) and technologies due to thestandardisation of rules and procedures, rationalisation of structures,equipmentandresources.Hence,wewillhaveamoremodernandefficientPublic Administration, based on standardised, automated and integratedprocesses.Thetargethasbeensettoimplementsharedservicesystemsinthefinanceand accounting area in 50 state entities by 2010. The target for humanresources management is to have the salary processing of 60,000functionariesinsharedservicesby2010.• Consolidation of the National System of Public Purchases and the NewManagement Model of the State’s Fleet of Vehicles. In the area of theNationalSystemofPublicPurchases,thetargetistomakefrom10%to15%savings in the relevant expenditure (150 million euros in the 2009‐2010period).ThetargetfortheStateVehicleFleetareaistomakesavingsof40millioneurosinthe2009‐2010period.• Progressiveimplementationoftheburdenprincipleintheuseofrealestate.AsrevealedintheconclusionsoftherecentSurveyofPublicAdministrationRealEstatewhichnotesmoreefficientoccupationratiosinrentedrealestatethan in owned real estate, the introduction of financial charges (rent) onusersofStateproperty,includingPublicAdministrationserviceswithoutlegalpersonality,willfosterabetteruseofpublicspace.15

• Increase in qualifications and training. A critical factor for the successfulmodernisationofthePublicAdministrationisthatofthequalificationofitsexecutivesandworkers.Theimprovedqualificationsofexecutivesandstaffwillbeconductedbymeansofprospectiveevaluationandthepreparationofskillsdirectoriesandthedevelopmentofmade‐to‐measurecapacitybuildingprogrammes, raising the capacities of executives and management, theimplementationofmobilitypoliciesthroughthedevelopmentofprofessionalretraining programmes, the development of e‐Learning and practicecommunities, the decentralisation of training by means of partnershipsbetween INA and local institutions, and alignment with the NewOpportunitiesInitiative.1.2.2.. SimplificationandImprovementofAttendingCitizensandCompanies• Reduction of charges made to companies. Following the approval in theEuropeanCouncilofMarch2007oftheActionProgrammefortheReductionofAdministrativeBurdensintheEuropeanUnion,in2008theGovernmentapproved the National Pledge to Reduce Administrative Burdens forCompanieswithaviewtoreplicatingtheobjectivedefinedbytheEUinthenational plan. In 2009, the evaluation process of the reduction ofadministrative burdens companies resulting from the application of thealreadyimplementedsimplificationmeasureswillproceed.• LocalauthoritySimplex.In2009,theevaluationofthefirstLocalAuthoritySimplex Programme will take place; the programme was launched in 2008and will be extended to more local authorities with new simplificationmeasuresthatdonotdispensewithcollaborationbetweenmunicipalitiesorbetweenmunicipalitiesandthecentraladministration.• One stop shop and second generation citizen shops. In the scope of themodernisation of public services, investment will continue to be made inraising the quality and proximity of services to their users, namely byincreasingtherangeofpublicservicesavailableintheonestopshopsystem(presentially or online) and through the expansion of Second GenerationCitizenShopprogramme.Oneofthekeyobjectivesofthisprogrammeistorationalisethedistributionmodelofpublicservicesbothgeographicallyandfinancially,withoutlosingproximitytothecitizenandeconomisingintermsofthecostofinstallationandexploitation;therefore,thenewcitizenshopsshould concentrate public services of the central administration and themunicipaladministrationinthesamespace,usingtheirowncounterormultiservice counters. Their appropriate articulation with other distributionchannels is also foreseen, notably the voice channel and internet, thusassuringamorestandardisedattendanceforallcitizens.16

• Multi‐channel service for companies. The same multi‐channel attendancestrategy will continue to be developed for all companies. The specificattendanceforcompaniesalsoincludesthevoicechanneland,inparticular,theongoingimprovementofthewebchannel(CompanyPortal).• On‐line catalogue of licences. In the area of the single counter (one stopshop)initiativestargetingcompaniesandcontinuingtheprojectinitiatedin2007, the on‐line catalogue of licences will be optimised. This cataloguebrings together licences, authorisations and administrative constraints andgives access to relevant information on each of these aspects, namelyapplicablelegislation,competentauthorityandcontacts;improvementswillbemadesothatitcoversallexistingauthorisationsinthelegalsystemforwhich information must be collected so that the catalogue can becompleted.InthescopeofthetranspositionworkoftheServicesDirective,along with the work of simplifying access procedures and the exercise ofactivitiesofservices,anewsinglecounterisstillplanned–includedinthelicencecatalogue–withelectronicproceduresthatenablesdistanceaccessbyelectronicmeanstotheauthorisationproceduresrequiredtoexerciseanactivityinPortugal.Thepilotscheme,tobeconductedin2008withEstonia,alreadyuseselectronicauthenticationbasedontheCitizenCard.Alsointhecontext of electronic identification, Portugal is participating in a Europeanconsortium (14 countries) for the creation of an interoperability platformand for the recognition of electronic certificates. The services to be testedincludecompanystart‐ups,applicationsforhighereducationandthechangeofaddress.• Seniors Counter. The Seniors Counter will be an integrated counter thatincludes the availability of services and information related with pensions,free time, health and other matters important to the elderly such astransport, social support, leisure or services like arranging ambulances totransportthesick,bookingandrequestinghomehelp,municipalservicesforseniors (payments, booking activities), public services of general interest(telephone, electricity); another predominant characteristic is that theservicewillbeprovidedfromaproximityserviceapproach,inotherwords,inadditiontotheCitizenShops,thisnewservicecanbefoundinplaceslikethecasasdopovo,localauthoritiesorevenrailwaystation.• Elimination of certificates in public services. Project for the provision ofintegrated services based on the fostering of communication betweenentities or departments. In 2008, the certificates to be eliminated will beidentifiedandtheimplementationofthecertificatecatalogueisalsoplanned(e.g.procedures,legislativeinformation,costsandcontacts).Thistransversalproject will work in articulation with the central and local administrationsand in the first phase will bring together almost all the entities of sevenministriesandsixmunicipaltownhalls.17

• In relation to the tax system, the aim is to continue to build anAdministrationthatisavailableandclosertothecitizenandcompaniesbymaking it easier, quicker and cheaper to comply with tax obligations andplacingthetaxpayeratthecentreofthesystem.Thisinvolvescontinuingtomake improvements to the quality of the service rendered and to providequickandqualityresponsestotherequestsoftaxpayersandestablishingarelationofmutualtrustwithcomplyingtaxpayersbyincreasingtheefficiencyofthesystem,eliminatingmistakesanddelaysinrecognisingrightsorintheresponsetorequests,andtotakeamoreproactivestanceintheinteractionwiththetaxpayers.1.2.3. TechnologicalPlanforHealth• E_agenda in health –the aim of this measure is to provide an electronicplatform for making NHS appointments. It starts with requests forappointmentsforPrimaryHealthCare(PHC),andthisyearitwillprovidethecitizenwiththeinteractivitythatenablesthepatienttobealertedtothenextappointmentorapossiblere‐schedulingwithseveralhours’notice.• Health call‐centre – Health Line 24 (continuation) – Following the initialimplementationphase,andgiventheadhesionofcitizenstotheguidelinesofHealth 24, there is expected to be a considerable impact in the decline ofunnecessary visits to the emergency services and a lower concentration ofusersintheservicesprovided.Thepotentialopportunityofgivinghealthcareguidanceathomeaccompaniedbytheserviceisalsobeingconsidered.• Supportfortheexpansionoftheelectronicclinicalprocess(ECP)–Until2010,theMinistryofHealthwillactivelysupportthecreationofECPsinallhealthinstitutions. The ECP is a highly developed electronic process because itessentially constitutes an information collection process that is alreadyelectronically registered in the various information subsystems ofinstitutions,inmobileorothersurgicalblocks,inhospitaladmissions,inthelaboratoryforcomplementarydiagnosticmeans,inimaging.• TransparencyPortal–(accesscardtohealthcare)–Internetsitewherethecitizencancollectallinformationontheaccess,listingthetimedefinedandclinically acceptable and disclosing the results for the correspondingmonitoring.• Medicalprescriptionsbyelectronicmeansforholdersofchronicillnesses–electronicplatformforprescriptionrequestsforpatientswithchronicorlongtermpathologiesintheNHS.18

1.2.4. TechnologicalPlanforEducation 2 • SchoolSimplexProject–createanintegratedelectronicplatformtosupportschoolmanagement.Aimedatincreasingtheefficiencyofmanagementandcommunication among agents of the education community and improvingaccesstoschoolinformation.• School Card – generalise the use of electronic student card among theeducationcommunitysoastoincreasetheefficiencyofschoolmanagementand security in schools. The project envisages functions such as control ofaccess,registrationofattendance,processconsultation,andelectronicpursethatcanbechargedoffschoolpremisesthusleadingtoarealreductioninthecarryingofcash.• Escol@segura safe@school – provide all schools with alarm systems andvideo surveillance in order to increase the security of facilities, discourageintrusions, theft and assaults in schools. The electronic alarm systems andvideo surveillance safeguard the investments made in schools whilst alsoguaranteeingtheprivacyofmembersoftheschoolcommunity.• Institutional Portal of the Ministry of Education – develop a preferentialchannel of communication between citizens and the Ministry of Education(ME) that provides relevant information in the areas of national andinternational education and concentrating the institutional contents of theME services, combating dispersion, overlapping, redundancy and failures incontents.1.2.5. TechnologicalPlanforJustice InthescopeofthesectorialmodernisationprogrammesfortheincreaseduseofICT,the Ministry of Justice will introduce significant changes in three areas: PropertyRegister,CivilStatusRecordsandtheDematerialisationoflegalproceedings.• On‐linepropertyregister:From1January2009itwillbepossibletomakethemajorityofpropertyregisteractsviaelectronicmeans.Thus,byusingthesitewww.predialonline.mj.pt,lawyers,chambersofcommerceandindustry,notaries and solicitors will be able to request registration, pay fees andovercomefailuresintheregistrationprocess.Moreover, it is planned to make an on‐line property registration certificateavailable, very similar to that of the “Permanent on‐line Certificate” of thetraderegister.From1January2009,anypersoncangetaccesstopropertyregister information via internet, which will be permanently updated andwith certificate value by going to the site www.predialonline.mj.pt. Thiselectronic certificate is also accessible by use of a code that the interested2 See Positive Mobility Area - Qualifications19

partycandelivertoanypublicorprivateentity,thuseliminatingtheneedtodeliverapapercertificate.Inthefirstquarterof2009,the“Specialregistrationoperations”counterwillstartoperating.Thiscounterprovidesaspecialandpersonalisedserviceforusers who require it due to the volume and complexity of the registrationrequestsandrealestateoperationstheywishtomake.• NewonlineCivilStatusRecords:Bytheendof2008,thefirstservicesofcivilstatusrecordswillbeavailableon‐lineandin2009thiswillbeextendedtomostsituationsfortherecordingofcivilstatus.• CITIUSandthedematerialisationoflegalproceedings.In2008,professionalrepresentatives (lawyers and solicitors) were given various incentives toundertakeproceduresonline.Accordingly,since1September2008,therehasbeenareductionof25%to50%inthechargesoftheCourtpaidbypartieswhoseprofessionalrepresentativesusetheCITIUSsystemtosendpleadings.There has been a very significant use of these electronic means to deliverpleadingsanddocumentsthroughCITIUS–DeliveryofPleadingsandCITIUS–Injunctions,whichdoesawaywiththesendingofcopiesonpaper,andtheefforts to publicise and train these professionals will continue in 2009. Forexample,thepercentageofinjunctionsdeliveredusingCITIUS–Injunctionsis95% while 10% of pleadings and documents were delivered using CITIUS –DeliveryofPleadings.InthescopeoftheCITIUSdematerialisationoflegalproceedingsproject,thefollowing will also be made available in 2008: i) new electronic means ofmaking seizures in the ambit of enforcement procedure/judicial debtcollection, ii) new portals on Internet that facilitate access to and theconsultation of information on courts and alternative means of disputeresolution,iii)theextensionofITworkinginstrumentsformagistratesofthePublic Prosecution Service CITIUS – MP (penal) to all the DIAPs, iv) newelectronic searches and consultations through the CITIUS that will facilitatecriminal investigation, v) new electronic connections to entities thatcollaborateincriminalinvestigationandvi)throughout2008and2009,newwireless connections in courts that facilitate access to and use of CITIUSapplications.As of 5 January 2009, it will be mandatory for magistrates and the PublicProsecution Service to use the CITIUS application for pleadings in civilprocesses.Thismeasurewilldoawaywiththeprintingofthousandsofactsthatareirrelevanttothecasedecisionandsignificantlyreducethecirculationofdocumentsonpaperinthecourts.During 2009, new electronic means of communication between lawyers,courtsandsomepublicentitieswillalsobemadeavailablealongwithnewfunctions in the IT applications in the courts that, in the scope of theenforcementprocedure,willfacilitateandsimplifytheproceduralflowinthiskindofprocess,closelyrelatedtoareductioninthepaymentdeadlines.Also20

in 2009, a public list of failed executions due to non‐existence of collateralassets will be made available online, with a view to avoiding legalproceedings that are unlikely to be successful and to foster the promptcomplianceofcontracts.1.3. IMPROVEMENTOFTHELEGISLATIVEPROCESSContextThe improvement of the legislative process is considered to be fundamental bymeans of concluding and consolidating the measures foreseen in the BetterRegulation Programme and furthering the impact evaluation system of theGovernment’snormativeacts.The transposition of the community directives to the internal legal systemcontinues to be a priority for Portugal. Thus, there will be renewed effort inlegislativeadaptationsothatasubstantialrecoverycanbemadethatwillmeetthe1%targetin2009definedbytheEuropeanCouncilinspring2007.Giventherecentevolution, the work to be undertaken will involve the continuation of activitiesalreadyunderwaytoboostandmonitortheworkoftheministries,andtocontinuemotivatingministerialofficestotakeactionandattributepriorityandurgencytotheapprovalproceduresoftranspositionlaws.The conclusion and consolidation of measures foreseen in the Better RegulationProgramme,thefurtheringoftheimpactevaluationsystemofnormativeactsandthereductionoftheshortfallinthetranspositionofdirectivesarethereforethreegoalsfortheimprovementofadministrativeproceduresinPortugal.MeasuresBetterRegulationProgramme.Thisprogrammewillassure:• Interoperability between the legal databases of DIGESTO (system for thetreatment and analysis of legal information) and the State’s databases fortreatmentoflegalinformation.• Definition of a technological model for the electronic reconstruction(substantialconsolidation)oflegislativetexts.• Implementation and consolidation of open consultation procedures to beundertaken by society that is able to foster the effective participation ofcitizensandcompanies.21

• Preparation of a practical guide for the drawing up of the Government’snormativeacts.Impact evaluation of the Government’s normative acts. This evaluation will bereinforcewiththefollowingactions:• Revision of the trial SIMPLEX model used in the prior assessment of theadministrative charges of all laws subject to the approval of the Council ofMinisters,adjustingittothe“standardcostmodel”methodology.• Launch of a Practical Guide of the Prior Assessment of AdministrativeBurdens of the Government’s Normative Acts for use by the Ministriesresponsibleforthepreparinganddrawingupoflegislativeinitiatives.• Writing and presentation of an annual report by the Government with theresults of the impact evaluation of normative acts through the new trialSIMPLEXmodel.• Adoptionofanationalpledgeofa25%reductioninadministrativeburdensimposed by national legal and regulatory norms on events relevant to thecompanylifecycle.Transposition of community directives to the internal legal system, that willinvolve:• MonitoringofthetimelytranspositionofdirectivesbythePresidencyoftheCouncilofMinistersandbytheMinistryofForeignAffairs,bymeansoftheautomaticelectronicwarningsystems,themonthlyupdatingoftranspositionproceduresandtheholdingofperiodicinter‐ministerialmeetings.• Combat “gold plating” (creation of administrative charges by nationallegislation beyond those foreseen in community directives) and “doublebanking”(compatibility between directives to transposed and alreadyexistingnationallegislationonthesamematter).• ControlofthetranspositionprocedurefromsimplifiedEuropeanlegislationin the framework of the 2005/2009 simplification programme, from “fasttracks” initiated in 2007 and the Action Programme for the Reduction ofAdministrativeBurdensintheEuropeanUnion.22

|AREA 2 – A FAVOURABLE BUSINESS ENVIRONMENT, ESPECIALLY FORSMEContextIn the scope of the national agenda for modernisation that has been underway,Portugal has made considerable progress in terms of improving the businessenvironment.TheProgrammeofadministrativeeliminationandsimplification(Simplex)iscentralto the simplification and dematerialisation of countless formalities in the variousstages of the life cycle of companies and has contributed to the administrativesimplificationofawiderangeofbusinessactivities.Moreover, a vast range of initiatives aimed at boosting business investment havebeen implemented together with initiatives to foster entrepreneurship andmanagementskills,tofacilitatetheaccessofSMEstofundingandalsotofacilitatetheinternationalisationprocesses.However, the objective set for increased competitiveness and the change in thecompetitivebaseofthePortugueseeconomymakesitnecessarytocreateamorebusiness‐friendlyenvironmentandthisimpliesdoublingtheeffortsalreadytakeninareasthatareinlinewiththoseidentifiedatEUlevel.Inthiscontext,theinvestmentsupportsystemsforcompanies,especiallytheSMEs,launchedinthecontextofthereformmadetotheincentivesystemforcompaniesand closely articulated with the NSRF as its funding mechanism (through theCompetitivenessFactorsOPandtheRegionalOP),constitutesthekeyframeworkofmeasuresunderwayinthecontextofthePNR2008‐2010.The incentive systems resulting from this reform are strongly oriented towardsinnovation issues ‐ in particular, two of the transversal systems meanwhileregulated: the Incentive System for Innovation (IS Innovation) and the IncentiveSystem for Technological Research and Development (IS TR&D). Specific referencewillbemadetotheseintheR&DandInnovationpriorityarea(nextareadescribed).The incentive system for the Qualification and Internationalisation of the SME (ISQualification of SME) should also be highlighted as it is vital to the promotion ofcompanies’competitiveness;thisismoredirectlyframedinthisspecificareaduetothewiderangeofinvestmenttypologiesitprovidesforandthefactthattheyarenotrestrictedtoinnovationdimensions,evenifthisisunderstoodinthebroadsense.The future developments of the Simplex Programme as well as the measures toimprove the legislative process, including the impact evaluation of each newlegislation,notablyfortheSMEs,asdescribedinpoint1.2.and1.3,isexpressedin23

continuingthereductionofadministrativeburdensforcompaniesandthecreationofamorebusinessfriendlyenvironment.The results achieved and the need to increase the internationalisation of thePortugueseeconomyaswellastoattractinvestmenthaveledtotheintensificationof the effort to create good conditions for companies, especially the SMEs, andprovide them with an increasingly favourable environment both for exporting andfromtheperspectiveofexpansionormakingnewinvestments.Therefore,theimprovedaccesstofinancingcontinuestobeapriority,throughtheimplementation of the INOFIN Programme – Facilitating access to financing forentrepreneursandSME–whichincorporatestheFINICIA,FINCRESCEandFINTRANSprogrammes, as well as through other instruments in the scope of the NSRF, ofwhich the newly formed Support Fund for Financing Innovation is an example(FINOVA ‐ Decree‐Law nr 175/2008, dated 26 August). FINOVA works as anautonomous fund and strengthens the financing instruments for companies,particularlytheSMEandprojectswithahigherlevelofinnovation.TheSupportSystemfortheFinancingandRiskSharingofInnovation(SAFPRI)isstillbeing prepared; it will create or strengthen the financing instruments as does theSupportSystemforCollectiveActions(SIAC)thatcomplementstheincentivesystemsdirectly oriented towards companies and aims to boost their results with thecreationorimprovementofthesurroundingconditions.Thepromotionofentrepreneurship,accordingtotheinterventionapproachwhichhas been followed (specified in the Micro vector in Part 3 of this Report) willcontinuetobeapriority.The work to promote qualified entrepreneurship will continue to involve aninterventionlinethatisbasedontheintroductionoffinancing,notablythroughtheFINICIAProgramme,asthelevertonewcompanystart‐ups,withnewmorequalifiedentrepreneurs,generatinganewstandardofspecialisationthatisincreasinglybasedon technology intensive services and products, creativity and knowledge that canrespond to the growing demands of the international markets. One new line ofinterventioninvolvesstimulatingculturalentrepreneurship. 3 The recognition of the contribution of women to a more far reaching concept ofcompetitiveness and innovation in the business fabric has also led to betting inqualifiedfemaleentrepreneurshipbymeansofaidconcededintheambitofNSRF,through the Competitiveness Agenda (Competitiveness Factor OperationalProgramme).AsfortheTourismsector,Portugalhasexcellentresourcesandtouristpotentialandmuch work has been done to develop this so that it has a growing weight in thePortugueseeconomy.In2007,touristconsumptionrepresentedover10.4%ofGDP,3 For more information, see point 3.3 of this section of the report.24

contributing 22.7% to the increase registered in the previous year, exceeding thetargetsetintheNationalStrategicPlanforTourism.Theindicatorsalreadyavailablefor2008againpointtoapositiveevolution,despitetheexcellentresultsof2007.Inthefirsthalfof2008,therevenuefromtourismexceeded3,000millioneuroswhichisanincreaseofroughlymorethan180millioneurosoverthesameperiodinthepreviousyearandthetotalearningsofhotelsforthesameperiodhasalsorecordedariseof5.2%.Nevertheless,thefiercelycompetitiveenvironmentinwhichTourismmovesmeansthat companies and all those people in the value chain of the product areincreasingly required to exceed the performance of their direct competitors incapturingthemarketshare;theymustknowhowtointerpret,developandinnovatein producing the value that meets the demands of ever more knowledgeable,experienced and sophisticated consumers. In this context, knowledge andinnovation, the upgrading of destinations and the dynamising of new centres oftouristattractions,togetherwiththequalificationofthehumanresourcesworkingin the activity, are essential components to compete successfully in the touristmarket.Itisimportanttostressthatthelargemajorityofmeasuresincludedinthispriorityarea – A favourable business environment, in particular for SME – and especiallythosereferringtotheaccesstofinancing,tothepromotionofentrepreneurshipandto the promotion of good practices and the support of internationalisation areembodiedinthenationalSMEpolicy,whichincludesmeasuresfromotherpriorityareas due to its horizontal dimension, namely in the R&D and Innovation andQualificationAreas.Measures2.1 Boostingstructuringinvestment• SupportprogrammefortheprojectsofPotentialNationalInterest(PNI).ThisprogrammebeganinJuly2005andwillbecontinuedinthe2008‐2010periodand aims to accompany all the projects that obtain PNI status from theperspectiveofmakingtheproceduresmoreagileandtherapidresolutionofcontextualcostsincurred.• Support programme for the projects of Potential National Interest withStrategicImportance(PNI+).ThisprogrammeconsistsofaRecognitionandMonitoringSystemforprojectsofPotentialNationalInterestwithStrategicImportance (PIN+); the classification mechanism for this programme is setout in DL 285/07, dated 17 August. Once this classification has beenobtained, the Government pledges to assure the accelerated processing ofthe authorisation. By 2010, all investment projects that obtain the PNI+statuswillbemonitoredsothattheoveralldecisionmakingprocesswillbeasquickaspossible.25

• Client/SupplierProgramme.Theprogrammeaimstoworkinmultinationalsestablished in Portugal so as to improve the positioning of Portuguesecompanies as suppliers of raw materials, intermediate products,components,servicesorothersolutions.Theprogrammeaimstocover100companiesduringthisyear,increasingto150in2009and175in2010.2.2. Internationalisation• ExportersClubProgramme.Theformingofanexporters’Clubisintendedtoprovide conditions that strengthen the internationalisation process ofcompanies.Thegoalistohave50companiesintheprogrammein2008,100in2009and150in2010.• BuildingBusinessSkillsProgramme.Thisprogrammeaimstoboostactivityin building business skills by providing a training programme on ways ofapproachinginternationalmarketsinordertoovercometheweaknessesofthe SME in the areas of trade and international business management. Itintends to hold 40 courses in 2008, 42 in 2009 and 45 in 2010. It is alsoexpectedthatthenumberofcompaniesinvolvedintheseinitiativeswillgoupto800thisyear,1050in2009and1350in2010.• MarketPlacePortugal.ThismeasureaimstocreateatechnologicalPlatformto publicise the Portuguese supply from SME with a view to giving themgreatervisibilityandactingasanauxiliaryinstrumentforconductingtradeininternationalmarkets.Itintendstocover250companiesin2008,400in2009and550in2010.• InovVasco da Gama. The aim of this programme is to provide workplacements abroad for young entrepreneurs and managers in Portuguesecompaniesthathaveorwishtohaveaninternationalisationstrategyintheircompanyorinthecompanywheretheywork.Itenvisagesoffering150workplacementsayear.• Network of international resources. An International Network will becreatedandpromotedthatbringstogetherPortuguesepeoplefromalloverthe world in order to contribute to a higher level of internationalisation ofthePortugueseeconomyandtomakePortugalbetterknown.TheaimoftheNetwork is to have around 1000 users in 2008, 1500 in 2009 and 2000 in2010.2.3. Accesstofinancing• INOFINProgramme–TofacilitateaccesstofinancingbyentrepreneursandSMEs.ThisFrameworkProgrammeencompassesthefollowingprogrammes:26

o FINICIA Programme. This programme aims to make specialisedfinancialinstrumentsavailableforthesupportofcompanystart‐ups,such as: Pre‐seed Capital solutions targeting the concept testingstages; Seed Capital solutions targeting knowledge based companystart‐ups;RiskCapitalandMutualGuaranteesolutionstargetingtheinitial growth of start‐ups; thematic Micro Risk Capital and Microcredit targeting young, female and social entrepreneurship withregionalemphasisassociatedtothenewclusteringprocesses.By2010,thereareexpectedtobe(i)600projectsevaluated,(ii)75%of evaluated projects approved, (iii) average of 2 work posts perprojectcreated,(iv)totalinvestmenttotalof€45mmade(v)€20minfinancing by credit (with the support of Mutual Guarantee) and byRiskCapital.o FINCRESCEProgramme.Thisprogrammeaimstoprovidesolutionstooptimise financing conditions for companies that pursue innovativegrowth strategies, through Risk Capital and Mutual Guaranteesolutionswithaviewtotheinnovativeand/orinternationalgrowthofSME.Itisforeseenthatby2010,(i)2500SMEwillberecognisedwiththeLeading SME status, (ii) an annual Leading SME Convention will beheld, (iii) 1200 Leading SME will be involved in Benchmarkingprocesses,(iv)implementationof500investmentprojectsbyLeadingSME using Credit and Risk Capital instruments in the ambit of thespecificfinancingconditionstobecreated.o FINTRANSProgramme.TheaimofthisprogrammeistoprovideRiskCapitalandTitleholderCreditsolutionsinordertosupportoperationsfor the concentration of businesses, mergers and acquisitions andManagementBuyOut(MBO)andManagementBuyIn(MBI).By 2010, (i) involvement of 10 financial partners and specialisedentities,(ii)40companiesidentifiedasinsearchoftransfersolutionsand(iii)10transferoperationsconductedareforeseen.2.4. PromotionofEntrepreneurship• Entrepreneurship Programme and Economic Valorisation of Knowledge.This programmes aims to foster the entrepreneurial culture, boost thecreationofnewcompaniesandthetransferoftechnology,consolidateandpromote the international growth of start‐ups and includes actions (i) topromote the link between schools, universities and companies, (ii) todynamisefocalpointswithinuniversitiessoastoidentifyresearchprojectssusceptible to entrepreneurial activity, (iii) to develop mechanisms for themanagement of technology that effectively relate research with the27

commercialisation of technologies, (iv) on management of intellectualproperty,(v)onthedevelopmentofmethodologiesforthecreationofEBTbasedonintellectualpropertyand(vi)theidentificationofkeyareasbasedonthecompetencesofR&Dcentres.• Supprt for female entrepreneurship. This measure encompasses anintegrated support system for female entrepreneurship that contemplatestraining, consultancy for the preparation of business plans and a supportawardatthetimeofthestartup.Italsoincludesaidforbusinessnetworksofactivitiesmanagedbywomen.• Support for qualified female entrepreneurship. This support is expressedthrougha10%mark‐upintheeligibleexpensesofprojectsapplyingforNSRFR&D incentives for female entrepreneurship projects and own budgetallocation.• Supportforculturalentrepreneurship.Thismeasureincludesthecreationofa post graduation in management specifically targeting agents from theculturalandcreativesectorswithaviewtoqualifyingtheirmanagersthroughtraining in business administration, as well as the conferring of awards forinnovativeandsustainableprojectsintheculturalareaofrecognisedmerit.Mention should also be made of specific aid for entrepreneurship aimed atpromotingjobcreationasspecifiedinpoint5.2.2.5. Promotionofgoodpractices/RecognitionofMeritofSME• Competences Programme and stimulus for the SME to adopt growthstrategies.Thisprogrammeincludes:(i)SMEAcademy–QualifyingtopSMEfor innovative and international growth; (ii) Dissemination of competitivediagnosticsolutionsandtheidentificationofgoodpractices(benchmarking);(iii) Generalisation of the use of Scoring tools, notably of innovation(Innovation Scoring); (iv) Facilitating access to relevant information for thebusinessofSMEs.By 2010, the start of an SME Academy is planned which will act as themediatorbetweentheknowledgedevelopmentcentresandtheSMEsinthetransferofcompetencesandthestrengtheningofdistinctivecapacitieswiththeinvolvementofaround1000companiesworkinginCompetenceAnalysis,CompetitivenessDiagnosticsandInnovationScoring.• Recognition of Merit of SMEs – Mobilising by setting the example. Thisprogramme includes an articulated system of recognition of merit andbusiness excellence: Leading SME, SME of Excellence, European EnterpriseAwards.28

• “EgualityandQuality”award.Thisawardisgiventocompaniesandentitieswithexemplarypoliciesandpracticesofgenderequality.• Support for the adoption of Equality Plans. This is a system ofmultidisciplinary support that includes consultancy services for thedevelopmentofdiagnostics,training,theimplementationandevaluationofEquality Plans in the public and private business sector as well as in theCentralandLocalPublicAdministration.2.6. BoostingtheCompetitivenessofTourism• KnowledgePlatformforDestinationManagement.Theaimofthismeasureisto develop an interface (knowledge, technical assistance and cooperationplatforms) to support the implementation and management of touristdestinations and products, and to provide appropriate tools to monitoreffectiveness indicators in critical dimensions of the viability andcompetitivenessofthebusiness.ThisPlatformisplannedtobeinoperationby2010.• DynamisationofTouristdevelopmentpoles.Thismeasureincorporatesthedefinition of the development concept of new tourist poles, the respectiveinfrastructureandprivateinvestmentprioritiesandamodelfortheapproachto markets. It also includes the forming of incentive systems applicable topublicandprivateprojectsthatputtheplannedconceptintopractice.Itaimsto launch the public and private investment projects necessary to thecompetitive development of new tourist poles, in terms of supply, in theprioritymarkets.• UpgradingofconsolidatedTouristDestinations.Thismeasureaimstomakeacompetitiveevaluationoftheconsolidateddestinationsanddefineupgradingprogrammes given their competitive re‐positioning and on the basis ofinfrastructureandprivateinvestmentpriorities;italsoincludesanewmodelfor the approach to the markets. It foresees the launch of the public andprivateinitiativeprojectsnecessaryforthecompetitivere‐positioningofthedestinations,intermsofsupply,intheprioritymarkets.• Dematerialisation of processes for relations with companies. This measureaimstodematerialisethemajorityoftheproceduresinvolvedinthelicensingandinvestmentsupportprocessesbytheendof2010.2.7. NationalStrategicPlanforFisheries.Implementationoftheinterventionpolicyforthe2007‐2013periodandwhichformsthenationalframeworkofthePESCAOperationalProgramme.29

• Sustainedexploitationofresources,soastomaintainthecapacityfortheself‐regeneration of the ecosystems and promote biodiversity in order toguarantee the future of the fishing sector and the well being of thepopulations who depend on it. It therefore conciliates the preservation ofresources and environmental quality with the biological and ecologicalconstraintsandwiththeeconomicandsocialneeds,pledginginknowledge,training and scientific research as pillars of economic growth and jobcreation.• Valorisationandqualificationofhumanresources,aspledgeincontinuoustraining, consolidation of the mechanisms supporting the entry of newprofessionals, increase of work‐linked training, boost of training supportmechanisms based on technological platforms and IT tools and increase ofdualcertification.2.8. Dynamisation of the Market, Development of the Internal Market andRegulation(seeresponsetofuturechallenge) 4 • Implementation of Services Directive. By the end of 2009, the executionmeasuresoftheServicesDirectiveswillbefullyimplemented.Theopeningof a one stop shop with electronic procedures is foreseen as part of thetransposition work of the Services Directive and the simplification ofprocedures for the access to and exercise of service activities; this willprovideaccessatadistanceandbyelectronicmeanstotheauthorisationproceduresnecessarytoestablishorrenderservicesinPortugal.The one stop shop will operate in the Company Portal (which has a onestop shop for starting up a company, the “Company online” project) andwill be included in the current “Licence Catalogue”, which is an onlinecatalogue that brings together licences, authorisations and administrativeconstraints and provides access to relevant information on each of thesematters,namelyapplicablelegislation,competentauthorityandcontacts.With this one stop shop, where all the service activities covered by theDirectivethataresubjecttoanauthorisationprocedurearefound(forthepurposes of article 9 of the Directive), the service provider can start andaccompanytheauthorisationproceduretoestablishorrenderservicesinPortugalandcomplywithallthenecessaryformalitiesfromtherequesttothefinalauthorisationassociatedtoeachactivityusingelectronicmeans.Relevantinformationsuchastheapplicablelegislation,theflowchartoftheauthorisation procedure and all other aspects set out in article 7 of theDirectivearealsoavailable.4 This objective includes measures developed in Areas 1 and 4.30

Inadditiontotheelectroniconestopshop,apresentialonestopshopisalso planned using a multi‐channel approach that enables a process thatwasinitiatedelectronicallytobehandledpresentiallyandviceversa.The on‐line Catalogue is linked to the Competent Authorities (CA), byelectronic means, through a Public Administration InteroperabilityPlatform.Thecompetentauthoritiesretainalltheirdecisionmakingpowersto assess and concede authorisation; however, the InteroperabilityPlatform allows communication between the different computer systemsofeachoftheCAs.A pilot one stop shop project in the licence catalogue for three serviceactivities–Measure107oftheSimplexProgramme2008‐isalsoplannedfor2008.FollowingthecompletetranspositionoftheDirectiveatEUlevel,theCAswill participate fully in the Administrative Cooperation foreseen in theDirectivethroughtheInternalMarketInformationSystem.The national rules in force in these areas will be applied until commonsolutions for the signing of electronic documents have been adopted atcommunitylevel.• ImplementationoftheintellectualpropertyDirective.Thetranspositionofthe directive on means of complying with intellectual property providesPortugal with extremely relevant legal instruments to combat thecounterfeitingthattakesplaceinsociety.ThenewlawplacesPortugalonaparwiththestatesthatgiveclosestattentiontotheeffectiveprotectionofintellectualproperty,andprovidesagoodenvironmenttoattractnationaland foreign investment in sectors linked to knowledge, information andcreativeindustries.Obviously,thenewlawdoesnotrejecttheproductionofnewdevelopmentsinthisarea,especiallythoseobtainedbyagreementsmade between the companies and the representatives of the rightsholders.Inaddition,thereisexpectedtobeanimprovementintheworkofthe courts and the other services involved in the fight to protect IP as aresultoftheincreaseinthetraininggiventoagents.ItisalsoconsideredusefultoplaceanEnglishtranslationoftheCodeonCopyrights and Related Rights on line and to make the complementarylegislationtothisavailable.• Conclusion of the transposition of community directives related to theAction Plan for the Financial Services ‐ The transposition of the moneylaunderingandfinancingterrorismdirectivesisunderway• Gradualandcontrolledliberalisationofthepostalservices‐Transpositionof the Directive 2008/6/CE aiming at the total liberalisation of the postal31

services by 31/12/2010 (including notably: definition of the date of thetotalliberalisationinPortugalandoftheobligationsoftheuniversalservicethereafter; evaluation of its net costs and financing system; status of thepostaloperator;accessconditionstopublicpostalnetwork;protectionofcitizens’andconsumers’interests).• Reformulationoftheregulatoryframeworkoftheconstruction,thatwillinvolve:o Reformulation of Decree Law 12/2004, dated 9 January – Legalframeworkfortheconcessionofbuildingpermits;o Reformulation of Decree Law 211/2004, dated 20 August – legalframeworkforrealestatemediationactivities;o Creation of the Legal Framework for the real estate promotionactivities;o Regulation of activities to promote the administration andmanagementofcondominiums;o Creationofalegalframeworkforpracticeintheactivityofrealestateevaluator.o Contact with a more restricted set of entities so as to form andimplementtheMediationandArbitrationCentre;thedocumentationforthedeedstoformtheAssociationthatwillcreateandmanagetheMediationandArbitrationCentrearebeingprepared;thecentrewilllaterbedecentralisedwiththeopeningofdelegations.o ThecreationofrealestateIdentificationCard(BII)o Theregulationofelectronicbookoftheconstructionwork,assaidintheJuridicalRegimeofUrbanizationandConstruction(Law60/2007,December, 16), which integrates part of the information about theconstructionbuildingsthatalreadyareinFTH.• “PayingattheRightTime”Programme–astructuralreductionisplannedin the deadlines for payments to suppliers of public entities. Thisencompasses measures such as the monitoring and publicising of theaveragetimeittakestopaysuppliers;settingobjectivesforthepaymentdeadlinestosuppliersandthecreationofincentiveslinkedtothelevelofcompliance with these objectives; the implementation of operationalimprovementsintendedtospeeduppaymenttosuppliers;thecreationofmechanisms to substitute debt to suppliers with medium and long termfinancial loans in the specific case of autonomous regions andmunicipalities.• Continuation of the CITIUS – Injunctions. CITIUS – Injunctions is aninstrument that permits the delivery, payment and processing of theinjunction procedure entirely by electronic means and it has been inoperationsince5March2008.Theinjunctionisaprovisionthatallowsthecreditor of a debt to obtain an enforcement order quickly and simplywithout having to declare action in a court. It is essential to have an32

enforcementorderinordertoproceedwiththelegalrecoveryofthedebtthroughthecourtsbymeansofanenforcementprocedurethatmakestherespectiveseizureviable. 5 5 See results already obtained in Outcome part III of this report, micro level.33

|AREA3–MORER&DANDABETTERINNOVATIONSYSTEMContextWhen the Portuguese Government assumed the speeding up of scientific andtechnologicaldevelopmentasapriority,itlaunchedaPledgewithScienceforthefuture of Portugal in 2006 which specifically set out the targets that it wanted toreach and proposed concrete measures and instruments so that they could beachievedby2010.Thenationalscientificandtechnologicalprogresshasbeengivenagreat impetus and there are results and experiences that reveal the large publicinvestmentmadeinthisarea(seeOutcomeofexecution,partIII).Theguidelinesproposedpointtoextendedparticipationinthismovementwhichisalso one of the renewal and expansion of the social base of scientific andtechnologicaldevelopmentinPortugal,throughthedirectinvolvementnotonlyofscienceandtechnologybasedprofessionsandpublicandprivateorganisationsbutalsoofstudentsandtheirfamiliesingeneral.Society’sgrowingappreciationofthescientificandtechnologicalculturemustthereforebeoneofthecentralsupportsoftheseguidelines:• PledginginKnowledgeandinscientificandtechnicalcompetencemeasuredatthehighestinternationallevel;• PledginginhumanresourcesandintheScientificandTechnologicalCulture;• Pledging in public and private R&D institutions, in their reinforcement,responsibility,organisationandnetworkinfrastructure;• PledginginInternationalisation,HighStandardsandinEvaluation;• PledgingineconomicValorisationofResearch.TheareaoftheInformationSocietyalsoassumedconcreteobjectivesfor2010inthe Connecting Portugal action programme launched in 2005; the results alreadyachievedbythisprogrammeareequallyencouraging(seereport,partIII).Portugalwill continue its efforts to develop and mobilise the Information Society,implementingtheConnectingPortugalProgramme,andgivingspecialpriorityinthe2009‐2010periodtoR&Dactivitiesintheareaofinformationandcommunicationtechnologies and to the so‐called e‐Science instruments; this includes the highperformancenetworkforresearchandeducation,digitalscientificlibraries,theopenaccess information and scientific data stores and the Grid computing and supercomputingandtheworkplatformsfordistanceresearch.Portugal thus increased its commitment and has concentrated it on achievingspecifictargets,aimednamelyat:i)achieving5.5researchers(ETI)perthousandoftheactivepopulationby2010(thefigurestoodat3.8in2005inPortugaland5.5inEU25);ii)boostpublicinvestmentandScientificResearch,assuringatminimum,thedoubleoftheamountofR&Dexpendituresof2003;andiii)giveprivateinvestmentinR&Dagrowingimpetus,contributingtotripletheR&Dexpendituresof2003.The34

intentionisalsotocontinuetoincreasethenumberofPhDsayearfromatotalof1500in2007to1800in2010,whiletheobjectivesaremaintainedforthegrowthofinternationallyreferencedscientificproductionandtheinternationalregistrationofpatentsintheEPOandtheUSPTO.Intheinnovationarea,mentionshouldbemadeinparticularoftheworkdonetosupport collective efficiency dynamics aimed at strengthening the innovativedynamics of clustering, agglomeration and networking as well as the economicvalorisation of knowledge generated by the Science and Technology System, thatproducesrelevantknowledgetosupportstrategicbusinessoptionsandpublicpolicy.Wenotethefollowingmainlinesofactionthatcontributetoachievingthisobjectiveinthiscontext:• Dynamisationofprojectsaroundstrategicprojectsorinrelevantsectorsofthe economy – Development of initiatives that lead to the organisation ofeconomic agents for the definition of agglomeration strategies (e.g.competitivenesspoles,clusters,networks,strategicprojects);• Monitoring of the economic aggregates and support for their collectiveefficiency strategies – monitoring of the constitution and implementationprocesses of the activity of economic aggregates and their governancemodels,aswellasthedevelopmentofactionplansandcollectiveefficiencyprojectspresentedbythem;• Production of strategic support knowledge for business initiatives –Collectionandtreatmentofinformationbytheeconomicagentsinvolvedincollectiveefficiencyprocesses;• Launch and monitoring of a strategic intelligence network in innovation –Conception and operationalisation of a strategic intelligence systemassociatedtotheemergenceofeconomicaggregates.Equally,andparticularlygiventheconcerntofosterinnovationintheSMEs,priorityis given to the introduction of the measures Value TR&D and Value Innovationwhich are exclusively targeting the SME and notably small companies. ThephilosophyofthesemeasuresistoencourageanapproximationofthesecompaniestotheentitiesoftheNationalScientificandTechnologicalSystem(NSTS),byfundingthe contracting of TT service (in technological areas or in management supportareas, quality, environment, etc.) in these entities. They therefore aim to providecompaniesthatarestillresistingworkingwithSTSentitiesaneasiermeanstodosothrough small innovation projects or TR&D in management or technological areasframed in the Incentive Systems of the NSRF, TR&D IS and Qualification andInternationalisationofSME.These measures are part of a vast range of investment typologies foreseen in theTR&DandtheQualificationofSMEIS,operatingintheambitoftheNSRF.The inclusion of Culture in the New Cycle of the Lisbon Strategy is due to therecognition that culture can generate wealth and is an engine of growth,35

competitiveness,employmentandinnovation.Inthisarea,besidestheimportanceof cultural, geo‐strategically and economic value of Portuguese language, theintentionistostimulatethedynamicofthecultureeconomyandbringtothemarketthe cultural agents, demonstrating the interest and value of arts and creative andculturalindustries.ThroughpartnershipsbetweenMinistries,Countiesandprivateentities,abroadapproachisneeded,followingthelife‐cycleandthevalue‐chainofthesector,sincetherootsofindividualtalenttotheirfullestablishmentandconsolidationofthesocialandeconomicvalue,inordertostimulatecreativeactivities,qualificationofculturalagentsandcompetitivenessincreativeandculturalindustries.Culture in all its diversity can strengthen creativity and is a long‐lasting andsustainable resource. Companies that use culture as a “raw material” reduce theprobabilityofrelocationasthiswouldleadtoalossoftheframeworkwhichmakesthem competitive. Providing a favourable environment for the creation anddevelopment of SME in the cultural and creative sector and for the work of thecreators and economic agents is a strategic objective that is embodied in asignificantsetofspecificmeasures.In short, the approach taken by Portugal to the priority area of Research andInnovationisthatofanintegratedvisionthatgivesvaluetothenumerousprocessesand mechanisms that generate innovation and particularly value creation throughtheincorporationofcreativeknowledgeinproductsandprocesses.Measures3.1. MoreR&D• Increase aid for contracting new PhDs for the national scientific andtechnologicalsystem,atleast500morenewcontractsin2008‐2010;• Boost the allocation of Grants for Integration in Research (in recognisedR&Dcentres)forstudentsinthefirstyearsofhighereducationinordertomotivate students to start scientific activity and develop a critical sense,creativityandautonomybyintegratingtheminR&Dteamprojects;• Creation of new Thematic S&T networks aimed at the integration ofcapacities, advanced training, demonstration and dissemination andinternational cooperation, namely to support international partnershipsformedforS&TandHighereducation;• Creation of new R&D Consortia, including support mechanisms for theformationofPostGraduationSchoolsinPortugal,withaviewtoboostingpostgraduationactivitiesinPortugalinaninternationalcontextassupport36

forreformunderwayinhighereducationinPortugalandthemodernisationofthenationalscientificandtechnologicalsystem;• Launch of the Mobilising Programme of State Laboratories including theformingofR&Dconsortiaandnucleiandnetworksaimedatmodernisingthenationalscientificandtechnologicalsystem;morespecifically,theobjectiveisto ensure the reform of the State Laboratories through close cooperationwith Associated Laboratories, Higher Education institutions, their R&Dinstitutes and centres, and other public and private entities, namely withcompanies;• Implementation of the Programme of Invited Full Professors for ResearchandtoattractR&DgroupstoPortugueseinstitutions;thisaimstoattracttopinternational researchers to Portugal and support the internationalisationeffortsofHighereducationandestablishpartnershipswithotherentities;• Starting up of the new Associated Laboratories and increase the workingconditionsoftheAssociatedLaboratories;• Conclude the building of the International Iberian NanotecnologyLaboratory(INL)inBraga,followingtheinternationalcallfortendersalreadylaunchedforthe1stphase,startofinternationalrecruitmentofresearchersandofscientificactivitiesandextensionofparticipationtoothercountriesinthelaboratory.• Reinforcement of the “Partnerships for the Future” programme, notablythrough the existing partnerships with the MIT (MIT‐Portugal Programme),CarnegieMellonUniversity(CMU‐PortugalProgramme),UniversityofTexasinAustin(UTAustin‐PortugalProgramme),andFraunhoferGesellschaft,andincludingthelaunchofanewpartnershipwithHarvardMedicalSchoolandthestartofaninternationalMBAProgramme(Lisbon‐MBA)intheambitofthecollaborationwiththeSloanSchoolofManagementofMIT.• Implementation of the protocol signed in April 2007 between thePortuguese State and the Fraunhofer Society, in the scope of newinternational partnerships, that laid down a framework for cooperationbetweentheFraunhoferinstitutesandthePortugueseinstitutionsaimedatdevelopingapplicationsofRFIDtechnologiesandtheconceptsof“InternetofThings”inhealthandairtransportlogistics.• IncreasedinterventionoftheLivingScienceAgencyforthepromotionofthescientific and technological culture, including the launch of the ShowingScience what is done in Portugal Initiative and broadening the Network ofLivingScienceCentres;thereareplanstobuildatleastfourmorecentresin2008‐2010;37

• PortuguesePresidencyoftheEuropeaninitiativeEUREKAfrommid2008tomid2009;• RevisionoftheScientificPatronageLaw.• Consolidation of the Network of Internet places for free public access tocomputers and broad band internet and the pursuit of Digital Inclusionpolicies through support programmes for participation from citizens withspecialneedsintheinformationsociety.• Start up of the Community Networks, following the building projectsunderway in 4 zones where it is difficult for the market to introduce NewGeneration Networks (Vale do Minho, Vale do Lima, Terra QuenteTransmontana,EvoraDistrict),andalsothedevelopmentoftheuseoffibreopticnetworksbuiltintheambitoftheDigitalCitiesandRegionsprojects.• Creation of a new platform to make medical contents available andcontinued support for the setting up of a new Fraunhofer Institute inPortugaltodevelopapplication,servicesandcontentsforthepromotionofdigitalinclusion.• Boosting vocational training in ICT, stimulating the expansion ofTechnologicalSpecialisationCoursesandorganisingnationalprogrammesofICTAcademiesinhighereducationinstitutionsinpartnershipwithcompanieswithinternationallyrecognisedcertificationrecognitionmechanisms.• Reinforcement of the Online Scientific Library (b‐On) integrated with theInternationalIndexingSystemofscientificandtechnicalPublications(WebofKnowledge) and the promotion of the availability of Open Access scientificinformation,namelypublications,archivesandscientificrepositories.• Reinforcement of the National Infrastructure of Distributed Computing(GRID) namely through the National GRID Initiative, participation in theIBERGRID Network and international cooperation of CERN and otherinternationalpartnershipsinthescopeoftheEuropeanUnion.• CIG/FCTProtocol,aimedatpromotingResearchintheAreaofSocialGenderRelations as a means of furthering multidisciplinary scientific knowledge inthisfieldandenablingthedefinitionofpublicpoliciesandactionstrategies.3.2.Innovations• CollectiveEfficiencyStrategies.SupportforbusinessdynamicsthatgenerateCollectiveEfficiencyStrategiessuchasCompetitivenessandInnovationPoles,ClustersandStrategicIntelligenceNetworkinInnovations.38

By 2010, the following are foreseen: (i) dynamisation of clusteringmovementsaroundstrategicprojectsorinrelevantsectorsfortheeconomy– nr. of aggregates (clusters, poles or networks with dynamisationintervention): 12; (ii) monitoring of economic aggregates and support fortheir collective efficiency strategies – nr of aggregates/collective efficiencyprojects being monitored: 20; (iii) launch and management of a strategicintelligencenetworkininnovation–implementationlevelofnetwork–nrofnetworkhubs50‐70%ofaggregatesformed.• Value TR&D. Measure framed in the NSRF, in the ambit of the IncentiveSystems for the Qualification of the SME, with a view to providing simplesupport for the acquisition of TR&D services by SME from STS entities inresponse to the company’s specific questions and needs; the aim is toincrease their competitiveness through the improvement of products,processes or services (transfer of scientific and technological knowledgewhichisnewtothecompany).• Value innovation. Measure framed in the NSRF, with a view to providingsimple support for the acquisition of consultancy services and support forinnovationbySMEfromdulyqualifiedentitiesinresponsetothecompany’sspecific needs; the aim is to increase their competitiveness through theimprovement of products, processes or services (transfer of scientific andtechnologicalknowledgewhichisnewtothecompany).• R&DandInnovationAgendaforTourism,encompassing:• StimulustoResearchandDevelopmentinthefieldofTourism.TheaimofthismeasureistoprepareanR&DPriorityAgendafordirectapplicationinthetouristactivitybyidentifyingthemaininternationaltrends of R&D opportunities/needs in Tourism and to reach aconsensusonapriorityagendawiththeSCSandthemoreadvancedsectorsinthetouristactivity;theaimisalsotosetupaCompetenceCentreinTourismwithaviewto(i)stabilisingrelationsbetweentheSCS 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 EurekaTourisminitiative.Thelaunchof10R&DprojectsintheTourismfieldbytheendof2010isplanned.• Boosting Innovation in Tourism. This measure includes boosting (i)publicity and awareness campaigns among entrepreneurs andexecutives about the importance of innovation in Tourism (ii)activities stimulating qualified entrepreneurship in Universities andHigher Education Institutes and (iii) boosting regional opportunitiesgrantsforentrepreneursandriskinvestorswithaviewtodevelopingbusinessinnovationprojectsinthesectorandalsothecreationofanInnovation in Tourism Award. In the 2009/2010 period, 20 publicity39

actionsareplannedperyearleadingtothelaunchof15innovationprojectsintourismbytheendof2010.• Excellence of Tourism Training. The programme includes (i) theinternationalcertificationofthetrainingsupplyofHotelandTourismSchoolswhichinvolvesthecertificationofcoursestaught,thereviewofthestudyplans,thetrainingandqualificationoftrainersandaccessto the international work programme for young trainees, (ii) theupgrading of the training supply of Hotel and Tourism Schools andadjustmentoftherespectivestudyplans,andalso(iii)thebroadeningandresizingofthenetworkofHotelandTourismSchoolsascentresthat generate knowledge and good practices for the sector, theterritorialmonitoringanddevelopmentofthetouristactivityandofitsnewpolesoftouristdevelopment.The progressive and phased implementation of certification isforeseen in all Hotel and Tourism Schools (currently 16), with theinitialimplementationintheschoolsintheAlgarveregionplannedforthe 2008/2009 academic year; (ii) increase in the training ofTechnological Specialisation Courses in the Hotel, Restaurant andTourismareatargetingmiddleandseniormanagersandwhichbringtogether theoretical and practical training components with thecontent and practice of the profession (application schools); (iii)balancedcoverageofthetrainingsupplyinareasoftouristinterest,risingbymorethan1000studentsinrelationtoinstalledcapacity–openingofnewinstallationsintheLisbon,PortoandSantaMariadaFeiraschoolsin2009,andopeningofnewinstallationsintheSetúbalandPortimãoschoolsin2010.CreationoftheHospitalityManagementInstituteandtheCentreforResearchandAdvancedTraininginTourism.Theaimofthismeasureistoprovidepostgraduatetrainingforexecutivesandboostresearchin strategic matters related with the business and/or professionalactivity of tourism. The Hospitality Management Institute wasformallysetupinAugust2008;thefirstpostgraduatetrainingcoursesoftheCentreforResearchandAdvancedTrainingareplannedforthe2008/2009academicyear.• Health Cluster: The main objectives of structuring and developing thenationalclusterofthepharmaceuticalindustryandhealthproductsare:toincreasetheparticipationofnationalcompaniesinthemarketthroughnewproducts, processes or services; to have the companies benefit fromopportunities to conduct innovation projects – the architecture and aim oftheseprojectscanbeachievedindifferentways,namelythroughpartnershipwith other national or foreign companies and research centres – and toincreasehighlyqualifiedscientificandtechnologicalemployment;thattheseproductswillbeinnovativesoastoensurethebroadeninganddeepeningof40

the technological base and increase the competitiveness in national andinternationalmarketsofthecompaniesthatproducethem.• CreationofNationalRuralNetwork.ThecreationofanintegratedNationalRural Network by agents working in Rural Development is a regulatoryrequirement;itaimstofacilitatetheshareandtransparencyofexperienceandknowledgeonmattersrelatedtotheobjectivesandpracticesofRuralDevelopmentsoastoincreasetheeffectivenessandefficiencyofpolicies.In2008,thesupportprogrammeforthenationalRuralNetworktobefinancedby EFARD was presented to the European Commission and is awaiting adecision.ThetechnicalandscientificinterventionareasofthesupportProgrammeforthe National Rural Network relevant to Rural Development foresee theparticipation of public and private entities in the access to experimentalknowledge (good practices, successful cases). The thematic areas to bedevelopedwillresultbothfromtheobligationstotheEuropeanCommissionand from the proposals presented by the members of the Network; theyshould be relevant to meeting the needs already identified in the supportdiagnosis for the Rural Development strategy. The thematic areas to bedeveloped will include themes related to the sustainable development ofagriculturalandforestryactivitiesoftheterritories.The development of the National Rural Network contributes to attractingRural Development agents to introduce new procedures or practices intotheirworkthathaveprovedmoreappropriatetotheobjectivesincompatiblesituations.The National Rural Network for Rural Development is articulated with theotherNationalNetworksoftheMemberStatesandwiththeEuropeanRuralNetwork,thuscreatingabroadfieldofaccessthatencouragescooperationamongRuralDevelopmentagentsatcommunitylevel.ByfacilitatingequalaccessforRuralDevelopmentagentsinallregionsofthecountry to a universe of knowledge and the opportunity to share, theNationalRuralNetworkcontributestoimprovingterritorialcohesion.• DynamisationoftheLivingLabs.InthecontextoftheEuropeanLivingLabsNetworkdevelopedsince2006andwithaviewtorespondingtotheneedtore‐balance innovation support policies that act from the supply side withpoliciesthatactfromthedemandside. Portugalnowhas6LivingLabsanditishopedthatmorewillbeableto enter the European Network in November. The launch of the nationalnetworkofLivingLabs‐LL‐Portugal–isalsobeingpreparedwiththeaimof41

disseminating the practice of open innovation and consolidatingmethodologiesofinnovationmanagement. TheLivingLabsaimstocontributetoturningtheinnovationprocesstowardsdemandandtheconcreteneedsofusersthatcanonlyberevealedinanenvironmentofco‐creationandexperimentation.3.3. CreativityandthePortugueseLanguageandCulture• CreativeandCulturalIndustriesFund,withtheprioritiesinthecreationofamarketinstrument,towardstheinvestmentintheseindustriesandintheirsupport structures. This programme involves the market diagnosis(macroeconomic studies and cultural sector statistics, in order to betterunderstanddebusinessmodelandvaluecreationprocess);stimulatetalentsinceearlyyears,promotingtheaccesstoculturalequipmentsandcontentstoyoungchildren;converttalentinjobs(INOV‐ART:paidtraineesabroadinculturalinstitutions);createtalentnetworks(namelythroughthecreationofaelectronicplatformlinkingindustryandpublicinstitucions);stimulatethecreation of clusters and the protection and encouragement of intellectualpropertyrights.• International Promotion Programme of the Portuguese language andculture,asaCPLPLanguage,valorsingthestrategicmeaningofthisvectorofPortuguese foreign policy, notably by: broadening the supply of presentiallanguage learning in strategic geographic areas and also distance languagelearningbyofferingPortuguesecoursesforforeignersandcontentsintendedfor advanced learners of the Portuguese language; increasing the trainingsupplyforteachersofPortuguese;boostingthepresenceofthePortugueseLanguage in the numerous organisms where Portuguese is the officialworking language by the supply of training in translation/interpreting; thedevelopment of research into Portuguese and the different areas ofPortuguese history, society sand culture and making material available ininternetfortraininginthePortugueselanguageandcultureandculturesofthe remaining members of the CPLP, notably research materials andmaterials to attract new publics and assuming that higher educationinstitutionsserveasculturalstages,bothasstrategytoattractnewuniversitypublics and with the purpose of the constant repositioning of Portugal’simageofthe21 st century.• Study on the Economic Value of the Portuguese language with a view todeterminingthedirecteconomicvalueofthePortugueselanguage(currentand potential) in the contemporary context of globalisation, notably ineconomic and business activities in the areas of teaching, culture andcommunicationthatinvolvetheuseofPortuguese.42

• Lingu@e Portal – Forum on Multilingualism, in partnership with theEuropeanParliament/CabinetinPortugalandtheLuso‐AmericanFoundation;discussion panels address the following themes: Language and Politics;LanguageandtheEconomy;LanguageandCulture;LanguageandEducation.• PORTUGESTProgramme:basedonthepost‐graduationinManagementandEntrepreneurshipforculturalagents,theaimistovalorisehumancapitalandboost creative industries; the project consists of real‐time or recordedbroadcastofcoursemodulesatthestudycentresofthePLPwhowishtobeassociated.Thisinvolvesthecreationofatechnicalandcomputerplatformtodynamise distance training (including simultaneous translation intoPortugueseoftheseminarsledbyinvitedprofessors)andthedevelopmentofappropriatemeans/supportandequipmentfortraining;agreementswithcompaniesintheITsector(Microsoft);creationofamultidisciplinaryteamtodevelop the project; establish network of agents and institutions from thevariouscountriestobeinvolved.• ProgrammeforthePromotionofmobilityofartists/creatorsandnationalheritage, stimulating the association between creators and companies andfostering the mobility of creators and authors, notably with the aim ofpromoting the internationalisation of Portuguese artists/creators and thedisseminationofPortuguesehistoricandcontemporaryartisticheritage.• DigitalisationProgramme:developmentofonlinedigitalisationserviceusinginformation indicated in the catalogue of the National Library for thedigitalisation of specific items from its collections (material already in thepublic domain). From the client standpoint, this is a debureaucratised anddematerialisedprocessthatraisestheinternationalvisibilityandaccessibilityofpatrimonialassets;There are plans for a project which will form an online service withinformationinadditiontothetraditionalbiographicalreferencee.g.addingpicturesofthecoverandabstractsofthebooks,withautomatisedservicesofpersonalised 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/servicesrelatedtotheeditions.• INOVART Programme. Support for the training of youths with specificqualificationsintheareasofartandculturebymeansofprofessionalworkplacements with referenced entities in the international context of the artandculturesector.• InvestmentFundforCinemaandAudiovisuals(FICA).Operatingsince2007and is yet another source of funding for cinematographic and audiovisualproduction in Portugal; among its various objectives, we highlight thecontributiontotheintegrateddevelopmentoftheaudiovisualsector,giving43

preference to interventions oriented towards raising the sustainability ofcinematographic and audiovisual activities, boosting the creative andcompetitivecapacityofsmallandmediumenterprises(SME)andincreasingthe penetration of works produced or co‐produced by these SMEs intointernationalmarkets,therebyincreasingtheaddedvalueofthesectorandthebusinessopportunities.• INSerralves – Incubator of Creative Industries: project aiming to fundactivitiesofagroupofcompanies(76companiespresentedprojectsofwhich8wereapproved)andtoevaluatetheimpactofthesecreativeindustriesintheeconomyoftheregion.• Knowledge network in the scope of cultural tourism: project aiming tocreateatechnologicalplatformforthedisseminationofknowledgeusingtheEuropeanNetworkofVillageTourismasthebase.TheNetworkinvolvesaninternational public‐private partnership (Portugal, Italy, Romania, Poland,Finland, Belgium, Greece and Slovenia) and develops the concept of thetourismoftheimaginary.TheNetworksearchesfortheauthenticitybrandsofeachcommunitythroughstories,legends,myths,traditionsandancestralknowledge.• TrainingCentroofexcellenceinCulturalManagement;ExecutiveMBA`sforagentsoftheculturalandcreativesector;• Stimulus to the tertiarisation of the industrial facilities in decline, inparticularinregionswithtouristpotential,withthesupplyofvariousservicesincludingculturalandleisureserviceandfosteringculturalentrepreneurship;• Measurestostimulatereadingactivities,towardscitizenswithspecialneedsor in situation of social exclusion (prisons, hospitals, NGO, rehabilitationcentres,etc.)• Legal archive to accede to bibliographic, phonographic and imagescollections, regarding the author rights and similar rights. With the legaldiploma and the specific regulation, implementation procedures will bedeveloped, in order to speed up the process of legal archives, taking intoaccount the balance between costs and revenues, the necessity of a newrelationbetweenState,publicandprivateinterests,thenecessityofaregularinvestment in the preservation of the material and the changes oftechnologicalevolution.44

|AREA 4 – COMBATING CLIMATE CHANGE, PLEDGING IN RENEWABLEENERGIESANDENERGYEFFICIENCYContextThe Government has launched an important set of measures aimed at reducingenergyconsumptionandinparticularinbuildings,inindustryandintransport.The National Action Plan for Energy Efficiency (PNAEE), known as “EfficiencyPortugal2015”wasapprovedin2008;thisinvolvesasetofmeasureswiththetargetof an improvement in Energy Efficiency by 2015, the equivalent of 10% of finalenergyconsumption,inrelationtotheefficiencyinthefinaluseofenergyandtoenergyservices.The Plan is oriented to managing the demand for energy, working in articulationwiththeNationalProgrammeforClimateChange(PNAC)andtheNationalPlanfortheAllocationofEmissionsLicences(PNALE).The Government approved a far reaching set of measures to limit the carbonintensityoftheenergymix,andwithasignificantcontributiontothediversificationoftheenergysupplybypromotingrenewableenergiesandEnergyEfficiency.Portugalhaspledgedinparticular,inthedevelopmentofwindandwaterenergies,inbiomass,biofuelsandsolarthermalenergy.Reinforcingthemeasuresalreadyestablishedintheframeworkofthepromotionofrenewableenergysources(FER)in2007theGovernmentdefinednewcommitmentsfor2010:• 45%ofallelectricityconsumedistohavearenewablebase;• thebiofuelsusedintransportshouldreach10%oftheconsumptionofroadtransportfuel;• 5to10%ofcoalusedinelectricpowerplantswillbesubstitutedbybiomassorwaste.Hence,newgoalsweresetforthevarioussourcesofrenewableenergy:• WindEnergy:raisetheinstalledcapacityby1950MWby2012,makinguptoatotalof5100MW(ofwhich600MWwillbeduetoequipmentupgrading),createatechnologicalclusterandtheinvestmentassociatedtowindenergy;• Water Energy: Anticipation of the increase of power in the existinghydroelectricinfrastructuressoastoreachaninstalledcapacityof5575MWin2010,namely575MWmorethanpreviouslyforeseen,anduse70%ofthenationalhydricpotential;• Biomass:Allocationofanadditional100MWininstalledcapacityby2010,toa total of 250 MW, promoting articulation with forestry resources andpoliciestofighttheriskoffire;45

• Solar:Constructionofthebiggestphotovoltaicpowerstationintheworld–Moura power station and link with the micro‐generation and solar heatedwaterpoliciesandtargets;• Biogas: 100 MW target for installed capacity in anaerobic waste treatmentunits;• Micro‐generation:Promotetheinstallationof50,000systemsby2010,withincentivesfortheinstallationofSolarHeatedWaterinbuildings.• Biofuels: Reach the target of biofuels being 10% of road transport fuel in2010.Measures4.1. EnergyEfficiency(PNAEE),knownas:• Implementationofthe“EfficiencyPortugal2015”‐NationalActionPlanforEnergyEfficiency(PNAEE).NationalActionPlanforEnergyEfficiencyaimstoachieveanimprovementinenergyefficiencyby2015equivalentto10%ofthefinalenergyconsumption,inrelationtotheefficiencyofthefinalenergyuseandenergyservices(seeOutcomePartIII).The Plan complements a set of new Energy Efficiency measures that arealreadybeingimplementedsuchas:• Reform of car tax, to internalise environmental, social infrastructurecosts. Measures taken in the SB 2009 that aims to reduce the negativeimpact of the reform on the tax revenue and give continuity to theprogressivereductioninthecarbondioxideemissions.• Creationofataxoninefficientlightbulbs,• “renewablesondemand”,• EnergycertificationofbuildingsAndintroducesnewmeasuresofwhichwehighlight:• The launch of a reference award for the best practices in the area ofEnergyEfficiency;• A 2.5% bonus/reduction on electricity tariff for consumers with lessenergyconsumptionandanincentivetarifffortheleastefficient;• Theawardingofan“EfficiencyCheque”for2yearsworth10%or20%ofannualelectricityexpensesforconsumersmakingareductionof10%or20%,respectively,forinvestmentsinEnergyEfficiency;• The creation of a subsidised line of credit with €250m/year forinvestmentsinenergyefficiencymeasures,withastrongemphasisonurbanrehabilitation;• Thelaunchofaprogrammefortherenewaloflargeelectrichouseholdequipmente.g.€100incentiveforthesubstitutionofanoldrefrigeratorwithanewclassA++one);46

• The creation of an accelerated amortisation scheme for investments inenergyefficiencyatindustryandserviceslevel;• ThecreationofenergyRationalisationAgreementswiththeindustry;• The energy certification of all State buildings and the launch of anextensiveprogrammefortheoptimisationofpubliclighting;• Thecreationofafleetof“greentaxis”withreducedemissionlevels;• The development of an innovative traffic management platform forLisbonandPortousingnationaltechnology.• Implementation of the Management System of Intensive EnergyConsumption. With the implementation of the Management System ofIntensive Energy Consumption – which institutes the conducting of energyauditsthataremandatoryforinstallationswithanenergyconsumptionequalto or more than 1000 tep/year, every six years, and for installations withenergy consumption equal to or over 500 tep/year but less than 1000tep/yeareveryeightyears–theoperatorswillbeobligedtodrawupEnergyConsumption Rationalisation Plans (PREn), setting a target for energy andcarbonintensityandforspecificenergyconsumptionwhich,onceapproved,willbenamedEnergyConsumptionRationalisationAgreements(ARCE).• Publicity campaigns about the management System of Intensive EnergyConsumption in building and real estate companies and associations andmunicipalities.4.2. Alternativeenergies• Taking advantage of wind energy and other renewable energies. Theprogrammeaimstoraisetheinstalledcapacityofwindenergyconversionto5100MW;intensifytheuseofhydricpotentialstilltobeexploitedandotherrenewableenergies–biomass,biogas,waves,waterandphotovoltaic.Takemeasuresleadingtoclearandrapidadministrativemechanismsforlicensing.Theexpectedresults/impactsupto2010areasfollows:• WindEnergy:creationofanindustrialclusterwithatotalinvestmentof€1750m,creationofroughly1700workpostsandthesettingupofafundof€35mforinnovationintheareaofrenewableenergies;• ForestryBiomass:anestimatedinvestmentofaround€225mandthecreationofroughly700workposts;• Biofuels:creationofindustrialunitwithanestimatedinvestmentof€100m;• Water: Authorised Reception Points for 922 MW of new largeHydroelectricPowerStationswithanestimatedinvestmentofmorethan€1000m;• WaveEnergy:creationofapilotzonewithpotentialexplorationofupto 250 MW for the technological development of new technologiespilot projects and the drawing up of legislation regulating therespectiveauthorisations(licencesandconcessions);47

• Photovoltaic:MouraPowerStationwithaforecastproductionof56GWh/year, the setting up of a photovoltaic module factory and aresearchlaboratory.SerpaPowerStationwithaforecastproductionofover18GWh/year;• Micro‐generation:Simplifyingthelegallicensingsystem,substitutingtheexistingonewitharegistrationsystemsubjecttoaninspectionoftechnicalconformity.SystemfortheRegistrationofMicro‐productionsetup(SRM).4.3. Conversionofthenationalrefinerysector• Porto Refinery: Grant the refinery with a new conversion unit forheavycrudeoilthroughtheassociationsofthermalcrackingunitsandhydrocrackingtoobtaindieselwithahighenvironmentalquality.Theaim is to build two new main units and three auxiliary units in thePorto Refinery by the end of 2010; reconfigure three existing unitsandonenewstorageunit.• SinesRefinery:Increasethedieselproductioncapacity,byconversionfrom vacuum heavy diesel and from visbreaking heavy dieselreadjusting the production profile to the market needs. Four mainunitsandthreeauxiliaryunitswillbebuiltattheSinesRefinery,threeexistingunitsreconfiguredandanewunitformakingsulphurpelletsandanewstorageunitwillbebuilt.4.4. WasteTreatment• ConstructionofUnitsfortheOrganicValorisationofUrbanSolidWaste.Inthe ambit of the strategy for diverting biodegradable waste from landfillsincorporatedinthePERSUII(2007‐2016),fromtheperspectiveofcomplyingwithcommunitytargetsconsignedintheLandfillDirective,theunitsfortheorganic valorisation existing in Portugal are expected to increasesubstantially.• Hospital Waste Treatment. Construction and exploration of an IntegratedCentreofEnergyValorisation,RecyclingandTreatmentofHospital,Industryand Animal Waste based on the international best practices of wastetreatment with a view to minimising the environmental impact andmaximising energy efficiency and generating carbon credits. Launch Oct2008• ConstructionofunitsfortheenergyvalorisationofsludgefromETARandCDR.WithaviewtoresolvingtheproblemofthefinaldestinationofsludgeandofwastefromthevariousMulti‐municipalSystems,twoStationsfortheEnergyvalorisationofsludgeandfuelderivedfromwaste(inEstarreja)and48

with EDP (in Barreiro), a project promoted by Águas de Portugal, SGPS,jointly representing a maximum installed capacity of 58.8 MW of electricalenergy.4.5. ReducingtheEmissionofGreenHouseGases• ContinuationoftheImplementationoftheNationalProgrammeforClimateChange(PNAC)andtheNationalPlanfortheAllocationofEmissionsLicences(PNALE).49

|AREA 5 – MORE POSITIVE MOBILITY THROUGH QUALIFICATIONS,EMPLOYMENTANDSOCIALCOHESIONTheemploymentsysteminPortugalhasbeenfacinganumberofchallengeswithacombination of different conjunctural dimensions linked to the internationalsituationandtheevolutionoftheeconomyandnationallabourmarket,aswellasmorestructuralaspectsthathavemadeitdifficulttofindasustainablesolutiontothesituationofthelastfewyears.IfPortugalistoconfrontthisdualchallenge,itmustnotonlycontinuetopledgeinthestructuralreformsithasbeenmakingbutalsofaceuptoconjuncturalquestionsproactively and dynamically. As such, the priorities most directly related with thisPNR component, and which allow an appropriate response to be made to thissituation,areconcentratedaroundthepledgeintheinvestmentineducationandtraining and in the improvement of the qualifications of the Portuguesepopulation;inthepromotionofjobcreationandthepreventionandcombatingofunemploymentandthemodernisationofthesocialprotectionsystems;andalso,inthefosteringofthebalancebetweenflexibilityandsecurityinthelabourmarket(SeeNationalEmploymentPlan).Fostering this balance between flexibility and security in the labour market, forbothcompaniesandworkers,whichispartoftheprocessofmodernisingthelabourmarket,isclearlyvisibleintheseriesofreformssetintomotionbytheGovernmentin recent years in articulation with the social partners. The overriding objectivesobviouslyinvolvecreatingmoreandbetterjobswithmoresocialcohesion.In this area, considering the abovementioned objectives and based on theintegrating components of the flexicurity strategy that has been developed inPortugal, we stress: the reform of social security (2006), following the Agreementwith the social partners; the launch of the New Opportunities Initiative and theReformofVocationalTraining(thelatter,alsofollowingtheAccordwiththesocialpartners),aspartoftheLLLstrategy(2005and2007,respectively);andtherevisionof the labour legislation and employment policies (2008/2009). The legislativeproposal,whichapprovestherevisionoftheCodeofLabour,aimstocreateanewcompromisebetweenlabourrightsanddutiesbasedonamoreeffectivenormativeframework and the development of the social partners’ role in socio‐economicregulationanditreflectsthemeasuresfoundintheAgreementobtainedwiththesocial partners in the Social Dialogue. This has been given majority approval inParliamentandshouldenterintoforceatthestartof2009.Mentionshouldalsobemade here of the measures linked to the social protection of the mostdisadvantaged.50

Theinstrumentsandmeasuresconsideredhereareintunewiththeprevisionsintheambit of the NSRF, notably in the POPH, for the 2007‐2013 period and will bestrengthened by a healthy macro‐economic climate and by micro‐economicdynamics,notablybythebusinessdynamics.The equal opportunities policies, namely between men and women, assumes atransversal dimension in all the measures. However, it is important to recall thecontinued execution of the measures set out in the National Plan for Equality,CitizenshipandGender(2007‐2010),thePlanforDomesticViolence(2007‐2010)andtheNationalPlanagainstPeopleTrafficking(2007‐2010) 6 .Concomitantly,inthemoregeneralareaofequalityforall,wehighlightthePlanforImmigrantIntegration(2007‐2009) 7 andthePlanfortheIntegrationoftheDisabledorImpaired(2007‐2009) 8 .Alltheseplansincludeasetofmeasuresandtargetsthat,duetotheirimportance,willcontributetotheexecutionofthemeasuresincludedinthePNR.5.1. INVESTING IN EDUCATION AND TRAINING AND IMPROVING THEQUALIFICATIONSOFTHEPORTUGUESEPOPULATIONContextOvercomingthestructuraldeficitinthequalificationsofthePortuguesepopulationandmakingsecondaryleveleducationtheminimumqualificationreferentialforallwillcontinuetobetheGovernment’smainpledgeinthisdimension.The valorisation of public schools, through the implementation of a vast set ofmeasures, has been expressed in the greater number of students and improvedschool results and, consequently, in the drop in the failure rate at all levels ofschooling and in particular in the 1st cycle of basic education and in secondaryschool.Indeedtherehasbeenamarkedevolutioninthedropoutrateandtherateofstudentsnotpassingtothenextgradebothinbasicandsecondaryeducationwithratesfallingtothelowestlevelsforthelast12years.Theseresultsindicatetheneedto pursue and consolidate the qualification measures of the public education andtrainingservicethathavebeenadoptedinpriorityinterventionareas.HighereducationinPortugalhasalsobeenundergoingadeepseatedreformthatcomes within the current European movement of modernising universities andpolytechnics for the development of knowledge societies and economies. The6 http://www.cig.gov.pt/7 http://www.acidi.gov.pt/modules.php?name=Content&pa=showpage&pid=10168 http://www.inr.pt/content/1/26/paipdi51

ealisationofthisreformprocesswaswidelyrecognisedintheanalysispresentedbytheOECDinApril2008,inthestudy“HighereducationintheKnowledgeSociety”–comparativeanalysisonpoliciesof“TertiaryEducation”thatinvolved24countries.Itis noteworthy that in the 2006‐2007 school year the downward trend of newstudents in higher education was inverted and this trend was again confirmed in2007‐2008.Asaresult,in2007,thenumberofstudentsattendinghighereducationinPortugalroseforthefirsttimesince2002.Thiseffortwillbecontinuedin2008‐2010,withtheaimofconsolidatingandfurtheringtheresultsobtainedatthesametimeastakingcaretoadjusttheresponsessothattheyaremoreinlinewiththeneedsofthelabourmarket.Atthesametime,attentionisalsofocusedonpromotingscientificknowledge,ontheinnovationandmodernisationoftheproductivefabric,inlinewiththeprioritytotransformthePortugueseproductionmodelbyboostingactivitiesofgreateraddedvalue(seealsothemicrocomponent)).Tothisend,thepledgeinthepromotionofLLLcontinues,namelycentredontheboostintheNewOpportunitiesInitiativeandtheReformofVocationalTraining.TheReformofVocationalTraining,approvedbytheRCMnr.173/2007,dated7/11,following the signing of the Agreement for the Reform of Vocational Training,foreseestheenlargementofaccessandassuresthatalltrainingprovidesschoolandprofessionalprogressionandincreasestherelevanceforbusinessmodernisationbyplacingqualificationatthecentreofthedevelopmentoptions.Thisdemandsactionin five fundamental lines: (1) structuring a relevant and certified supply; (2)reforming the institutions and the regulation of training; (3) defining appropriatefinancing priorities and models; (4) promoting quality training; and (5) facilitatingaccessandfurtheringthedemandfortraining.DecreeLawnr.396/2007,dated31December,waspublishedintheambitofthereformsettingoutthelegalregimeoftheNationalQualificationSystem(NQS).The NQS assumes the objectives already confirmed in the New OpportunitiesInitiativeandpromotesthenecessaryinstrumentsforitseffectiveimplementationinarticulation with financial instruments, notably NSRF. This System adopts theprinciplessetoutintheagreementsignedwiththesocialpartnersandrestructuresvocational training inserted in the education system and inserted in the labourmarket, integrating them with common objectives and instruments and under arenewedinstitutionalframework.The strategy involves assuring the relevance of training and learning for personaldevelopmentandforthemodernisationofcompaniesandtheeconomy,whilstalsoassuringthatallthenationaleffortintrainingisinfactvalorisedforthepurposesofthe school and professional progression of citizens, both directly via the dualcertification training found in the National Qualification Catalogue, and indirectlyviatheNewOpportunitiescentresandtheprocessfortherecognition,validationsandcertificationofcompetences.52

Of the measures underway and being developed in the 2008‐2010, in tune withthoseprogrammedintheOperationalProgrammes,wehighlight:Measures:5.1.1.NewOpportunities• NewOpportunities‐Youths–theinitialqualification,thediversificationandexpansion of the supply of professionalising education and training whichprovides youths with dual certification – school and professional – thatfacilitates qualified insertion in the labour market and/or the pursuit ofstudies continue to be key features in the pillar for the young whilst alsoaimingtocombatnon‐achievementatschoolandearlyschoolleaving.Inthisregard, we highlight the strong pledge in work‐linked training, vocationalcourses,CEFandCET,amongothers.Asetoftargetsupto2010 9 havebeendefinedforthesemeasures:(a) Professionalising means of secondary level Education/Training (dualcertification):No. of youths matriculated in 2008 = 130 000; 2009=140 000;2010=145000No.ofyouthstobecoveredfromstartofinitiativeuntil2010=650000(b) Professionalising means of basic level Education/Training (dualcertification):No.ofyouthsmatriculatedin2008=22500;2009=25000;2010=27500 No.ofyouthstobecoveredfromstartofinitiativeuntil2010:112500(c) Broadening of vocational education to secondary schools integrated inpublicnetwork:Allnewvocationalcoursescreatedfromthestartoftheinitiativeuntil2010=450.• New Opportunities ‐ Adults – the promotion of the qualification andemployabilityoftheworkingpopulationwithlowschoolinglevelscontinuestorequirethedevelopmentoftrainingstrategiesbasedontheprincipleofflexibility and adjusted to individual competence acquisition needs. Hence,thepledgecontinuesintherecognitionoflearningthroughexperience(CRVCsystem),insofarasitprovidesforanincreaseintheaccesstotrainingaswellas raising its relevance and impact on individuals and organisations. Thesuppliesofeducationandtrainingtargetingadultswithlowschoolinglevels9 http://www.novasoportunidades.gov.pt/53

(EFAcourses)aswellasvalorisingprofessionalisingtrainingandshorttermmodular courses intended for the completion of school and professionalcertificationtrajectoriesarethereforekeypiecesofthiscomponent.Amongthemeasuresofthiscomponent,wehighlight: 10 (a)SystemfortheRecognition,ValidationandCertificationofCompetences:No.adultscertifiedwithbasiceducation:2008=55000;2009=65000;2010=75000No. adults certified with secondary education: 2008=70 000;2009=100000;2010=125000Total no. adults certified from start of initiative until end 2010: 650000(b)AdultEducationandTrainingCourses:No.adultscertifiedwithbasiceducation:2008=32000;2009=36000;2010=42000No.adultscertifiedwithsecondaryeducation:2008=40000;2009=55000;2010=65000Total no. adults certified from start of initiative until end 2010: 650500(c)NoofNewOpportunitiesCentres:2008=300;2009=400;2010=500.• TheexternalevaluationprocessoftheNewOpportunitiesInitiativeandtheway it was implemented; this process has already begun and will bedevelopedinmoredepthoverthecomingyearsasitisanextremelywiderangingexercise.Ononehand,theevaluationintendstoassesstheproposedpolicy, the structure of its implementation and the procedures used for itsrealisationandontheotheritexaminesthequalityoftheresultsobtainedand the satisfaction level of those who entered the process at any time;lastly,itproducesorimprovesthesystem’smonitoringinstrumentssothatproceduresandresultscanbepermanentlyevaluated.5.1.2.VocationalTraining• Reform of Vocational Training. Here, the proposed Decree Law regulatingthe Regulation System for Access to Professions is in the final approvalphase following national public consultation 11 ; there are also the differentproposed orders in council that, resulting from the National QualificationsSystems,regulatetheNationalQualificationsFramework,themodeloftheindividual competence record and its registration process, certificate ofvocational training, guidance for qualifications and careers and also the10 http://www.novasoportunidades.gov.pt/11Cf.WorkandEmploymentBulletinno.5BoletimdoTrabalhoedoEmpregon.º5–Offprint,9August2007. 54

certification of training entities. Parallel to this, the aim is to continuestructuringarelevantandcertifiedsupplyandfosterqualityintraining.• Trainingandmanagementandfurthertraining.o Training courses linked to processes of organisationalmodernisation, restructuring and production conversions, thatcontemplatethepromotionofthecapacitytoinnovate,manageandmodernise companies and other entities, notably the PublicAdministration,asafundamentalconditionforthemodernisationofthe productive fabric, the improved quality of employment andincreased productivity. This includes training for innovation andmanagement and the so called action‐training, oriented towardstrainingassociatedtotheorganisationalsupportofmicro,smallandmedium enterprises and other entities. We highlight the followingmain targets for 2010: (a) involvement of 12,550 organisations inaction‐trainingprogrammes;(b)97,100peopleinworkingpopulationconcludetrainingcoursesforinnovationandmanagement.5.1.3. ImprovedTeachingConditionsandEqualAccesstoEducationOpportunities• NationalProgrammefortheUpgradingoftheSchoolNetwork–1stCycleofbasiceducationandpre‐School.ThelaunchoftheNationalProgrammefortheUpgradingoftheSchoolNetwork–1stCycleofbasiceducationandpreschoolwasaimedatguaranteeingequalopportunityofaccesstoeducationwith the appropriate size and resources for educational success and theimprovedlearningofstudents;itgivesprioritytothe reorganisationoftheschoolnetworkbyworkingincloseproximitywiththelocalauthorities.The upgrading and modernisation of 1st cycle schools and pre‐schoolsinvolves the building of new school centres as well as extending andupgradingexistingbuildings;NSRFfundingwillbemobilisedforthispurpose,through ERDF, along with municipal contributions. Expenses consideredeligibleincludenotonlybuildingandextensionandupgradingofschoolsbutalso improvements to the exterior within the school perimeter and alsoinvestment in school furnishing. In the 2008/09 school year, classes havestartedin50newschoolcentresandinterventionorbuildingisplannedinroughly600schoolcentres.ThelaunchoftheSupportProgrammefortheExtensionofthePreSchoolEducation Network, especially targeting councils with coverage below thenational average, is also given great importance in the area of promotingequal access to education opportunities. This programme is the jointresponsibility of the Ministries of Education and of Labour and SocialSolidarity and aims to guarantee 100% coverage for 5 year old children55

throughoutthecountry.Theobjectiveofthemeasureistoassurethecorrectoverallsupplyinthepre‐schooleducationnetwork,wheresomeconstraintsare still found particularly in the periphery of the large urban centres. Thisforesees the creation of 760 new classrooms in the metropolitan areas ofLisbonandPorto.• Generalised access to curriculum enrichment activities. The generalisedaccess to activities enriching the curriculum in the 1st cycle of basiceducationisapriorityinterventionareaintheexecutionofFullTimeSchool.HerewenotethemandatoryextensionofEnglishteachingtopupilsinthe1st and 2nd years of schooling and the increase of the weekly teaching ofEnglishinthe3 rd and4 th yearsto135minutes.Itisintendedasaboosttothepreviouslineofaction,namelybymeansMinistryofEducationfundingwhichisallocatedinvaryingamountsinlinewiththeactivitiesofferedtopupilsfortheenrichmentofcurricularactivities.• Extension of the school social services. Changes have been made to theconditions to access School Social Services in another measure to fostersuccess and integration in schools; it strives to increase transparency andsimplifytheprocessthroughtheuseoffamilyallowancescales.Althoughthenature of the support remains unchanged, the amount granted is raisedabove inflation levels and also begins covering students in the 10 th to 12 th yearsunderthesameconditionsasthoseincompulsoryschooling.Thisnewoperational model of School Social Services in the 2008/09 school yearrepresentsagrowthfrom240,000to700,000thousandbeneficiaries.• Educational Areas with critical interventions. Again in the scope ofpromotingequalaccesstolearningopportunities,wenotethedefinitionofavaried selection of measures and intervention actions in schools located indifficult neighbourhoods oriented towards the integration of the pupil inschool.Atpresent,thispositivediscriminationprogrammecovers26schoolsandgroupingsandthereareplanstoextendcoverageto100groupings.• Specialeducationalneeds.Intheareaofspecialeducationalneedswenotethecreationofanetworkofreferenceschoolsfortheblindandthedeaf,aswellasspecialisedunitsfordisturbancesinthefieldofautismandmultipledisabilities (137 autism units; 220 multiple disability units; 1500 trainedteachers and 760 auxiliary staff in training; a further 31% of trainers andinterpretersofPortugueseSignLanguage).• Quality of learning and school results. Continuation of the Action Plan forMathematics,theNationalReadingPlanandtheContinuedTeacherTrainingProgrammesfor1 st cycleteachersofMathematics,Portuguese,ExperimentalTeachingofSciencesandICT.56

5.1.4. Organisationandrunningofschools• Autonomy and management of schools. The improved organisation andrunning of schools is decisive to the increase of the efficiency andeffectivenessoftheschoolsystem.Inthisarea,referenceismadetothenewsystemfortheautonomy,administrationandmanagementofschoolswithaviewtoprovidingaframeworkthatcanboostleadershipandfosteropeningup qualified participation to other partners, as well as increasing schoolautonomyandcompetences.Newmanagementbodieswillbeelectedinthe2008/09schoolyearandtheinternalregulationsofallthegroupingswillbeapproved.• Descentralisation.Inthefieldofadminstrativedecentralisaitonemphasisisgiventothetransferofpowerstothemunicipalitiesinpursuitofacloserandmore efficient management model of educational resources as well as thesharingofresponsibiilitesandgreaterparticipationfromlocalcommunities.The Ministry of Education has already signed protocols with 90 localauthorities for the transfer of powers regarding non‐teaching staff,curriculumenrichmentactivitiesandmanagementofschools.• Evaluationofteacherperformance.Thenewperformanceevaluationsystemfor teachers is a fundamental instrument for the improvement of schoolresultsandthequalityofteachingasitsmaingoalsareupgradingpractices,the differentiation of merit and the more thorough regulation of careerprogression.5.1.5. Modernisationofteachingestablishments• ProgrammefortheModernisationofSecondarySchools.Inthefirstphaseof Programme for the Modernisation of Secondary Schools, therehabilitationof25secondaryschoolswillbegininthe2008/09schoolyear,adding to the 4 schools already modernised. The second phase of theprogramme will take place in the 2009/10 school year when works will bedoneonafurther74schools;interventionisplannedin330schoolsby2015.This Programme receives strong support from NSRF, in particular in theframeworkoftheValorisationoftheTerritoryOperationalProgramme.• HighSpeedInternet.Thegoalistoguaranteehighspeedaccesstointernetinallcomputers.Tothisendlocalareanetworkswillbeconstructedsothatall classrooms will have a broadband internet connection (an increase ofbroadbandisplannedforallschoolstomorethan48Mb).• Tecnological Kit. So as to guarantee school equipment with more moderntechnological means, the Government launched six international publictenders for the acquisition of 310,000 computers, 9000 interactive boardsand 25000 video projectors. The goal is to improve the ratio of pupils per57

computer with broadband internet connection (going from a ratio of 16pupils per computer in 2005, to 5 pupils per computer this year and to 2pupils per computer in 2010), to guarantee one video projector perclassroomandaninteractiveboardforevery3classrooms.• ICTAcademies.Thecreationoftechnologicalcompanytrainingcentreswiththe aim of boosting student skills and employability is a measure thatenriches students’ CVs with skills and is associated to the training andcertification of industry. This project, entitled ICT Academies, creates animportant link to the private sector, with the participation of 7 referencecompanies.Aprotocolhasalreadybeensignedforthesettingupofthefirst30 ICT Academies in schools that will enable training in technologies,equipment and applications for students, teachers, non‐teaching staff andthewholeschoolingcommunity.• ICTPlacements.TheICTPlacementprojectwhichpromotestraininginarealworking context for students in ICT vocational courses in national andinternational companies of reference has attracted the interest of 30companies of the knowledge economy. These companies have offered 300work placements in Portugal and abroad for the 2008/2009 school year tothe best students in the ICT area. The aim of this project is to extend theprogrammetomorecompaniesandpromotemoreworkplacements.• e.schoolande‐primaryschool.Mentionisalsomadeofthelaunchoftheeprimaryschool programme for access to the “Magalhães” computer forpupils in the 1st cycle free of charge or at reduced prices and the recentextension of the e.school programme to pupils of the 3rd cycle for thepurchase of a laptop with a broadband internet connection in veryadvantageous conditions. This measure aims to reach 500,000 1st cyclepupils(freeofchargeforpupilsinthe1stscaleofschoolsocialsupportandatreduced prices for the remaining pupils) and 500,000 students of the 3rdcycleandsecondaryschool(inadditionto150,000forteachersand200,000forworkersdoingtraining).5.1.6–Reformofhighereducationanditsarticulationwiththelabourmarket• ContinuationofthereformofHighereducation.Continuitywillbegiventothe support for higher education institutions in the implementation of thelegislativereformmadeinrecentyears;thisaimstoconcludetheadaptationof the degree and diploma systems to the Bologna Process (currently 90%complete)withaviewtoguaranteeingthequalificationofthePortugueseinEuropeandpromotingequalopportunityintheaccesstohighereducation,improving levels of attendance and the conclusion of courses, as well asattracting new publics using a life long learning approach and improvingschoolsocialservices.58

Accordingly,thefollowingguidelinesandactionsweredefined:o Promoting the creation of university institution consortia, namelywith the participation of scientific institutions, and the creation ofregionalpolytechnicconsortiaandreorganisingtheirtrainingsupply.o Guaranteeing the internationalisation processes underway in highereducation, notably in the ambit of the international partnershipsalreadymade.o Supporting the transition to the new foundation system for publicinstitutes that have requested it in the context of the new LegalSystemforHigherEducationInstitutions(RJIES).o Raisethequalityofhighereducation,notablythroughtheworkofthenewNationalEvaluationandAccreditationAgency.o Improving the conditions for entry and attendance of highereducation,including:revisionoftheworking‐studentstatus,parttimestudent system, access to attendance of different “loose” subjects,revision of special access regimes, revision of regulation for socialservice grants, extension of the loan system with mutual guaranteelaunched at the end of 2007, guaranteeing its consolidation inPortuguesesociety,extensionofthemeritgranttoprivateeducation,additional social services grant for Erasmus students, systems ofcurricularandprofessionalworkplacements.o Broadening of the supply of Technological Specialisation Courses(CET) in higher education institutions, with emphasis on PolytechnicInstitutes.o DevelopingandimprovingthenewjobsearchobservationsysteminPortugal, launched in September 2007, with the analysis of coursesand institutions of those registered at job centres. The specificobligations in the Legal Regime of Higher Education Institutions forhigher education institutions to disclose information on theemploymentoftheirnewgraduateswillalsobereinforced.o Launchofthenewuniversityresidenceprogramme.o Revisionofthelegalsystemfordistancehighereducation,aswellasthatofartistichighereducation,inlightofbestinternationalpracticesfollowingtheinternationalevaluationandpublichearing.5.1.7.Youthmobilityo Promoting Youth mobility. The overall objective is to cultivate therecognition of different cultural identities, fostering the mobility of youngpeople between regions and countries. To this end, the International FieldWork (IFW) will continue to take place which organises an exchangeprogramme for young people from different countries and is promoted byvariousentitiesandwiththesupportofIPJandtheAgencyfortheYouthinActionProgramme.Theinternationalvoluntaryserviceisanothermeansof59

promotingthismobility,asistheeffectivearticulationofthesupplyofyouthtourismMovijovem.Targetgroup:Youthsaged12to30years(18to30yearsinIFW)5.2. PROMOTING JOB CREATION, PREVENTING AND COMBATINGUNEMPLOYMENTContextThe promotion of job creation in the context of a lifelong learning approach,attracting and keeping as many people in work, preventing and combatingunemployment and in particular youth and long term unemployment, is closelyarticulated with the programmes and measures developed in the framework ofmacro and micro economic policies the aims of which include the boosting of thePortugueseproductionsystem,andthecreationofmoreandbetterjobs.Moreover,inthecontextoftheconclusionandimplementationofstrategicreformsinprogress,anumberofspecificinitiativescontinuetobeappliedandimprovedandwhichtrytorespondtoconjuncturalproblemsaswellasstructuralquestionsofthePortugueseemployment system. In this area, emphasis is given to the active employmentmeasures,executingtherespectiveactivationcomponent–whichcontinuestoplayavitalrole–inarticulationwithprotectioninunemployment(subjecttorevisionin2006),takingthemostdisadvantagedpopulationsintoparticularconsideration,andtheimprovedactionofthePublicEmploymentServices.This challenge also responds to questions associated to preventive and earlymanagement, intervening by using a proximity approach in the businessrestructuringandrelocationprocess.As for the immigrant population, the national immigration policy is currentlystructured around four axes, namely; i) regulation of the flow of immigrants; ii)promotionoflegalimmigration;iii)fightagainstillegalimmigrationiv)integrationofimmigrants.Assuch,theresponsesfortheimmigrantpopulation,notablyintermsofreceptionandintegration,playavitalroleinsocialcohesionandthedevelopmentofthe country, and aim to guarantee the same access to rights and duties thatPortuguesecitizenshavewithinaframeworkofequalopportunitiesforall.Portugalhas made considerable progress both in legislative responses and also in theconcretemeasurespromotedbydifferententities;itisnownecessarytoconsolidatesomeprojectsalreadyimplementedandactivatesomeinnovativeresponsestotheexistingchallengeswhichinvolveallthesociety.60

Measures:• ContinuationoftheINSERJOVEMandREAGEinitiatives.Theseinitiatesaimto provide a response to youth and adult unemployment, respectively – inarticulationwiththeNewOpportunitiesInitiative–soastoavoidaninfluxofLong Term Unemployed and offering a new opportunity within 6 and 12months at most, respectively. The methodology of the INSERJOVEMcomponent has been strengthened through the early signaling of youthunemployed for three months following the European Councilrecommendation in spring 2006: “it is urgent to improve the situation ofyouthsinthelabourmarketandsignificantlyreduceyouthunemployment”,outstrippingtheobjectiveof“offeringanewopportunityintheformofajob,learning, complementary training or other measure that favours theiremployabilitywithinamaximumoffourmonthsby2010”).• Pursuit of Intervention Programmes for the Unemployed, taking differentapproaches according to the specific public: young unemployed agedbetween 15‐22 years – 135,000 targeted in 2008‐2010; young unemployedaged between 23‐30 years – 140,000 targeted in 2008‐2010; unemployedaged between 31‐54 years –305,000 targeted in 2008‐2010; qualifiedunemployed ‐ target of 108,000 targeted in 2008‐2010 and unemployedadultsovertheageof55years–101,000targetedin2008‐2010.• Specific support for entrepreneurship. This aid comes essentially in theframeworkofaxis5ofthePOPH–EntrepreneurshipandTransitiontoActiveLife (included in the approach of lifelong entrepreneurship, from school toactivelife).Thisaidstrivestopromotequalityandmobilityofemploymentbymeansof:(i)motivatingtheentrepreneurialspirit;(ii)aidforintegrationofthe unemployed person into active life and (iii) support for young people’stransition to active life, notably by pledging in work placements, forming avital resource for a sustainable development policy that also comprehendsthe objectives of competitiveness and social and territorial cohesion. Themaintargetssetfor2010ofnotearethecreationof11,600workpostsandtheintegrationof35,000traineesinorganisationsfollowingtheconclusionoftheplacement.• PlanfortheIntegrationofImmigrantsandinparticularmeasuresforeseenin the work, employment and vocational training area imply the betterintegrationofimmigrantcitizensintothelabourmarket.Theaimisthereforetostrengthenmechanismsdefendingtherightsandinterestsofimmigrantsaswellastofacilitatetheiraccesstoopportunitiesinthelabourmarket,beitthrough training, training and/or recognition of competences andqualifications, the promotion of immigrant entrepreneurship and selfemployment.o Boosting the UNIVA Immigrant Network (RUI), by conducting18,000interviews/yearuntil2010withabout50%placements(inworkortraining);61

o Recognitionofqualificationsthroughthesettingupof6supportofficesinuniversities;o Training courses, support for local consortia, reception andintegration activities, training activities and awareness initiativesand public awareness campaigns in the scope of POPH reachingabout40,020peopleby2010;o Programmefortheinterventionofeveryoneinthelabourmarkettargeting unemployed immigrants reaching roughly 38,500 in2008‐2010• PursuitoftheModernisationofthePublicEmploymentService.Theaimistoboostworkinstrumentsthatcanleadtoamoreeffectiveservicefromtheperspective of raising diversity, accessibility and quality of the channels ofservices rendered in the employment area; emphasis goes to: (a) IEFP NETEmployment project that includes various valences, notably: the electronickiosks, a multi channel contact centre, SMS services, electronic applicationservice,amongothers;(b)theManagementandInformationSystemfortheEmployment Area (SIGAE); and (c) the Intervention programme withEmployers from the perspective of enhancing the relations between thePublicEmploymentServiceandcompanies.5.3. FOSTERING THE BALANCE BETWEEN FLEXIBILITY AND SECURITY IN THELABOURMARKETANDIMPROVINGWORKINGCONDITIONSContextTheTripartiteAgreementforanewSystemfortheRegulationofLabourRelations,ofEmploymentPoliciesandSocialProtectioninPortugalrefersthatthemostcurrentdiagnosesofthelabourmarketgenerallyindicatefivemaincharacteristics:(1)thelimited adaptability of companies and workers; (2) the weakness and the lack ofdynamisms in collective work contracting; (3) the formal rigidity of the legalframeworkofthelabourmarkets;(4)theineffectivenessoftheregulatorynormsofthelabourmarketandthe(5)highpercentageofatypicaljobsinemploymentasawholeassociatedtotheintensesegmentationofthelabourmarket.IntheambitoftheTripartiteAgreement,thesignatoriesunderstandthatinordertoovercomethemainproblemsofthelabourmarket,theremustbeareformoftheCodeofLabourinforceaswellastheadoptionofmeasuresinthefieldofactiveemploymentandsocialprotectionpolicies.TheDraftLaw,approvedintheCouncilofMinisters, is framed in a broader strategy of reforms that covers variousindispensable instruments for a new sustainable articulation between economicgrowth, improved business competitiveness, increased productivity, thedevelopment of quality employment, the reduction of inequality of opportunities,upgrading of labour relations and a more equitable sharing of the results ofeconomicprogress.62

Accordingly, the Agreement sustains that internal means of adaptability arepowerfulinstrumentstomakeworkmoreadaptabletotheneedsofcompaniesandworkersandthatitalsohastheadvantageofcontributingtodynamisingcollectivebargaining and strengthening the role of social partners in socio‐economicregulation.Therefore,theeffectivenessofthenormativeframeworkisstrengthenedwhilstalsocreatinglegalpossibilitiesfortheincreasedprotagonismofthesocialpartnersinthenegotiatedregulationofeconomicandsocialchanges.IntheambitofthisAgreement,theGovernmentandthesocialpartnersalsoagreedon the appropriate sharing of responsibilities and made it known that theyunderstood that the reform of labour relations required the renewal of publicpolicies coordinated by strengthened dialogue, social coordination and collectivebargainingatalllevels,includingthatofthecompany.Paralleltothis,theworkoftheStateinthefieldofpreventionandinspectionofworkingconditionsisencouragedsoastoensurethecompliancewiththestandardsandagreementsestablished.Measures• Fosteringadaptabilityincompaniesandtheconciliationofprofessionallifewithpersonalandfamilylife,byincreasingthepossibilitiesofflexibilisationnegotiatedinthecollectiveworkcontractorbycollectivedecisionwithinthecompany, of working hours, maintaining the limits on the duration of bothnormalandsupplementaryworkinghours.The innovative systems include the possibility of creating “time banks”,timetablesconcentratedinjustsomedaysoftheweek,theincreaseofpaidparentalleave,thecreationofspecificmeasuresinsomesectorsofactivitysuch as the very short term seasonal labour contract in agriculture, thespecial holiday system in tourism and the open term intermittent workcontract.• RighttoVocationalTraining.Promotingtheentitlementtotrainingthrough(i)clarificationofthestudentworkerstatus;(ii)adaptationofthe"trainingclause",sothatitbecomesmandatorytoenrolyouthsuptotheageof18andwithoutfullcompulsoryschoolinginthetraining/educationsystemwhenhiring; and (iii) increasing the right to continuous vocational training andadaptation of mechanisms for its implementation, such as treatingattendance of RVCC processes similarly to continuing training; allowing theaccumulation of the annual minimum training by companies; allowing thearrangementsmadefortrainingtobeadaptedforcollectivecontractingandmakingtheissuingofatrainingcertificatemandatory.• Promotionofthedynamicsofcollectivebargaining.Emphasisisgiventothesimplificationoftheadministrativerequirementsinthebargainingprocess;63

the alteration of the survival system and the expiry of collective workingconventions;specificationandimprovementofthearticulationbetweenthecollectiveconventionsandthelaw;broadeningoftherangeofmattersthatcanbygovernedbycollectivecontracting.• Termination of employment contract. Whilst fully respecting theconstitutionalprincipleprohibitingdismissalwithoutjustcause,theproposalsimplifiesandshortensthedisciplinaryprocedure,increaseslegalinsuranceofthepartiesinthedismissalprocess,guaranteeingaddedprotectioninthecase of a pregnant employee, mothers of newborns or that are breastfeeding, and reinforces the infractions foreseen for the violation ofproceduralrulesinthecaseofatradeunionrepresentative.Amoreeffectivenormative framework is also proposed by means of the integration andreform of the legislation formed by the Code of Labour and its regulation,reducinguncertaintybymakingalawthatiseasierandmoreaccessibletousers.Inadditiontothesimplificationandsystematisationofthelegalnormsinforce,thesimplificationanddebureaucratisationoftherelationsbetweenworkers, employers and the Administration is also proposed, and theeffectivenessofthelegislationandtheframeworkofsanctionsstrengthenedso as to discourage the disrespect of social and labour rights and unfaircompetition based on non‐compliance with the social obligations of thecompanies.• Combating precarious employment and the segmentation of the labourmarket. With the aim of combating illegal precarious employment andreducing legal precarious employment as well as improving the socialprotection of independent workers and recognising that the recourse toatypicalformsofemployment,necessarytotheactivityofcompaniesandthedevelopment of the economy should not be used as a means of gettingaroundtheLaw;thealterationofthepresumptionoftheworkingcontractisalso proposed and the creation of a new very serious infraction for theconcealment of a working contract so as to enable a more effectivesupervisionandcontroloftheuseof«falsegreenreceipts».Theadmissibilityof the fixed term contract is limited in the case of newly openedestablishmentstothoseincompanieswithfewerthan750workers,andthelengthoffixedtermcontractsisreducedto3years;thislimitisapplicabletothe set of term or temporary contracts for the same work post, or therenderingofservicesforthesamepurpose,signedbetweenaworkerandthesame employer or employers between whom there is an area or groupbusinessrelationship.Adaptationofthesocialprotectionsystem.PartofthemoregeneralreformoftheSocialSecuritybegunin2006,thisforesees: Theincreaseofpossibilitiesofferedtoworkersinthefieldofconciliatingprofessionalwithpersonalandfamilylife.Inthisarea, special importance is given to a parental system thatreduces gender inequality. Hence, in the scope of theAgreement, it was decided to substitute maternity, paternityandadoptionleavewithparentalleave.64

Measures linked to reducing the contributory rate oncontractswithoutanyfixedtermandincreaseitinthecaseoffixedtermcontracts.Independent workers: extension of social protection in thesame set of eventualities, through the joining of the socialprotectionssystemssothattherewillbeonlyonesystemwiththe scope of protection currently included in the extendedprotection system (allowances for the family, sickness,maternity, paternity and adoption, occupational diseases,professionalbenefits,invalidity,oldageanddeath).o Revisionofactiveemploymentpolicies,encompassing:• Aidfortheconversionofindependentworkintocontractswithnofixedtermforworkersingeneral;• Aid for hiring young people on contracts with no fixed term, aidfor the conversion of independent work or fixed term contractsintocontractswithnofixedtermandfacilitatingthetransitiontoactivelife.;• Facilitatingtheunemployment‐employmenttransition,preventingandcombatinglongtermunemployment;• Aidfortheentryintothelabourmarketforpeopleover55yearsofagewiththeexemptionorreductionofemployercontributionstosocialsecurity;• Aid for entry into the labour market of disadvantaged publics,exemptingorreducingemployercontributionstosocialsecurity;• Promoting new modes of the progressive approximation toemployment 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 subsidisedunemployed persons in social/community activities – and of the“Employment‐Insertion Contract”, aimed at supporting thetemporary insertion of GMI beneficiaries in social/communityactivities.o NationalStrategyforHealthandSafetyatWork2008‐2012.Instrumenttoboosttheprotectionofworkers’healthandsafety,thatstrivestoreachtheoverallobjectiveoftheconstantandconsolidatedreductionofworkaccidentratesandtheprogressiveandcontinuedimprovementinthelevelsofhealthandwellbeingatworkthroughtwofundamentalpolicyaxesforhealthandsafetyatwork:thatreferringtopublicpoliciesandthatofthepromotionofhealthandsafetyinplacesofwork.o Continuation of the GLI Programme against undeclared and illegal work.Programmedevelopedwithaviewtoreducinginformalandundeclaredworkthroughtheuseofinspectionservices.65

o ContinuationoftheAnnualNationalPlanforthepreventionandCombatofFraud and Evasion of Taxes and Contributions, aimed at raising thesustainability,rigourandtrustinthesocialsecuritysystem.5.4. STRENGTHENINGSOCIALCOHESIONContextThemodernisationofthesocialprotectionsystemhasbeendevelopedinagradualand sustained manner adopting the logic of the anticipation and response to newneeds,fightingpovertyandreproductiveinertia,assuringaccesstosocialandhealthservices and facilities in terms of their response and quality and fair territorialdistribution and safeguarding intra and inter generational cohesion, whilst alsoguaranteeingthefinancial,economicandsocialsustainabilityofsocialsecurityandthehealthsystem.Contradicting and reverting social inequalities and the problems associated todemographic changes are the priority interventions areas of the Government.Hence,asetofmeasureshasbeenadoptedthatallowforthepromotionofsocialinclusion and prevent situations of poverty and social exclusion, above all in thecurrentcontextoflesseconomicgrowth.Anintegratedstrategyofactivesocialinclusionisimplicitinthepolicyprioritiesforthe2008‐2010cycle;thisconjugatesthreefundamentalobjectives:improvementofearnings–progressiveincreaseintheGuaranteedMinimumMonthlyRemuneration;Social Insertion Income; Income Supplement for the Elderly (CSI); increase in theFamily Allowances; among others; socio‐professional integration ‐ through thefostering of active employment policies or vocational training; and the improvedquality and access to the network of social facilities (PARES, Social FacilitiesProgrammePOPH,fortheelderlyandthedisabled)andproximityservices(primaryhealthcareandRNNCCI).This perspective favours the development of integrated responses that allow forclose articulation between the proposed actions and the specificities of thesepublics, and rooted in the conviction that the objective of social cohesion is to agreat extent one that is transversal in the framework of the PNR and thatstrengthenseconomicgrowthandemployment.Nevertheless,thisinterventionareamustbeconsideredinclosearticulationwiththeNationalStrategyforSocialProtectionandSocialInclusion2008‐2010;thepriorityaxesofthisare:(i)respondtothedemographicimpactand(ii)promotionofsocialinclusion (reduction of inequalities). In particular, the National Action Plan forInclusion 2008‐2010 12 , the priorities of which are to: (1) combat poverty among12 Ver: http://www.pnai.pt/66

children and the elderly through measures that assure their basic rights ofcitizenship;(2)correctthedisadvantagesineducation/qualification;(3)overcomediscriminations, strengthening the integration of specific groups, notably peoplewithdisabilitiesandimpairmentsandimmigrants.Inadditiontoasetoftransversalmeasures,itincludesspecificmeasurestorespondtoeachofthesepriorities(seePNAI 2008‐2010) and which also contribute to the fulfillment of the measures setoutinthePNR.Emphasisshouldalsobegiventotheimplementationofintegratedpoliciestargetingspecific groups, such as women and youth, with the implementation of the IIINational Plan for Equality – Citizenship and Gender (2007‐2010) and thepreparation of a National Youth Programme currently underway. The aim of thisProgrammeis,notably,tostrengthenthecoherenceandeffectivenessofthevariousmeasures in the sectors targeting this universe, found in this document in theappropriateareas. 13 Measures:o MinimumGuaranteedMonthlyRetribution.Withthepurposeofincreasingfamilies’ incomes, a progressive increase will be made in the minimumguaranteed monthly remuneration of about 24 % by 2011, following theAgreementontheFixingandEvolutionoftheMinimumGuaranteedMonthlyRemuneration,signedwiththesocialpartners.o SocialInsertionIncome(RSI).Thesocialinsertionincomeisabenefitfromthesolidaritysubsystem;thisinsertioncomponent,aimedattheworkingandsocialinsertionofitsbeneficiaries,isintendedtogivearound80,000peoplenew momentum by 2010 through the development in this cycle oftraining/qualificationactionsand/orinthelabourmarket.o Income Supplement for the Elderly (CSI). The Income Supplement for theElderlyisabenefitformthesolidaritysubsystemtargetingpensionersaged65yearsandover.Themonetaryvalueofthebenefitisdefinedbyreferencetoathresholdfixedannuallyandtheattributionisdifferentiatedaccordingtotheconcretesituationoftheapplicant.Thismeasurealsoprovidesadditionalhealthbenefits(DL252/2007)consistingof:a)50%financialparticipationinthe share of the price of medication not covered by the State; b) 75%financialparticipationinthecostofbuyingglassesandlensesuptoalimitof€100everytwoyears;c)76%financialparticipationinthecostofbuyingandrepairingremovabledenturesuptoalimitof€250everythreeyears.o Family Support Policies The boost in the family support policies is giventhrough a series of increases in the social benefits for families, as well asthroughtheextensionoftheschoolsocialservices(seepoint5.1)13 See outcome , micro level , results of actions targeting youth.67

o SocialFacilities.TheboostintheSocialFacilitiesProgrammePOPHtargetingtheelderly,thedisabledandimpairedforeseesthecreationof1378placesinfacilitiesfortheelderlyby2010(3220placesby2015)andof1408placesinfacilitiesforthedisabledby2010(1955placesby2015)o Reform of primary health care. As Primary Health Care is the pillar thatsustains the whole health system, the reform consists of an organisationalchange in health care services provided, developed by multi‐professionalteamsthatareselforganizedandindirectcontactwiththecitizens,formingthe first line of a health system that is accessible, efficient, fair and inproximity.TheMissionofPrimaryHealthCare,thestructureresponsibleforconductingthereformprocessatthislevelofcare,establishedaStrategicPlanfor2007‐2009 based on three pillars: 1. Organisational quality and change, thatincludes four strategic lines: leadership and autonomy of management,better accessibility, evaluation and monitoring, management of ICT; 2.Clinicalgovernanceandknowledgemanagement,withthreestrategiclines:clinical governance, knowledge management and qualification ofprofessionals,innovationandsimplificationincareprovided;3.Sustainabilityanddevelopment,whichalsoincludesthreestrategiclines:accreditationofservices, financial viability of primary health care, communication withcitizensandprofessionals.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 beeninstalled. By then, the conditions should have been attained for the fulloperation of the 74 Health Centre Groupings (ACES), framework entitiesclinically and in management terms of all the operating units providingprimary health care; the forms of internal contracting will have beenconsolidatedandthenecessaryskillsobtainedbythemanagersofthenewunitsandperformanceevaluationandmonitoringdeveloped.o Development of the National Network of Continued Integrated Care(RNCCI).TheglobalaimoftheRNCCIistoprovidecontinuedintegratedcareto people who, regardless of age, are in a situation of dependence. ThisprovisionofcareisassuredthroughUnitforResidentialCare,MobileUnits,HospitalTeamsandHomecareTeams.The RNCCI model is based on the rationale of separating functions(purchase/provision) by contracting services and decentralisingresponsibilitiesofterritorialscope.Itisbasedonamodelofthesharedandinter‐sectorfinancingfromtheMinistriesofHealthandofWorkandSocialSolidarity.68

Following the start up of the implementation of the National Network ofContinuedIntegratedCare,andincontinuityoftheobjectivessetoutinthePNACE 2005‐2008, in the 2008‐2010 period the priorities are thedevelopment of responses (intra‐hospital and homecare teams andresidentialunits)forpalliativecareandfortheContinuedHomecareTeams,inarticulationwithPrimaryHealthCare.o Promotionofgenderequality.WiththeintentofintroducingtheGender 14 perspectiveintheprioritypolicyareas,genderequalitypoliciesofmeasuresoriented towards economic independence and the conciliation ofprofessional life with family and personal life have been pursued andfurtheredandnewinitiativeshavealsobeenlaunched,suchas:• Gender Observatory, consisting of the development of aninformation system and the integrated strategic evaluation ofgenderequalityandviolence.o Implementation of a set of interventions aimed at developing agovernance system considering the gender equality dimension,the promotion of gender equality and the integrated preventionof victims of discrimination through support for organisationalchange, training, information activities and aid for femaleentrepreneurs (POPH) involving roughly 13,110 people by 2010andthecreationof1059companiesbywomenuntil2010;• ConsolidationofthePeopleTraffickingObservatory;• Creation of an Equality Portal to strengthen citizenship and thetransversal nature of policies fostering gender equality in thePublicAdministration;• Strengthen the gender perspective in Central and Local PublicAdministration policies, notably through the Sectorial plans forGenderEqualityandtheboostingofLocalPlansforEquality;• CreationofanAwardforCitizenshipwithparity;• Promoting awareness and the publicising of issues related withGenderEqualityandGenderViolence(POPH);• Support for Training in the area Gender Equality and thepreventionofGenderViolence(POPH);• Support for the adoption of Plans for Equality in the State’sbusiness sector and in the Central and Local PublicAdministration(POPHandPOFC).14 III National Plan for Equality – Citizenship and Gender (2007-2010), area 2.69

|AREA6–PROMOTINGANINTELLIGENTTERRITORYContextIn recent decades Portugal has made significant investments in infrastructuressupporting accessibility, urban and rural development and the creation of betterlivingconditionsforthepopulations.These base investments now enable us to turn our focus to the priority ofarticulation and taking full systemic advantage of these infrastructures byintroducing knowledge and efficiency in the value chain and strengthening thestrategicpledgetoreaffirmPortugal’splaceasaglobalcentralityintheeconomic,socialandculturalnetworks.This strategic assumption led to the European Commission’s consideration of asignificantpartoftheValorisationoftheTerritoryProgrammeincludedintheNSRFas“earmarking”oftheLisbonStrategy.The Logistic Portugal Programme Driver, already integrated in PNACE, will becontinuedandrepresentsoneofthemainfactorsofcompetitivenesslinkedtotheterritory.TheCitiesPolicydefinedbytheGovernmentisexpressedinthearticulationofpolicyinstruments that are embraced in the NSRF 2007‐2013, notably in the RegionalOperationalProgrammesandtheThematicValorisationoftheTerritoryOperationalProgramme. These instruments aim to qualify and integrate the distinct spaces ofeach city, strengthen and differentiate their human, institutional, cultural andeconomiccapital,qualifyandintensifythecity’sintegrationinthesurroundingandinnovativesolutionsforurbanrehabilitation.The existence of a National Information System on Territorial ManagementInstrumentsandtheavailabilityofgeographicandcartographicinformationarebothfundamentalconditionsformakingterritorialplanningandmanagementprocessesmore effective and developing new services and new ways for the governancestructuresatthevariousterritorialscalestoact.Thevalorisationofendogenousresources–thesea,thecoast,theruralzones–isafundamental concern and their intelligent integration in the sustainabledevelopment and strengthening of their economic value. In this context, theconclusionofPEAASARIIisequallyrelevantalongwithallthemeasuresthathelpprotectnaturalresourcesandbiodiversity.In this context, we underline the need to the reinforcement and dinamization ofbiodiversityandnaturepreservationpolicies.Thereformulationandmodernizationof the National Authority for Nature Preservation (ICNB I.P.) and a new legal70

framework to the promotion of public‐private partnerships create the context fornewvalorizationandmanagementmeasuresofnaturevaluesinclassifiedareasandtotheeconomicandsocialvalorizationofbiodiversity.Ontheotherhand,thecentralobjectiveistopromoteandextend,intheterritoryand the cities, the diversified and quality access of citizens and institutions toinformation and knowledge, valorising education and training for all, whilst alsostimulating the social appropriation of knowledge as well as fostering the use ofscientificinfrastructures.The aim is to stimulate models of economic growth and territorial competitivenessassociated to knowledge in the territory and in the cities, promoting networkinterconnections,mechanismsandmeansattheserviceofanincreasinglydiversifiedpopulation.Giving emphasis to the empowerment of the communities and lifelong learning,advantage is taken from behaviour in network which is facilitated nowadays by theICT. In addition to demonstrating and attempting to experiment new applicationmodels of new technologies, new dynamics for mobilising demand should also befacilitated,namelyorientedtostillinfo‐excludedgroupsofthepopulation.Thereorganisationandupgradingoftheschoolnetworkofthe1stcycleofbasiceducation and preschool education are extremely important measures that fostermotivating,demandingandrewardinglearningenvironmentswhichareessentialifthequalificationleveloffuturegenerationsistobeincreased.Thedefinitionofaschool network which is run at high standards is therefore a priority intervention;preferably,itshouldbeboundtoteachthe1stcycleinarticulationwithpreschooleducation and given flexible and multi‐functional spaces – the “school centre”concept–fromaperspectiveofrationalisingmeansandoptimisingresourcesthatcanrangefromnewschoolsbuildingstotheextensionorrehabilitationofexistingschools.The measures outlined below translate this pledge in the promotion of intelligentnetworks that make full use of and manage the territory as a factor ofcompetitiveness,lifequalityandcohesion.Measures6.1. LogisticPortugalDriver• DevelopmentoftheNationalLogisticsSystemo The development of the National Network of Logistic Platforms willallow the country to improve its ranking in the European logisticsdistributioncentres.o By developing the network of platforms, Portugal will increase itslogistics capacity, serving the main traffic of goods from or to the71

national market, covering more than 98% of the economy andpopulation.o TheNationalNetworkofLogisticPlatformswill: Boost current traffic and allow new traffic to be obtained,generatinga16%increaseinthenationalportactivity; Boosttheincreaseintheglobaloverallcargocirculatinginthecountryby3%; Foster the efficiency and productivity of logistics operators,leadingtoa10%reductioninlogisticscostsandconsequentlyariseinnationalcompetitiveness; Enabletheeconomytobestimulatedbythecreationofover15,000workposts; Creates conditions to raise the share of freight transport byrailandbysea,contributingtothereductionofemissionsandhencetothecompliancewiththeKyototargets.• Implementation of the High Speed Rail Network The High Speed RailNetwork (RAV) will have a very significant impact on the Portugueseeconomyanditisforecastthatinaccumulatedtermsandona30yeartimehorizon: 56,000permanentworkpostswillbecreated; Privateinvestmentwillraiseby126,000millioneuros; GDPwillriseby121,000millioneuros.Otherbenefitsidentifiedintheprojectarelinkedtotheurbanandterritorialdynamics generated. The main vector of change is introduced by thereduction of distances, measured in the time of the journey, promotinggreater social, economic and territorial cohesion. Indeed, the future of thenetworkwillenablemorethanhalfthepopulationlivinginPortugaltomovebetweenthemainnationalurbancentresinatraveltimeof2hoursorlessandifweusea3hourjourneyasourreferenceabout90%ofthepopulationwillbenefitfromthisaccessibility.TheRAVprojectwillmakeastrongcontributiontotheincreaseofmobilityinPortugalandtoregionaldevelopmentandwillleadtoasignificantdeclineintheterritorialasymmetriesthatcurrentlyexist;itwillgivegreatmomentumboth to R&D in its areas of technological and industrial intervention anddevelopment in Portugal, and also to international trade by bringingPortugalclosertotherestofEurope;itwillhaveasignificantimpactontheevolution of the quota of rail traffic which could treble in the space of 30years,consideringmediumandlongdistancejourneysontheLisbon/Portoand Lisbon /Madrid lines, and contribute decisively to the sustainabledevelopment of the country. The RAV project will lead to a significantreduction in energy consumption, in the polluting emissions and in roadaccidents.72

• Improving the regulation of the port system. The start of operations of aSinglePortWindow(JUP)inthePortofLeixões,LisbonandSinesisahighlyvaluablestrategicinstrumentforthecompetitivenessoftheports.Inadditiontothedirectoperationalbenefitswhichsignificantlyreducethedirectadministrativecostsoftheeconomicagentsusingtheports,beitthenaval or freight component, there is also a series of benefits that can beappliedwithabroaderstrategichorizon.The“SinglePortWindow”istranslatedthroughtheexistenceofasingleportsystem, or one‐stop‐shop, that simplifies the interface of the ship‐ownerswith the different entities and which reduces the port transit time andcustoms 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).PortugalhasanextensiveseaborderandislocatedattheconfluenceofthemainNorth/SouthandEast/WestroutesofthewestAtlanticcoastandithasalways been committed to implementing projects related to the SeaHighways (AEM), with the creation and development of the PORTMOSproject — “Integration of Portugal’s maritime and port system in the seahighways’, approved by the European Commission in the scope of RTE‐Tfinancing.TheAEMconceptintroducedinWhitePaper“TheEuropeanTransportPolicyforthe2010Horizon:TheTimetoChoose”approvedin2001,islinkedtothedevelopmentofintermodaltransportandthepromotionofintra‐communitymaritime transport. Using the success factors for the increase in roadtransportoffreightoverrecentdecades,itstrivestotransposetheprinciplesof continuity, standardisation and simplification to maritime transport asthese are vital to reducing the operation costs of maritime transport andensuring its competitiveness and the modal transfer of a large part of thetrajectories.The AEM assumed decisive importance in the European Union when theybeganintegratingtheTransEuropeanTransportNetwork(RTE‐T),identifiedasprojectsofcommoninterest,basedontheimprovementofexistinglinksandnewmaritimelinks,withregularityandpredeterminedfrequency,thatcouldreducebottlenecksonlandand/orimprovetheaccessibilityofinsularandperipheralregionstherebyensuringcohesionandeconomic,socialandenvironmental growth within the community space (Decision no.88412004/EC).ItisthereforeimportanttoemphasisethatthedevelopmentoftheAEMislinkedtothecohesionandgrowthoftheEuropeanUnionasawhole,whichintends to strengthen the supply of inter modal transport, in search of the73

most suitable means of transport for the circulation of goods from theirstartingpointtothedestination,efficientlyandwithoutbreachesincargoorconstraints,inalogisticchainwheremaritimetransportplaysakeyrole.Themodaltransferandthereductionofbottlenecksonthemainroadwayswillbeanaturalconsequenceofthislogisticchainoftransportandarelevantfactorforthepromotionofsustainabledevelopment.• Vessel Traffic System(VTS) – Monitoring of navigation along the Atlanticcoast. The VTS system enables the competitiveness of the Portugueseeconomy to be improved along with the safety of maritime traffic on ourcoastandterritorialwatersandalsotheaccessibilityfromthesideoftheseatotheportsonthecontinent.This system permits the increase in the flow of maritime traffic andmonitoring of ships, with the possibility of screening all their movements,thus reducing the risk of collisions and assuring compliance with theinternationalconventionsandregulations.It is estimated that a system like VTS can bring about a 65% reduction inmaritimeaccidentsonthecoastsofthecontinentwiththeresultingdeclineinthelossofhumanlife.Ineconomicterms,theVTSsystemwill: Improvetheefficiencyofportactivities;Promotethedevelopmentoftheeconomy;Providesupportforthemoreeffectivecontrolandsupervisionoffishingactivitiesonthecoastandothereconomicactivities;andContribute to a better use of the Portuguese ExclusiveEconomicZone.InthecontextofthemplementationofVTSSystem,therehasbeenanalyzedtheVTSprojects in Madeira and Azores islands, in order to provide them the VTS coastsystem.In2008,itisbeenexpectedthereviewofthestudiestotheenlargementofVTS System of Azores and Madeira islands, aiming the contractualization andinstallationofVTSSystemintheislandsby2009.6.2. CitiesPolicy• UrbanNetworksforCompetitivenessandInnovation.Thismeasureshapesaprocessofstructuredcooperationbetweenmunicipalities,publicentitiesandprivateentitiesthatproposesdevelopingandimplementingajointStrategicPlanforurbandevelopmentcentredontheterritorialfactorsofknowledge,competitivenessandinnovation.Itaimstosupporttheaffirmationofcitiesashubsofknowledge,innovationandcompetitivenessnetworksofnationalorinternationalscope,topromoteaboostinthegreatereconomicfunctionsof74

thecitiesbyobtaining,bymeansofnetworking,thresholdsandsynergiesforthe upgrading of technological infrastructures and the development offactors to attract innovative and competitive activities, to stimulatecooperationamongPortuguesecitiesandbetweenthesecitiesandscientificinstitutionsandhighereducationsoastomaximisetheshareofresources,potentials and knowledge and valorising factors of differentiation, topromote the insertion of cities in international networks and reaffirm theirinternational image and to optimise the potential of infrastructures andfacilitiesfromanetworkperspective.• Partnerships for urban regeneration. This measure configures a structuredandformalprocessofcooperationbetweenentitiesthatproposetodevelopandimplementajointActionProgrammefortheregenerationofaspecificarea of a city. The aim is to foster cohesion and social inclusion, theintegrationandequalopportunitiesofthedifferentcommunitiesthatmakeup the city, stimulate the socio‐economic revitalisation of rundown urbanspaces,upgradetheurbanenvironmentandthekeyfactorsforthequalityoflife of the population, make the cities more attractive by conserving andvalorising the spaces of urban excellence, strengthening citizens’participation and innovating forms of urban governance through thecooperationofthevariousurbanactors.• Innovative Actions for Urban Development. This measure aims to bringdynamics to innovative solutions responding to urban demands andproblems, centred in particular on the efficiency and re‐use of the existinginfrastructuresandfacilities,ontheexploitationofopportunitiesofferedbynewtechnologies,ontheempowermentofthelocalcommunitiesandonthedevelopmentofnewpublic‐privatepartnerships.ItistargetedatthesupportofpilotprojectsthataimtodeveloportransfersolutionsforapplicationinthePortuguesecitiesthathavenotyetbeentriedoutnationallyor,wherethis has happened with positive results, need applying on a larger scale tostimulate their replication. Preference is given to: rendering of proximityservices; urban accessibility and mobility; security, risk prevention andcombating crime; management of public spaces and buildings; sustainableconstruction; urban environment; creativity and entrepreneurship in thevalorisation of territorial resources; and urban governance with increasedparticipationofcitizensandeconomicplayers6.3–LandUsePlanning:InformationInfrastructures• SINERGIC – LAND register – National System for the Exploitation andManagementofGeographicInformation–strivestopromoteacoordinated,effectiveandsustainedimplementation,managementandexploitationoftheland register information; this is the basis of the national system ofgeographic information, providing data that is the base of other kinds of75

statisticsandinformationstructuresinwhichthelocalisationisthecommonreferential. The existence of a register serves as a transversal support tonumerous kinds of statistics and information structures and is a key vectorfor the administrative modernisation and debureaucratisation of processesand procedures and for the increase in the transparency of public decisionmakingprocesses.• SNIT/LandUsePlanningandUrbanismPortal.Theaimofthisprojectistheon‐line access to territorial planning instruments, the on‐line availability ofsystematised alphanumeric and graphic information on the territorialmanagement system in the DGOTDU Website, which will include thepossibilityofconsultingtheterritorialmanagementinstrumentsinforceandthecurrentsituationoftherespectivepreparation,alterationandrevisionofprocedures, as well as collaborative platforms to monitor the territorialmanagementprocedures.• Virtual maps. Based on the agreement signed between the Portuguesegeographic Institute and Microsoft allowing the aerial images of the wholecountrytobemadeavailableontheVirtualEarthplatform,thecentralPublicAdministration benefited from the free licensing of the programminginterfaceofVirtualEarth,whichisaresourceofenormouspotentialfortheorganisation, management and exploitation of Geographic Information bytheAdministration,fortheinteractionbetweenvariousPublicAdministrationentities and their relations with citizens and for the development of highlyinnovativeservices.6.4–UpgradingandValorisationofEndogenousResources• Integrated Operations for the Upgrading and Valorisation of the Coast –CoastalPolis–Encompassesasetofupgradingandvalorisationoperationsinriskzonesandrundownnaturalareasonthecoast.Themainaimsoftheseinterventions are to strengthen the capacity of the natural resources as afactorofcompetitiveness,bymeansofthevalorisationofeconomicactivitieslinked to coastal resources, associating them to the preservation of thenaturalresources;protectingandupgradingthecoastalzone,withaviewtothe defence of the coast, promoting the conservation of nature andbiodiversity,theanaturalisationandrestructuringoflagoonzonesandthepreservation of the natural heritage and landscape; preventing anddefendingpeople,goodsandsystemsfromnaturalrisks;fosteringthepublicenjoymentofthecoast,supportedontheupgradingofbathingareasandtheenvironmental and cultural heritage. Three priority intervention areas havebeendefined:NorthCoast,RiadeAveiroandRiaFormosa.• PROVERE – Programme for the economic valorisation of endogenousresources, aims to stimulate the initiatives of economic agents orientedtowardsimprovingtheterritorialcompetitivenessoflowdensityareaswiththepurposeofgivingendogenousresourceseconomicvaluethatwilltendto76

e imitated in the territory: natural resources, historic heritage, traditionalknowledge, etc. This instrument, which is specifically targeting territorieswith fewer development opportunities due to low density – population,institutional, economic activities, etc. – intends to implement actionprogrammes constructed in partnership and framed in medium and longterm development strategies, that make a decisive contribution tostrengtheningtheeconomicbaseandtomakingthetargetterritoriesmoreattractive. PROVERE is one of four kinds of collective efficiency strategiesforeseen in the NSRF. Each of these strive to stimulate the emergence ofinitiatives fostering coherent and strategically justified competitiveness,integrated in a plan of action that provides structured stimulus for theappearanceofeconomiesofagglomerationnotablybymeansofcooperationandnetworkoperatingamongcompaniesandbetweenthesecompaniesandotherrelevantplayersforthedevelopmentofsectorstowhichtheterritoriesinquestionbelong.• Continued implementation of the Rural Development Programme for the2007/2013 period (PRODER), and which comprehends 6 measures and 15actions aimed at “fostering competitiveness”; 4 measures and 19 actionsaimedatthe“sustainablemanagementoftheruralspace";5measuresand7actionsaimingat"boostingthedynamicsofruralzones";3measuresand4actions aiming at "promoting knowledge and the development of skills" 15 .Around35%oftheactionsoftheprogrammeinprogress.• Implementation of the National Strategy for the Sea – encompassing thefollowingProgrammes:1. PlanningandOrganisationofMaritimeSpacesandActivities2. InformationandKnowledgeNetworkfortheSea3. Surveillance,SecurityandDefencefortheSea4. CommunicationandRaisingAwarenessabouttheSea5. InternationalCooperationfortheSeaThe following Action Plans were launched and are being implemented in2008:• PlanfortheOrganisationofMaritimeSpace;• SimplificationofProceduresandLicensingofMaritimeActivities• EnvironmentalMonitoringoftheExclusiveEconomicZone;• InformationSystemforMarineBiodiversity;• NetworkofProtectedMarineAreas• Definition of the Terms for the Constitution of the OceanConsortium;15 http://www.gpp.pt/drural77

• UpdatingoftheCleanSeaPlan;• Awarenesscampaignandpromotionactivitiesonthesea;• Inclusion of the subject of the Sea in the Project Area and inEducationalResources.• InternationalCooperationfortheSea(CPLP)6.5. WaterandSewerage• ContinuedExecutionoftheStrategicPlanforWaterSupplyandSewerage2007‐2013 (PEAASAR II) by means of strengthening the water supply andseweragesoastosecuretherightlevelsnecessaryforthepopulationandaservicethatisreliableandofhighquality.ThisPlandefinesobjectivesandproposesasetofmeasurestobedevelopedinordertoachieveeachoftheseobjectives.Tothisendandwithaviewtoobtainingthemosteffectivesolutiontotheproblems that remain, the Strategy proposes an extended model ofpartnership between the State and Local Authorities, the concentration ofwhich will depend on the interest of both parties. It consists of theintegration of the so‐called “lower slope” infrastructures in Multi‐municipalsystemsthatexistoraretobeformed;theintegrationwillbemadeinlinewithconditionsyettobeagreed.NotwithstandingthestrategicrolereservedfortheconcessionarycompaniesoftheMulti‐municipalsystemsoftheAdPGroup,SGPS,asapublicpolicyinstrumentforthesector,thestrategyalsopledges in the private sector for both management and financing. TheStrategywillbeimplementedbetween2007and2013,andtheinvestmentforeseenforthiswillbeassuredbymeansofowncapital(companies),bankloans(NationalBankingandEBI)andcommunityfundingthroughtheNSRFDuring 2008, the necessary studies will be conducted to define thepartnership to be constituted between the State, through AdP, and thevarious municipalities which showed an interest in a possible partnershipwith the concessionary companies. These studies will be completed by theendoftheyear.The 2009 ‐2010 period will be vital to the success of the creation ofpartnerships, the implementation of the strategy and will be the start‐upperiodforallthemeasuresadopted.6.6. Digitalinfrastructure‐Broadband• Promotion and development of New generation Community Networks.Promoting the creation of Community Networks as public broadbandnetworks in disadvantaged regions or where there are shortcomings in thetelecommunications market, notably where it is difficult for the market tointroduceNewGenerationNetworks,whichmustbetechnologicallyneutral78

andsupplyidenticalaccesstoalloperatorsbiddingfortheirexploitation.TheaimisalsotodeveloptheuseofthefibreopticnetworksalreadybuiltintheambitoftheDigitalCitiesandRegionsprojects.• e‐Science Infrastructures. Boost and develop new e‐Science infrastructuresaccessible throughout the territory and including the high performancenetworkforresearchandeducation(RCTS),thedigitalscientificlibraries,theinformationrepositoriesandtheopenaccessscientificdata,thecomputingGridandsupercomputing,andtheplatformsfordistanceresearchwork.• NetworkofInternetplacesascommunitycentresforsocialisingandlearningnewtechnologies,withemphasisontheperipheriesofurbancentres.Development of “community spaces” based on already existing and newinternetplacessoastofosterthelinktourbanandruralcommunities,withboth intramural and extramural activities, with a view to new technologybasedsocialisationandstimulatingassociativeactivities,electronicdemocracyandlearningbymeansoftheInternet.• NetworkofLivingScienceCentres.DevelopmentofLivingScienceNetworkasaninfrastructureforthepromotionofthescientificandtechnologicalculturein the territory, to stimulate the interest of the young for scientific andtechnical careers and to facilitate the population’s appropriation of newtechnologiesandknowledge.6.7. SchoolNetwork• RehabilitationProgrammeforschools.Thereshapingofthenetworkfromthe perspective of creating school centres involves two distinct kinds ofintervention, in accordance with the territorial and social context in whichtheyarelocated.o Intervention in urban areas. Factors will be analysed such as theexistenceornotofanexpansionanddevelopmentplanoftheurbanfabric where each school is located so as to justify the decision tobuild a new school or carry out the structuring upgrading of theschoolspace,namelybyextendingtheexistinginstallations;o Interventioninruralzones.Focusisgiventoupgrading/extendingorbuildingoneormoreschoolcentresinareaswhicharegeographicallyinthecentreofothersmallbasicschoolsofthe1stcycle.The rehabilitation Programme for schools foresees intervention in 600schoolsby2010.79

#3PARTOUTCOMEOFPNACEEXECUTION2005‐2008MainResultsin2007‐2008

|INDEXIntroduction...................................................................................................................3Macrolevel....................................................................................................................6SustainabilityofSocialSecurityDriver..........................................................................12ModernisationofPublicAdministrationDriver............................................................13Microlevel....................................................................................................................20KnowledgeandInnovationNetworksDriver................................................................38ConnectingPortugalDriver...........................................................................................41EnergyDriver................................................................................................................45LogisticalPortugalDriver..............................................................................................49 QualificationEmployment&SocialCohesionLevel...................................................57ValorisationofPrimarySchoolingDriver......................................................................74NewOpportunitiesDriver............................................................................................75ProximityCommunitarianServicesNetworkDriver....................................................782

|INTRODUCTIONInordertoemphasisetheevaluationoftheimplementationoftheLisbonStrategy–NationalPlanforGrowthandEmployment2005‐2008–andtosystematicallyframethemonitoringofthereformstakingplace,nine“impactdrivers”weredefinedwithinthe Macro, Micro and Employment dimensions, in compliance with the directives oftheRenewedLisbonStrategy.Therefore,andinaccordancewithwhatwasdefinedbytheEuropeanCommissioninitsguideforthepreparationoftheOctober2008NationalReports,thefollowingisapresentationofaperformanceanalysisofthemainreformprocessesinthelasttwelvemonths,favouringthose“impactdrivers”.The performance analysis is structured in those three levels, with the main resultsbeingpresentedineach,organisedinsomecasesbyinterventionareasoastoclarifythe evolution of the reform taking place. At the end of each level, the results aredevelopedwithinthescopeofeachdriverincludedinit.Consideringthegoalsset,thesituationisgloballythefollowing:• Consolidate public accounts and, in the horizon of 2008, reduce Portugal’spublicdeficitto2.6%oftheGDP–fromadeficitof6.1%in2005to3.9%in2006and2.6%in2007.• Encourage economic growth, reach a GDP annual growth rate of 2.4% ‐ thegrowthratewas0.9%in2005,roseto1.4%in2006.Anactualgrowthof1.9%wasregisteredin2007.However,theinternationalsituationdoesnotallowtheproposed objective to be considered feasible (see macro level results furtheron).• Promote the incorporation of R&D results in the productive processes,reinforce public investment in Scientific Research (up to 1% of the GDP) andtriple private investment in R&D, which in 2003 was only 0.24% of the GDP.PublicbudgetforGDPhasdoubledin2008comparedto2003,exceeding1%oftheGDPforthefirsttime.AstillgreatergrowthofprivateinvestmentinR&Disforeseen,tobeconfirmedbytheresultsoftheSurveytoNationalScientificandTechnological,takingplace.• Promote job creation, attract and retain the greatest number of people inemployment,reachaglobalemploymentrateof69%‐theemploymentratewent from 67.5% in 2005 to 67.8% in 2007; this figure makes it difficult toguarantee the established goal in 2008 but is maintained over the EU 27average(65.4%in2007).Therefore, and considering the four great national priorities, it can be said that itsignificant progress has been made in each one of them, without undermining theimportanceofcontinuedeffortsinthesedomains:3

a)ConsolidationofpublicaccountsInJune2008,ayearearlierthanforecast,theproceedingsforexcessivedeficittakenagainstPortugalin2005wasterminated.Thebudgetconsolidationprocessinitiatedin2005allowedaconsiderablepartofbudgetaryimbalancestobecorrected.Thepublicaccounts deficit in 2007 was at its lowest for the last 30 years, which allowed thebudgetarytargetin2008tobeloweredto–2.2%oftheGDP.b)ReformofPublicAdministration–simplifycompanylifePublicAdministrationreformtookrelevantsteps,bothintheareaofrestructuringandmodernising its management and in administrative simplification and theimprovement in the relationships of companies and citizens with the Administrationwasofparticularsignificance.TheseresultswererecognisedandmadeanimpactonPortugal’spositioninginvariousinternational rankings, namely the European Commission eGovernment Ranking onavailabilityandsophisticationofonlinepublicservices(2007),wherePortugalappearsin the 3 rd and 4 th place among EU27. Portugal has also 100% of the services tocompaniesavailableonline,thesamewhatconcernstothesophisticationlevel.c)S&TandInnovationFor the first time in Portuguese history, the public budget for research anddevelopmentexceeded1%ofGDPin2008,reinforcingthecompromisemadebytheGovernment to give priority to national scientific and technological development (itwas 0.78% of the GDP in 2007). This effort, combined with the reinforcement ofhumanresourcesinScienceandTechnology,bydoublingin2005‐2007thenumberofnew PhDs and post PhDs, compared with the last triennial and the promotion ofscientificemploymentsupportingthehiringofover700newdoctorates,enabledthenational scientific production to be significantly higher than the last few years,reachingatotalof6,655publicationsreferencedinternationallyin2006(circa630permillion inhabitants), which represents a 45% growth in the last three years.Furthermore, the number of Portuguese patents registered in the European PatentOfficeandtheUnitedStatesPatentOfficealsoincreased90%and70%,respectively,between2005and2007.Additionallyandculminatingapersistentevolutionsincethemid 1990s, the monthly figures of the technological balance were systematicallypositivein2007,demonstratingtheboostintechnologicallybasedservicesexportinPortugal and, therefore, the increased technological capacity of the Portuguesecompaniesandtheiraffirmationinternationally.d)QualificationIn addition to continuing to implement the New Opportunities Initiative (see NewOpportunitiesDriver),theReformofVocationalTrainingandtheReformofPrimaryand Secondary Schooling (see Valorisation of Primary Schooling) and the Reform ofHigher Education, the Government has been implementing other measures at the4

levelofsustainabilityofeducationandtraining(e.g.theevaluationandautonomyofschools),intermsofquality(teachertraining,NationalReadingPlan,amongstothers)andalsoothermeasureswithanimpactonlyvisibleinthelongerterm,suchasthebroadeningandconsolidationofpre‐school,curricularenrichmentandtheextensionofschooltimetables.Inthelasttwelvemonths,wenotethestart‐upoftheimplementationoftheNSRF,given its strategic importance for the execution of the Lisbon Strategy as theinvestments foreseen in this area are strongly oriented towards the objectives andgoals of this Strategy. Therefore, about 10 months following the EuropeanCommission’s approval of the NSFR Operational Programmes, of the roughly 10,000applicationsapproveduntiltheendofAugust2008,totallingaround€3300millionofcommunity investment funds, it is found that 90% of the foreseen investment isincluded in the categories of expenses that are “friends” of the Lisbon Strategy(“earmarking”).Itisnotedthattheparticularlyhighfigureforearmarkingregisteredtodatereflectsthe fact that the tenders or application periods started at this stage have mainlyinvolvedtheinterventiontypologiescloselyconnectedtotheobjectivesandprioritiesoftheLisbonStrategy,namelyregardingthequalificationofthePortugueseandaboveall in the framework of the Human Potential OP, as well as to the fostering ofinnovation and the stimulation of company investment in improving theircompetitiveness within the scope of Competitiveness Factors OP and also theContinentRegionalOP.TheimplementationoftheBolognaProcesshasevolvedverysignificantlyinthelastfewyears;themajorityofhighereducationcoursesopeningplacesin2007‐2008werealready adapted to the Bologna Model. The integral conclusion of this process isforeseen for 2009‐2010. During this period the number of new graduates from thescientificandtechnologicalareashasbeenincreasingsignificantly,reaching18.8per1000ofthepopulationagedbetween20and29yearsforthefirsttimein2007,thusexceeding the European average; at the same time, the number of new PhDs inscientific and technological areas increased in 2007 to 0.42 per 1000 of populationaged25to34years(thefigurefor2001was0.3).5

|MACROLEVELThe improvement in the quality of public finances, with emphasis on its long termsustainability,andthecreationofastablemacroeconomicenvironmentthatfavourseconomic growth, remained as the main strategic objectives within themacroeconomicareainthelastyear.InJune2008,ayearearlierthanforecast,theproceedingsforexcessivedeficittakenagainstPortugalin2005wasterminated.Thebudgetaryconsolidationprocessinitiatedin2005enabledthecorrectionofaconsiderablepartofthebudgetaryimbalance.In2007,thepublicaccountsdeficitwasthelowestforthelast30years.Morethanhalfofthe3.5percentagepoint(p.p.),reductioninthedeficitinrelationtoGDPregisteredin2006and2007(from6.1%to2.6%oftheGDP),resultedfromthedecreasedweightofpublicexpenditureintheGDP.AlsotheweightofpublicdebtintheGDPwasreducedin2007,paralleltotheevolutionofthebudgetarydeficit;thisstoodat63,6%(‐1,1p.p.thanin2006),thusinterruptingtheupwardtrendofthesixpreviousyears.Giventhegoodresultswhichwereobtained,thebudgetarytargetfor2008wasrevisedto‐2.2%oftheGDP(previously‐2.4%).On the other hand, the reforms taken in the social security systems, both in thegeneral regime and the social security regime for public servants, enabled thereduction of the sustainability risk associated with the evolution of public expenseswhich are sensitive to the aging of the population (namely, pension expenses),removing Portugal from the group of “high risk” countries, favouring the long termsustainabilityofpubicfinances(see“SocialSecuritySustainabilityDriver”Box),throughthemaintenanceofthepublicsocialsecuritysystem,thatwillassurethepensionsofthePortugueseworkersinthelong‐run,guaranteeingthesocialsecuritysustainability,protectingthelongercareers(throughactiveretirementpolicies)andprotectinglowincome pensioners (stimulating positive discrimination policies in the pension’scalculation.In2007,thePortugueseeconomyacceleratedinrelationtothepreviousyear,withtheGDPgrowing1.9%inrealterms(1.4%in2006).However,theinternationaleconomicsituationhassincetakenadownturnmainlyduetotheprolongeddisturbanceintheinternational finance markets and to the bullish oil and food prices; this led to adeterioration of the contribution of the net external demand and in a moderateaccelerationofthepricegrowthduringthefirsthalfof2008inPortugal.ItisworthstressingthatthegrowingrhythmofpricesinPortugalhasbeenbelowtheeurozoneaverage and in the last few months the national inflation rate remained the secondlowestofthesecountries.The national finance system has maintained a solid financial structure and effectivesupervision; we note in particular the capacity of Portuguese banks to adapt theunfavourableconditionsofthefinancemarkets.6

The Government has strengthened its focus on the implementation of the NationalReformPlan,articulatedwithinthemacroeconomic,microeconomicandemploymentareas, in the awareness that Portugal is not able to influence the internationaleconomicevolutionandtheexternalstructuralclashes,andthebeliefthatthenationaleconomystillneedstomakerealadjustmentstoitsstructuresoastocreateamorefavourableenvironmentforentrepreneurshipandtoincreaseproductivity,economicgrowthandemployment.Therefore, in the macroeconomic domain, the structural reforms implemented lastyear concentrated on modernising one of the main vehicles of governing action –PublicAdministration–inthefieldsofmanagementmethodsandrules,administrativesimplificationandImprovedServicesforCitizensandCompanies(see“ModernisationofPublicAdministrationDriver”Box),intherationalisationandcontroloftheuseofpublicresourcesintheHealthsector,fightingfraudandfiscalandtaxevasions,inthereinforcementofthesustainabilityoftheStateBusinesssector,intherevisionofthebudgetaryframeworksandthereductionofthepaymentdeadlinestosuppliersfrompublicentities.Itisalsoimportant,withinthemacrodomain,topointoutasetofactionsandresults,outside the social security and Public Administration modernisation sustainabilitydrivers,ofwhichthefollowingstandout:1.1. Rationalisation of the Use of Public Resources: Efficiency andExpenditureControlinHealthWith the aim of improving Health care in Portugal and its sustainability, theGovernmenthasbeenpromotingarationalisationpolicyintheuseofpublicresourcesconnectedwiththehealtharea,basedoncostcontrolatthemacrolevelandincreasedefficiencyatamicrolevel.Of the initiatives within the areas of prevention, access and assistance quality,emphasisgoestotheHeath24CallCentreandInternetservicewhichaimstoimprovethe access to health care and rationalise resources, the investment in informationsystemstoimproveepidemicvigilanceandthedefinitionofclinicalqualityindicators.Efficiencymeasureswereimplementedatamacrolevelwithaviewtopromotingthefinancial sustainability of the National Health Service, such as: reinforcing thecontractualprocesswiththeproviders,withquantifiedobjectivesfortheevolutionofcosts and results which, if not fulfilled, will carry financial penalties, the electroniccentralisation of budgetary control information; the implementation of a strictprescription drug policy, with a reduction in the public selling price (e.g. Ordinancenr.1016‐A/2008,ofSeptember8th,determinesthereduction,asarule,of30%ofthemaximum public selling price of the generics approved by 31st March 2008),implementation of rules and procedures for the introduction of innovation,continuationofthehospitaldrugprogrammewithemphasisgoingtotheinstallationofthefirsthospitalpharmacyopentothegeneralpublicdistributingsingle‐dosepills(intrial mode) and the introduction of monitoring mechanisms for medicationexpenditure,bothathospitalandoutpatientcarelevel.7

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 thecurrenthealthcentresthroughthecreationoffamilyhealthunits(smallerandmoreflexible structures), 142 operational at this moment, and the aggregation ofmanagement resources and structures. The restructuring of the secondary care(hospitals) network is under way with the reform of the national maternity andemergency network. The process of adopting the business management model inhospitalswasalsoreinforcedwiththetransformationintoEPEofovertenentitiesin2007and7entitiesinSeptemberandOctober2008.Anetworkofcontinuingcareisbeingdevelopedparalleltothis.The following processes were reinforced: strategic hospital planning, integratedmonitoring of performance with electronic availability of management informationwithamonthlyperiodicityandasystematicfollowupofperformance;internalcontrolmodel based on the best international practices; introduction of the figure of theinternal auditor in each hospital unit and the conducting of external audits on theHospitals. The use of shared services is also being stimulated with three companycomplementarygroupingsbeingsetupin2007(WeArePeople,WeArePurchasesandWeAreBills).ItisforeseenthatthepurchaseandlogisticcentreofSUCHwillachievesavingsof8.2millionEurosin2008,firstyearinoperation.The economic and financial results of the several measures undertaken arenoteworthy;in2006and2007,forthefirsttimeindecades,itwasnotnecessarytoresort to budgets amendments in the NHS which was also the result of realisticbudgeting. Therefore, the financial situation of the NHS was close to the budgetarybalanceintheselast2years.Costcontrolwasnoteworthyatboththelevelofprimarycareandthelevelofhospitals,namelyEPEhospitalswhosetotalcostsdecreasedbymorethan1%andoperatingcostsgrewlessthan2%in2006comparedwith2005,andunlike the two‐digit growth of the last few years. In 2007 total costs decreased by0.6%andtherewasaslightincreaseinoperatingcostsof0.9%.Theefficiencyincreaseintheexpenditureisdemonstratedbythefactthat,paralleltocost control, it was possible to increase citizen access; this was due to increasedproduction, namely outpatient care, and to a 20% reduction in the average time ofwaiting list for surgery from 2005 to 2006 and a 35% reduction from 2006 to 2007(about49%of2005comparedwithApril2008).1.2. FightingFraudandFiscalandTaxEvasionStrengthening the fight against fraud and fiscal evasion is a priority area within thescopeoffiscalpolicyoverthelastyear,withfocusonthepublication,inthisambit,ofDecree‐law nr.29/2008 dated February 25th, regarding the prevention and fightagainst abusive fiscal planning, which foresees a set of duties to report, inform andclarify actions with the Tax Administration by promoters of fiscal planning, namelycredit institutions and other financial institutions, independent auditors andindependent auditor companies, lawyers, law companies, solicitors, solicitorcompanies,accountantsandotherentitieswhichprovideaccountingservices.8

Consideringtheoutcomeoffightingfraudandfiscalevasionin2007,emphasisgoestothe 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 chargesmade by the DGAIEC – Directorate General for Customs and Excise Taxes of around24.7millionEuros,theannualriseof6%inenforcedcollection(1633millionEuros),theregularisationoffiscaldebtstothesumof242millionEuroswithinthescopeofthe process leading to the publication of lists of debtors, and the reduction of theestablished debt to 3.1 million Euros (resulting from an increase in voluntarypayments).ImprovementsintheefficiencyofthecollectionofsocialcontributionswascontinuedinordertostrengthenthesustainabilityoftheSocialSecuritySystem.In2007,withinthe ambit of the National Plan of the Prevention and Fight against Fraud andContributory and Service Provision Evasion, special attention was given to the fightagainstevasionandtocrime.Theresultsfrom2007showa31.7%increaseinthedebtcollected(to313.7millionEuros).Comparedto2004,thecollecteddebtincreasedby377%(2004:€65.7m;2005:€129.4m;2006:€238.3m;2007:€313.7m).1.3. ReinforcingtheSustainabilityoftheStateBusinessSectorWithin the scope of the State Business Sector (ESS), the revision process of thelegislative framework was continued, aiming for a better control of the activity ofcompanies with State participation, a greater transparency in their relationship withcitizensandthelinkbetweenthesalariesofpublicmanagersandtheresultsachievedbythecompaniesbymeansofapreviouscontractsettingouttargetsandobjectives.Therefore, after the approval of the New Statute of Public Manager (decree‐Lawnr.71/2007, dated March 27th), the approval of the good governance principles forcompaniesfromtheStatebusinesssector(CouncilofMinistersResolutionnr.49/2007,dated March 28th) and the revision of the juridical regime of the business sector(Decree‐Lawn.300/2007datedAugust23rd),thestrategicguidelinesfortheESSwereapprovedinMarch2008(takingintoaccountthearticulationoftheiractivitywiththesectorialstrategicpoliciesdefinedbytheGovernment,socialresponsibility,respectforthe operation of market rules and for consumers, and economic, financial andenvironmentalsustainability).Ontheotherhand,theprocessofsettingstrategicobjectivesforEEScompanieswasinitiated,withemphasisgoinginthisareatothefiveportAdministrations,Carris,CTTandEP–EstradasdePortugal,Parpública,STCP,TAP,Transtejo,NAV,ANAandEDAB,by signing management contracts with the respective management boards in whichthe annual and pluriannual objectives are defined; this aimed to emphasisemanagement professionalism and the development of a culture geared toperformance.Finally,anewjuridicalregimewasimplemented,applicabletotheconcessionofpublicsubsidies(Decree‐Lawnr.67/2008,ofAugust26th),whichintroducesgeneralcriteria9

to define financial counterparts attributed from the State Budget to finance entitiesprovidingservicesofgeneralinterestandtofinancepoliciesforpromotingeconomic,culturalandsocialactivities.Thiscontributestoboostingdisciplineandtransparencyinallocating financial counterparts, particularly in the compensatory sums awarded toserviceprovidersofgeneralinterest.Thus,itisforeseenthattheprovisionofageneralinterestservicemustbeentrustedtothereferredentitybymeansofacontractsignedwith the State which lays down the obligations of the parties, the duration of thecontract, the manner of calculating compensation and the procedures and entitiesresponsibleforsupervision,amongotherclauses.1.4. RevisionoftheBudgetaryFramework:BudgetingbyprogrammeThelongtermsustainabilityofpublicaccountsnecessarilyinvolvesmakingbudgetaryconsolidationlonglasting.Torespondtothischallenge,theGovernmentsubmittedascheduled plan of works to the Assembly of the Republic in 2006, aiming atrestructuringtheproposalforStateBudgetbyprogramme.Budgetingbyprogrammeconsists of a pluri‐annual cycle of planning, programming, budgeting, control andevaluationoftheState’sperformancesoastoguaranteetaxpayers’contributionsarebetter applied, that is, a quality public expenditure that triggers the socio‐economiceffectscapableofimprovingthelevelofwell‐being.Therefore, in March 2007 the Government formed the Budgeting by ProgrammeCommittee(COP)whichdependsdirectlyontheMinisteroftheStateandofFinance;its main mission is to propose a model to the Government and the respectivemethodologyforthestructuringoftheStateBudgetbyprogramme.COPpresentedaninterim report in May 2007, which was submitted to the Assembly of the Republicfollowing analysis in the Council of Ministers and presented to the ParliamentaryCommitteeforBudgetandFinance.Akeyfeatureofbudgetingbyprogrammeisthatthebudgetfocuschangesfrombeingresource‐centred to result‐centred. Therefore, the anticipated definition of theobjectives associated with the budget allocated to a body takes on a greaterimportance.Thoseobjectiveswilllaterallowtheefficiencyoftheexpenseincurredtobe monitored. At the beginning of 2008, the significant step was taken ofimplementing 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 theimplementation and operationalisation of the theme, namely by launching pilotsalreadyinthepreparationoftheStateBudgetfor2009.TheWorkGroupforthePilotImplementationofBudgetingbyProgramme(GTIPOP)wasformedandittookcharge,in articulation with the CBD and with the various services and entities of the PublicAdministrationwithcompetenciesintheareaofbudgetprogrammingandexecution,of the operationalisation of the three pilot programmes which will be part of theproposedStateBudgetfor2009,namelypilotsintheareasofPortugueseCooperation,IntegratedContinuousCareNetworkandSocialActioninHigherEducation.10

TheworkofCOPhasbeencomplementedbyanextensiveanalysismadebytheOECDonthePortuguesebudgetingmodelwhichculminatedinareportonthismatter.1.5. Decrease of the risks associated with payments in commercialtransactionsThe Programme “Paying at the right Time”, approved by the Council of MinistersResolution nr.34/2008 of February 22nd, is aimed at a structural and significantreductionofdeadlinesforpayingsuppliersofgoodsandservicesprovidedbypublicentities,enablingtheimprovementofthebusinessenvironmentinPortugal,reducingfinancing and transaction costs, introducing greater transparency in the setting ofpricesandcreatingconditionsforhealthiercompetition.Anaveragepaymentperiodof30to40daysisestablishedasalongtermgoal;thisisconsideredtheoptimaltimegiventheregularnatureofrevenuefrompublicbodiesandaneedtoobtaingoodpriceconditionsfortheStateinitscommercialtransactions.In accordance with this Programme, the evolution of indicators of the averagepaymentdeadlinetosuppliersispublicised;incaseofservicesofdirectandindirectAdministration of the State, the goals set for its directors and managers will beassociatedtothisevolutionandthelevelofachievementdegreewillinfluencetheirperformance evaluation. For 2008, directors of services where the average paymentperiodis45dayshavebeensetthegoalsetofreducingthatfigurebyatleast15%.This publication seeks to increase visibility and transparency linked to paymentpracticesinthePublicAdministration.“Paying at the right time” foresees the implementation of improvements within thecircuitsoffinancialcontrolsoastospeeduppaymenttosuppliers,aswellasauditsonthe services of direct and indirect administrations of the State which register anaverage payment period indicator of over 180 days at the end of 2008 so as toevaluatethequalityofexpenditureandtreasurymanagement.Themunicipalitiesandautonomousregionswhichcompliedwiththedefinedeligibilitycriteria were able to apply for medium to long term financing in order to pay shorttime debts to suppliers. Thirty‐six eligible applications were accepted, totalling 335millionEuros,ofwhich134millionwerefinanceddirectlybytheState.Other legal mechanisms also contribute towards the objectives of the Programme,namelyLawnr.67‐B/2007ofDecember31st,whichestablishesthemandatoryannualpublicationofthelistofcreditorsoftheState’sCentralAdministrationand,inrelationto municipalities, municipal mechanisms for financial clearing and rebalancing,foreseenintheLocalFinanceLaw.CITIUSProgramme–injunctionsisatoolwhichenablesthetotallyelectronicdelivery,payment and processing of injunction procedures, available from the 5th of March2008.11

The“dematerialisationofinjunctions”permitted:a)Theelectronicdeliveryofaninjunction,athttp://citius.tribunaisnet.mj.pt,bymeansofanonlineformorcomputerfile;b)Theelectronicpaymentoftheinjunctioncharges,byATMorhomebanking;c) The electronic processing of the injunction by the National Counter forInjunctions;d) The sending of the Injunction to court by electronic means, where it isopposed;e)Thesendingofwarningsbyemailtotheclaimantoftheinjunctionsothattheprocedurecanbemonitored;f)Theelaborationofanelectronicenforcementorderbasedontheinjunction,whichallowsthepresentationofanaffirmativeactionbasedonthatelectronicorder.The totally dematerialised injunction procedure is simpler because it enables thedelivery and electronic payment of the injunction without the need of any travel. Italso makes it unnecessary both to annex the injunction in paper form to theenforcementrequestanddeliverthecertificatesinpaperformforVATrebate.Itisquickerbecausetheautomatedproceduresenablequickerprocessing(electronicnotification order, electronic sending for printing and envelope insertion, etc.). It ischeaperbecausethejusticechargeforelectronicdeliveryofaninjunctionhasa50%reduction.Thedematerialisationoftheprocedureandtheelectroniccommunicationswithusershasdoneawaywithhundredsofthousandtripstojudicialofficesandtheassociatedcosts.Since 5th March 2008, over 219,000 injunctions have been received electronicallythroughCITIUS,representingmorethan95%oftheinjunctionsreceived.Driver1.“SocialSecuritySustainability”TheSocialSecurityReformAgreement,signedbytheGovernmentandSocialPartnersinOctober2006,tookitsfirststepwhentheSocialSecurityAct(Lawnº4/2007,of16thJanuary)cameintoforce.ThisActincorporatesthemeasuresagreedwithsocialpartners:thenewpensionscheme(Decree‐lawnº187/2007,of10thMay),reviewoftheSocialSecuritysystem’smodel(Decree‐Lawnº367/2007,of2 nd November),andimplementationofthePublicCapitalisationScheme(Decree‐Lawnº26/2008,of22 nd February).Measuressuchastheanticipationofthenewruletocalculatenewpensions,thenewruletoupdatepensionsandthe additional financial penalisation in the case of early retirement came into force in 2007. In turn, thesustainabilityfactorintroducedregardingnewpensionswasappliedasofJanuary2008.ThePublicCapitalisationScheme(RPC),participationinwhichisindividualandvoluntary,isworthyofnoteasitisanew 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 ratablecontributoryvalue,whichiscreditedasanindividualaccountinparticipationunits.Suchcontributionscapitaliseaccordingtothereturnensuredbythefund’sglobalassets,assuringaninvestmentprofilesimilartotheSocialSecurity’s Financial Stabilisation Fund. When the beneficiary retires, the participation units deposited in thebeneficiary’s individual account are converted into a monthly income for life, which will complement thebeneficiary’spension.12

Asforpublicworkers’SocialSecuritysystems,theadaptationofthemainreformmeasuresoftheSocialSecurity’sgeneralscheme,approvedbyLawnº52/2007,of31stAugust,cameintoforceinJanuary2008.Thistime,therewasagradualincreaseofemployers’contributionstowardstheCivilServicePensionFund(CGA–CaixaGeraldeAposentações),bringingitclosertotheSocialSecuritysystemwhenunderthesamecircumstances(Lawnº53‐A/2006,of29thDecember,andLawnº67‐A/2007of31stDecember),forautonomousbodiesandthosealreadylegallyrequiredtodoso.ThereformscarriedoutontheSocialSecuritysystems–boththegeneralschemeandthepublicworkers’SocialSecurityscheme–placingimportanceontheintroductionofthesustainabilityfactor,therulestoupdatepensions,andtheencouragementto“activeaging”,havehelpedtoincreasetheSocialSecuritysystems’capacitytofaceadversechangestothedemographicscenariowhich,inturn,havehelpedtoreducetheriskofunsustainabilityassociatedwiththeprogressivedevelopmentofpublicexpendituresensitivetoanagingpopulation(pensionsinparticular).Thus,Portugalwasabletoleavethegroupof‘highrisk’countriesinthisrespect,atthesametimethatisguaranteedthesocialsecuritysustainability,protectingthelongercareers(throughactiveretirementpolicies)andprotectinglowincomepensioners(stimulatingpositivediscriminationpoliciesinthepension’scalculation.Inordertoreversethedemographictrendexpectedinfuturedecadeswhichreflectasignificantdeclineinthebirth rate, the Government has continued its policy to encourage an increase in the birth rate. Thus, the StateBudgetLawfor2008(Lawnº67‐A/2007,of31stDecember)sanctionedtheincreaseinthesupplement,basedonthe taxation of collective earnings, of the donations for the creation and maintenance of day nurseries,kindergartensandbreast‐feedingroomsintegratedintherespectivecompanies,andtheadoptionoftaxincentivesforfamilieswithdependentsunderthree,intheformofIRS.Decree‐Lawnº105/2008,of25thJune,establishedsocial measures to reinforce social protection during maternity, paternity and adoption, extending them to thepopulationnotentitledtoprotectionunderthesocialsecuritysystembecausetheyareeithernotinthelabourmarketorhavemadeinsufficientcontributions.Alsoworthyofnotewithinthescopeofincentivestoincreasethebirthrateistheconstructionofdaynurseries–anareaprioritisedwithinthePARES(ProgrammetoextendtheNetworkofSocialFacilities).Inthismanner18650placeswereapproved,correspondingto418daynurseriesandatotalinvestmentof154millioneuros,82.7millioneurosofwhichisfrompublicfunding.Driver2.“ModernisationofPublicAdministration”ThemodernisationofPublicAdministrationisakeyareaofthestrategyforthecountry’sprogressandoneofthemainvehiclestoimplementpublicpolices.TomodernisePublicAdministrationistoimplementreformsaimingtoimprove the quality of their governance, increasing the efficacy and efficiency of the public service rendered,contributingtowardsincreasingthesatisfactionoftheirusersandmotivationofpublicworkers.OfthereformsundertakeninPublicAdministrationinthelastyear,thosethataimatmodernisingmethodsandrulesofresourcemanagementconnectedtotheiractivityareworthyofnote,asarethosethataimatdirectingAdministration towards citizens and companies, simplifying their lives in their relationship with the State andimprovinginformationserviceforthepublic.ReformsinManagementMethodsandRulesinPublicAdministrationThereformsinthemanagementmethodsandrulesinPublicAdministrationaimatimprovingthecapacitiesofmanagersandpublicadministratorsinmanagingandgainingmorevaluefromthepublicresourcesconnectedtotheactivityofthebodytheyhead,whetherbyrationalisingandeliminatingwasteorbyplanningandcontrollingtheiractivitybetter,alwaysaimingforbetterpublicexpenditure.Withthisinmind,inthelastyear,reformofthepublicemploymentschemewasstrengthenedandtheprocessestocontroladmissionsandrecruitingofstaffwerereinforced, the Programme to Restructure the State’s Public Administration (PRACE) was concluded and thereorganisation of the local services of the State’s decentred action was expanded, implementation of themanagementofsharedresourcesbegan(whichincludedthepublicpurchasesprocesses),planning,controlandevaluationofpublicservicemechanismsweredeveloped,andthereformofthemanagementofpublicrealestatewasmademorewide‐ranging.InthislastyeartherehavebeenstructuraldevelopmentsinthereformofthepublicemploymentschemeandthereforeonthemanagementrulesofhumanresourcesinPublicAdministration,withthreeofthelegalpillarsofthisreformcomingintoforce‐Lawnº66‐B/2007,of29thDecember(newIntegratedManagementandEvaluationSystemofthePerformanceofPublicAdministration),Lawnº12‐A/2008,of27 th February(newcontractualties,13

careersandremunerationsinPublicAdministration),andLawnº59/2008,of11thSeptember(newlabourcontractforpublicoffice).Thenewpublicemploymentsystemaimsatbeingclosertothecommonsystemandtriestobringincentives(thus,improvingperformance)ofmanagersandemployeesinlinewiththeneedtoimproveservicestothepublicwithfewer resources. This new paradigm consists of complementing the normal fulfillment of legally determinedadministrativeprocedureswiththecreationofincentivesformanagersandpersonnelbyevaluatingperformancesothat,throughtheirowninitiativeandtalent,theymaybeabletoreachalevelofexcellenceintermsofpublicservicesrenderedtocitizensandcompanies.Therefore,asof2008,forexample,performanceawardsaretobegranteddependingontheperformanceevaluation.Withthesameobjectiveofencouragingtalent,quotashavebeen introduced to classify performance. This is to avoid previous practices in which there was an automaticprogressionincareerwhichhadledtoanunsustainabledriftinsalaries.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 522positions),andthemergerof1715careersintothreegeneralschemecareers(Decree‐Lawnº121/2008,of11thJuly).Thelatestmajorlegalpillarofthepublicemploymentreform–thenewWorkContractSchemeforCivilServants–was agreed with by two of the three trade union associations with which the Government negotiated thedocument.Withthisnewdocument,thepublicemploymentschemeisclosertothecommonemploymentschemeby introducing more flexible rules in managing human resources, and the concrete work conditions of thestatutory scheme also come closer to those in the private sector. For example, public employment legalrelationshipswillnow,asarule,bebasedonacontract,meaningthat,withincertainlimits,anemployeebeingrecruited for a certain job can negotiate his/her salary with the employer. Another example is that it is nowpossible to shorten the normal period of work, or suspend the contract if it becomes temporarily, partially ortotallyimpossibletoprovideservice,eitherbytheemployeeorbythepublicemployeranduponagreementbybothparties.Afurtherexampleistheintroductionofschemeswhichallowflexibletimetables,part‐timeworkandtelework,whichwasnotpossibleuntilnowwithinPublicAdministrationandwhichnowfollowthesolutionslaiddownintheLabourCode.The Disciplinary Law for public workers has been reviewed (Law nº 58/2008, of 9 th September). The new Lawsimplifies and introduces processes to hasten the legal channels of the disciplinary procedures and creates aspecial procedure – the inquiry procedure – aimed exclusively at determining if two consecutive negativeperformanceassessmentsindicatetheexistenceofadisciplinaryinfractionwhich,ultimately,mayleadtodismissalof the appointed employee or demotion to a non‐supervisory position, to be determined via a disciplinaryprocedure.Reform of the human resources management in Public Administration also goes through implementingimprovements when planning such resources – a fundamental area in terms of rationalizing their use. In thismanner, services with an excess of human resources should transfer them to more strategic and under‐staffedareas. This is why the mobility of human resources is an essential mechanism to complement and ensure theefficiencyofhumanresourceplanning,aswellascontributingtosatisfyingworkerslookingfornewprofessionalexperiences. With this in mind, general mobility mechanisms have been strengthened (transferals, exchanges,requests,secondment,specificassignment,specialassignment)throughLawnº12‐A/2008,of27 th February.Withregard to special mobility mechanisms, approximately 2,300 employees have been through that situation, andcurrentlythereareabout1,200employeesinaspecialmobilitysituationawaitingnewfunctions.Strict control of admissions and contracting through the application of the recruitment rule whereby oneemployeeistakenonforeverytwothatleave,hasenabledareductionofexpenseswithstaffbydecreasingthenumberofpublicworkers–somethingthathadnothappenedindecades.Thus,thenumberofemployeesfell2.9%in2006and2.5%in2007,correspondingtoadecreaseof39,373employeesintwoyears(or5.3%intwoyears)–thismorethanfulfilledtherecruitmentrulereferredto.Withinthisperiod,expenseswithstaffsawa1.0percentagepointfallintheGDP(13.9%oftheGDPin2005to12.9%oftheGDPin2007).Theeffectofhospitalsbecomingprivatelymanagedduringthisperiodwasalsoconsideredwhendeterminingthisfigure.ThePRACEprogramme,whichbeganin2006andfinishedin2007,sanctionedaneworganisationmodelofthe14

ministries’centralservices,strengtheningthesupportprovidedtogovernment,aswellastwoorganisationmodelsoftheregionaldecentralisedservices(NUTSIIandregions),replacingthe30alreadyexistentsolutions.After430charters were published, there was a reduction of about 25% in the number of existing structures andmanagementpositionsthroughthePRACE.With regard to the reorganisation of the State’s decentralised local services, note the results obtained in thereorganisationoftheeducationalnetworkattheprimaryschool(1 st cycle),whereapproximately2,200isolatedschoolswithinadequateteachingconditionswereclosedduringthe2006/07and2007/08schoolyears;andtheprimarycareandhospitalcarenetworksystemwasrestructured,thehealthcentreswerereconfigured,andFamilyHealthUnitswerecreatedandimplemented(142inoperation,coveringabout1.8millionusers).Thesestructuresaresmaller,flexibleandcapableofimprovingcitizens’accesstolocalcareandlesseningthepressureonthesearchfor different health systems at higher average costs. Also, Law nº 52/2008, of 28th August, approved a neworganisationandworkingmodelforcourtsoflaw,andreducedthenumberofdistrictsfrom231to39.Inthisway,the first step was taken in changing a generic offer in terms of legal responses to one where each of the newdistrictsnowhavemorespecialisedsolutionsaswellasbettermanagementconditions.TheaimofimplementingsharedservicesinPublicAdministrationistoachievesavingsbyaccomplishingefficiencyearnings associated with simplified processes, together with the introduction of new information andcommunicationtechnologies,andbyreducingthecostsassociatedwitheconomiesofscaleandrange.In2008,GeRAPbeganimplementingthesharedmanagementofresourcesintheaccountancyandfinancialsectoroftheFinance Ministry and Public Administration’s integrated service, as a pilot experiment. GeRAP’s activity in thefinancialfieldwillincludethedisseminationofthePublicAccounts’OfficialPlan,standardisationandoptimisationofprocesses,andreportstosupportmanagement.Inthesupplysector,theNationalAgencyforPublicPurchases(ANCP)hasalreadylaunchedeightpublictendersin2008(fromatotaloffifteenanticipatedforthisyear).Theframeworkagreementformobilecommunicationservicesisonethathasalreadybeenformalized,aswellastheframeworkforroadfossilfuels.Theseframeworkagreementspre‐qualifysuppliersandestablishconditionsandrequirements regarding the supply of goods and services to the State (maximum prices, levels of quality ofminimumservices,amongothers),thusencouragingcompetitionbetweencompanies,inparticularSMEs.ThisnewgenerationofframeworkagreementstobecelebratedbytheStatewillcomprise75%ofthetransversalpublicexpenses.IntermsofmanagingtheState’sfleetofvehicles,thenewlegalschemeestablishedbyDecree‐Lawnº170/2008,of26thAugust,foreseesthatpurchasesandmanagementbecomecentraltoANCP,aswellascontractsbetweenANCPandtheuserservicesunderthesameobligationsasthoseallocatedtothevehicles,thecreationofgeneral standards for allocation of vehicles and their classification, and preference for an environmentallyadvanced fleet of cars. The new scheme aims at eliminating waste resulting from an ad‐hoc management ofapproximately29,000vehicles–afleetthatisscattered,heterogeneousandold(anaverageof11years).The introduction of the SIADAP and the investment in a new performance evaluation process based onmanagement by objectives has been strengthening an assessment and making officials in Public Administrationawareoftheirresponsibilities.TherehavealreadybeencreatedpublicdocumentsofEvaluationFrameworksandAccountability(QUAR),whereobjectiveshavebeenlaiddown,ashaveperformanceindicators,resultsachieved,availablemeans,andthefinalevaluationsoftheservices’performanceinapproximately98%oftheState’sdirectandindirectservicesin2008.Evaluationoftheservices’performanceisbasedontheirself‐evaluationwhichisthencriticallyanalysedbytheservicewhich,ineachministry,hastheauthorityintermsofplanning,strategy,andevaluation. The Coordinating Committee for the Evaluation of Services, chaired by the Government memberresponsible for Public Administration was created with the objective of ensuring coordination and encouragingcooperationandthesharingofgoodpractice.AsformanagementoftheState’sassetsandfollowingtherevisionofthepublicrealestate’slegalsystem(Decree‐Law nº 280/2007, of 7th August) – which controls this system and aims at efficient and good use of publicresourcesandcompliancewiththeState’scurrentorganisation–,andtheRegistrationofPublicAdministrationProperty,asignificantamountofsurplusspacewasidentifiedwhencomparedwiththeoccupationratio(averagefloorareaof50m2perworker)whichhasenormouspossibilities.AdministrativeSimplificationandImprovedServiceforCitizensandCompaniesIn2008,theAdministrativeandLegislativeSimplificationProgramme(SIMPLEX)reachestheendofitsthirdyearsimplifying the lives of citizens and companies and their relationship with the State, as well as improving theinternalefficiencyofserviceswithinPublicAdministrationitself.15

Of the measures undertaken by the Government, almost 90% were executed in 2006, and, in 2007 this figurereached85%thankstoaProgrammethatincluded235simplificationmeasures.The SIMPLEX 2008 consolidated the strategy to modernise administration ‐ by associating administrative andlegislativesimplificationwithe‐Government–which,inthecontextofthereformofprovisionofpublicservices,wasoneofthecriticalfactorsofsuccessinresponsetothemodernisationandinnovationobjectivesinthepublicsector.Thisprogrammecomprises189measuresdirectedatcitizensandcompaniesandcontinuestoinvolveallthe 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 wasachievedcomparedtoitspredecessor.The‘lifeevent’conceptwasreinforcedincitizensandcompanies’relationshipwiththeState,includingtheonestopservice–capableofprovidingintegratedservicesolutions,ensuringthattheperson/companyrequestingtheservicecandosoorobtaintheinformationneededinasinglecontactorinteraction.FollowingarecentOECDevaluation,theopportunitytoestablishaspecificevaluationprocessofthesimplificationmethodincooperationwiththelocaladministrationwasacknowledged.Alsoacknowledgedwastheimportanceofestablishinginstitutionalcooperationaimingatthesimplificationandelectronicadministrationattwolevels–centrallyandlocally.TheLocalAuthoritySimplexProgrammewastheanswertothisrecommendationwhich,aswellasthemeasuresthataretheexclusiveresponsibilityoflocalauthorities,alsoincludesmeasuresthatrelyonthecollaborationbetweenthesetwolevelsofadministration,ormeasuresthatdependonthejointworkoftwoormorelocalauthorities.PortugalrespondedtothechallengelaunchedbytheEuropeanCouncilinMarch2007andundertooktocomplywiththeprogrammetoreduceadministrativecostsforcompaniesintheEuropeanUnionandtodevelopitsownnationalprogramme.Inthisway,apledgetoreduceadministrativeburdensforcompanieswasintegratedintheSIMPLEXprogramme,withtheobjectiveofa25%reductioninadministrativeburdensimposedbynationallegalandregulatoryrules,by2012,ineventsrelevanttothelifecycleofcompanies.Anumberofpilot‐projectswerelaunchedin2007withthemainaimoftestingtheapplicationoftheStandardCostModelmethodologytothenationalsituation,usingalimitednumber(6)ofSIMPLEXmeasuresasastartingpoint.The progress achieved in Portugal in the electronic government field has been acknowledged by internationalinstitutions.So,aswellasthehighclassificationobtainedintheGlobalE‐Governmentindex(BrownUniversity)andintheEuropeanRankingforOnlinePublicServices,nowin2008,theGlobalInformationTechnologyReport2007‐2008 (World Economic Forum) has already acknowledged Portugal as 2nd of 127 countries to placeInformation and Communication Technologies within the Government’s vision for the future modernisation ofpublicservices.AdministrativeSimplificationtargetingcitizensA new One‐Stop concept (Citizen Shop – 2nd generation shops) was launched – these shops enhance theavailabilityofpublicservicesfoundedonnewconcepts,suchastheone‐stopservice–inpersonorthroughtheInternet–basedonabackofficecooperationbetweenthedifferentpublicservicesinvolvedintheprocesses.Thefirst2ndgenerationshopwasopenedin2007.Withinthiscontextofnewconceptsinthedistributionofservicesatone‐stopshops,thefirst‘ILostmyWallet’servicewaslaunched.Throughthisservice,acitizencanhaveidentificationdocumentsre‐issuedwithinthePublicAdministrationservicesshouldtheybestolenandreporttheoccurrencetothecompetentauthority.Thisservicehopes to respond to over 20% of the enquiries made at the One‐Stop Agencies. Up till August, over 43,000documentswererenewedatthetwoagenciesavailable.The “Ready House” service launched in July 2007 aims at eliminating the formalities of property transfer andregistrationbydealingwithallaspectsinonesingleplaceandinonego.Thisinitiativeisbasedonanelectroniccommunicationplatformbetweentheinterveningservicesandbodies(registryoffices,TaxAdministration,localauthoritiesandfinancialinstitutions),ensuringnotonlyswiftnessandsecurityoftheserviceprovided,butalsoareduction in costs to users (by about 900 euros considering a sale and purchase contract with a bank loan,excludingtaxes,andfollowingthecontractprocedures).Thereare83“ReadyHouse”agenciesavailableand,byJune2008,over12,400‘ReadyHouse’procedureshadbeenaccomplished.16

The“SuccessionandInheritance”Projectconcentratesthemainprocessesrelatedtoaperson’sdeathandrecordofinheritanceassets.Itisnowpossibletocarryoutalloperationsrelatedtosuccessionandinheritanceatoneofthe21agenciescurrentlyinexistence(divisionofassets,paymentoftaxes,andregistrationoftheassetsdivided).The “Born Citizen” project aims at having children registered immediately after birth at maternity clinics andhospitalswithouthavingtogotoaregistryoffice.67,000childrenhavebeenregisteredatthe32“BornCitizen”agenciesalreadyinoperation(76%oftheinfantsborninhealthcentresencompassedbytheproject).The“CitizenCard”project,whichbeganinFebruary2007,hasbeenextendedoverthelasttwoyears.So,aswellasthe nine islands of the Azores archipelago, it is now possible to obtain the Citizen Card in every districtcountrywide.Approximately310,000applicationswereregisteredby15thSeptember,170thousandofwhichhavealreadybeendelivered(ofthese,60%haveaqualifiedelectronicsignatureactive).Withinthehealthfield,the“AppointmentonTime”Projectallowedover327,000requestsforfirsttimespecialistappointments,involvingabout90%ofhospitalsandhealthcentresontheContinent,inajointefforttoincreasetheattendanceefficiencyandquality.Anotherstepforwardincitizens’relationshipswiththelabourmarketwasthedematerialisationoftheWorkandEmploymentForm(BTE).On‐lineconsultationmeansthatpaperworkisnolongerneeded,andthisresourcehasbecomemoreaccessibletocitizensandcompanies.Over284,000accesseshadbeenmadebytheendof2007.Asforthefiscalfield,thegambleusingtheInternetasameansoftransactionhasreceivedafavourableresponsefromcontributorsascanbeseenbytheincreaseinthenumberofaccessestotheDGCIandDGAIECsites(268%morein2007,thatis,from47.5to127.4millionaccesses).AllformssoldatfinanceofficesweremadeavailableontheInternet.UptoMay2008,thenumberofIRSdeclarationsdeliveredviatheInternetrepresented69%ofthetotalnumberofdeclarationsdelivered(60%in2007).Asforfillingindeclarationsbeforehand,approximately82%wereeffectivelydealtwithin2007(1,036,717declarationswerecompletedbeforehandoutofatotalof1,264,165received via the Internet). Over 72% of the approximately 11.6 million rustic building registrations have beencomputerised,surpassingtheinitialobjectiveof50%.Withintheinternalsecurityrealm,afastlanehasbeencreatedforthosewithanelectronicpassporttobeallowedtocrossairandseafrontiers.Papercheck‐in/outregistrationatallborderpostswaseliminatedbytheendof2007,and the new automated control system for owners of electronic passports was implemented (Faro, Lisbon andFunchalairports).AdministrativesimplificationtargetingcompaniesDuringthePortuguesePresidencyoftheEU,theEuropeanUnion’sCouncilofMinistersforcompetitiontookthesimplification path: elimination of the dual control of legality, the creation of online registration services, thecreationofone‐stopshopsanddispensingwiththeobligationtoreportthesameinformationtodifferentbodies.InPortugal,theprocessestosimplifyformalitiesandcreatenewservicesforcompaniesareorganisedaroundtheidea of a life cycle, with every phase of a company’s existence and activity, from its start‐up to its extinction,includingtheexpansionandconsolidationofitsbusiness.EuropeanCommissionerfortheInternalMarket,CharlieMcCreevy,commentedfavourablyonPortugal’sevolution,consideringthatthecountrywasabouttobecomeaEuropeanbenchmarkwithregardtocuttingcontextcostsforcompanies.The Company Portal enables electronic access to a wide number of public services, having become a powerfulmeansofcommunicationbetweencompaniesandPublicAdministration.The “Company within an Hour” project continues to expand its network of locations – from July 2005 to thebeginning of 2008, over 48,000 companies were set up at the current 101 agencies available (about 70% ofcompanies presently set up in Portugal). Approximately 2,173 companies had been set up through the OnlineCompanyRegisterbyAugust2008.Continuingthesimplificationprocessandeliminationoflinkednotaryandtraderegistrationacts,OnlineRegister17

services have been made available on the Internet, through which it is possible to register businesses or otherrelated acts (such as alteration to the company’s administration or equity). The new service atwww.empresaonline.pt where permanent certificates for company registration are available online has alreadyissuedabout875,000certificates,thuseliminatingpaperformats.Over1,286,400publicationsofcompanies’lifeeventswerepublishedonline,eliminatingseriesIIIoftheDiáriodaRepública,andabout93%ofnationalbrandnamerequestsweremadeviatheInternetinAugust2008,through“Brandonline”(1,096applications).PortugalisoneoftheEuropeancountrieswhereitisquickesttoregisterabrand.In2007,80%ofapplicationswereregisteredin5months.In2006thewaitingtimewas7to8months,andin2002,itwas15months.With regard to the Tax Administration field, several simplification and dematerialisation measures were taken,suchastheexportstatementcopyfortheNationalInstituteofStatistics(INE),whichisnowsentelectronically,thusreplacingpaperformatanditisestimatedthatbytheendofthefirsthalfof2008,approximately3,930,000declarationsweresenttotheINEviatheInternet.TheSimplifiedBusinessInformation(IES),combiningfourlegalobligations,previouslymadethroughfourdifferentpublic bodies, into a single act, received over 405,000 declarations in its first year available (2007). With theadoption of the scheme, the obligation to deliver the annual fiscal and accountancy statement, the record ofaccountsandinformationfortheNationalInstituteofStatisticsandfortheBankofPortugalcannowbedoneinasingleactthroughtheElectronicDeclarationssite.TheDecree‐LawforthecreationofacompanycardhasalreadybeenapprovedbytheCouncilofMinisters.Thissingle electronic document includes the three relevant numbers for identification of corporate bodies: thecollectiveperson’sidentificationnumber(NIPC),thetaxpayeridentificationnumberforcompaniesandequivalentbodies, and the company’s Social Security identification number (NISS). In this way, the legal body card andtaxpayercardforcompanies,whichwereissuedbytwodifferentPublicAdministrationBodies(theIRNandtheDGCI)despitehavingexactlythesameidentificationnumber,havebeeneliminated.Asforaccesstoacompany’sactivity,acatalogueoflicensesandauthorisationshasbeencreatedintheCompanyPortal – this is a one‐stop shop where it is possible to access relevant information for each sector, such asapplicablelegislation,competentauthority,andcontacts.In terms of access to industrial activity in particular, the already adopted simplification models were givencontinuityandthepromulgationofanewschemefortheexerciseofindustrialactivityisexpected.Anumberofalterations is foreseen aimed at simplifying the licensing process based on the principle that the expectedcomplexity of the procedures needed for the exercise of an industrial activity should be proportional to therespectiverisk.Inthisway,differentlevelsofcontrolareestablishedpreviouslyaccordingtothepotentialriskand,at the same time, the unnecessary phases of the procedure are eliminated. Thus, the one‐stop shop wasestablishedandsothewholeprocesscantakeplaceviaasingleinteractionwithaPublicAdministrationservice,throughaphysicalordematerialisedchannel.Ontheotherhand,thedecision‐makingperiodsareshorterandtheprocessesleadingtotheireffectivecomplianceareestablishedthroughtacitdefermentandbasedontheprinciplethatadditionalelementscanonlyberequestedoftheapplicantwithinacertainperiodandbyasingleinterlocutor– the coordinating body. The backup information system – integrated in the license catalogue – among otherfeatures, will allow the interested party to see the procedure applied to his/her case beforehand, through asimulator,andfollowthedifferentphasesoftheprocess.The new scheme aims at consolidating the regulation that had, until now, been disperse, reorganising andincludingitinasingledocumentoritsannexes,sothatuponrespectiveconsultation,itispossibletoobtaintheinformationthatpreviouslyrequiredtheanalysisofseverallaws.AdministrativeSimplificationtargetingPublicAdministrationThe simplification and modernisation of administrative practices within Public Administration, especiallydematerialisingofprocedures,aimatincreasingtheefficiencyofpublicservice.Anylawstobepublishedinseries1and2oftheDiáriodaRepublicamustnowbedeliveredelectronically–thishasmeantacompletedematerialisationofrequeststoissuelawsandhasreducedtonsofpaperusedbythe7,000bodiesregisteredintheNationalMint,aswellascuttingbyhalftheaveragetimetopublishlawsintheDiárioda18

República.The information and electronic availability of the Diário da República has been used profusely, with access tolegislationandotherlawspublishedasfollows:• • ThenumberofvisitstothesiteoftheElectronicDiáriodaRepública(counter)increasedbynearly50%:1styear(July2006toJune2007)–11.8millionvisits;2 nd year(July2007toJune2008)–16.8millionvisits• The number of requests made through the Universal and Free Public Service (i.e. documentconsultation, document downloads, etc.) increased by nearly 100% in its second year ofoperation:1 st year(July2006toJune2007)–21.1million;2 nd year(July2007toJune2008)–41.9million• In2008,duringaconsolidationphaseofthemeasuretoreinforceaccesstotheElectronicDiáriodaRepública, 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 tenderselectronically,establishthatcompulsoryevidenceofcompliancewiththequalificationrequirementswillnowonlyfallonthebidderawardedthepubliccontracts,and,duringthephaseinwhichproposalsarepresented,biddersnolongerhavetoprovidequalificationdocuments(thiswillonlybenecessaryonthepartofthecontractor).19

|MICROLEVELInthemicroeconomicsphere,itwaswithdeterminationthatPortugalcarriedonwiththeimplementationofPNACEinseveralpoliticalareas,aimingatattainingthegoalsetforincreasedcompetitivenessandchangeofthecompetitivebaseofthePortugueseeconomy.Centred on that goal, work was developed in line with the priorities defined by theEuropean Councils of spring 2006, 2007 and 2008, as well as with the domainsidentified by the Council as needing special attention ("Future Challenges") in theevaluationofthe2 nd executionReportforPNACE.Infact,inlinewithoneofthe“FutureChallenges”forPortugal,theimplementationoftheTechnologicalPlanwaspursued–aplancentredontheboostingofknowledge,technologyandinnovativecapacity–favouringtheconsolidationoftheconnectionsbetweenresearch,highereducationandindustryandfosteringincreasedparticipationfromtheprivatesector.Some indicators that demonstrate the impact of the technological plan are: theinversionofPortugal’stechnologicalbalance,whichwaspositiveforthefirsttimein2007; over 32% penetration of mobile broadband in population (with mobilebroadbandleadership);theclassificationofPortugalinthe3 rd placeoftherakingforavailability and sophistication of on‐line public services within the framework of theEU; and the return to school of 450,000 Portuguese that signed up for the newopportunitiesprogramme,forvalidationofskillsandre‐qualification.TheglobalresultsoftheTechnologicalPlancanbeseenparticularlyin6spheres: 1 (1) Network Society: where there are outstanding results in the increase of thecoverageandpenetrationofthelandandmobileBoardBand;inthepercentageofpublic services available on‐line; in the increase of regular users of the Internetamongstpeopleagedbetween16and74years;intheincreaseoftheCompanieswithInternetandBoardBand;inthegreatincreaseininternationalconnectivityofthenationalresearchandeducationnetwork(RCTS).(2)HumanResourcesQualification:aboveall,inthedecreaseinthelevelofearlydropoutoftheschoolsystem,withresultingincreaseinpopulationbetween20and24yearsofagethathaveatleastfinishedsecondaryschool;intheincreaseofthepercentageofhighereducationgraduatesinthepopulationbetween25and64yearsofage;intheincreaseperthousandgraduatesinScienceandTechnologyinthepopulationbetween20and29yearsofage;inbroadeningofhighereducationto new audiences and their involvement in professional training; and in thesignificantincreaseinPhDs.1 See Annex on the evaluation of the Technological Plan.20

(3) Science and Technology Infrastructure: the pledge made in scientific andtechnological development has been visible from the outset in the significantincreaseofpublicbudgetaryappropriationsforR&D;intheincreaseofthenumberofresearchers,inparticularholdersofPhDs;intheincreasingpromotionofR&Dactivities, namely in partnership and according to theme networks; in thesignificantincreaseofinternationallyreferencedscientificproduction(publicationspermillioninhabitants);andintheexpansionofe‐Scienceinfrastructures(researchand education network, digital scientific libraries, open scientific repositories,computingGrid).(4) Financing System: the improvement in access to financing for innovation isshownintheincreaseofinvestmentinventurecapitalasapercentageofGDP,aswellasinthegrowthofthepublicexpenditureinR&DasapercentageofGDP.(5) EconomicActivityConditions:theconditionsoftheeconomicactivityhavealsosignificantly improved, as seen in the increase in foreign direct investment inPortugalasa%ofGDP;theincreaseoftheregisteringofpatentsandregisteredCommunity trademarks; and in the evolution of the weight of the production ofrenewableenergiesingrossproductionplusimporterbalance.(6) Entrepreneurship: the results of the technological plan are also felt in theincreaseintheEntrepreneurialActivityRate(GlobalEntrepreneurshipMonitor)andin the consolidation of the processes that lead to the creation of newtechnologicallybasedcompanies.(7) BusinessCapacity:theTechnologicalPlanalsohassignificanteffectsintermsof business capacity; it is worth noting the increased employment in KnowledgeIntensiveServicesinrelationtototalemploymentinservicesactivity;andthehighproportionofSMEthatdeclarehavinginnovatedinproductsandprocesses.2.1. ScientificandtechnologicaldevelopmentFor the first time in Portuguese history, the public budget for research anddevelopment exceeded the figure of 1% of GDP in 2008, reaffirming theGovernment'scommitmenttotheprioritygiventonationalscientificandtechnologicaldevelopment(itwas0.78%oftheGDPin2007).This increase in public investment in R&D over the past few years is linked to anestimatedincreaseintheinvestmentofthecompaniesinR&Dofabout75%inthepast3years,usingasreferencethefiguresdeclaredbythecompaniesfortaxpurposesin2006,comparedto2003,thelastyearinwhichthetaxincentivesystemoperateduntilitwasreinstatedin2006bythepresentGovernment.Infact,onlyafter2005didthe company investment in R&D exceed the investment from higher educationinstitutions. We now await the results of the National Scientific and Technological21

PotentialSurvey–2007,initsconclusionstage,toconfirmtheexpectationsofaverysignificantincreaseinprivateinvestment.Itshouldbestressedthatthisprioritygiventotherapidscientificandtechnologicaldevelopment of the country has been accompanied by a strong mobilisation of thenational scientific community, with visible results in the impact of its assertion atinternational level, including the involvement of researchers from Portugueseinstitutions in European and international science and technology networks. ThisstrengthenedinternationalisationofthescientificcommunityincludedtheincreasedcooperationwithSpain,namelythroughthecreationoftheINLIberianInternationalNanotechnologyLaboratory,andtheestablishmentofnewinternationalpartnershipsin Science and Technology and Higher Education, with the New Partnerships for theFutureProgramme.Thenationalscientificproductionhassignificantlyincreasedinthepastfewyears,amountingtoatotalof6,655internationallyreferencedpublicationsin2006(about630permillioninhabitants),whichrepresentsa45%growthinthepastthreeyears;itshouldbehighlightedthattwoofthe5mostquotedscientificarticlesintheEUarecoauthoredbyPortugueseresearchers.These development dynamics currently involve about 11,600 doctorate researchersworking, 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 ofdoctorateresearchersincomparisonwith2000.Moreover,duringthepasttwoyears,about20%ofthetotalofthenewdoctoratessince1990obtainedorhadtheirPhDsrecognisedinPortugal,andin2007thefigureofabout1,460newPhDsperyearwasreached. It should also be stressed that the percentage of the number of newdoctorate degrees achieved by women recently exceeded 50%, the highestpercentageever.Alsoworthmentioningisthefactthatthenumberofnewdoctoratedegreesinscienceandtechnologyareascurrentlyrepresentsabouthalf(47.3%)ofthetotalofnewdoctorates,whileintheearly1990’sitrepresentedonly1/3ofthetotalofthedoctoratedegreesawardedatthetime(namely31.3%in1991and32.5%in1992).In addition, and reaching the highest point in a persistent evolution since the midnineties,themonthlyfiguresofthetechnologicalbalanceweresystematicallypositivein 2007, showing the boost in the exports of technologically based services fromPortugal and, as such, the increased technological capacity of the Portuguesecompaniesandtheirassertionatinternationallevel.Alsointhiscontext,thenumberofPortuguesepatentsregisteredintheEuropeanPatentOfficeandintheUSPatentOfficeincreasedabout90%and75%respectively,between2005and2007.Naturally, these results are encouraging the national effort in the investment inpeople,knowledgeandideasand,inparticular,thecommitmentassumedbyPortugalfortheneedtopromotethenationalscientificandtechnologicalcapacity,namelyinthe context of the European Research Area, together with the reinforcement andautonomyofthescientificandtechnologicalinstitutions.22

WithinthescopeoffulfillingthePledgewithScience 2 presentedbytheGovernmentinMarch2006,somebasicfactorshavecontributedtotheseimportantresults:• The total number of advanced training scholarships, directly awarded by theFoundation for Science and Technology, has been increasing in the past fewyears, having reached 6,250 scholarships in 2007, of which about 4,900 aredoctoratescholarshipsand1,350arepost‐doctoratescholarships.Withinthisscope,thenumberofnewscholarshipsawardedonanannualbasisincreasedvery significantly, with a 77% increase in doctorate scholarships and41% inpost‐doctoratescholarshipsinthepasttwoyears.• Within the scope of promoting scientific employment, the support for theplacement of about 720 new doctorate degree holders has already beenagreedwithinstitutionsfromthenationalscientificandtechnologicalsystem,followingcallsforapplicationsforopencontracts‐programsin2006and2008bytheFoundationforScienceandTechnology,withaviewtosupportingthehiringofatleast1,000doctorateresearchersby2009.• In2008,theFoundationforScienceandTechnologyhasalreadylaunchedtwonewprogrammestoboostscientificandtechnologicalresearch,aimingat:(i)supporting the integration in research (in recognised R&D centres) of morethan5,000studentsoftheearlyyearsofhighereducation,and(ii)supportingguestresearchchairsinPortugueseuniversities.• TheFoundationforScienceandTechnologyiscurrentlyfinancingabout4,940R&Dprojectsinallscientificareas,whichcorrespondstoanincreaseofmorethan800newprojectswhencomparedto2005.Worthnotingisthefactthatinthe last call for applications launched by the Foundation for Science andTechnology projects amounting to more than 600 million euros applied forfinancing,correspondingtoamorethan25%riseinthenumberofprojectsand100%intermsoffinancingrequested,whencomparedtothepreviouscallforapplications.• Since the launch of the Pledge with Science in March 2006, four newAssociatedLaboratoriesweresetupintheareasofBiotechnology(1),EnergyandTransportation(1)andNanotechnology(2).• TheextensionoftheRCTSinfibreringtoSpainandtotheEuropeanGeantnetworkat10Gbps,agreedinthePortugal‐SpainSummitinNovember2005,isalreadyconcludedfortheNorthasfarastheMinho‐GalizaborderinValença,and will be concluded in the next few months for the East up to the Caiaborder. This way, Évora University and the polytechnic institutes of Viana doCastelo, Setúbal and Portalegre are also connected to the RCTS fibre cable2 With ambitious goals for the 2006-2009 term, this initiative involves the reinforcement of the scientific knowledgetechnological competences measured at the highest international level, human resources and the scientific andtechnological 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

network.InJuly2008,RCTSwasconnectedtotheGeantnetworkat10GBPS,abandwidth8timesgreaterthantheoneavailableinJuly2005.• In 2007, the Online Knowledge Library (b‐on) was extended to all scientificandpublichighereducationinstitutions,andanewfinancingmodelwasputintoeffectthatassuresthelibrary’sdisciplinaryunitanduniversalaccess.Theb‐on provides unlimited and permanent access in Research and HigherEducationInstitutionstomorethan16,750internationalscientificpublications,by 16 editors, through subscriptions negotiated at national level with theseeditors. In 2007, the number of articles downloaded in this library was 4.2million(3.4in2005and3.7in2006).Inaddition,westressthecontinuationofthesettingupprocessofthePortugal‐SpainR&D Institute, INL – Iberian International Nanotechnology Laboratory, following thedecisiontakenbythePortugueseandSpanishGovernments. 3 StillinNovember2006,the Portuguese Foundation for Science and Technology (FCT) and the SpanishDirecciónGeneraldeInvestigaciónopenedajointprogramofIberianempowermentin nanotechnology, through a call for applications for scientific research andtechnologicaldevelopmentprojectsinNanotechnology,withinthescopeofscientificand technological cooperation between Spain and Portugal related to the INL. Thecompetitionwasspecificallyaimedatthefollowingthemes:nanomedicine(diagnosticsystems, therapeutic applications and “drug delivery”) and nanotechnology forenvironmentalcontrolandforfoodsafetyandquality.Thecompetitionwasdirectedtowardsmultidisciplinaryresearchteamsofinternationalscientificandtechnologicalexcellenceinthesethemes,andmixedteams,i.e.involvingresearchersintegratedinPortuguese and Spanish institutions; each project was required to have at least oneteamfromeachofthecountries.Theevaluationoftheseprojectswascarriedoutbyan international panel of independent evaluators established in other countries,appointedbyagreementbetweenFCTandtheDirecciónGeneraldeInvestigaciónfromSpainandthisisthefirsttimethatthetwocountriesadoptedthisevaluationschemeof bilateral cooperation projects. 10 research projects were selected, with a totalamountof2.8millioneuros,involving36researchteamsfromPortugueseinstitutionsandthesamenumberofteamsfromSpanishinstitutions;15doctoratescholarshipswereinitiallyawardedandtheopeningofanewcallforapplicationsisnowplanned.Therearealsoplanstointegratepost‐doctoralstudiesinareasofspecificinteresttoINL,tobecarriedoutinisinternationallydistinguishedlaboratories.ThecallforaninternationaltenderforthefirststageoftheconstructionoftheINLtook place in March 2008; work on the first facilities is expected to start already in2009.Thestaffrecruitmentwillalsobegintotakeplacein2009.3 Institute created by Portugal and Spain in 2005; the first international research laboratory in the Iberian Peninsulawithin 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 30million euros and additional investment of a similar amount assured in equal amounts by the two countries.24

Establishedin2006,theinnovativeprogramPartnershipsfortheFuture 4 seeksnewinternationalpartnershipsinScienceandTechnologyandhighereducation:• The first stage of the international partnerships launched in 2006 wassuccessfullyconcluded;,inSeptember2007,thefirstdoctorateandadvancedtraining programs were officially launched, bringing together severalPortuguese universities and American universities of great internationalprestige,namelyMassachusettsInstituteofTechnology(MIT),CarnegieMellonUniversity(CMU)andTexasUniversityinAustin(UTAustin).ForthefirsttimeinPortugal,theseprogrammesenabledactualthemednetworksinvolvingawiderangeofPortugueseinstitutionstobeimplementedin2007,withtheaimofstimulating their internationalisation based on oriented projects of advancedtraining, sustainable plans for the stimulation of new knowledge andvalorisation of new ideas, together with companies and institutions ofinternationalrepute.• Within the scope of the MIT‐Portugal programme 5 , launched in September2006,focusingonEngineeringSystems,intheareasofEnergy,Transportation,Design and Production and Bioengineering, several joint degrees werelaunched in cooperation with MIT. The new advanced training programmesdeveloped with MIT stimulate the capacity of the Portuguese institutions toattractstudentsfromvariouscountriesandtheyinvolvedabout130studentsin the first year. During 2008, and for the second year of the programmes,more than 350 applications were received, about 60 new doctorate studentsand 45 in professionalising master degree courses. Portuguese and MITprofessors and researchers have identified more than 30 priority areas inresearch and development, particularly in complex processes associated todesign engineering and industrial production systems, sustainable energysystems,bio‐engineeringsystemsandtransportationsystems.Inthiscontext,projectsofinterestfortheeconomicsectorinPortugalwerelaunched,andthissynergy is also valued by the industrial affiliation programme notably in theautomotiveandenergysectors.• The CMU‐Portugal Programme 6 , launched in October 2006, in the areas ofinformationandcommunicationtechnologies,alsostartedthedifferentpostgraduationprogrammesinSeptember2007thatleadtoajointdegreebetweenthe Portuguese institutions and CMU. During 2008 and aiming at the secondyearofthedoctorateandmasterprograms,24newdoctoratestudentsand55master degree students have begun their studies. The partnership with theCarnegieMellonUniversityalsoincludesthedevelopmentofresearchactivitiesin several aspects of information and communication technologies; inparticular,duringthepastyearseveralinitiativeswereactivatedwithPortugal4The Partnerships for the Future aim at inciting the international opening of the universities andstimulating the international excellence of R&D activities and those of higher education in the latest S&Tareas.5 www.mitportugal.org6 www.cmuportugal.org25

Telecom, Nokia‐Siemens and Novabase within the scope of the IndustrialPartnersProgrammewhichalsoincludessomeofthemainnationalsmallandmediumsizesenterpriseswithatechnologicalbase.• Within the scope of the UTAustin‐Portugal Programme 7 , launched in March2007, the main programme areas include: i) digital contents and multimediaproductionanddistribution;ii)advancedcomputing;iii)mathematics;andiv)science and technology trade, including the design and execution of newcorporateprojectsofscientificandtechnologicalbase.ThemainjointdegreedoctorateprogramsbetweenPortugueseinstitutionsandUTAustinwillstartin2008, and the first call for applications for research projects in the areasidentified is also open until October 2008. Through the establishment of theUTEN network, University Technology Enterprise Network, the aim is also tomobilise centres of innovation and technology transfer and support for theeconomicvalorisationofscience,alreadyexistinginmostresearchandhighereducation institutions, maximising their impact in the strengthening of thescientific base and in the growth and competitiveness of the Portugueseeconomy. These activities include supporting the incubation and growth ofPortuguese technologically based companies in emerging markets in closecooperationwiththeAustinTechnologyIncubatorATI.• For the first time in Europe, it was decided to establish the first FraunhoferInstituteinEuropeoutsideGermanyinPortugal,tobelaunchedbythefacultyof Engineering of Porto University. The director was selected and appointedand the activities begun in June 2008. The competitive and internationalrecruitmentofabout30seniorresearchersisforeseenduringthefirststage.This Institute will work in the area of Information and CommunicationTechnologies,particularlyinAmbientAssistedLiving.TheestablishmentofR&Dconsortia and cooperation projects are also foreseen involving Portugueseinstitutions and Fraunhofer institutes in four themes: i) logistics; ii)biotechnology; iii) advanced production systems with application in theautomotiveindustry;andiv)nanotechnologies.• Thepreparationofnewinternationalpartnershipsisunderway,particularlyanewpartnershipwithHarvardMedicalSchoolintheareaofmedicalsciences.Thepubliceffortintheinvestmentinscienceandtechnologyalsoledtotheincreaseinthe intervention of the Live Science Agency and the national and internationalprojectionofitsworkofexceptionalpublicinterestthusfavouringthepromotionofscientificculture;thefollowingactionsmeritspecialmention:• The Live Science Agency approved in the past year, and are already inexecution, about 1,100 new projects for the reinforcement of experimentalteachingofsciencesinbasicandsecondaryschoolsandforactionsboostingScientific and Technological Culture, corresponding to 14 million euros ofpublicfundingbetween2007and2008.7 www.utaustinportugal.org26

• TheLiveScienceCentresNetworkwasincreased,andtodayithas16Centres;ithasstarted6newcentressince2005,representingandinvestmentofabout8.3million euros. At least 5 new centres are also foreseen to be added in 2008‐2009.• In the past year, within the scope of the Live science in the holidays, therewere856industrialplacementsofsecondaryeducationstudentinabout70institutionsofresearchandhighereducation,including,forthefirsttime,anexchange between Portugal and Spain, which embraced more than 60students. This programme has already embraced more than 5,800 secondaryschoolstudentssince1997.• The mobilisation of thousands of Portuguese in the Summer for holidayactivitiesinAstronomy,Biology,Geology,Engineeringandvisitstolighthouses,involving about 136 institutions in the past year, which assured more than2,300 dissemination activities throughout the country. About 17,000Portuguese have signed up for these activities online, although the totalnumber of participants is much higher, since many activities do not requirepriorregistration.2.2. AnewimpulsetoinnovationOfthemeasurestakentopromoteanewthrustforinnovation,wenotethefollowing,whichhaveenabledtheinterventionoftheInnovationAgencytobeextendedto700morenewcompaniessince2005:• The support to eight Competence Networks, involving numerous companiesandresearchentities;• ThecompletionoftheKnowledgeValorisationNetwork,whichnowcoversallpublicuniversitiesandmostpolytechnics;• Thecreationof190R&Dcentresincompanies;• The support to hiring of Doctorate and Master Degree holders by thecompanies, which has reached a total of 354 doctorate and master degreeholderssupportedinnumerouscompanies;• The dissemination of the Scientific Employment Grant for companies, whichhasexceededmorethanonethousandsubscribers;• TherecoveryofSIFIDE–TaxIncentiveSystemforBusinessR&D,from2006on,whichreveals50%moreapplicationsthanthesameperiodofthelastyearthatithadbeeninforce;27

• There‐launchofthesupporttoConsortiumResearch;• Thegreatsuccessinthesupportinthecreationofnewtechnologicallybasedcompanies.In the dissemination of the applied R&D, a large exhibition of results was organisedduringthe3 rd InnovationDays,inwhichnewdisseminationtoolswerelaunchedontheInternet:“MontradoPortugalInovador”(InnovativePortugalShowcase)and“BolsadeOfertaeProcuradeTecnologia”(TechnologySupplyandDemandExchange).Intheopeningofcallsforapplicationsorientedtowardsthegoalsofpublicpolicies,emphasis goes to the cooperation between the Innovation Agency (Adl) and theMinistryofHomeAffairswithinthescopeofthelaunchofthePortugueseElectronicPassport; this led to the development of an innovative device for the collection ofbiometric data by a Portuguese SME (also already in use in the Citizen’s Card) andsubsequentlycontrolequipmentforelectronicpassports(alreadyinuseatFaroandLisbon Airports); the cooperation of Adl with the Ministry of Health in processesattractingtechnologicallybasedforeigninvestmentandintheidentificationofresultstobevaluedandcompetencesforfuturedevelopments,involvinginnovativeproducts,processesandserviceswhichassuretheincreaseanddepthofthetechnologicalbase;theincreaseinmarketcompetitivenessandthecapacitytoexport.Business R&D has had an accelerated growth, led by a increasing number ofcompanies,asseenintheresultsoftheuseoftheTaxIncentiveSystemforBusinessR&D(SIFIDE) reintroduced in 2006. Its impact in the economy’s competitiveness isalreadyclearlyvisibleandisreflectedintheTechnologicalBalanceofPaymentsandinthechangedprofileofindustrialexports.The main advances seen in the promotion of the effective use of the ICT and of aninclusive information society are included in the page dedicated to the ConnectingPortugalinitiative(ConnectingPortugalDriver). 2.3. BetterBusinessEnvironment,inparticularforSMEsIn the pursuit of a better environment for companies, a set of initiatives is beingimplemented, of special relevance to the priority action defined in the EuropeanCouncil of Spring 2006: “Boosting the potential of companies in particular that ofSME”.In this context, we note the developments that took place within the scope of theadministrative elimination and simplification programme, the results of which arementioned in the previous chapter (see Modernisation of the Public AdministrationDriver:simplificationofbusinesslife).28

In particular we highlight the recent measures for the simplification and access toindustrialproperty–PublicationofDecree‐law143/2008,ofJuly25–whichapprovesdifferent simplification measures and access to industrial property, that strives toreachthreeobjectives:i)thereductioninthetimerequiredfortheconcessionoftheindustrial property records; ii) the elimination of unnecessary formalities, whichburden citizens and companies; and iii) the creation of new services to stimulateinnovation.• Reducing deadlines ‐ with the goal of enabling trademark registration in justthreemonths.In2005,theregistrationofatrademarktook,onaverage,almost12monthstobegranted.Currently,withtheonlineindustrialpropertyservices(www.inpi.pt)andseveralinternalsimplifications,thetrademarkregistrationstake 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 atrademark registration. In case of drawings and models, the aim is for theregistration to take less than four months. Currently, the registration ofdrawings and models take, at least, about 9 months where there is nolitigation.• Several formalities that unnecessarily burdened citizens and companies wereeliminated.Thisisthecaseofthesuppressionoftheobligationtoobtainthetrademarkconcessiontitle,whichwasnotrequiredtoconfirmthetrademarkregistration.Theinterestedpartiesnolongerhavetobearthiscost(about22euros). Another example is the elimination of the obligation to present thedeclarationofintentiontousethetrademarkeveryfiveyears.Thisredundantandunnecessaryformalitycostabout27euros.• New services have been created to encourage innovation, such as theprovisionalpatentrequest.Thisisanewinstrumentthatenablesthepriorityofa patent to be established immediately, in Portuguese or English, with aminimum of formalities and at reduced costs. From this presentation, 12monthsaregrantedforthepresentationoftherequireddocumentation.Thisisa new service that constitutes an encouragement to patent registration bysmall and medium inventors who can now immediately establish a prioritythroughasimplifiedactthatinvolvelowercosts.ThesemeasuresenteredintoforceonOctober1,2008.With regard the access to financing, emphasis goes to the implementation of theFINICIA Program, with the creation, from September 2007 to August 2008, of aPlatformintheAzoresandthecreationofFundsofMunicipalscope.Theresultsofthe implementation of this programme are mentioned in the Knowledge andInnovationNetworksDriver,inthecontextoftheFINICIAPlatforms.Regardingthepublicinstrumentsforventurecapital,anewlegislationforthesectorwasapproved(Decree‐law375/2007,datedNovember8).TheInovJovemProgrammehascontinued;itsaimistheintegrationofyoungpeoplewithhighereducationqualificationsinSMEsanditwasoriginallyconceivedtoinvolve1000youthsbutithasapproved1149applicationswhichisequivalentto4674youthscoveredsincethestartoftheProgramme;4439ofthesehavealreadybeenintegrated.29

Theexecutionin2007wasover90%:almost700traineesandabout80supportsforintegration.WithaviewtoboostingbusinessinvestmentwithinthescopeoftheRecognitionandMonitoring of Projects of Potential National Interest (PIN) (measure 29), 156investment projects were presented for evaluation and granting the PIN status, ofwhich62(53%)wererecognisedasbeingofPotentialNationalInterest.Someoftheseprojects had waited for more than a decade for licenses and permits for theirexecution.IntermsofTourism,allprojectsregisteredinthemeasure(42)“ReinforcementoftheTourism Cluster” of PNACE, were undertaken; a fundamental instrumental base wasset up – platforms (PróTurismo, Geographic Information System) as well as newmethodologies(NewModelContractingforPromotion,InternationalCooperationforExternal Promotion, Tourism Satellite Account, development models for strategicproducts,internationalcooperationfortraining)–essentialtocarryouttheNationalStrategicPlanforTourism.TheInternationalisationProgrammeforeseeninPNACE(measure43),whichaimsatthe improvement of external competitiveness, integrating four initiatives, wasconcluded.TheproximitynetworkinSpainwasbuilt,andtherearecurrently4supportpointsinoperation – Madrid, Barcelona, Vigo and Mérida – providing support to companyactivity.The Brand Portugal project consists of carrying out promotional initiatives in arestrictednumberofmarkets,aimingatcontributingtothechangeinperceptionoftheimageofPortugalinthosemarkets.ImageCampaignswereconductedinGermany,Angola,Spain,RussiaandBrazil.Theseinitiativeshelpedtocreateconditionsforthegrowthofexportsintothesemarkets,inparticularinthecasesofAngola,RussiaandBrazil.Withinthescopeofthe“Increaseoftheexportbasethroughthepledgeinimportantlines”, several information, formative and promotional initiatives were undertaken,contributingtotheincreaseinthenumberofexportingcompaniesandthechangeinthe structure of our exports, based on more innovative and technologically moredevelopedsectors,generating,thus,grateraddedvalueforthenationaleconomy.TheInovContactoProgrammeledto578industrialplacements,15%morethantheinitialobjectiveof500placements.InApril2008,theGovernment,throughtheCouncilofMinistersResolutionno.63/2008,launchedanewstageboostingtheprogramme.Inthisway,itwasestablishedthattheInvContractshouldprovideanannualaverageof550industrialplacementsduringthenext3years.Alsoaimedatdevelopingtheeconomicuseofendogenousresources,thestructurefortheboostingoftheSeaStrategywaslaunchedwiththecreationoftheInterministerialCommitteeforSeaMatters,asaresultoftheResolutionfromtheCouncilofMinisters40/2007;theobjectiveistocoordinate,monitorandevaluatetheimplementationof30

the National Strategy for the Sea, assuring its articulation with other strategies,planning instruments and programmes of a clear transversal scope. TheInterministerialCommitteeforSeaMattersdefinedthefollowingprogrammesinthecontextoftheimplementationoftheNationalStrategyfortheSea:1. PlanningandOrganisationoftheMaritimeAreaandActivities2. InformationandKnowledgeNetworkfortheSea3. Surveillance,SecurityandDefencefortheSea4. CommunicationandAwarenessRaisingfortheSea5. InternationalCooperationfortheSeaTheseProgrammesaretheembodimentofstrategicactivitiesincludedintheNationalStrategyfortheSeaandincludesasetofPlansofActionwhichenabletheproposedobjectivestobereached.For2008,thefollowingPlansofActionwerelaunchedwithinthescopeoftheseprogrammes:• PlanningtheMaritimeAreaPlan;• ProceduralSimplificationandLicensingofMaritimeActivities;• EnvironmentalMonitoringintheExclusiveEconomicZone;• InformationSystemforMaritimeBiodiversity;• NetworkofProtectedMaritimeAreas;• DefinitionoftheTermsofConstitutionoftheOceanicConsortium;• UpdatetheCleanSeaPlan;• SeaAwarenessRaisingCampaignandPromotion;• InclusionoftheSeaThemeintheProjectAreaandEducationalResources;• InternationalCooperationfortheSea(CPLP).Inaddition,inaccordancewiththecommitmentpresentedintheprogrammeofthe17 th Constitutional Government, also included in the first primary action of theNationalStrategyfortheSeaandintheobjectivesofthisInterministerialCommitteeforSeaMatters,thecreationofaPermanentForumforSeaMatterswasapproved.TheForumwaslaunchedonMay7,2008.TheaimofthisForumistoassureanincreasedparticipationofthecivilsocietyinthedecisionprocesses,thecreationofconsultationmechanismsofthepublicentitiestonon governmental organisations, companies and citizens, the monitoring of theactivities, measures and policies adopted, the boosting of the sea economy and thedisseminationandaccesstorelevantinformationwithinthescopeofSeaMatters.These initiatives are in full alignment with the lines of action presented in the BluePaperfortheEuropeanMaritimePolicyadoptedbytheEuropeanCommissionduringthePortuguesePresidency.With regards the extension of the Portuguese continental platform beyond 200nautical miles (proposal), the exploratory hydrographical surveys have beenconcluded in the area of Continental Portugal and Madeira archipelago and 95% ofthese surveys were made in the area of the Azores archipelago. The seismic31

exploratorysurveysareincludedfortheareaoftheGalizaBank,SWofMadeiraandSEof the Azores archipelago. This data, which covers an area of more than 1.2 millionsquare metres, enables the preparation of formal documents that constitute theproposaltoextendPortugal’sContinentalPlatform;thisdocumentwillbedeliveredtotheCommissionfortheContinentalPlatformLimits,createdwithinthescopeoftheUnitedNationsConventionontheSeaLaw,inMay2009.WiththeacquisitionoftheROVLuso,withadivecapacityof6000metres,additionalsurveyshavebeencarriedouttodemonstratethegeologiccontinuityofspecificareasof the extended platform. The execution of hydrographical surveys will also beundertaken to check and complement, notably, the definition of the whole of thebathymetricextensionof2500metresandsaturationinareasalreadyselectedwhilstalsocarryingoutadditionalsurveysformagnetismandgravimetry. 2.4. FosteringEntrepreneurshipInwhatconcernsthepromotionofentrepreneurship,theinterventionlogicinPortugalhas been to dynamise an all‐embracing approach, including several measures,assumedinthecontextofinterventionfromthedifferentMinistriesandwhichactinanintegratedwayduringthewholelifecycleofpeople.Inthisframework,therehasbeenapledgeinthecreationanddevelopmentoftheenterpreneurialspiritandinthepromotionofqualifiedentrepreneurship,aimedattheemergenceofnewmanagersandnewcompaniesinstrategicareasofstronggrowthpotentialandinnovation.Thepromotionofanentrepreneurialculture,throughthecreationanddevelopmentoftheentrepreneurialspiritfromthemoreelementarylevelsofcompulsoryschooling,hasrepresentedasignificantpartoftheeffortundertakeninPortugal.Therefore, entrepreneurship represents a fundamental interface activity betweeneducation/training/insertion in the labour market, in the current educational systemandconstitutedthevehicleforharmoniouslymatchingtheeducationalsystemandtheeconomicandproductivesystem.Thefollowinginitiativesstandout:• Project“EducationforEntrepreneurship”developedwithintheframeworkofthe Ministry of Education (DGIDC). The mission of this programme is toguarantee that young students have access to an education which motivatestheir entrepreneurship, through the development of competencies integratedincriticalandcreativethinking,orientedtowardschangeandproblemsolving.This programme is directed at students, management bodies, teachers andother education and school guidance technicians, as well as the remainingbeneficiaries and active intervening parties (students / teachers / parents /technicians/localcommunity).32

At a local level, the sustainable development of the project was achievedthroughtheinvolvementofpartnerswhoactivelyparticipateinallstagesoftheproject,forexample,thetechniciansoftheRegionalDirectorateforEducation,ParentAssociations,CentralBusiness(CB)andBusinessInnovationCentre(BIC).ThisprogrammewasinitiallydevelopedasapilotversionbetweenSeptember2006andSeptember2007,involving23pilotschools,143projectscompletedand involving 1,681 students (from basic to secondary Schooling) and 119teachers,involvingatthisstage99schools.FromAugust2007itwasextendedtoallschoolsoftheContinent.• ENE Project – Enterprise at School – in the scope of the EQUAL initiative,developed between June 2002 and October 2004 by BIC Algarve – Huelva, inpartnership with local/ regional authorities, amongst which the AlgarveRegionalDirectorateofEducation.In2006,theprojectwasspreadtothewholeoftheContinentalPortugalanditis currently in the appropriation stage in several schools. The aim of thisinitiative was to provide a complementary response to the curricularprogrammes of secondary schooling, especially favouring the activeparticipationofstudentsandtheiraccountabilityindesigningtheirownpaths.The ENE, for students aged between 15 and 19 years, the majority of whomattending technological courses at secondary school, was applied in tensecondaryschoolsintheAlgarveasanonformallearningprogramme,workingwith subjects such as “Business Organisation Techniques” and “administrativeWorks” or, transversally, in the “Project Area” with an average duration of 3hoursweekly.It is basically a learning programme set around the preparation of a BusinessPlanduringoneschoolyear,assistedbydidacticmaterialsandbyadiversifiedrange of activities which include, amongst others, teacher training, visitingcompanies, competition of ideas, pitching of business ideas, companyinternshipsandtransnationalcooperation.•Programme Think Industry, which was considered to be a good practiceregardingyoungpeople’sawarenesstoindustrial‐basedactivities.Within a framework of a greater scope and transversality, the efforts in promotingentrepreneurshipinPortugalalsoincludethestrategicstimulationofthecreationofnew business ideas and the emergence of new managers with a new vision ofbusiness which enable their future sustainability. Emphasis goes to the followinginitiatives:• Programme enterprise +, which integrated a set of actions based on thefollowingobjectivesandresults:1. Inductionofattitudesandbehavioursleadingtothedevelopmentofaninnovative,technologicalandenterprisingculture‐cycleof30seminars,of a regional and thematic nature, in partnership with universities,polytechnicsandotherknowledgecentres);2. Development of competencies for entrepreneurship, through thecreation of an “entrepreneurship lab”, stimulation of the “packet ofideas and means” and by the implementation of a programme of33

“Training for Entrepreneurs”, providing management tools at differentlevels.Inthescopeofthisaction,themainresultsareasfollows: providing access to specialised consultancy support for thepreparation or strengthening of business plans (125 businessplanswerebackedin2007and2008); boostingcompetenciesinprojectpresentationtechniques; organisation of missions abroad to participate in events ofreference.3. Dynamising of private investors networks (BA – Business Angels), inwhichcooperationwasestablishedwiththeexistingBAnetworks;4. Fosteringthestartupofnewcompaniesandsupportingthebeginningofactivitybymeansof:1. Providing coaching to 14 emerging companies with innovatingcharacteristics/technologicalbase;2. Enablingaccesstoincubationprocessesto6companies;and3. Enabling access to sources of financing – Enterprise – Market ofIdeasandFinancing(RiskCapital,BusinessAngels,banksandotherprivateinvestors).• Programme NEOTEC (new technology‐based companies), launched in 2005,aimsatthevalorisationoftheentrepreneurialpotentialandthestimulationofaninnovationculture.Untiltheendof2007,116projectswereapprovedand61 technology‐based companies were formed in the areas of biotechnology,electronic, automation and robotics, amongst others, with emphasis on thefactsthattheentrepreneurialteamsinvolvearound145doctorates,94mastersand138graduatesandthat74%oftheseentrepreneurialteamsareaimedattheworldmarket.Becausetheyconcentrateonactivitiesofhightechnologicalintensity, developing and producing in the great majority of cases “means ofproduction” for other sectors, the importance of these technology‐basedcompaniesismultipliedbyitsdiffusinginnovationeffecttotheentrepreneurialfabric.• Programme NEST (Technological Support Companies), which fosterstechnology‐basedentrepreneurshipthroughthecreationandstrengtheningofa capital network with capacity to invest in existing technology‐basedcompaniesandthroughenablingadialoguewithcompaniesspecialisinginriskcapital.Around40companiesweresupported.• Competition of ideas, by creating conditions for the formalisation of goodbusiness ideas, which in many cases would otherwise be retained in theintensionsofthepromotersandatR&Dcentreswheretheyoriginatefromandinvestmentforums;itconsistsofthecreationof“spaces”withtheobjectiveofbringing entrepreneurs, investors and managers together to debate andstimulatetheinvestmentintheseedingandstartupstageoftechnology‐basedcompanies.34

Equallydirectedtowardsentrepreneurship,mentionmustalsobemadeofmeasuresmore directed towards specific publics, which promote the creation of selfemployment,such as Local Employment Initiatives (ILE), backing for EmploymentProjects promoted by beneficiaries of unemployment benefits (APE) and alsoMicrocreditsupportedbydifferententities(IEFP/ANDC/ANJE).− LocalEmploymentInitiatives 8 (ILE)–measurewiththeobjectiveofsupportingthe projects leading to the creation of new entities and which originate netcreation of new jobs, contributing towards dynamising local economies bymeansofsmallinvestments.ExecutionoftheILEbetween2005‐2007 31 st ofDec2005 31 st ofDec2006 31 st Dec2007 Covered Payment Covered Payment Covered PaymentILE 3,889 24,681,957.69 4,377 27,955,774.41 4,162 28,413,009.68Source:IEFP–ActivityReport.Covered(n.ofPeople);Payments(Euros).− BackingofEmploymentProjectspromotedbybeneficiariesofunemploymentbenefits9 (APE)‐ aimed at backing employment projects promoted bybeneficiaries of unemployment benefits, as long as they guarantee thepromotersafulltimejob.ExecutionofAPEbetween2005‐2007 31stDec2005 31stDec2006 31stDec2007 Covered Payment Covered Payment Covered PaymentAPE 1,608 3,379,736.32 1,705 3,514,404.22 1,766 3,390,503.28Source:IEFP–ActivityReport.Covered(n.ofpeople);Payments(Euros).GiventheirimportancewithinthePortuguesecontext,theseinitiativesareplannedtocontinue in the 2008‐2013 period, namely within the framework of the HumanPotentialOperationalProgramme,throughaxis5–SupportingEntrepreneurshipandTransition into Active Life, specifically in the Supporting Employment interventiontypology.Afterafirstevaluationoftenderscompletedby15 th April2008,5applicationsweresubmittedinarequestedamountof48,060,000€.Still in relation to these specific publics, mention goes to Microcredit, based on apartnershipbetweenthreeentities:theState,throughtheInstituteofEmploymentandVocationalTraining(IEFP),whichsuppliestechnicalandfinancialsupport,theNationalAssociationfortheRighttoCredit(ANDC)whichoperatesasmediatingentitybetweentechnicalsupportandfinancing;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

Themaximumamountofsupportsuppliedisof12,000Euros(30timestheguaranteedminimummonthlyremuneration).Sinceitbeganin1999anduntiltheendof2007,747companieswerecreated,withagreedcreditofover3millionEuros.Following the promotion of Microcredit, a protocol was established between thePortugueseGovernmentandtheImamatIsmailiinDecember2005,forthecreationofaMicrocreditBankasanonprofitagency,withtheaimofhelpingthepeoplewhoaremoreexposedtosituationsofpovertywhenpreparingtoparticipateintheextendedeconomyandaccessinghealthcareandeducation.Additionally, focus goes to a line of credit especially designed to finance young andsmallprojects,amountingtoatotalof250,000€,withan80%limitonthevalueofthetotalinvestment.Parallel to this, focus goes to the action among other underprivileged public in thelabourmarket,includingwomen,theprisonpopulationandimmigrants.− Women:Measure“SupportingFemaleEntrepreneurship” 10 –measureaimedatassistingthecreationofsupportnetworkstofemaleentrepreneurshipandthevocationaltrainingadaptedtothecreationandconsolidationofmicroandsmall companies, favouring the access to self‐employment. This measure wascentredintheapprovalofvocationaltraining/consultancyactions,aimedatthecreation,developmentorconsolidationofmicroandsmallcompaniesmanagedbywomen.By2007,(November)around142projectswereapproved,correspondingtoaninvestmentofaround9,889,484€.Around3,728womendidvocationaltrainingand 1,050 received consultancy. It is important to mention that around 387womenwereaidedinsettingupacompany.ThisisexpectedtocontinuewithinthescopeofPOPH,throughaxis7‐genderEquality, intervention typology 7.6 regarding Supporting Entrepreneurship,associationsandthecreationofentrepreneurialnetworksofeconomicactivitiesmanagedbywomen.− Prison Population: Project “Entrepreneurship for the Social Reinsertion ofPrisoners” – with the strategic object of creating conditions for the socioprofessional(re)insertion of the prison population and avoiding their relapseinto crime, through a pledge with the development of competencies ofentrepreneurship, led by the General‐Directorate of Prison Services (DGSP),integratedinthe“Managetoinnovateintheprisonservices”partnershipandco‐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’sbusiness,workingforsomeoneelse,returningtoschoolorvocationaltraining.10 Operational Programme Employment, Training and Social Development, financed by the EuropeanSocial Fund.36

The pilot‐project lasted a total of 12 months and took place in five prisonestablishmentsspreadoverCasteloBranco,Leiria,SintraandBeja.The project was implemented for the first time in May 2006, involving 50professionals(Directors,HeadsofPrisonGuards,SubheadsandPrisonGuards,TechniciansandTeachers)and50prisoners.CurrentlyasecondeditionoftheprojectisbeingpreparedatThePilotPrisonEstablishmentsand,from2008,theprojectwillbeextendedtothewholePrisonSystem(52prisons).− Immigrant Population: At the end of 2006, a Nucleus of Support forEntrepreneurship (NAE) was opened in order to stimulate entrepreneurshipamong immigrants by supporting: i) entrepreneurial initiatives; ii) companystart‐up process and iii) existing products in the financial system. A SupportGuide for the Entrepreneur is being prepared; the aim of the HighCommissionerforImmigrationandInterculturalDialogue(ACIDI)istointensifythe articulation with the National Association for Credit so as to improve thesupportintheconcessionofmicrocredit.2.5. EnergymarketIntheenergydomain,alsoinlinewithoneofthe“FutureChallenges”dealtwithinthefirst part of this Report, the move has been towards a liberalised and competitivemarket, with the following legislative acts having been published regarding thefunctioningoftheIberianElectricityMarket:‐ Decree Law 264/2007, of 24 July, which alters Decree‐Laws 240/2004, of 27December, and 172/2006, of 23 August, putting in place a number of measuresaimedatimplementinganewstageintheconsolidationandfurtherexplorationofthe Iberian Electricity Market, dealing with the process for early stoppage of thePowerPurchaseAgreementsreferredtoinDecreeLaw240/2004,of27December,andalteredbyDecreeLaw199/2007,of18May,forthepurchaseofelectricitybythesupplieroflastresortandthecreationofapowerguaranteemechanism‐Ordernr.27332/2007,of4December,bytheEnergyServicesRegulatoryAuthorityapprovingthejointrulesforcontractingPortugal‐Spaininterconnectioncapacity;‐Governmentordernr.57/2008,of11January,whichdefinestherulesapplicabletothe sale of electrical energy via virtual capacity auctions of electrical energyproduction;‐Ordernr.2838/2008,of5February,regardingtheelectricityvirtualcapacityauctionsbythesellersactuatingwithintheIberianElectricityMarket.Thevirtualcapacityauctionshavecontributedtowardsincreasingtheliquidityofthemarket.FrominceptionuntilJune2008,theaccumulatedelectricalenergytradedhasbeen44458GWh,withatotalvalueof2,361.9M€.37

Portugal is already an example to follow in promoting the liberalised, competitivemarket:‐PortugalisoneofthethreeEUcountrieswithfullunbundlingoftheelectricityandgasnetworks,withassetsconcentratedinthesamecompany;‐IthasoneofthemostambitiousobjectivesintheEUforinterconnectioncapacity,morethan20%in2010,currentlyalreadyover10%;‐ Portugal is one of the six countries with the lowest public capital among marketplayers,togetherwiththeUnitedKingdom,Germany,Belgium,SpainandIreland;‐TheIberianElectricityMarketisthesecondregionalelectricitymarketimplementedintheEU,witharound30millionconsumers.Inadditiontotheobjectiveofpromotingaliberalisedandcompetitivemarketintheenergy sector, the Government established another two objectives, environmentalcompatibilityandsupplysafety,whichareenshrinedintheNationalEnergyStrategy.ThisisanambitiouspolicythatisanimportantfactorforthesustainedgrowthofthePortugueseeconomyanditscompetitiveness.Thedevelopmentsinthissectoraresetoutintheenergydriver.Driver3.InformationandinnovationnetworksGlobalisation and the rapid changes in technology that characterise today’s society have made itnecessarytopromotetheeffectivediffusionofknowledgeanditseconomicappreciation,keyfactorsforinnovationandcompetitiveness.TheInformationandInnovationNetworks,establishedonapartnershipbasisandonspecialisedsubnetworks within the different segments in the process for generating the economic appreciation ofknowledge,arerecognisablyimportantinstrumentsforencouragingeconomicactivity.TheemphasisgiventothedevelopmentofInformationandInnovationNetworks,withaviewtoexcellencebasedonthe collaboration of institutions in the scientific and technological system, higher education and theeconomic fabric, is a powerful instrument for improving the match between technology supply anddemand,aswellasfacilitatingaccesstofinancingforinnovation.Activity in this domain includes the setting up of initiatives aimed at supporting the creation andgalvanisationofR&DThematicNetworks,namelyviatheMIT‐Portugal,CMU‐PortugalandUTAustin‐Portugal programmes, together with the formation of the Competitiveness and Technology Centres,groupingsofcompanies,teachingandtrainingestablishmentsandresearchunitsgearedtowardsthedevelopmentofinnovativeprojectswithhighcollectiveefficiencyandstronginternationalvisibility.Inthiscontext,concreteandcomplementarymeasureshavebeenputintopractice,including:ThematicnetworksandR&DconsortiaintheNewPartnershipsfortheFutureInanunprecedentedmoveinPortugal,thenewinternationalpartnershipsinScienceandTechnologyandforHigherEducation,launchedin2006and2007,havemadeitpossibletoimplementnewR&Dconsortiathroughout2007viathematicnetworks,involvingawiderangeofPortugueseinstitutions,38

with the objective of stimulating internationalisation, and based on advanced training supervisedprojects,sustainableplansforstimulatingnewknowledgeandappreciatingnewideasincollaborationwithrenownedinternationalinstitutions.Inthiscontext,researchersatPortugueseinstitutionsandatMITaredevelopingjointR&Dactivitiesinpriorityprojectsandthemes.Thethematicnetworksinclude:• IntheMIT‐Portugalprogram,apartnershipestablishedwiththeMassachusettsInstituteofTechnology(MIT),focussingonEngineeringSystems,theareasof(i)SustainableEnergySystems,(ii)TransportSystems,(iii)AdvancedConceptionandProductionSystemsand(iv)BioengineeringSystems• IntheCMU‐Portugalprogram,apartnershipestablishedwiththeCarnegieMellonUniversity(CMU), focussing on ICTs, the areas of Software Engineering, Information Networks,InformationSafety,LanguageTechnologies,SensorandRiskManagementTechnologiesandNetworksincriticalInfra/structures,andEngineeringandPublicPolicies.• IntheUTAustin‐Portugalprogram,thepartnershipestablishedwiththeUniversityofTexasinAustin (UTAustin), the areas of Digital Contents, Advanced Computation, Mathematics andthe marketing of science and technology, including support for the conception andconcretisation of new business projects with a scientific and technological basis (via theUTEN,UniversityTechnologyEnterpriseNetwork).• Through the setting up in Portugal of the first Fraunhofer Institute in Europe outside ofGermany,theareaofAmbientAssistedLiving,withplansafoottoalsoestablishconsortiaofR&D cooperative projects involving Portuguese institutions and Fraunhofer institutes fourareas: i) logistics; ii) biotechnology; iii) advanced production systems applicable in theautomobileindustry;andiv)nanotechnologies.In response to the Programme projects relevant for the Portuguese industrial community, a widegroups of companies have adhered to and participated in the programmes as “Industrial Affiliates”,amongthemsomeofthemajorcompaniesintheenergyandautomobilesectorsinPortugal,andfromtheICTandmultimediacontentssector,includingbignationalandinternationalcompaniesandnewtechnology‐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, bothnationalandforeign,ininstitutionsandcompanies.So as to further the opportunity launched by the UTAustin‐Portugal program, the UTEN, UniversityTechnology Enterprise Network, will be extended to the various programmes of the internationalpartnerships in progress, with the aim of guaranteeing the gradual development of a consolidatednetworkoftechnologytransferandmarketingofficesinpublicandprivatetechnologyinstitutionswithrelevantR&DtechnologyinPortugalinclosecollaborationwithinternationalpartners.NetworksofCentresofExcellenceFollowingthecreationofthe8NetworksofCentresofExcellencein2006,organizedaroundspecificareas(Bio‐Energy,HealthcareandMedicine,DematerializationofTransactions,MouldMicromachining,Mobility, Polymers, the Agro‐forestry and Food Sector, Telecommunications and InformationTechnology),interimassessmentbeganin2007‐2008,toprovidefollow‐upandmonitoringtoensurethat the objectives were being met and expected results achieved. The Networks of Centres ofExcellence consist of consortia of companies, research centres and institutes, technology centres,39

universities,polytechnicsandotherHigherEducationInstitutions,publicbodiesandbusinessorsectorassociations,withaviewtocreatingcollaborativenetworksaimingforexcellence,whilesimultaneouslyallowing for the development of innovation clusters and intensive knowledge, contributing to thedevelopmentoftheeconomicandsocialfabricofaregionand/orsector.Altogether,theyincludetheparticipation of 100 companies and associate companies, 5 technology centres and 53 scientific andhighereducationinstitutions.CompetitivenessandTechnologyCentresWithaviewtocreatingandinvigoratingtheCompetitivenessandTechnologyCentres,thefollowinginitiativesweresetup:i)Clustermappingandtherespectiveterritoryintersectiongrid:inprogress;ii)Launchofapilotphasethroughsupportingexperimentalcases:underpreparation;iii)Launchofimplementationphase;underpreparation;iv) Holding meetings with stakeholders representing the economic aggregates and/or sectors with aview to divulging and galvanising initiatives to encourage collective efficiency strategies(CompetitivenessandTechnologyCentresandotherClusters);v)FrameworkrulesandregulationsfortheCollectiveEfficiencyStrategiesProgrammeoftheNationalStrategicReferenceFramework;vi) Launch of the first Competition for the “Recognition of Competitiveness and Technology CentresandotherClusters”,withinthescopeoftheNationalStrategicReferenceFramework.FINICIAPlatformsImplementationoftheFINICIAProgrammeisbasedonthecreationofpartnerships(calledPlatforms)betweentheinstitutionsoftheScienceandTechnologySystemandlocaldevelopmentagents.14platformshavebeencreated(13onthemainlandand1intheAutonomousRegionoftheAzores)involving all of the public Universities and Polytechnics, covering over 160 public and private bodies(namely,Banks,VentureCapitalCompaniesandMutualGuaranteeCompanies,ScienceandTechnologyParksandMunicipalCouncils)toexpeditetheprocessesforscrutinisingideasandprojectsforcreatinginnovativecompanies.Threecreditlineshavebeencreatedfornewbusinessprojects,providedbytheBPI,MillenniumandBSTbanks,thesearesupportedbyaMutualGuarantee,guaranteeingupto75%ofthevalueofthecreditgranted.73 municipal FINICIA funds were created, 14 of them between October 2007 and August 2008, incollaborationwithbanksandlocalauthorities.Thesewereformicrocreditoperationsforsettingupmicro and small companies. The total value of the Funds already created comes to a 21.53 millionEuros,ofwhich2.925millionEurosisrelatedtofundscreatedsinceOctober2007.BytheendofAugust,453creditandriskcapitalfinancingoperationshadbeenapproved,ofwhich390have been implemented or are at the implementation stage. The number of credit operationsapproved, supported by Mutual Guarantee, is 295, which corresponds to an overall investment of23.23millionEuros.95riskcapitaloperationswereapproved,49ofwhichhavebeenrealised,involvingaglobalinvestmentestimatedat26millionEurosandriskcapitalfinancingtothesumof7.8millionEuros.BusinessAngels(BA)NetworksWithin the scope of the Empreender+ Programme, an initiative was launched to stimulate theintroduction of the Business Angels (BA) activity in Portugal, contributing to the creation of 10 BAnetworks.KnowledgeEnhancementCentresandBusinessPotentialEnhancementCentresFollowing on from the approval of the 22 Knowledge Enhancement Centres (Technology AndKnowledge Transfer Workshop) in 2006, which provided an environment for University‐Companycooperationwiththeaimofidentifyingandfosteringthetransferofinnovativeideasandconceptstothe business fabric, the networking of this group of structures, involving Technology Centres,University/Company interface structures (e.g., INEGI, INOV INESC, UNINOVA), Industrial Property40

Support Offices, IRC/EIC – Innovation Relay Centres / European Info Centres, Technology AndKnowledge Transfer Workshops, is now being promoted. In addition to the entrepreneurial supportactivities in the Technology And Knowledge Transfer Workshops, 12 VPE nuclei (Valorização doPotencial Empresarial ‐ Business Potential Enhancement Centres) as part of the NEOTEC initiative,involvingHigherEducationinstitutionsandotherbodiesconnectedwithpromotingentrepreneurship.Driver4.ConnectPortugalAnActionPlantomobilizetheInformationandKnowledgeSocietyInJuly2005,theGovernmentadoptedtheConnectPortugalinitiative,whoseactionsincluded:•MakingiteasierforFamilieswithStudentstoBuyComputers:50%oftheamountspentonbuyingapersonalcomputer,includingsoftwareandterminalequipment,istaxdeductible,uptoalimitof€250inpurchases,between1December2005and31December2008.InDecember2005,offersappearedonthemarketallowingforthepurchaseofcomputerswithinternetconnectionfor200€or250€,aftertheaforementionedtaxdeduction.•BroadbandInternetConnectionforStateSchools:inJanuary2006allStateSchoolsfromthe1sttothe12thyearhadbroadbandinternetconnection(oneyearbefore,only18%hadbroadbandinternetconnection).PortugalwasthusoneofthefirstEUcountriestoensurebroadbandconnectionforallstateschools,asithadbeenapioneerinconnectingallschoolstotheinternetviaISDNin2001,andallschools from year 5 to year 12 in 1997. In 2007, school connection bandwidths were increasedsignificantly,generallytotwicethepreviousbandwidth.•Approval,on16August2007,oftheEducationTechnologyPlan,whichhasthefollowingtargetsfor2010:toachieveanaverageof2studentspercomputerwithinternetaccess(in2006therewere9.6studentspercomputer),toequipallclassroomswithvideoprojector,toguaranteeinternetaccessinallschoolsat48Mbpsminimum;toadopttheelectroniccardforallstudents;makepubliclyavailabletheuseofelectronicmeansofcommunication,givingallstudentsandteachersemailaddresses,ensuringthat90%ofteachersand50%ofstudentshavetheirACTskillscertified.•Launching,in2006,theMinistryofEducation’sSchools,TeachersandPortableComputersinitiative,reinvigorating1,100schoolswith26,000portablecomputers,and,in2007,launchingtheprogrammee.escola,givingstudentsandteachersinprimaryandsecondaryeducation,andadultsandyoungadultsintheNewOpportunitiesTrainingProgramme,portablecomputerswithmobilebroadbandconnectionatreducedcosts(150Eurosupfrontand15Eurospermonth,andlessforstudentsonschoolbenefits),withover200thousandpeoplehavingalreadybenefited.•Launching,inJuly2008,theprogrammee.escolinhas,viawhicharoundhalfamillionprimaryschoolstudentswillreceiveanew,low‐costcomputer,assembledinPortugalinpartnershipwithIntel.• Considerably increasing the bandwidth for universities, polytechnics and research institutions: in2005thebandwidthfortheRCTS‐theScienceTechnologyandSocietyNetwork‐morethandoubled,reaching2.5Gbps,and,inJuly2008itwasquadrupledto10Gbps,resolvingaproblemthathadbeendraggingonforseveralyears,thatofPortugalbeingtheonlycountryintheEU15,exceptforGreece,withnoconnectionatthisbandwidthtotheresearchandeducationnetworksintheothercountries.TheconnectionbetweenLisbonandBragawasgreatlyimprovedwiththeacquisitionofafibre‐opticlinkbetweentheUniversityofLisbon,theTechnicalUniversityofLisbon,theNewUniversityofLisbon,theUniversitiesofCoimbra,Aveiro,PortoandtheMinho,benefiting,intermsofstudentnumbers,60%of the higher education system and 78% of universities with research units approved by theinternationalassessmentsoftheFST–FoundationforScienceandTechnology,andalsoincreasingthebandwidth connections for the Polytechnics Institutes of Coimbra and Porto. The Lisbon – Bragaresearchandeducationnetworkwasthusspeededupto10Gbps.•ConnectionoftheRCTSinfibre‐opticringtoSpainandtheEuropeannetworkGéant2at10Gbps:Atthe Portugal‐Spain summit in November 2005 it was decided that each country would complete itseducationandresearchnetworktotheMinho‐GalizaandAlentejo‐Estremaduraborders,withmutualbenefits in increased international connectivity and connection safety in the event of a break in theline, and much greater connectivity to the European Géant2 network. The northbound fibre‐opticsection to the Minho‐Galiza frontier in Valença was concluded in 2007, also ensuring the fibre‐optic41

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 10Gbpsfibre‐opticconnectionfortheUniversityofÉvoraandthePolytechnicinstitutionsofSetúbalandPortalegre.ThereisalsoafibreopticconnectioninprogressforthePolytechnicofSantarém.Thus,intermsofstudentnumbers,morethan70%ofthehighereducationsystemand82%ofuniversitieswithresearchunitsapprovedbytheFSThaveconnectionsofupto10Gbpsinapublicsectorownedfibreopticnetwork.• High usage of the Online Knowledge Library (b‐on): b‐on provides unlimited permanent access inresearch and higher education institutions to over 16,750 international scientific publications by 16publishers,viainternationallyagreedsubscriptions.In2005thenumberofarticlesdownloadedinthislibrarywas3.4million,comparedto2.1millionin2004,numbersthatdemonstratedveryhighusage.In2006, the number of downloads rose to 3.7 million, and in 2007 to 4.2 million. In 2007, the OnlineKnowledge Library (b‐on) was extended to all public higher education systems and also to StateLaboratoriesandnon/profit/makingresearchinstitutionsapprovedintheFSTinternationalassessmentprocesses,andanewfinancingmodelwasputinplace,ensuringdisciplinaryunityforanduniversalaccesstothelibrary.• The development, in 2008, of a platform to integrate the open‐access scientific informationrepositoriesinthecountryintoonecoherentnationalmetadatasystemfreelyavailabletothescientificand higher education institutions wishing to house their repositories there and safeguarding theindividual nature of the respective corporate identities. Currently, the following institutions haverepositoriesofthistype:theuniversitiesoftheMinho,PortoandÉvora,ISCTEandtheNationalLibrary(dissertationsandtheses)withatotalofover5,000records.• The launch in April 2006 of the National Grid Initiative (INGRID) promoting a Computation Grid inPortugal, and approval at the Portugal‐Spain Summit of November 2006 of the bilateral initiativeIBERGRID to integrate in a coherent network the computational grid infrastructures of the twocountries, with the objective of achieving significant computation grid critical mass on a Europeanscale.In2007,withinthescopeoftheIBERGRIDinitiative,thebilateralTechnicalCommissionpreparedaDesignBasesDocumentforaCommonIberianDistributedComputationInfrastructurePlan.PortugalandSpaincomingtogetherinIBERGRIDhasallowedthemjointlytocreateanetworkrecognisedintheproject EGEE – Enabling Grids for E‐science in Europe by the Southwest Europe Federation, whichcurrently has over 1,500 CPUs and has come to play an important role in the Computational GridinfrastructureofEurope.Thisprojectbringstogetherscientistsandengineersfromover240scientificinstitutionsin45countriestoprovideapermanentComputationGridinfrastructurewith41,000CPUsand 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 andInstrumentationLaboratory(LisbonandCoimbra),butparticipationwasextendedtotheuniversitiesofPortoandtheMinho,thePlasmaPhysicsCentreoftheInstitutoSuperiorTécnico,theElectronicandTelematic Engineering Institute (IEETA) of the University of Aveiro, and the Universidade Lusíada(Famalicão), all of whose computational grid infrastructures were already contributing to the totalEGEEinfrastructure.•Promotingandsupporting,aspartoftheINGRIDprogramme,15R&Dgrid/basedprojects,withtotalfinancing granted by the FST of around 1.7 million Euros, which were approved by a public tenderlaunched in November 2006 which received 37 bids and was assessed internationally, withComputationGridapplicationsgearedtoareasrangingfromthesimulationandanalysisofhighenergyphysicsdatasuchasthosethatwillbeproducedbyLHCandbyplasmaphysicsandnuclearfusion,topredicting the evolution of the coastline, simulating forest fires, mapping atmospheric pollution,simulatingproteinstructure,repositoriesformedicalapplications,brainimaging.• Supporting the construction, in 2007‐2008 of a main node for the Grid infrastructure with thecreationofalarge,400m2datacentrefortheComputationGrid,andtheincreaseofthePortugueseGridinfrastructuretoaround400CPUsinMay2007,650CPUsinJune2008andover1,200CPUsbytheendof2008,attainingadimensioninPortugalthatisofrelevanceatEuropeanlevel,andalsoaprominentroleintheCouncilofPoliciesforthe2‐yearEuropeanprojectinitiatedin2007topreparethecreationandorganisationmodelfortheEGI–EuropeanGridInitiative,involvingthenationalGridInitiativesof38countries,includingtheEU27.AlsoworthyofmentionisPortugal’sparticipationinthe CERN project LCG – LHC Computing Grid (2003‐2023) that created the largest computing gridsystem in the world to store and analyse data from CERN’s new LHC – Large Hadron Coliderexperiment, which marked the 2008 scientific year with its fundamental importance, with the LIP42

operatingoneofaround60Tier2worldcentres(theLCGalsohas11Tiercentres1andtheTier0centreoperated directly by the CERN).In lessthan two years from launching INGRID, Portugal entered theEuropean Computation GRID map and established the conditions for participating in an influentialpositioninthedecisionsonthefutureoftheEuropeanGRIDInitiativeandtheenormouscomputationGRIDsystemthatisbeingbuiltinEurope.• Forecasting the components of strategic interest for new developments in the Information andKnowledge Society within the scope of international partnerships especially in Information Safety,CriticalInfrastructuresandSensorNetworksintheCMU–PortugalProgrammeinitiatedattheendofOctober2006,inAdvancedDigitalContentsandDistributedComputationintheUTAustin–PortugalprogrammeinitiatedinMarch2007,inIntelligentEnvironmentssupportingLifeQualityandInclusionand the development of the Internet of Things in the Fraunhofer– Portugal Programme launched inApril2007,inthedevelopmentofContentsinPortugueseonHealthcareandResearchmadepubliclyavailableintheHarvard–PortugalProgramme,preparationforwhichwaslaunchedinApril2007.•VirtualCampus–HigherEducationWirelessNetwork(e‐U):In2005,thenumberofhighereducationinstitutions with wireless networks went from 8 to 57, achieving coverage, in terms of studentsenrolled,ofover85%ofallhighereducation,asetofschoolswithover310thousandstudents.Sincethis network has inter‐institution roaming, the integration of all higher education institutions istherefore ensured in a single Virtual Campus, allowing a student of teacher who is temporarily atanother university or polytechnic to access the resources of his own establishment as if he wereactuallythere.In2006and2007theplannedextensionofservicesandcontentsforthecorrespondingprojects took place, increasing the number of users. Extending the roaming within the scope of theEuropean network Eduroam, and in 2008 the infrastructures and services installed were certified,includingaccessforcitizenswithspecialneeds.•HighGrowthinBroadbandPenetration:AccordingtoANACOMdata,broadbandpenetration(fixedormobile)inthepopulationwasthreetimesgreaterinthe2ndquarterof2008thanthe1stquarterof2005.Thefiguresforthesecondquarterof2008were33%,ofwhich15%werefixedconnectionsand18%mobileconnections.Therewasasteepgrowthinbroadbandpenetration,especiallywithregardtomobileconnections,which,inthesecondquarterof2008were11timesgreaterthantheyhadbeentwoyearspreviously,radicallyalteringthepanoramaofPortugalandmakingittheEUcountrywiththehighestmobilebroadbandpenetration.Broadbandpenetrationamongfamiliesgrew50%from2005to2007(1stquarters).•Registerof.ptdomains:Thenumberofinternetdomainswith.pt,coveredbytheFCCN–Foundationfor National Scientific Computation, grew by 36% in 2005, to around 80 thousand domains, At thebeginning of March 2006 new rules came into force that made it easier to register domains andallowed cost‐cutting by 40% through adopting a totally on‐line registration system. As a result, inAugust2006therewereover100thousanddomainsregistered.In2007domainnameregistrationwasmade more flexible and electronic receipts were adopted for the respective payments, which hasalreadyachieved40%useraccession.InSeptember2008thenumberofdomainsregisteredexceeded234thousand,correspondingto2.3timesthenumberfortheendof2004.• Approval, in April 2007, of 4 Community Network projects –http://www.umic.pt/index.php?option=com_content&task=view&id=28&Itemid=187 -tras Rede Comunitária do Distrito de Évora, Rede Comunitária do Vale do Minho, Valimar Net. TheCommunityNetworksarebroadbandpublicnetworksinless‐favouredregionsorwheretherearegapsin the telecommunications market, and they must be technologically neutral and provide identicalaccessforalloperatorsintendersfortheiroperation.Theseprojectsjointlyinvolvetheinstallationofover 1,000 Km of fibre optic connections. The projects are now in progress, with over 300 Km oftechnicalcablingalreadyinstalled.• Promotion of Digital Inclusion: Around 327 Internet Spaces are up and running at points spreadaround the country, with special social equipment in local authorities, and over 187 in municipallibraries, allowing free broadband internet access to anyone, with personal support. These are animportantpartofatotalofover1,170InternetSpacessetupinothersettings,namelyinDigitalCityand Region projects and social solidarity institutions. The Internet Spaces Network was set up inNovember2006toensurecoordinationofinitiativesandthesharingofgoodpracticeforthispowerfulinstrumentforsocialintegration.AnNGOnetworkforsocialsolidarityismaintained–RedeSolidária–with a specific presence on the Internet, 240 broadband Internet access points, 650 electronicmailboxes, 13 video‐conference connections between schools and hospitals. The 3rd GenerationSchoolsProgramme,whichfunctionsincollaborationwiththeHighCommissionforImmigrationand43

InterculturalDialogue,hasdonenotableworkonsocialinclusion,involvingover400localinstitutions,around400techniciansandthesupportof48,000childrenandyoungpeople,includinginitsover130DigitalInclusionCentres.(111from3rdGenerationand21from2ndGeneration).• Significant increase in the availability of information at hospital Internet sites from 2004 to 2006,namelytheduplicationofsiteswithinformationonpreventionandhealthcare(availableon50%ofthesites) 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% oflargecompanies,90%ofmediumcompaniesand62%ofsmallcompanies.• Improved availability of Online Public Services: On 20 September 2007 The European Commissionpublishednewassessmentdataontheonlineavailabilityofbasicpublicservices,nowregardingthesituation in April‐May 2007. The figures for Portugal were significantly improved, whether for theservicesophisticationindicatororforfullonlineavailability,whichbothstoodat90%andwiththeseindicators for companies being 100%. Portugal rose once again in the ranking of the 31 countriesconsidered, going to 4th place on the sophistication of provision indicator and to 3rd place for fullonline availability. It was the biggest rise registered among all 31 countries. Bearing in mind theimprovementsmadeinthe2006assessment,fromOctober2004toApril‐May2007Portugalroseonbothindicators,from11thto2ndintheEU15countries,andfrom11thand13thto4thand3rdintheEU‐27,respectively,fortheindicatorsofsophisticationandfullonlineavailability.Theprogressmadeinelectronicpublicadministrationincluded:thecreationofcompletelyonlinecompaniessinceJune2006,onlinetrademarkregistrationsinceDecember2006whichhasbeenusedsincetheninaround80%ofcases,cuttingto1/3theresponsetimetoarequestforregistration,makingPortugaloneofthefastestcountriesfortrademarkregistration,provisionoftheelectronicCitizen’sCardwithaccessto5publicservicessinceFebruary2007,theonlineSimplifiedBusinessInformation(IES)servicesinceApril2007whichhasalreadyreceivedover158,000renderingsofaccountsbythismeans,theoptiontoregisterpatentsonlinefromSeptember2007,themakingofaround70%oftaxreturnsviainternetin2008andtheprocessingofallVATviainternetsince2005,thefreeonlineprovisionoftheDiáriodaRepúblicasinceJune2006,saving27tonnesofpaperperday,andtheSingleVehicleDocument.• The decision, by Resolution of the Council of Ministers in October 2007, to give all citizens withspecialneedsaccesstoallGovernmentInternetsitesandthoseofCentralGovernmentpublicservicesandbodiesinaccordancewiththedirectivesonInternetcontentaccessibilityoftheWorldWideWebConsortium (W3C), thus extending a 1991 Resolution of the Council of Ministers to ensure Internetaccesstothesitesofpublicbodies(whichdidnot,however,defineanenforceablestandard)wherebyPortugal was the first country in Europe and the 4th in the world to approve legislation with thisobjective.•NationalProgrammeofElectronicPurchases:Attheendof2006thisinvolvedall16ministries(asopposed to 8 in Jan 2005), around 920 bodies (19 in Jan 2005), 12 categories of products (4 by Jan2005),103aggregationandnegotiationprocesses(27inJan2005).Totaltradedvolumewas41millioneuros, with a saving of around 20%. The programme accelerated sharply, with electronic publicpurchasing for 2006 being more than double the amount accumulated in the three previous years,sincethestartoftheprogrammein2003,andafterhavinggrownmorethan33%during2005.44

Driver5.EnergyEnergypolicyisincreasinglybecomingadriverforeconomicgrowth,especiallythankstoitscapacityforgeneratingnewinvestmentinprojectswithhightechnologyinputandforcreatingjobs.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 thesector:- Encouragingcompetition;- Guaranteeingenvironmentalcompatibilityforthewholeenergyprocess;- Guaranteeingthesafetyofenergysupply.TheGovernmenthasbeentakingastronglyproactivepolicyintheareaofrenewableenergies.Hence,initssustainabilityframework,in2007itdefinednewcommitmentsfor2010inpromotingrenewableenergysources,reinforcingthemeasuresalreadyestablished.ENCOURAGINGCOMPETITIONTheGovernmentestablishedacentralobjectiveofstimulatingtheenergysector,creatingliberalisedand competitive markets. The reorganisation of the whole legal and regulatory framework, with thepublication of framework laws and complementary legislation for electricity, natural gas andpetroleum,wasthefirstconcretestepinimplementingthisstrategy.Withregardtotheliberalisationofthemarkets,themeasuresadoptedintheelectricitymarketgaveallconsumers effective right of choice, as from 4 September 2006, placing Portugal among the EUcountries that have achieved total liberalisation in this market. In the natural gas market, theGovernmenthasforestalledthepreviouslyagreeddatesforderogation,bringingforwardbytwoyearstheliberalisationperiodfordomesticconsumersandbyoneyearforindustrialconsumers.The defined policy also included the creation of two large competing operators in the gas andelectricity sector: EDP – Energias de Portugal, S.A., entered the natural gas business forming thecompanyEDPGás,SGPS;andGalpEnergia,SGPS,S.A.,whichwasalreadyactiveintheexplorationandproduction, refining and distribution of petroleum products, in the areas of supplying, selling anddistributingnaturalgasandproducingelectricalenergyforlargeindustrialclients.To allow for equitable and transparent network access, the Government created a single gas andelectricitytransportationoperator.Inthiscontext,inSeptember2006,REN–RedeEléctricaNacional,S.A.acquiredthegastransportationassetsownedbyTransgás.Anewholdingcompanywascreatedtomeetthisnewmission–RedesEnergéticasNacionais,SGPS,whichmanagesthenationalelectricityandgastransportationsystemthroughthefollowingcompanies:‐ RENGasodutos,S.A.,‐RENArmazenagem,S.A.;‐ RENAtlânticoTerminaldeGNL,S.A.;‐ REN‐RedeEléctricaNacional,S.A.ThismeasureplacedPortugalamongthefiveEuropeancountrieswithtotalunbundlingofthetransportnetworksandamongthethreewhohavetheseassetsinthesamecompanystructure.Themainmeasurestoencouragecompetitioninthesupplymarketswere:‐ early termination of the Power Purchase Agreements, thus freeing up around 80%(approximately7.100MW)ofallproductionpreviouslypledged;‐ thegrantingoflicencesforbuildingnewCombinedcyclegasturbineplants(CCGTs);‐ earlyliberalisationofthenaturalgassupplymarket.TheGovernmentalsomadetheIberianElectricityMarketareality.ItbeganoperatinginJuly2006,withthestartofOMIPtransactions.TheIberianElectricityMarketisthesecondintegratedregionalmarketimplementedinEurope,witharound30millionconsumers.45

GUARANTEEINGENVIRONMENTALCOMPATIBILITYTheGovernmentapprovedawide‐rangingsetofmeasurestolimitthecarbonintensityoftheenergymix with a significant contribution to the diversification of the energy supply, through promotingrenewableenergyandenergyefficiency.Intheareaofrenewableenergies:Portugal invested particularly in the development of wind and hydro‐energy, biomass, biofuels andsolarthermalconversion.To promote wind energy, a phased tender was launched, to attribute up to 1950 MW rated loadassociatedtothecreationofanindustrialcluster.In2006thefirstphasewasawardedwithatotalof1200 MVA rated load and construction began on the industrial cluster for the wind energy sector;investmentwasaround1750M€andledtothecreationofaround1700directjobsand4500indirectjobs. The tender also led to the creation of a 35 M€ fund to support innovation in the area ofrenewableenergies.In2007thesecondphaseofthetenderwasawardedtoattributeupto600MVAcapacityandin2008the3rdphasewasbegunfortheattributionof200MVAcapacity.Withregardtoforestbiomass,tenderswerelaunchedtoattributeatotalof100MVAofelectricityproduction, destined for 15 forest biomass thermal power plants, with an estimated investment ofaround225M€andthecreationofaround700jobs.Fourpowerplantshavealreadybeenawardedandanother8areattheawardstage.For biofuels, a tax incentive was created, with exemption from fuel tax for products destined tosubstituteroadfossilfuels.Thismeasurefavoursthedevelopmentofanewagriculturaltierbasedonbiofuels, and the creation of industrial units, for esterification of vegetable oils, with an estimatedinvestmentof100M€.In2006,fiveindustrialunitsbeganproducingbiodiesel,twolargeandthreesmall, with a total capacity of 200 000 tonnes/year. In 2007, two new plants began operating withadditional biodiesel production capacity of 150 ktonnes/year, making a total of 350 ktonnes/yearinstalledcapacitybytheendofthatyear.In2008,twomoreunitsareplannedtostartoperating,withaninstalledcapacityof77.5ktonnes/year.Tosupportthesustainabilityoffishfarms,inparticular,aspecialtariffwasdefinedfortheproductionofelectricityfromthebiogasobtainedfromanaerobicdigestion.Forwaveenergyaseazonewascreatedtoinstallpilotprojectswithoperatingpotentialofupto250MW, with a view to developing new technologies and regulatory legislation was drawn up for therespectivelicences.At the level of hydro‐electricity two reception pints were awarded for 922 MW from new largeHydroelectricPlants,withaforecastinvestmentofover1000M€.Forphotovoltaicenergy,licenceswereawardedtosetuptwolargepowerplants:onewithinstalledpowerof46.4MWandforecastproductionof56GWh/year,entailingoverallinvestmentof250M€andincludingthecreationofaphotovoltaicmodulefactory,thecreationofaround100jobsandthesetting up of a research laboratory. The other, with an installed capacity of 11 MW and forecastproductionofover18GWh/year,entailsaninvestmentof62M€.To reinforce the already established measures, in the framework of promoting renewable energysources,in2007theGovernmentdefinednewcommitmentsfor2010:• 45%ofallelectricityconsumedshallbeonarenewablebasis;• thebiofuelsusedintransportshouldaccountfor10%ofroadfuelconsumption;• 5to10%ofthecoalusedinelectricalpowerplantsshallbesubstitutedbybiomassorwaste.Newobjectiveswerethereforeestablishedforthevarioussourcesofrenewableenergy:• Windenergy:increaseinstalledcapacityby1950MWby2012,makingatotalof5100MW(ofwhich600MWshallbefromequipmentupgrade),thecreationofatechnologyclusterandtheinvestmentassociatedwithwindenergy;46

• Hydro/energy:Bringingforwardthecapacityincreaseinexistinghydroelectricinfrastructures,toachieveinstalledcapacityof5575MWin2010,575MWmorethanpreviouslyforecast,andachieve70%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 powerplant,andlinkupwithsolarhotwaterandmicro‐generationpoliciesandtargets.• Biogas:Targetof100MWofinstalledpowerinanaerobicwastetreatmentunits;• Micro‐generation:Promotetheinstallationof50000systemsby2010,withincentivestoinstallSolarHotWaterinbuildings.• Biofuels:By2010reachthetargetof10%biofuelstobeincorporatedinroadfuels.Intheareaofimprovingenergyefficiency:The Government launched an important set of measures aimed at cutting energy consumption,especiallyinbuildings,industryandtransport.TheBuildingEnergyCertificationSystemwascreated,applicablesinceJuly2007,accordingtowhichallbuildingswillhaveanenergyconsumptioncertificategivinginformationonenergyconsumptionforthebuildingandmeasurestoreduceit.Newregulationswerealsoapproved(RSECE–RegulationofBuildingEnergyandAirconditioningSystemsandRCCTE–RegulationofBuildingThermalBehaviourCharacteristics).Thislegislativepackageisafundamentalstepforincreasingtheenergyefficiencyofbuildings,puttingnewdemandsonconstruction,namely,makingitobligatorytoinstallsolarpanelsinnewbuildings.The Intensive Energy Consumption Management System (SGCIE) was created with the objective ofpromotingenergyefficiencyandmonitoringenergyconsumptionininstallationswithintensiveenergyconsumption (CIE). It defines the type of plant considered to be an intensive energy consumer andestablishes a diversified and administratively simplified regime for companies already committed toreducingtheCO2emissionsdefinedinthePNALE(NationalPlanforAttributingEmissionLicences).TheSystemprovidesforobligatoryenergyauditsoftheconditionsforenergyutilisation,andthedesignandstateoftheplant,forplantswithanenergyconsumptionof1000toe/yearormore,tobecarriedeverysixyears,andeveryeightyearsforplantswithenergyconsumptionof500‐1000toe/year.OperatorsareobligedtodrawupEnergyConsumptionRationalisationPlans(PREn),establishingthetargetsforenergyandcarbonintensities,which,afterapprovalbytheDirectorate‐GeneralforEnergyand Geology (the supervising and monitoring body of the System For Managing Intensive EnergyConsumption(SGCIE)),arecalledEnergyConsumptionRationalisationAgreements(ARCE).Regardingthetransportsector,in2007theGovernmentbeganafundamentalalterationatthelevelofcartax:10%ofcartaxnowdependsontheemissionofgreenhousegases.Thismeasure,whichtheGovernment aims to extend progressively, establishes an economic incentive to buy more energyefficientvehicles.Portugalwasconsideredbytheinternationalcommunityasoneofthemostprogressivecountriesasregardscuttingcarbondioxideintheautomobilesector,andevenbecamea“studycase”.Withtheapproval,in2008,oftheNationalActionPlanforEnergyEfficiency(PNAEE),called“PortugalEficiência2015”,asetofmeasuresareconsideredwiththetargetofachieving,by2015,improvedenergyefficiencyequivalentto10%inendconsumptionandinenergyservices.The Plan is geared to the management of energy demand, in collaboration with the NationalProgramme 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, Inaddition,itestablishesthreetransversalworkareas‐Behaviour,Taxation,IncentivesandFinancing.Fortheseareas,12actuationProgrammeswerecreatedinthevariousareasofenergyefficiency:• CarRenewal,47

• 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 theimplementationstage,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 annualelectricity costs to consumers who have made reductions of 10% or 20%, respectively, toinvestinenergyefficiency;• thecreationofasubsidizedcreditlinewith€250M/yearforinvestmentsinenergyefficiencymeasures,withstrongfocusonurbanrehabilitation;• the launch of a programme for renewing large white goods (e.g. an incentive of €100 forsubstitutinganoldfridgeforanewoneofclassA++);• thecreationofaregimeofaccelerateddepreciationforinvestmentinenergyefficiencyatthelevelofindustryandservices;• thecreationofenergyrationalisationagreementswithindustry;• energy certification for all State buildings and the launch of a big programme to optimisepubliclighting;• thecreationofafleetof“greentaxis”withreducedemissionlevels;• the development of an innovative traffic management system for Lisbon and Porto usingnationaltechnology.GUARANTEEINGTHESAFETYOFENERGYSUPPLYThe implementation of all of the above measures contributes to achieving the objective ofguaranteeingsupply,sincetheyputintopracticetheNationalEnergyStrategy,whichincludes:• thediversificationofsupplysources;• abetteruseofendogenousrenewableenergysources;• improvedenergyefficiency;• optimisationoftherunningandevelopmentofgassysteminfrastructures,storageandGNLterminals;and• theimplementationofeffectivesolidaritymechanismsbetweenMemberStatesinthecaseofanenergycrisis.48

Driver6.PortugalLogisticoLogisticsSystemandExternalConnectivityThefollowingareprojectsinthedriver“PortugalLogístico”:• DevelopmentoftheNationalLogisticsSystem(seePoint1)• ImplementationoftheHighSpeedRailNetwork(seePoint2)• ConstructionoftheNewLisbonAirport• Improveportsystemcontrol(seePoint3)• PORTMOS–IntegrationoftheportsystemintheSeaHighways(seePoint4)• MonitoringofnavigationalongtheAtlanticcoastline–VTSVesselTrafficSystem(seePoint5ofNewCiclereport)Evolvementof“PortugalLogístico”included:1.DevelopmentoftheNationalLogisticsSystemOn 9 May 2006, in Porto, the Government publicly presented the Plano Portugal Logístico, thusestablishing the fundamental principles of the system, the concept, network, sites of the variousplatforms,howitfunctions,financialviabilityandtheGovernment’smodusforcollaboratingwiththewholesector.The National Logistics Platforms Network (“RNPL”), Portugal Logístico’s hardware, structured on themain urban centres, national ports and frontier and regional routes will allow Portugal to betransformedintoanAtlanticPlatformforinternationalmovementintotheIberianmarketandraisethecountryintherankingofEuropeanlogisticsdistributioncentres.ItshouldbestressedthattheRNPLwillpromotetheefficiencyandproductivityoflogisticsoperators,allowing for an average reduction in logistics costs of around 10%, with the consequent increase innationalcompetitiveness.TheRNPLconsistsof12logisticsplatformscomplementedby2aircargocentres(PortoandLisbon).Theplatformscanbesplitupinto4distinctcategories:Urban national platforms (Maia/Trofa and Poceirão) – the main objective of these is togalvanisethecountry‐seconomicactivitybycreatinglargedistributioncentresandreplanningoflogisticsandtransportflows;Portplatforms(Leixões,Aveiro,FigueiradaFoz,LisbonandSines)–locatedclosetothemainnationalports,theirmainobjectivesaretoboostportactivityandexpandtheirareaofinfluence,namelytoSpain,aswellastoencourageintermodalityandtheuseofrailtransport;Cross‐border platforms (Valencia, Chaves, Guarda and Elvas/Caia) – these seek to galvaniseregionaleconomyandcaptureflowsofindustrialinvestment,aswellastoextendintoSpainthecurrentporthinterlands;Regionalplatforms(Tunes)–theirmainobjectiveisthereplanningoflogisticsandtransportflows,aspartofanetworkcohesionstrategy.49

Many contacts were made with business groups, both national and foreign, who were interested intaking part in the realisationof Portugal Logístico, and also with local authorities, or groups of localauthorities,interestedincontributingtoimprovingtheprojectpresented.Total investment has been altered as the projects have been concretised, with total investmentcurrentlybeingestimatedatover1,600millioneuros,includinglandaccess.We would like to draw attention to the important agreements made between the Government andprivate promoters for creating the Castanheira do Ribatejo and Poceirão platforms involving privateinvestmentof270and500millioneuros,respectively.Therearelogisticsplatformsreadyforuse,attheinfrastructuresstage,atthedesignandstudystageandunderdiscussion.Ingreaterdetail,thecurrentstateofaffairsfortheNationalNetworkofLogisticsPlatformsisasfollows: Alreadyconcluded:thecross‐borderplatformsofChavesandGuardaandtheSinesharbourplatform(nodeA); Creating infrastructures: the Aveiro harbour platform (Aveiro‐Cacia node) and the Lisbonharbourplatform(CastanheiradoRibatejonode); Atthedesignstage:thenationalurbanplatformofPoceirão,theLeixõesandAveiroharbourplatforms(PortofAveironode)andtheElvas/Caiacross‐borderplatform; Understudy:theMaia/Trofanationalurbanplatform,theValenciacross‐borderplatform,theTunesregionalplatformandtheharbourplatformsofFigueiradaFozandSines(nodeB).ItmustbestatedthatPortugalLogísticoisessentiallyaprivateinitiativeplan,withtheStateassumingaregulatoryandfacilitatingpositioninitsimplementation.In this context, the necessary legal framework was created for developing Portugal Logístico. This50

includesthepublicationofDecreeLaw152/2008,of5August,whichapprovedtheLawandJurisdictionfortheNationalLogisticsPlatformsNetwork.Thecreationofaspecificregimeforthesemattersisinfact necessary and appropriate, since it provides a clear legal framework for the development oflogisticsactivities.TheGovernmentalsodeemeditnecessarytoenshrinethe“PortugalLogístico”projectinthenationalterritorialmanagementinstruments,bydrawingupasectorplandefiningthestrategicframeworkforplanning of the national logistics platforms network, establishing the directives to be considered inregional and municipal planning. The Government thus entrusted the Instituto da Mobilidade e dosTransportesTerrestreswithdrawingupa“PortugalLogístico”sectorplan,whichshouldbeconcludedsoon.2.ImplementationoftheHighSpeedRailNetworkStudiesoftheLisbon‐Porto,Lisbon‐MadridandPorto‐Vigolines,forthewholetracklength(around600km), have been contracted up to the Conceptual Design and Preliminary Design/Project Executionstages.Subsequent to the Business Model presented on 21 June 2007, a Public‐Private Partnership (PPP)contractingstrategywasdefinedforthe3prioritycorridors.ConsequentlythestudiesfortheLisbon‐Porto,Lisbon‐MadridandPorto‐VigocorridorswillonlybedevelopedbyRAVEuptotheConceptualDesignstage,soastoobtaintheStatementofEnvironmentalImpact,requiredforthelaunchofthePPPtenders.Thus,thefollowingcontract/acquisitionprocessesweredefined,gearedtowardsdevelopingtheRAVEbusinessplan: PPP1,Poceirão‐Caiasection,fortheinfrastructure(Lisbon‐Madridcorridor); PPP2, Lisbon‐Poceirão section (includes TTT), for the infrastructure (Lisbon‐Madridcorridor); 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.WithregardtothedevelopmentofConceptualDesignsandproceduresforobtainingtheStatementofEnvironmentalImpact,cfthefollowingstateofplay: Lisbon‐PortocorridorLot D (Lisbon‐Alenquer) – The Conceptual Design and the Environmental Impact StudyweresubmittedtothePortugueseEnvironmentAgencyon19June2008forAssessmentofEnvironmentalImpact.LotD/C1–TheConceptualDesignandtheEnvironmentalImpactStudyweresubmittedtothe Portuguese Environment Agency on 29 July 2008 for Assessment Of EnvironmentalImpact).LotC1(Alenquer‐Pombal)–TheConceptualDesignandtheEnvironmentalImpactStudywere submitted to the Environment Institute in September 2006 for Assessment OfEnvironmental Impact, receiving a favourable Statement Of Environmental Impact inDecember2007;Lot B (Pombal‐Aveiro) and Lot A (Aveiro‐Porto) ‐ The Conceptual Designs andEnvironmentalImpactStudiesarecurrentlyatthefinalvalidationstage,submittedtothePortugueseEnvironmentAgencytobegintheProcessforAssessmentOfEnvironmentalImpactatthestartofthesecondsemesterof2008. Lisbon‐MadridCorridorLotTTT–EnvironmentalImpactAssessmentinprogress,havingbeeninitiatedon2July2008.51

Lot 3A2 (Moita/Montemor‐o‐Novo), Lot 3B (Montemor‐o‐Novo/Évora), Lot 3C (Évora‐Elvas),LotLTF(Elvas/Caia)–EnvironmentalImpactAssessmentalreadyconcluded,withfavourable Statement of Environmental Impact having been issued, allowing for thelaunch on 2 June of the Public‐Private Partnership Tender for awarding the design,construction,financing,maintenanceandprovisionofrailinfrastructuresforthePoceirão‐Caialine. Porto‐VigoCorridorInlightofthedecisionsintheStrategicGuidelinesfortheRailSectortransmittedon28October2006,asafirststep,theconnectionbetweenPorto(Campanhã)andBragawillbeeffectedusingtheexistinginfrastructures,completedwithanewstretchtobebuiltfromscratchbetweenBragaandValencia.Lot1B(Braga/Valença)–SubmissionoftheEPandEIAinthe2 nd Semestreof2008..In December 2007, the European Commission presented the community funding proposals for theTrans‐European Transport Network (TEN T) for the 2007‐2013 period, according to which 383.38millioneurosareallocatedforHighSpeedrailandthefollowingPriorityProjects: Porto‐VigoConnection(priorityprojectnr.19)o Cross‐border Section Ponte de Lima‐Vigo: 244.14 M€ (Portuguese part 140.64M€) 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 383.38 M€, whichcorrespondstoaround10%ofthe3.9billionEurosavailableforthe27EuropeanUnioncountries,inthewholefundingfortherailsectoroftheTrans‐EuropeanTransportNetwork.In the previous community support framework (2000‐2006) Portugal received around 1.75% ofcommunitysupportwithintheTrans‐EuropeanTransportNetwork.Submissionofapplications,twooftheminconjunctionwithSpain,withinthescopeoftheEuropeanEconomicInterestGrouping–HighSpeedSpain‐Portugal,wastheresultofextensivepreparatoryworkwhichincludedpresentationsbyRAVEtovariouslevelsoftheEuropeanCommission,withthesupportoftheGovernment.InadditiontotheTEN‐Tcreditline,theHighSpeedprojecthasguaranteedfundingof955millioneurosfrom the National Strategic Reference Framework – National Strategic Frame of Reference, via theCohesionFund.3.ImprovingportsystemcontrolTheobjectiveofimprovingportsystemcontrolistoenableandencouragecompetitivepracticesthatwillbenefitexternaltrade.Relatedmeasureswillbe:thedrawingupofaparentactforawardingpublicandprivateuseportfacilities,there‐structuringoftheworkforce,relaxationofcustomspracticeintheuseofPortuguesePortsandthefosteringofnewinformationandcommunicationtechnologiesattheports.Asaresult,weenvisagegreaterappealforthemaritimeoptioninexternaltradeactivitiesandextensionofnationalports’hinterlands.With respect to the Law on Ports, this aims to codify the legislation for port‐related and logisticsactivities,includingaccessory,complementaryorsubsidiaryactivitiesintheportareasthatcomeunderthejurisdictionoftheportauthorities,includingtheartisanalfishinggroundsandexpansionareas,andalsotoauthorizemodernsolutionsthatallowforefficientmanagementoftheportsectorandrenderourportscompetitive.Tothisend,themostimportantlegislationapplicabletotheportareashasbeenintegrated, existing regulatory solutions have been improved and the gaps that inevitably exist inseparatelegislationhavebeenfilled.52

ApprovaloftheLawOnPortscreatedaregulatoryframeworkforthemaritimeandportsector,whichprovideslegislativesimplificationandestablishedtransparent,harmonised,sustainableandflexibleplanning,guaranteeingoverseascompetitivenessforournationalports.Intermsofstateofplay,thePreliminaryDesignfortheLawonPortsisattheconsolidationphase.Apublic discussion period is planned for October‐December 2008, within the scope of the publicpresentation sessions that will take place at the main ports. The statute should be approved in theAssemblyoftheRepublicin2009.In relation to the relaxation of customs practice in using Portuguese Ports and the fostering of newinformation and communication technologies in ports, we would draw attention to the Sole portwindowproject.TheSoleportwindowissupportedbysimplified,harmonisedproceduresinelectronicmedia,providingasinglecontactforinteractionwitha“node”wheretheinformationisplacedonceonlyandsenttoallbodiesthatprovideaserviceforthat“node”,whetherintermsoftransportorgoods,obtainingtherespectiverepliesonthesamechannel.TheprojectsthatallowfordevelopmentoftheSoleportwindowinnationalportsare: ThePcomproject,whichwillallowforthedefinitionanddevelopmentoftheinfrastructurerequired 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 electronicrelationship,abodyofsupremeimportanceintheprocessesofshipsandgoodsintheports; ThePIPeprojectwhich,basedontheresultsofPCom,willguaranteeimplementationofthe“Sole port window” model at all national ports and the simplification/harmonisation ofprocedures with all economic agents and other Authorities (Maritime, Health, Veterinary,BorderandPolice),withallportshavingaharmonised“modusoperandi”.TheSoleportwindowisalreadyupandrunningattheportsofLeixões,LisbonandSines,andshouldbefullyoperationalatallmajorportsbytheendof2008.4.PORTMOS–IntegrationoftheportsystemintheSeaHighwaysTheGovernmentdevelopedthePORTMOSprojecttointegratethePortugueseportsintheNetworksofSea Highways, within the scope of the Trans‐European Transport Networks. This project includesidentifyingasetofcriteriaandrequirementsconsideredtobeindispensablefortheretobearticulationbetween national and European ports, guaranteeing door‐to‐door transportation, without theconstraintsofphysicalarticulationinthetransportchain.Thisprojectisdividedintothreephases: 1st Phase – Definition of concept/model and organisational, operational, infrastructureand info‐structure requirements, together with the procedures associated with theintegrationofthenationalmaritime‐portsystemintheSeaHighways. 2ndPhase–DesignanddevelopmentoftheSeaHighways.Supportinfrastructure 3rd Phase – Pilot actions, allowing for the definition and subsequent demonstration ofnew activities with the participation of various international partners and of portsincludedinthealreadydefinedcorridors.The 1st phase of the project culminated, In February 2006, with the "Assessment of the impact ofintegrating the Portuguese ports into the Sea Highways" and the elaboration of a publication inPortugueseandEnglishdedicatedtotheresultsofthisphasecalled“Definitionoftheconcept/modelandrequirementsoftheSeaHighwaysandintegrationoftheNationalMaritime‐Portsystem”.The2ndand3rdphasesoftheprojectwereconcludedon31December2007,withthepilotsdefinedinthe 3rd phase being based on services, using the infrastructure developed in the 2nd phase. Theconditions were established to assess performance changes resulting from the use of this new tool,53

especially in the light of the set of requirements and criteria established in the 1st phase for a SeaHighwayservicewithportsofcallinthePortugueseportsystem.Thetwopilotsaretheservices: Leixões‐Tilbury‐Rotterdam‐Leixões,operatedbySAMSKIP; Sines‐LaSpezia‐Sines,operatedbyMSC.Based on the experience already accumulated from the pilots and the respective use of theinfrastructure,thenewfinalreportfortheprojectisbeingwrittentobepresentedtotheEuropeanCommissioninthe2 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 50nautical miles from the coast of mainland Portugal, are to improve safety and security, manage seatrafficandpreservetheenvironmentalheritageinthenationalcoastalzone.ImplementationoftheVTSSystemisessentialforachievingthe3Governmentpolicies: Safety/SecurityPolicy;o IncreasethesafetyofvesselsinPortuguesecoastalwatersandintheCabodaRocaandCabodeS.VicenteTrafficSeparationSchemes;o Increasesafetyforhumanlife;o Supporttheorganisationofcoastalsearchandrescue;o Guaranteemorenationalsecurityanddefenceconditions;o Support anti‐intruder measures and those to prevent the landing of illegal personsandillicitactivitiesincoastalwaters;ando Supportfuturemanagementsystemandmaritimesurveillancedevelopments. EnvironmentalPolicy;o Protectandimprovethemarineandcoastalenvironment;ooGuaranteegreaterapplicationoftheprincipleofpolluter‐payer;andEnsure that the transportation of dangerous merchandise is kept away from thecoast. EconomicPolicy.o Improveportactivityefficiency;o Encourageeconomicdevelopment;o Providesupportformoreeffectivecontrolandsupervisionofcoastalfishingactivitiesandothereconomicactivities;ando ContributetoabetteruseofthePortugueseExclusiveEconomicZone;TheVTSSystembasicallyconsistsofasetofcomponentssuchasradars,shipautomaticidentificationsystem(AIS),meteorologicalsensors,VHFvoicecommunicationsystems,dataprocessingandmergingsystems,interalia,whichintegrateinacomplexwaytoallowforthemonitoringandcontrolofseatraffic.WiththeVTSSysteminstalledonthecontinent,twolevelsofservicebecameavailable: TheCoastalservice,coveringthewholeofthecoastformainlandPortugal;and The Port service, covering the ports of Aveiro, Figueira da Foz, Viana do Castelo, Faro andPortimão.In coastal VTS, detection, communication and control capacity, by means of radars, ship to shorecommunicationandthenewautomaticidentificationsystem(AIS),extendstoadistanceof50milesoffshore,withconstantcoverageandpermanentcontrol–roundtheclock,365daysperyear.InportVTS,thesametypeofsensorswillcovertheapproximationzonesuptoaround15milesoutsidetherespectivelimits,theauthorisedanchorages,thebarsandnavigationwithineachport,facilitatingevenmoreapproachoperationsandentryintoNationalPorts.Budgetedatover100millionEuros,themainlandVTSprojectisofhightechnologicalcomplexity.Thesystemconsistsof:54

Eightcoastalstations(fromMinhototheAlgarve); Eightportstations(threeinAveiro,twoinFigueiradaFoz,oneinVianadoCastelo,oneinFaroandoneinPortimão); AControlCentreinPaçodeArcos; AreserveControlCentreinFerragudo; APortControlCentreinAveiro;and Atotalof33coastal,portandcommunicationsstationstransportinginformation.Thewealthofinformationcollectedbythesystem,whichwillbestoredinaNationalMaritimeShippingDatabase,maybemadeavailabletoothercompetentbodies,whethernationalorforeign,allowing,through ongoing data exchange, for effective increase in the safety and security of Portuguese andEuropeanwaters.The integration of the information from the Portuguese VTS System in the Community VesselMonitoringandInformationSystem,setupbyCommunityDirective2002/59/CEof27June,fallsintothiscontext.TheVTShasbeenprojectexemplifyingintegrationandcoordinationbetweenthevariousGovernanceareas, making use of the VTS infrastructure to provide information for other institutional agentsconnected 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 SafetySystemintheMainlandVTSSystem; TheintegrationofcomponentsoftheIntegratedCoastalVigilanceSystemoftheFiscalBrigadeoftheNationalRepublicanGuardinthemainlandVTSSystem;and UsebytheInstituteforPortsandMaritimeTransportofPortugueseAirforceinstallationsandthe sharing of broadband communications equipment, thus reinforcing the communicationsnetworkofthePortugueseAirforce.Theseareclearexamplesoftheefforttooptimisepublicinvestment,towhichthefollowingsynergiesareadded: Interconnection with the port systems for exchange of information with the portadministrations’systems;and InteroperabilitywithEuropeansystems,inparticularwithSafeSeaNetandAISMediterranean,togetherwiththeexchangeofinformationwiththeSpanishVTSsystems.ItisalsoplannedtomakeinformationfromthenationalmaritimeshippingdatabaseavailabletootherbodiessuchastheDirectorate‐GeneralforFishing,theAliensandBordersService,CriminalPolice,PublicSecurityPolice,andintegrationofAISinformationfromtheAzoresandMadeiraisalsobeingstudied.TheVTSSystemhasbeenpartiallyoperatingsinceJanuary2008,andhasbeenfullyoperationalsinceJuly2008.55

|QUALIFICATION,EMPLOYMENTANDSOCIALCOHESIONFollowing the successive recommendations to Portugal in the area of Life LongLearning(LLL),governmentactioninthisfieldhaspledgedtopromoteastrategywhichstrivestoreachallcitizensandresultsinlearningobtainedinformal,notformalandinformalenvironments,therebyraisingtheemployabilitylevelsofpeopleatallstagesoftheiractivelife.Thisstrategyalsoincludesincentivesfor:- strengtheninginnovationandentrepreneurship,- competitiveness,fosteringasustainedandsustainabledevelopmentprocess,- theupdatingandaccumulationofskills,- thereductionofthesegmentationofthelabourmarket,- increasingproductivity.Itiswithinthisbaseframeworkthat,inthecontextofthechallengeof"modernisingthe labour market, fostering the creation of jobs, preventing and combatingunemployment", in the scope of which Portugal seeks to respond to one of theconclusions of the 2007 Spring Council which states that it is “equally necessary tostrengthenthelifecyclebasedapproachtoworkinordertoimprovetheaccesstothelabourmarket”.Thegovernmentactiononthismatterhasbeendoneinharmonywiththeconclusionsofthe2007SpringCouncil,inparticularwiththeguidelineforMemberStates in the sense of “developing policies that foster […] the role of the youth,notablyintheirtransitionfromschooltoworkinglife,oftheelderlyandofpeoplewithlowqualificationsasactiveparticipantsintheeconomyandinthelabourmarket,withthe aim of using all their potential to contribute towards the economic and socialdevelopmentofoursocieties”.ThesegmentationofthePortugueselabourmarket,theobjectofaRecommendationto Portugal, today constitutes an essential challenge by introducing the need topromoteandadoptanintegratedstrategywhichfirstandforemosttakesintoaccountthecitizenswiththegreatest(re)integrationdifficultiesinthelabourmarket,adaptinganswersintermsofactiveemploymentpolicies,aswellasintensifyinganLLLpolicycapableofincreasingemployability,particularlyofthosewhoareweakestintermsofprofessionalqualifications.Theequalityandcitizenshippolicy,notablywithregardtogenderequality,deservesspecial attention considering that fostering the employment of women can be animportant factor for competitiveness and sustainable development. While, inquantitativeterms,PortugalhasalreadyexceededthegoalsetbytheLisbonStrategyfor2010fortherateoffemaleemployment,inqualitativetermsthereisstillalongwaytogo.Indeed,thehighestandbestacademicqualificationsachievedbywomenhavenotresultedinanimprovementoftheirparticipationinthelabourmarketandwe continue to register a strong horizontal and vertical segregation of the labour57

market with negative reflexes, notably in the access to leadership positions andequalityofremunerations. 11 The adaptation of work and social protection legislation to the new realities arefundamental pillars in order to respond to the duality of the labour market and theresulting situations of enormous imbalance. Therefore, within the scope of theTripartite Agreement for a new regulation system for labour relations, employmentandsocialprotectionpolicies,weshouldhighlightthemeasureslinkedtothechangein the presumption of the work contract and the creation of a very serious newadministrative offence for feigning a work contract in order to enable an efficientcontroloftheuseof"falsefreelanceworkerpaymentreceipts".Stillinthisfield,andinthe area of social protection and employment policies, the Agreement also foreseesvariousmeasures(seeitem5.3andresponsetoCSR).TheLisbonStrategyrevampedin2005,re‐focusedongrowthandemployment,upholdsthatsocialprotectionistobeunderstoodasaproductivefactor.ItisinthiscontextthatPNAIisincludedinaspecificway,whoseprioritiesare(i)combatingpovertyofchildrenand the elderly through measures that ensure their basic citizenship rights; (ii)correctingthedisadvantagesinqualificationlevelsasameansofpreventionexclusionand stopping the cycle of poverty; (iii) overcoming discrimination through theintegration of disabled persons and immigrants. The National Strategy for ProtectionandSocialInclusionarticulatespolicymeasuresofsocialinclusion,pensionsandhealthcareandcontinuedcare(seeProximityServicesdriver).3.1. ImprovedQualificationsofthePortugueseIn addition to the implementation of the New Opportunities Initiative (see NewOpportunitiesdriver),theReformofVocationalTrainingandtheReformofBasicandSecondaryEducation(see"ValorisationofBasicEducation”driver)andtheReformofHigher Education, the Government has been implementing other measures at thelevelofthesustainabilityofeducationandtraining(e.g.theevaluationandautonomyof schools), at the level of quality (teacher training, National Reading Plan, amongothers) and also other measures whose impacts will only be visible in the longerterms, such as the broadening and consolidation of pre‐school education, thecurricularenrichmentandtheextensionofschooltimetables.Wehavealsowitnessedastrongcommitmenttoextendschoolsocialaction,whichisnowincludedinthesetofsocialpoliciesandexpressedjointlywiththefamilysupportpolicies. This change will enable access to school social action to 450,000 morechildrenandyoungpeoplerelativetotheregimewhichhasnowbeenrevised.Atthesame time, the standardisation of support to children who attend pre‐schools andstudents of basic education is fostered and assistance to those attending secondaryeducationisincreases,inconformitywiththeaimofgeneralisingschoolingatthislevel11 See National Strategy for Equality and Citizenship 2007 -201358

of education. It is estimated that the level of secondary education the number ofbeneficiarieshasincreasedto130,000.FollowingthesigningoftheAgreementontheReformofVocationalTrainingwiththemajorityofsocialpartnerson14March2007,ResolutionoftheCouncilofMinistersno. 173/2007 of 7 November was published, approving the Reform of VocationalTraining.ItaimstocreatetheconditionsfortheexecutionoftheNewOpportunitiesInitiative and respond to all the objectives and concerns expressed in the BipartiteAgreementof2006.Broadeningaccess,ensuringthatalltrainingguaranteesacademicand professional progress and boosting its relevance for the modernisation ofcompanies,placingqualificationatthecentreofdevelopmentoptions,requiresactioninfivefundamentalareas:(1)structuringarelevantandcertifiedoffer;(2)reforminginstitutions and the regulation of training; (3) defining priorities and adequatefinancing models; (4) fostering the quality of training; and (5) facilitating access andfosteringdemandfortraining.Within the scope of the reform, Decree‐Law no. 396/2007 of 31 December waspublished, which establishes the legal regime of the National Qualification System(SNQ).ItassumestheobjectivesthathavealreadybeensetintheNewOpportunitiesInitiativeandpromotestheinstrumentsnecessaryforitseffectiveexecutioninliaisonwithfinancialinstruments,namelytheNationalStrategicReferenceFramework.Thissystem adopts the principles established in the Agreement entered into with socialpartnersandrestructuresvocationaltrainingthatformspartoftheschoolsystemandthatwhichformspartofthelabourmarket,integratingthemwithcommonobjectivesandinstrumentsunderarenewedinstitutionalframework.Thefundamentalstrategyincludesensuringtherelevanceoftrainingandlearningforpersonaldevelopmentandforthemodernisationofcompaniesandtheeconomy,guaranteeingatthesametimethat all the national effort in training is effectively valorised for the purposes of theacademic and professional progress of the citizens, both directly, through dualcertification training as part of the National Catalogue of Qualifications (CNQ), andindirectly, through New Opportunity Centres (CNO) and the process of recognising,validatingandcertifyingskills.The quality of the National Qualification System is the central aim of the variouselementsthatformthissystem,namelythroughthecertificationoftrainingbodiesandthe qualification of trainers and other training staff. The Operating Programme forHumanPotentialisacentralinstrumentofthepublicfinancingoftheeducationandtraining policies. In this sense, the Reform of Vocational Training plays a key role increatingmoreeffectiveandefficientconditionsfortheapplicationoftheseresources.Onlywithbetterpreparedpeoplewillitbepossibletoassurethattheperformanceofthe labour market with quality job creation is sustainable, following a period ofconsiderable business restructuring and relocation. Within this scope, in October2007,PortugalsubmittedtotheEuropeanCommissionarequestforinterventionaspartoftheEuropeanGlobalisationAdjustmentFundintheamountof2.4millionEurosintended to help 1,549 workers in the automobile industry who lost their jobs andrequiredsupporttofindnewwork.Theselayoffstookplaceinthreecompanies:onein59

theregionofLisbon(AlcoaFujikura,whichmanufactureselectricalcomponents)andtwo in the region of Alentejo (Opel Portugal, a factory for assembling trucks, andJohnson Controls, which produces automobile seat covers). Fosteringentrepreneurship may also serve as a response for mitigating the effects ofrestructuringprocessesandithasbeenencouragedinPortugalfromanearlystage(attheleveloftheschoolsystemandtraining),boththroughthemeasuresprovidedbySPEandothers,suchasEmpreender+,FINICIA(seechapterMicro).The significant improvement in the qualification level of the Portuguese populationrequirescontinuedandconstantworkbothbyprovidingyoungstudentswithqualityeducation with equal opportunities and by recovering, for education and training,significantstrataoftheadultpopulationwhodroppedoutoftheschoolsystemearlyandwhoalsohaverelativelylowlevelsofparticipationinvocationaltraining.Relevantindicatorsthatallowustoassesstheresultsofthiseffortare:- the increase in the number of students registered in the different levels ofeducation,implyinganincreaseofaround21,000studentsinthesystem,aboveallinvocationallyorientedschools,especiallyatthelevelofsecondaryeducation;- the increase in the number of students who returned to the higher educationsystem(around7,000morethaninthepreviousyear);- thereductionofrepetitiondropoutratesinbasicandsecondaryeducation(inbasiceducation, the rate dropped from 11.5% in 2004/05 to 10% in 2006/07 and insecondaryeducation,forthesameyears,theschoolrepetitionratedroppedfrom31.9%to24.6%);- thereductionofdropoutrates(in2007,thedropoutratewas36.3%incomparisonwith38.6%in2005);- theincreaseinthepercentageofyoungpeoplebetween20and24yearsofagewhocompletedatleastsecondaryeducationfrom49%in2005to53.4%in2007;- thecertificationof143,010adultswithschoolqualifications.Theseindicatorsdemonstratethatalthoughitisknownthateducationandtrainingarerelativelylongprocesses,itispossibletoobtainpromisingresultsintheshorttermaslongas,ononehand,theymakebasicandsecondaryeducationattractiveand,ontheother, provide citizens with new opportunities for real personal and professionalvalorisation.Asregardstheeducationofyoungpeople,setsofinitiativeswerelaunchedbetween2005 and 2008, of which one is especially aimed at improving the quality of basiceducation(cf.ValorisationofBasicEducationDriver).Pre‐school education has been progressively extended to children of three and fouryearsofageandhasbeengeneralisedforchildrenoffiveyearsofage.Asregardssecondaryeducation,themeasuressoughttoboosttheattractivenessofthislevelofeducation.Thesemeasuresrangefromthediversificationoftrainingsonoffer, in liaison with the Ministry of Labour and Social Solidarity (the percentage of60

secondaryeducationstudentsattendingvocationalcourseshasincreasedfrom10%in2005 to 40% in 2008) to the launching of an ambitious programme for therequalificationofsecondaryschools(providingtheseeducationalestablishmentswithspacesthatrespondtocurrentandfuturerequirements,inaccordancewithmodernschool architecture standards). They also range from the supply, at a low cost, oflaptop computers with broadband Internet connections to 11th and 12th gradestudents (e.escola programme) and all teachers (e.professor programme, includingearlychildhoodteachers)totheapprovalofnewrulesforschoolmanagement,whichis now based on a new system for evaluating teachers (that includes monitoring ofclasses),whosecareerhasbeengivenahierarchybythecreationofthepositionoftenure teacher (which can only be reached by teachers who satisfy a set ofprerequisites). Furthermore, they range from the installation of more than 110,000computersin2ndand3rdcycleandsecondaryschools(sothatin2009therationoffivestudentspercomputercanbeachieved)totheextensionofschoolsocialactionsupport to secondary education students and the launching, in liaison with theMinistry of Science, Technology and Higher Education, of a tender for researchprojectsaboutsuccessatschool.Thesesetsofinitiatives(atotalof70)willcontinuetobecarriedoutinthenextthreeyearperiod (2008‐2010), considering the excellent results that have so far beenachieved.The School Libraries Programme, which has already been completed, is anotherexampleofputtinginpractice,consideringthatallthe2ndand3rdcycleschoolsnowboastthisimportantspaceformakingeducationalresourcesavailable.In the higher education policy field, continuity was given to the concretisation ofmeasures aiming to assure the goals defined in the PNACE are met, namely (i)guaranteeingthequalificationofthePortugueseintheareaoftheEuropeanUnion,implementing the Bologna process, a unique opportunity to stimulate highereducation attendance, improving the quality and relevance of training offered andfostering mobility and internationalisation, (ii) promoting equal opportunities in theaccess to higher education, improving attendance levels and conclusion of degreecourses, attracting new groups using a lifelong learning approach, broadening theinvolvement of higher education institutions in vocational training activities andpromotingschoolsocialaction,and(iii)promotingpost‐graduateeducation,especiallyatthePhDlevel.Hence,criticalmeasuresfortheprocessofreforminghighereducationhavebeenputintopracticeoverthelastthreeyearswithresultsthatarealreadyvisibleinsomemainindicatorsinthisfield.We should highlight that in the 2006‐2007 school year, the declining trend of newstudents in higher education was inverted (95,431 in 2006‐2007 against 84,363 in2004‐2005and82,720in2005‐2006).Thistrendwasaccentuatedin2007‐2008witha17%increaseinthenumberofnewstudentsenrolled(6,820more)onlyinthenationalcompetition for access to public higher education. Special emphasis falls onpolytechniceducationwherethegrowthreached24%.Consequently,in2007,forthe61

first time since 2002, the total number of students attending higher education inPortugalincreased.On the other hand, the number of new graduates in science and technology hassignificantlyincreasedinthelastyears,havingreachedforthefirsttimein2006thevalueof18.1per1,000amongthepopulationbetween20and29yearsofage(abovetheEuropeanaverage).Atthesametime,thenumberofnewPhDdegreesinscienceandtechnologyincreasedto0.42per1,000amongthepopulationbetween25and34yearsofagein2007(itwas0.3in2001).FollowingtheimplementationofthefullregulationthataimstobringhighereducationinPortugalinlinewiththeBolognaprocessthattookplacein2006,withaviewinparticular to the new legal system of degrees and diplomas, the opening of highereducationtonewgroupsandthedevelopmentofpost‐secondaryeducationwithoutconferringacademicdegrees(viatheTechnologicalSpecialisationCourses–CET),verysignificantresultsachievedsince2006,especiallyinthepast2007‐2008schoolyear,areknown.ThesuccessoftheimplementationoftheBolognaprocessandtheattractingofnewgroupstohighereducation,withaviewtolifelonglearningAfterpresentingthefullregulationatthestartof2006whichaimstobringhighereducationinPortugalinlinewiththeBolognaprocess, with regard to the initial training courses that offered places in the 2007‐2008 school year, about 90% are alreadyorganisedinaccordancewiththeBolognaprocessprinciples(includingpublicandprivatehighereducation).Theopeningofhighereducationtonewgroupsthroughthenewaccessregimeforthoseover23yearsofageresultedinthenumber of adults entering higher education by this means rising to roughly 10,850 in the 2006‐07 school year, having alsoincreasedto11,775inthe2007‐08schoolyear,againstaroundjust900adultsthatstartedtheirstudiesinhighereducationinthe2005‐06schoolyear.Alsointhecontextofattractingnewgroupstohighereducationinstitutions,weregisteredaverysignificantriseinthenumberofTechnologicalSpecialisationCourses(CET)operatinginhighereducationinstitutionsaswellasthetotalnumberofnewstudentsinthesecourses.Atotalofmorethan4,800newstudentsadmittedin2007wasreached(againstalittleover1,000in2005),inatotalofaround150coursesofferedinhighereducationestablishments.Special emphasis should be given to the implementation of the system of loans for higher education students with mutualguaranteeassuredbythestate,broughtintoeffectinSeptember2007,andcomplementingtheschoolsocialactionsystemforhigher education students, and the broadening of the scope for granting scholarships to students enrolled in technologicalspecialisationcoursesandmasterdegreecourses,therebyprovidingnewconditionsforallstudentstoaccessandattendhighereducation.ThesystemofloanslaunchedbytheGovernmentattheendof2007includedmorethan3,100studentsattheendofthefirstacademicyear(2007‐2008),havingsurpassedallinitialexpectations.Atthesametime,itwasrecognisedinternationally,namelybyevaluatorswhoanalysedthePortugueseeducationsystemforOECDin2006/07,asinnovativeandsuitablefortheneedsofstrengtheninghighereducationinPortugalandinEurope.Wenowplantodoublethenumberofstudentscoveredbytheseloansin the next academic year, while at the same time the Government will again reinforce the School Social Action Fund for theneedieststudents.Thereformofhighereducationwascontinuedin2007,basedontheimplementationofasetofcentralmeasuresinthereformandfollowingtherecommendationsfromthe OECD and ENQA in accordance with assessment studies made by theseinternationalinstitutionsin2006,withemphasison:• The new Legal Regime of Higher Education Institutions (RJIES), approved byLaw no. 62/2007 of 10 September, which aims to regulate notably, (i) theorganisationprinciplesofthehighereducationsystem,(ii)theautonomyoftheUniversitiesandPolytechnicInstitutes,(iii)theorganisationandmanagement62

principles of higher education institutions, (iv) the legal regime of public andprivate higher education institutions, (v) the regulation and planning of thepublic network, (vi) the requirements for the creation and transformation ofhighereducationestablishments,(vii)andtheresponsibilityandsupervisionoftheinstitutions.• ThenewLegalRegimefortheEvaluationofHigherEducation(RJAES),approvedbyLawno.38/2007of16August,whichaimstocreateanevaluationsystemcompatible with the best international practices in which exterior andindependent evaluation is mandatory and is the basis for the accreditationprocessoftheinstitutionsandtheircourses.• TheformingoftheEvaluationandAccreditationAgencyforHigherEducation,through the Decree‐Law approved in August 2007, which aims to boost thequality of higher education, namely through evaluation and accreditationproceduresofhighereducationestablishmentsandtheirstudycycles,aswellastheperformanceofthefunctionsinherenttotheinsertionofPortugalintheEuropeansystemofguaranteeingthequalityofhighereducation.• ThenewRegulationoftheRegimesfortheChangeofCourse,TransferandReentryinHigherEducation,approvedbyGovernmentOrderno.401/2007of5April,thataimstofacilitatetheentryofhighereducationstudentsinPortugaltocontinuetheirstudies,withrapidandobjectiverecognitionoftheschoolandvocationaltrainingacquired,andtocreateasimplifiedregimeofre‐entryinthesame or other educational institution with accreditation of the school andvocationaltrainingacquired.• The new legal regime of recognition of higher foreign degrees through aDecree‐Law approved in August 2007, aimed at simplifying the system ofrecognising foreign degrees in Portugal, including the various study cycles(bachelors,master’sanddoctorate),basedonthealreadyexistingmechanismfor the doctorate level, namely (i) speeding up the procedure for fixing therange of degrees to which it applies; (ii) extending the mechanism to thebachelorandmasterdegrees;(iii)andincludingforthesedegreesanautomaticconversionprocedureforclassifications.• TheimplementationofamechanismformonitoringtheprogressofputtingtheBologna Process in practice, through Decree‐Law no. 107/2008 of 25 June,whichaimstoguaranteewaysofsupervisingthetransitionfromaneducationalsystem based on the transmission of knowledge to a system based on thedevelopment of the skills of the students, in which the components ofexperimentalworkorprojects,amongothers,andtheacquisitionoftransversalskillsshouldplayadecisiverole.• Thesimplificationanddebureacratisationofproceduresandmakingaccesstohigher education more flexible, also through Decree‐Law no. 107/2008 of 25June. This includes: the possibility of any interested individual enrolling inisolated subjects with the guarantee, in the case of approval, of certificationandalsoaccreditation,ifandwhentheyenrolinacoursewhichoffersthem;the possibility for students attending a higher education course to enrol insubjects that are not part of the curriculum of their course in any highereducation establishment, with the guarantee, in the case of approval, of63

certificationandinclusioninthesupplementtothediploma;andthepossibilityofenrollinginahighereducationcourseasapart‐timestudent.WeshouldespeciallyhighlighttheimplementationofanewLegalRegimeforHigherEducationInstitutions(RJIES)byhighereducationinstitutions,whichhasbeencarriedout successfully and in accordance with expectations. Namely, all the processes fordrawing up and approving new statutes are in the conclusion phase, which will befollowedbytheimplementationofnewgovernanceschemesinallinstitutions.Theprocessofstrengtheningtheautonomyofhighereducationinstitutionswasamplyrecognised in the analysis presented by OECD in April 2008, in the study entitled"Tertiary Education for the Knowledge Society", a comparative analysis of tertiaryeducation policies involving 24 countries, primarily at the level of legislative reformintroducedbythenewLegalRegimeforHigherEducationInstitutionsandespeciallyinoptingforthecreationofpublicfoundationsunderprivatelaw.ThisstudyalsoclearlyshowsthereformprogressachievedinPortugal,namelywithregardtotheextensionoftherecruitmentbaseinhighereducation,i.e.throughaninnovative system of loans and the attraction of new groups, the stimulation ofinternationalisationinhighereducationandthescientificcommunity,theopeningofhigher education institutions to society and the labour market, the reform of theevaluation and accreditation system, and the strengthening of scientific andtechnologicalcapacity.In particular, the strengthening of the scientific and technological capacity ofinstitutions was also impelled through the Promotion of Scientific Work Programmelaunched by the Foundation for Science and Technology, which has already enabledentering into agreements with institutions from the national scientific andtechnologicalsystemforsupportingthehiringofaround720newPhDgraduates.Thismechanismhasenabledtherenewaloftheteachingstaff,whichhasbeenimpelledbythisnewprogrammeforsupportingthehiringofnewPhDgraduates.In the scope of the advanced training of human resources, in fulfilment of theambitious goals defined in the Pledge in Science, the total number of advancedtraining scholarships directly granted by the Foundation for Science and Technologyhasbeenontheriseoverthelastyears,havingreached6,250scholarshipsin2007,ofwhicharound4,900weredoctoralscholarshipand1,350post‐doctoralscholarships.Inthis scope, the number of new scholarships awarded annually has increased veryexpressively.Doctoralscholarshipsincreasedby77%(fromaround1,170to2,080newscholarshipsawardedannually)andpost‐doctoralscholarshipsincreasedby41%(fromaround640to900newscholarshipsawardedannually)inthelasttwoyears.Furthermore,followingthenewinternationalpartnershipsofhighereducationandinscienceandtechnologyestablishedduring2006and2007,namelywithMIT,CarnegieMellonUniversityandtheUniversityofTexasatAustin,throughthelaunchoftheMIT‐Portugal Programme, CMU‐Portugal Programme and the UTAustin‐PortugalProgramme respectively, the advanced training programmes foreseen in all the64

thematic areas (including post‐ graduate and doctoral programmes) have alreadystarted in the 2007‐2008 academic year, thus complementing the R&D programmesand activities underway. Also underway is the preparation of new internationalpartnerships with higher education S&T international institutions of reference (e.g.HarvardMedicalSchoolandothers).ThesepartnershipsstrivetoactasastimulusfortheinternationalopeningofuniversitiesandboosttheinternationalexcellenceofR&Dactivities and advanced training in the leading S&T fields (see highlights in"InvestigationandDevelopment"chapter).3.2. Fosteringjobcreation,preventionandcombatingofunemployment:ActiveEmploymentPoliciesInthesepriorities,wealsonotepolicymeasuressuchastheSocialInsertionIncome(RSI),theSolidaritySupplementfortheElderly(CSI),theExtensionoftheSocialFacilityNetworkProgramme(PARES(sic).IntheinterventionareaofthePublicEmploymentService(SPE),wehighlighttheroleplayedbytheINSERJOVEMandREAGEInitiatives(targeting youngsters and adults, respectively), whose intervention methodologieshavebeenprogressivelyadjustedtorenderthemproactivetotheneedsofthelabourmarket and different groups, particularly those most exposed to exclusion from thelabourmarketandsociety.Newformatshavebeenimplementedintheframeworkofthemodernisationofpublicservicestoenableabettercoverageofdifferentgroupsbasedoncriteriasuchasage,qualifications and disadvantage relative to employment. This contributes to a betterfocusonthosewithgreatestinsertiondifficultiesandactionthatismoretargetedtothespecificitiesofeachgroup.Inaddition,procedureshavebeenimplementedthatfoster the active search for jobs by the unemployed. The simplification ofadministrative procedures for supporting technical interventions, as well as a fastercommunicationwithunemployedpersons,namelybysendinginformationaboutjoboffers 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 andmeasure provided by the Employment and Vocational Training Institute), and foremployers (communicating job offers, browsing CVs registered online, electronicsubmissionofapplicationstovocationalprogrammes),havecontributedtowardsthestaffbeingmoreavailabletointerveneduringtheinitialphaseofunemployment.Atthesametime,thereinforcingofsomemeasures,suchasprofessionalinternshipsandinitialdualcertificationtraininghaveenabledmoreyoungpeopletohaveaccesstoanewopportunityinashorterperiodoftimeafterapplyingforajob.Withinthisframework,thePersonalEmploymentPlan(PPE)facilitatedthefosteringofproactiveattitudesonthepartofunemployedyoungpeoplewhoarebeneficiariesofunemploymentprotectionservicesbyintroducingfortheseunemployedpersonsanobligatory stage of Active Job Seeking, indicating the actions, frequency, periodicity65

and means of proof of the actions undertaken with a view to entering the labourmarketbytheirownmeans.Following the conclusions of the 2006 Spring Council – "it is urgent to improve thesituationofyoungpeopleinthelabourmarketandsignificantlyreduceunemploymentamongsttheyoung"–particularlytofulfilthegoalofofferinganewopportunitytoyoungpeopleinthemaximumperiodofsixmonthsuntiltheendof2007(andfourmonthsuntil2010),theSPEsteppedupitsactionintheareaofINSERJVEMandREAGEmethodology through the early detection of the young unemployed people at 3monthsandadultsat6months,withvisibleresultsin2006andgoodperformanceswithregardtoadults(REAGEinitiative).Thesituationoftheeconomyandthelabourmarketinparticularjustifiedthelaunchofinterventionprogrammesforspecificunemployedgroups–inthemostextensiveframework of the set of active employment policies which are in a reform andrationalization process – designed and implemented according to age group,education/qualificationlevelsandalsotogreaterexposuretotheriskofexclusion.Thedevelopment of these programmes contributed to a more adjusted and dynamicexecutionofthesepolicies,namelybygivingrisetoasignificantgrowthinitsnumberofbeneficiaries.InterventionProgrammesfortheUnemployedExecution2005–2007InterventionProgramme 12 Physical FinancialUnemployed Young People (15‐22 yearsofage)134thousand413M€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)Giventheparticularsensitivitiesofsomegroupsexposedtotheriskofexclusionfromthelabourmarketandsocietyingeneral,andtherecurrenceoftheconclusionsoftheSpringEuropeanCouncilswhichemphasisetheneedto"increasetheparticipationinthe labour market, especially [...] that of people with disabilities and also legalmigrantsandminorities"(2006),aswellas"toreinforceeconomicandsocialcohesionthroughout the Union" (2007), we highlight with regard to disabled and impairedpersons:- TheInformationandMediationSystemforDisabledandImpairedPersons(SIM‐PD) (database with information on legislation, existing resources and servicesdestinedfordisabledorimpairedpersons,theimplementationin18districtsoftheInformation and Mediation Service and the functioning of the NationalCoordinationUnitoftheSIM‐PD);12 InterventionprogrammessolelyundertheresponsibilityoftheexecutionoftheEmploymentandVocationalTrainingInstitute.66

- TheNationalPlanforthePromotionofAccessibility, 13 whichfostersthecreationof accessibility in buildings, transport and information and communicationtechnologiesandsupportingtechnologiestoallcitizenswithoutexceptions.- The Portuguese Sign Language Programme (LGP) which consisted of creatingprogrammes for basic and secondary education, thus ensuring deaf children andyoung people access to learning Portuguese sign language in public educationalestablishments: pre‐school education; 1st, 2nd and 3rd cycle of basic educationandsecondaryeducationin2008.- The signing of 5 protocols for the creation of New Opportunity Centres for thedevelopmentofareferentialinstrumentintheRVCCprocessuntilbasiceducation,adapted to disabled and impaired persons. From June 2007 to June 2008, 582disabledandimpairedpersonswereincluded.InPortugal,countlessactivitieshavebeendevelopedtoimplementinclusivepolicies,especially within the framework of the National strategy for Social Protection andSocialInclusion2006‐2008,inwhichwestressinparticulartheNationalActionPlanfor Inclusion (PNAI) due to its strong interaction with PNE. We should mention theapprovaloftheActionPlanfortheIntegrationoftheDisabledandImpairedin2006andofthePlanfortheIntegrationofImmigrantsin2007;thesehaveamoresectorialdimensionandreinforcethenationalprioritiesforprotectionandsocialinclusion.The Lisbon Strategy revamped in 2005, re‐focused on growth and employment,upholdsthatsocialprotectionistobeunderstoodasaproductivefactor.Itisinthiscontext that PNAI is included in a specific way, whose priorities are (i) combatingpoverty of children and the elderly through measures that ensure their basiccitizenshiprights;(ii)correctingthedisadvantagesinqualificationlevelsasameansofpreventionexclusionandstoppingthecycleofpoverty;(iii)overcomingdiscriminationthroughtheintegrationofdisabledpersonsandimmigrants.TheNationalStrategyforProtectionandSocialInclusionarticulatespolicymeasuresofsocialinclusion,pensionsand health care and continued care (Proximity Services Network driver) and LocalSocial Development Contracts (CLDS), which are done in close cooperation with theSocialNetworkProgramme.TheIntegratedInterventionOfficeforBusinessRestructuring(AGIIRE),whosemissionis speeding up the transition and restructuring process of companies and lesseningeventual negative impacts on social and territorial cohesion resulting fromrestructuring processes through the activation and putting into practice of existinginstruments.Theworkofthisofficeintheareaofbusinessrevitalisationarisesfromafavourable assessment of the economic potential and regional and social interest ofmanycompanieswhich,albeitpassingthroughalessfavourablephase,haveskillsandresourcesthatarecapableofassuringasuccessfulturn‐aroundifdulyprovidedwithanadequatestrategyandconsistentmanagement.Inthisway,itaimstoovercomefrequent"marketfailures",avoidingthelossoftheeconomicvalueofrelevantassetsandguaranteeingworkpostsandtheproductionofwealth.Thus,withinthescopeoftheactivityofAGIIRE,atotalof6,270contactswereregisteredin2007.Interventionprocesses were carried out (dialogue with creditors) in 255 companies, involving13 ResolutionoftheCouncilofMinistersno.9/2007of17January.67

12,500workposts.Furthermore,twoprocesseswereapprovedwithinthescopeoftheIntegrated 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 PersonalisedIntervention Nuclei. In this context, it is also important to mention the role of theconsultancy‐training programmes for micro and small companies, which have beenpromotedbyvariouspublicandprivatebodies(e.g.businessassociations)asisthecasewiththeGERIRProgrammeandREDEProgramme.Thegoaloftheseprogrammesis to contribute towards increasing management capacity and improving thecompanies’organisationandcompetitiveness.Currently,thisformofinterventionhasbeenconsideredasanexampleofgoodpracticesinthetrainingareaforthissegment,which represents a large portion of the business fabric and which traditionally hasgreatdifficultyinandevenresistancetoaccessinginformation.Withaviewtoimprovingtheeffectivenessandefficiencyofthesemeasures,arevisionprocess of the general principles of employment policies is under way, including itsconcentrationintoareducedsetofprogrammeswithinternalcoherenceandclarityinrelation to recipients and operators, making it more transparent and known andaiming to increase its scope and effectiveness in combating unemployment. At thesame time, it seeks to guarantee the flexibility required to bring it in line with thespecificities of the different target groups and territories, combining preventive andcorrective aid. This process is currently in the final discussion phase in the socialdialogue, after which the respective legislative framework will be altered, a newpromotion and monitoring system will be introduced together with the periodicevaluation of the respective measures (at least biannually) in order to guaranteelabourmarketneedsandeffectivenessarepermanentlybeingupgradedinlinewiththeresults.Thus,theproposaloftheschemeofactiveemploymentpoliciesisbasedonthreetypesofprogrammes:i)Generalprogrammes;ii)Specificprogrammesandiii)Territory‐based programmes. The general programmes cover the whole country andall groups and sectors, using the following types of intervention: a) Programme forstimulatingthecreationofself‐employmentandentrepreneurship;b)Programmeforstimulating the quality of third‐party work and; c) Programme for stimulating jobseeking.Thespecificprogrammesareaimedatparticularsegmentsoftheunemployedpopulation,whiletheterritory‐basedprogrammesareaimedatspecificregions/areas.3.3. ImprovedworkingconditionsThe modernisation effort and the reform of the labour relations system started in2006werecontinued.TheconstantdiagnosisoftheGreenBookonLabourRelationsand the identification of the principal problems of the Portuguese labour relationssystem,expressedintheWhiteBookonLabourRelations,representthekeybasesfor14 Assumed as a financial instrument based on the Fund for the Revitalisation and Modernisation of the BusinessCommunity,whichintervenesasafinancialpartnerintheacquisitionormergingofcompanies.15Forsituationsinwhichthecompaniesareconfrontedbydebtsituations,thePEC,mediatedbyIAPMEI,directsitsactiontowards enabling an agreement between the company and its creditors, so as to render its recuperation viable. Thisinstrumentisonlydestinedforcompanieswhichareincircumstancesoflegallyrequestinsolvency,inthetermsoftheCodeofInsolvencyandRecoveryofCompanies.68

the proposal put forward by the Government to Social Partners of a tripartiteagreementforanewsystemforregulatinglabourrelations,employmentpoliciesandsocialprotectioninPortugal.ThenegotiationofthisagreementoriginatedintheDraftBillapprovedon26JunebytheCouncilofMinisters,whichwillgiverisetothereform.TheGovernmenthasalreadypresentedtheproposalinParliamenttoenterintoforceon1January2009(PartII,item5.3.).Withaviewtogivingtemporaryworkersbetterprotection,thenewlegalregimefortemporary work was approved, which, in addition to making work contractsadmissiblefortemporaryassignmentsforanundeterminedperiod,alsogivesgreaterpenalisation to temporary work companies when illicitly assigning workers andprohibitsclauseslimitingthefreedomofwork.The fostering of social dialogue and collective bargaining continues to warrant thespecial attention of the Government and Social Partners, who have in a joint effortassumed strategic goals around the essential issues of the competitiveness andmodernisation of companies and the improvement of workers’ living conditions,notably by increasing the Guaranteed Minimum Monthly Income and vocationaltraining. In this context, a Tripartite Agreement was signed in 2006, as part of thesocialdialogue,betweentheGovernmentandalltheSocialPartners,“Agreementonthe Fixing and Evolution of the Guaranteed Minimum Monthly Income (GMMI)”. Inadditiontofixingtherespectiveamountfor2007,itincludesthecommitmentmadefor the first time by those involved towards the gradual evolution of the minimumsalary,soastoreach450Eurosin2009,whilethemid‐termgoalassumedfor2011is500Euros.Hence,theGMMIisnolongerindexedtotheamountofpensions;insteadits updating takes the evolution of the cost of living, productivity gains and the realeconomicgainsintoaccount.Theissueofundeclaredwork,inturn,continuestobethetargetofspecialattentionbytheGovernment,notablywithintheframeworkofinterventionbytheAuthorityforWorkingConditions,consideringtheseriousconsequencesfortheworkersintermsofsocialrights.The organisational restructuring that resulted in the joining of the functions offostering the improvement of work conditions, preventing vocational risks andinspectioninonesinglebody‐theAuthorityforWorkingConditions(ACT) 16 enablesthe creation of synergies of sharing information, rationalising means, actioneffectivenessandconsequentlytheimprovementofworkingconditionsingeneral,aswellasboostingtheorganisationofinspectionactivitiesatthenationallevel,namelyasconcernsundeclaredwork.The development of join actions with other national inspection bodies, i.e. SocialSecurity,theMinistryofFinanceandtheForeignersandBordersService,hasenabledtheobtainingofmorearticulatedandsignificantresults,whosenatureisdefinedby16TheAuthorityforWorkingConditions(ACT)wassetupwithinthescopeoftheguidelinesdefinedbytheProgrammeforthe Restructuringof the State's Central Administration (PRACE) and the aims of the Programme of the XVII Governmentwithregardtoadministrativemodernisationandtheimprovementofthequalityandefficiencyofpublicservices.ThebylawsofACTwereapprovedbyDecree‐Lawno.326‐B/2007of28September.69

oth prevention and monitoring and repression, reverting this work of mutualcooperationinbenefitsfortheworkersasregardsthelegalisationofcontractswithallthe advantages associated with it in terms of social rights. Hence, using fixed‐termwork contracts and temporary work outside the conditions stipulated by law (illegaldomesticandforeignworkers)havebeenaffordedspecialattentionbytheinspectionservices,attentivetothefactthatthesetypesofcontractingareassociatedwithahighlevel of precariousness. Due to their extent, these actions have a strong power topreventfuturenon‐complianceonthepartoftheemployersthathavebeeninspected,aswellaspotentialinfringers,thusrepresentinganindisputablepreventivemeasure.Theresultsobtainedfromjointactionshavebeensatisfactoryinthefieldofimprovingworkingconditions,insofarastheyhaveenabledtheregularisationofthesituationofworkers in companies, the insertion of more workers in Social Security, the TaxDepartmentandconsequentlytheguaranteeoftherightsrelatedtowork.In2007,anoverall 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 wasfromundeclaredwork.Intermsofnumbersrelatedtotheregularisationofworkers,47,900companiesweremonitoredbetween2005and2007andthelaboursituationof11,495workerswasregularised,ofwhich7,950hadcontractswithillegalfixed‐terms,1,840 had illegal temporary work contracts, 402 had false contracts and 1,303 wereundeclared.Thetotalamountofpenaltiesandfinesissuedwas€13,480,560.3.4. ModernisationofthesocialprotectionsystemTheEuropeanSpringCouncilsof2006and2008declared"theprimordialimportanceoffightingpovertyandsocialexclusionandthefosteringofactiveinclusion..."and,atthe same time, the Portuguese system of social protection, as is the case in themajority of developed countries, stands before strategic challenges that impose theneedtoreformandmoderniseinastructuralmannerthesystemsofsocialprotection,takingintoaccountsocial,economicandfinancialsustainabilitybasedontheprinciplesofinterandintragenerationalsolidarityfromtheperspectiveofsocialcohesion.In this context, with the consensus of the majority of social partners, governmentactionfocuseditsinterventiononthreefundamentalareas:- TheBasicLawonSocialSecurity(Lawno.4/2007of16January),whichintroduced,amongseveralchanges,thefollowing:thesustainabilityfactor,anewformulaforcalculating pensions; new mechanisms for updating pensions; strengtheningincentivesforactiveageing;theconvergenceofspecialsocialprotectionregimesand the strengthening of mechanisms for combating fraud and tax evasion,contributingtoanimprovementinthefinancialsituationofsocialsecuritysystemsand benefiting the long‐term sustainability of public finances. As regards theevolution of the disbursement of pensions and the long‐term sustainability ofpublic finances in the context of the EU, Portugal's position has recently beenreclassified from a high‐risk country to a medium‐risk country as a result of theexpectedimpactofsocialsecurityreforms.70

- The strengthening of actions concerning citizens and families that encounter thegreatest difficulties in adapting to changes, combating poverty and socialexclusion, especially through the measures contained in the National Plan forInclusion2006‐2008,thePlanfortheIntegrationofDisabledorImpairedPersons,the Plan for the Integration of Immigrants (PII) and the investment in thebroadening of the network of facilities and services for children, the elderly anddisabledpersons.- The fostering of policies which stimulate childbirth and support for families,aimed at stimulating personal and family choices that are more conducive togenerational renewal through the effective conciliation between professionalactivity and family and personal life, new incentives at the level of transfers tofamiliesintheperiodbeforebirthandduringthefirstyearsoflifeofthechildrenand a substantial reinforcement of the network of social facilities for supportingearlyinfancy.3.5. InclusionPoliciesInPortugal,countlessactivitieshavebeendevelopedtoimplementinclusivepolicies,especially within the framework of the National strategy for Social Protection andSocialInclusion2006‐2008,inwhichwestressinparticulartheNationalActionPlanfor Inclusion (PNAI) due to its strong interaction with PNE. We should mention theapprovaloftheActionPlanfortheIntegrationoftheDisabledandImpairedin2006andofthePlanfortheIntegrationofImmigrantsin2007;thesehaveamoresectorialdimensionandreinforcethenationalprioritiesforprotectionandsocialinclusion.Inthesepriorities,wealsonotepolicymeasuressuchastheSocialInsertionIncome(RSI),theSolidaritySupplementfortheElderly(CSI),theExtensionoftheSocialFacilityNetwork Programme (PARES) and Local Social Development Contracts (CLDS), thelatterinclosecooperationwiththeSocialNetworkProgramme.Asregardsimmigration,Portugalhasdevelopedoverthepastyearsasetofinitiativesthatputitin2ndplaceinacomparativestudycarriedoutin28countries(25EuropeanUnion Member States, Canada, Norway and Switzerland) by British Council andMigrationPolicyGroupstaff,supportedbytheEuropeanCommission 17 .Fromtheseweshould highlight the creation of the Plan for the Integration of Immigrants by aResolutionoftheCouncilofMinisters(in2007)andtheamendmentstotheCitizenshipLaw (in 2006) and the Law on the legal regime of entry, stay, exit and removal offoreignersinandfromnationalterritory(in2007).Thefirstdefinedasetof112measuresdistributedbysectoralandtransversalareaswith goals to achieve by 2009 by 13 Ministries. The Plan for the Integration ofImmigrantsrepresentsacrucialinstrumentinthehostingandintegrationpoliciesof17 Information available at www.integrationindex.eu71

Portugal, responding objectively to the challenges that are posed to both the hostsocietyandtheindividualswhohavechosenourcountryasaplacetoliveandwork.Thelegislativeamendmentsmentionedenabledtheopeningofnewopportunitiesforacquiring nationality, guaranteeing full citizenship to thousands of individuals,especially children and young people who do not know any other country exceptPortugalorwhohavealreadylivedhereforseveralyears.Ontheotherhand,thesocalledImmigration Law, which forms part of a more humane vision of thephenomenon of migration, seeks to facilitate legal immigration and establishmechanismsfordefendingandsupportingvictimsofhumantrafficking.Thisisusedtofight the social exclusion and precarious situations in which many individuals findthemselves and also to seek to bring migration policies in line with the workforcerequirementsofthelabourmarket. Inthefieldofgenderequalitypolicies,theIIINationalPlanforEquality‐Citizenshipand Gender, the III National Plan against Domestic Violence and the I National Planagainst Human Trafficking were approved. In this context, we should highlight thefollowingresults:• The fostering of a new approach to the issue of gender equality as aquestionofcitizenshipthatinvolvesmenandwomen,putintopracticein the fulfilment of PRACE through the creation of a Commission forCitizenshipandGenderEquality(CIG),whoseattributions,inadditiontothoseoftheCommissionforEqualityandWomen'sRights,alsoincludetheStructureoftheMissionagainstDomesticViolenceandthoseoftheCommission for Equality at Work with regard to the promotion ofequality;• The identification of the fostering of gender equality as one of thefundamental factors of the National Strategic Reference Frameworkthrough the establishment of Point 7 of the Operating Programme ofHuman Potential, as well as through the recognition of the role ofwomeninthecompetitivenessoftheeconomyviatheintroductionofasystemofincreasingincentivesforfemaleentrepreneurshipwithintheOperatingProgrammeofCompetitivenessFactors.• Inclusion, supervision and monitoring of the principle of transversalityofgenderequalityintheNationalStrategicReferenceFramework;• ApprovaloftheResolutionoftheCouncilofMinistersno.49/2007of28March,whichestablishestheprinciplesofgoodgovernanceofthestatebusinesssector,namelyitsobligationtoadoptEqualityPlans;• ApprovalofRegulatoryDecreeno.1/2006of25Januaryonthesocialstructuresforsupportingandshelteringvictimsofdomesticviolence;• The amendment of the instrument which establishes the regime ofsubscriptionchargesforaccesstohealthcareservicesinthescopeoftheNationalHealthSystem,pursuanttoDecree‐Law79/2008of8May;• Solutions which enable speeding up and making more efficient themechanismsoflegalprotectiontovictimsofdomesticviolence,namely72

the amendment to the Penal Code and the Law on the Access to thelegalsystem.3.6. YouthPolicyWith regard to youth policy, Portugal is preparing an integrated strategy, while weshouldalreadyhighlightasetofrelevantmeasuresfocusingonyoungpeoplethatcanbeemphasisedasresults:• The creation of an Agency for the Youth in Action Programme, the maininstrumentofthepolicyoftheEuropeanCommission,whoseheadofficeisinBraga,thedistrictwiththehighestpercentageofyoungpeople.Itisfinanciallyand operationally controlled by the Portuguese Youth Institute and has beenafforded autonomy to decide so as to place community funds more at theserviceofyoungpeopleandtheirassociationalstructures.• ThepublicationoftheLegalRegimeforYouthAssociationsandtherespectiveregulation of financial aid for youth associations, making them moretransparentandprovidingthemwithequityintheirattribution.• The launching of the Formar Programme whose aim is to supply heads ofassociations with more knowledge to be able to manage their associationsmoreefficiently.• The e‐Juventude initiative was launched in partnership with the e‐Escolasinitiative,whichwillenableyouthassociationsaccesstocomputersunderthesameconditionsase‐Escolas.• Structural work was done on the training and infrastructure network ofinformation technology for young people, bringing public administration andyouth closer together through the implementation of a network of shops,called PONTO JÁ, with a friendly image and service, and developing aninformation system in order to integrate and provide information in multiplechannels:on‐the‐spot,YouthPortalandContactCenter/YouthLine.• Biginvestmentandboostingactivitiesweredonewithregardtoyouthhostelsand youth mobility, such as the INTRARAIL Card, in a partnership betweenMovijovemandCP.o TheframeworkforthesupportofYouthHomeRentingwasrestructuredandPorta65waslaunched,whichbroughtmoretransparencytothesupportgiven.• Actions which moved tens of thousands of young people throughout thecountry were carried out as part of the pledge in civic participation(volunteering,health,justice,forests,immigration,etc.)andActivecitizenship.• Inthescopeofsectorialactivities,weshouldhighlightthecreationofasetofstructuredprogrammesbasedontheINOVContactoapproach,namely:INOV‐Art,VascodaGamaandothers.• TheFiniciaJovemprogrammewaslaunchedaspartofapartnershipbetweenthePortugueseYouthInstitute,theInstituteforSupportingSmallandMediumCompaniesandInnovation(IAPMEI)andtheMutualGuaranteeSociety.ItisaderivativeoftheFiniciaProgrammeofIAPMEI,butisaimedatpromoterswhoarebetween18and35yearsofage.73

• ThePEJENEProgrammewasstrengthenedthroughaclearagreementbetweenthe Portuguese Youth Institute and the Youth Foundation to grant financialsupporttotheprogramme.• The National Strategic Reference Framework Competitiveness attributed anincrease of 10% in rating innovation projects, whose promoter has beenconfirmedbythePortugueseYouthInstitutetobeyoungerthan35.• The Foundation for the Dissemination of Information Technology created inpartnership the GET‐IT Programme aimed at boosting entrepreneurshipthroughICTtraining• The Entrepreneurship in Schools programme launched by the Ministry ofEducation• The "CUIDA‐TE" (take care of yourself) Programme was launched by thePortuguese Youth Institute together with a vast number of partners. Itspurpose is to provide young people with an integrated confidential supportserviceconsistingofseveralareas:humanmobility,nutrition,sexuality,whoseaim is the prevention of risk behaviour and the fight against obesity,complementingtheworkdonebytheMinistryofHealth.• Thelaunchingofthe"CriticalNeighbourhoods"Initiativeinpartnershipwithlocalgovernments,aimedtowardsthesocialandhealthyintegrationofyoungpeople,makingthemactivelyparticipatein"mentoring"theirpeers.• Fosteringahighercapacityofyoungpeopletouseinformationtechnologies:ICT workshops, carried out by the Foundation for the Dissemination ofInformation Technologies; the Safe Internet Programme, resulting from thejointworkoftheMinistryofJustice(JudiciaryPolice),theMinistryofEducationand the Portuguese Youth Institute, aimed at providing young people withinformationonusingandbeingpartofvirtualsocialnetworksinasafemanner.Driver7.ValorisationofBasicEducationThevalorisationofbasiceducationwasapriorityoftheMinistryofEducationfortheperiodbetween2005and2008.Hence,anintegratedsetofmeasureswerecarriedout,aimingtobothimprovethequalityoflearningandreducefailureratesatschool.Thiscontinuedandconsistenteffortresultedinanincreaseinthenumberofstudentsenrolledincompulsoryeducationduringthisthree‐yearperiod.Inadditiontootherinitiatives,weshouldhighlight:a.CurricularEnrichment‐currently,theofferofcurricularenrichmentactivitiesisensuredin99.6%ofbasiceducationschools(1stcycle).Inparticular,theofferoftheseactivitiesinschoolsisdistributedinthe following manner: study support, 98.1%; English for the 3rd and 4th grade of schooling, 98%,Englishforthe1stand2ndgradeofschooling,51.2%;physicalandsportseducation,96.8%,musicaleducation,81.4%oftheschools.b. Continuing Teacher Training ‐ the continuing training programme for 1st cycle teachers inPortugueselanguage,MathematicsandExperimentalScienceEducationincluded6000,7000and8200teachersduringtheschoolyearsofthethree‐yearperiodinquestion,respectively.TeachingtrainingwascarriedoutwiththemonitoringofUniversityandHigherSchoolsofEducationandtookplaceinbasiceducationschools.c.1stCycleSchoolNetwork‐sincethestartofthereorganisationprogrammeofthe1stcycleschoolnetwork,2507schoolswereclosed(192in2005,1611in2006and704in2007).Thestudentsfrom74

these schools were transferred to schools with better conditions in terms of environment andsocialisation and appropriate meals are also guaranteed in accordance with the Programme ofGeneralisedSupplyofMealstofirstcyclestudents.Thetransportofstudentstothehostschoolshasalsobeenensured.d.StabilityofTeachingStaff‐theteacherallocationsystemwaschangedandtheynowstayinschoolsfor3or4yearperiodswithaviewtoensuringmorestabilityintheeducationalprojectandcreatingstrongertiesbetweenstudentsandtheirteachers.e.InformationandCommunicationTechnologies‐giventhatallfirstcyclebasiceducationschoolshavebroadbandInternetconnections,trainingactionswerelaunchedwiththeaimofpromotingtheuseofICTinschoolsfromthefirstyearofthefirstcycleofbasiceducation.Hencefirstcycleschoolswereequippedandthegoalofonecomputerperclassroomwasreached.TheBasicSkillsProgrammeinICTisunderwayspecificallyfocusingonbasiceducationstudents.TeachershavealsoreceivedtraininginICT.f. Experimental Science Education ‐ in the 2006/2007 and 2007/2008 school years, around 4000 1stcycle basic education teachers were included in the continuing training programme relative toexperimental science education. The training was done in collaboration with higher educationinstitutions.g.ActionPlanforMathematics‐thisplanincludesfinancingschoolprojectsforimprovingthequalityoflearningmathematics,particularlyin2ndand3rdcycles.Itincludedaround400,000studentsand8,000teachersperyear,inthe2006‐2008period.TheActionPlanforMathematicsincludesotheractivities,suchasthecreationofanitembankontheInternet(witharound5,000questions),thedrawingupofanewprogrammeaimedatimprovingthecooperationbetweenthethreecyclesofbasiceducation,theassessmentofschoolbooksbyexperts,etc.h.NationalReadingPlan‐thisplanaimstodevelopthetasteforreadingin1stand2ndcycleschoolsby establishing an obligatory daily hour of reading. Protocols were signed with city councils and thefinancingofbooksforclassroomshasbeensecured.i.LevelTests‐inthe2006/2007and2007/2008schoolyears,allbasiceducationstudents‐publicandprivate‐enrolledinthe4thand6thgradeofschooling,tookleveltests.Thesetests(togetherwiththenational exam of the third cycle) are analysed by class and the results returned to the teachers forreflections and future improvements in teaching practices. The tests are done specifically formathematicsandPortugueselanguage.j.EducationTrainingCoursesforBasicLevelII‐diversificationofthetrainingofferinbasiceducationaimedatyoungpeoplewhopersistentlyfailatschoolandwhodonotcompleteobligatoryeducationbeforereachingtheageof15.Thesecoursesareaimedatreducingdropoutratesandearlyexitfromtheschoolsystem,providingvocationaltrainingatthesametime.Driver8.NewOpportunitiesTheNewOpportunitiesInitiative, 18 whichwaslaunchedin2005asajointactionstrategyinresponsetotheprofoundlackofqualificationsamongtheactivepopulation,aimstoreachallagegroupsandformsoflearning,therebyraisingtheemployabilitylevelsinallthestagesofpeople’sworkinglives.Hence,theInitiativeisbasedontwointerventionpillars–youngpeopleandadults.Intheformer,thefocusison 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 the18 www.novasoportunidades.gov.pt.75

timely recovery from the country’s historic delay in this field will only be possible with a strongstructuralinterventionaroundthetwopillarsoftheInitiative.Threemajortargetsmustbemetby2010:•Makingthe12thyeartheminimumtrainingreferenceforall;•Placing50%oftheyoungpeopleinsecondaryschooleducationondualcertificationtrainingpaths;•Qualifying1millionoftheworkingpopulation –i.e.about20%oftheactivepopulation –usingrecognitionprocesses,validationandcertificationofskillsforthedevelopmentofdualcertificationtraining(schoolandvocational)whichtheyneedtoreachthesecondaryeducationtraininglevel.NewOpportunitiesforYoungPeopleAtthelevelofbasiceducation,around44,129youngpeople(2007)wereenrolledindualcertificationcourses,anumberwhichrepresentsagreatincreasesince2005.AstronginvestmentinEducationandTrainingCoursescontributedtothisincrease,whichin2007sawariseinthevacanciesinpublicandprivateschools,registeringaround2,090coursesforbasiceducation(800morethaninthepreviousschoolyear).Atthelevelofsecondaryeducation,around120,764youngpeoplewereenrolledindualcertificationcourses in 2007. The relative value of young people attending secondary vocational courses alreadyrepresents40%.TheimpactoftheNewOpportunitiesInitiativeforyoungpeople(2006and2007)isvisibleatthelevelof:- theincreaseinthenumberofstudentsregisteredinthedifferentlevelsofeducation,implyinganincrease 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 (around7,000morethaninthepreviousyear);- thereductionofrepetitionanddropoutratesinbasicandsecondaryeducation(inbasiceducation,theratedroppedfrom11.5%in2004/05to10%in2006/07andinsecondaryeducation,forthesameyears,theschoolrepetitionratedroppedfrom31.9%to24.6%);- thereductionofdropoutrates(in2007,thedropoutratewas36.3%incomparisonwith38.6%in2005);- theincreaseinthepercentageofyoungpeoplebetween20and24yearsofagewhocompletedatleastsecondaryeducationfrom49%in2005to53.4%in2007.NewOpportunitiesforAdultsTheNewOpportunitiesInitiativehasastrongattendancebytheadultPortuguesepopulation,visibleintheparticipationofbetween10and15%oftheactivepopulationthathasnotcompletedsecondaryeducation.FromthestartoftheinitiativetoAugust2008,morethan516,000PortugueseadultswerecoveredbytheNewOpportunitiesInitiativeandmorethan183,000adultswerecertified.From the beginning of 2007 to August 2008, 447,774 candidates were enrolled in the NewOpportunitiesCentres,ofwhich92,351obtainedaschoolcertificate.Fromthisnumber,4,021obtainedacertificationatthesecondarylevel.The demand for the New Opportunities Centres 19 is broken down as follows: (i) the aim of around52.2%ofadultsisbeingcertifiedatthelevelofsecondaryeducation(233,884),whobelongbyalargemajoritytotheagegroupbetween25and34(37%)and3%ofthoseenrolledhavebetween55and6419Adultsenrolledbetween2007andAugust2008.20FormerRecognition,ValidationandCertificationofCompetencesCentres21InJune2008.22 Structureswhichaimtorespondtopopulationqualificationneeds.23MainlandPortugalandtheAutonomousRegionofMadeira.24Thekitscontainedbookletsthatweredestinedonlyfortheyoungtarget‐groupandvariousdidacticmaterials.76

yearsofage;(ii)theaimof47.8%ofadultsistobecertifiedatthelevelofbasiceducation(213,890),withthemajorityofthoseenrolledbelongingtotheagegroupbetween35and45(36%);10%havebetween18and24yearsofageandonly1%are65yearsofageorolder;(iii)theyarelargelywomen;(iv) they are unemployed; and (v) they mainly come from the North, Centre and Lisbon by order ofimportance.More than 500 protocols and cooperation agreements were signed with the aim of mobilisingemployersandworkers(around600thousandpeople)forthepurposeofqualification.Theyearof2008witnessedtheExtendingoftheRVCCprocessestothesecondaryeducationlevelandto professional competences (in addition to school competences), thus raising the integratingframeworkoftheRVCCsystemanditsdualcertificationapproach‐schoolandvocational.In2007,thevocationalRVCCwasbeingtestedin16vocationalcareersand43VocationalTrainingCentresoftheEmployment and Vocational Training Institute. It is estimated that from 2008, this offer will beprogressivelygeneralisedtoallvocationalcareersincludedintheNationalCatalogueofQualificationsandwillfunctionwithinanetworkofcentrescoveringtheentirecountry.In 2008, we registered a strong expansion and consolidation of the network of New OpportunitiesCentres 20 (CNO) with around 457 21 centres 22 that ensured coverage of the entire territory, 23 therebyexceedingbyfarthetargetsetfor2008(157morethanhadbeenplanned).WeshouldhighlightthefactthatthereareoffersofdualcertificationtrainingsforadultsafterworkinghoursinthemajorityofNewOpportunitiesCentreswithaviewtoprivilegingaccessoftheemployedpopulationandextendingthepossibilityfortraining.StructuringMeasuresoftheNewOpportunitiesInitiative- The National Catalogue of Qualifications (CNQ) www.catalogo.anq.gov.pt, which currentlycontainsaround240qualificationsthatarenotatthelevelofhighereducation.Atthesametime,morethan5,000ShortTrainingUnitsweresetup,whichcanbecertifiedautonomously,ofwhich800 promote mobility within and outside the areas of education and training, and all enable ahigherflexibilityinaccesstoqualifications.- The Diversification of Opportunities for the Qualification of Young People ‐ e.g. thereorganisationofTechnologicalSpecialisationCourses(CET),thecreationofresponsesforthosewho attended (and did not complete) training courses at the level of secondary education(AlternativeWaysofCompletingSecondaryEducation),therevisionofthecurricularstructureoflearningcoursesandtheregulationoftheprocessofreorientingthetrainingpathofstudents.- TheReferentialSystemofKeyCompetencesforEducationandtheTrainingofAdultsattheLevelofSecondaryEducation‐itenablesthepossibilityforallnetworkcentrestocertifyadultsatthelevel of secondary education and at the same time, the launching of the Adult Education andTrainingCoursesatthelevelofsecondaryeducationwithinthescopeofdualcertification.- The dissemination of the use of theAccess Guide to Secondary Education‐ an instrument thatcontainsinformationaboutalleducationandtrainingoffersavailabletoyoungpeopleandadults.- The Information and Management System of the Education and Training Offer (SIGO) ‐ a keyinstrumentformanagingandmonitoringdemand,processesandresults,fundamentalfordirectingandguidingyoungpeopleandadultstotrainingoffersthatenablethemtodeveloptheircertifiedskills,thusallowingthedecentralisedmanagementofthetrainingoffer.- Theimplementationofmechanismsforthesimplificationanddecentralisationofadministrationin terms of the functioning of Adult Education Training Courses and the consolidation of localmonitoring structures in the scope of the regional services of the Ministry of Education and ofLabourandSocialSolidarity.- The execution of Technical Guidelinesthat articulate public and community financing strategiesandthestrategiesandresultsdefinedfortheNewOpportunitiesmeasure.- The Quality Card of New Opportunities Centres, as an instrument for the regulation andorientationofitsactivity,aimingtofosterdemand,clarifyactionstrategiesandservicelevels.ThisQualityCarddefinesthemission,structuralprinciplesandthedifferentareasofinterventionoftheNew Opportunities Centres. In addition, the Quality Card includes a System of ReferentialIndicatorsforQuality,whichdefinesservicelevelsandresultstobeobtainedineachoftheareas77

ofintervention.- As a complement to the monitoring and evaluation covered by the Quality Card, a process ofexternal evaluation, long and profound, of the New Opportunities Initiative and Network ofCentreswaslaunchedinJanuary2008withtheaimofsupervisingitseffectivenessandefficacy.- The carrying out of various Information and Awareness Campaigns for qualification in 2007,namelyinthemedia(television,radio,press)withtheobjectiveofpromoting12thyearschoolingandthesocialvalorisationofschoolsandvocationaltraining,asameanstoobtainaqualificationthat enables better opportunities for employment and personal fulfilment. This campaign wasaccompaniedbythedistributionofbookletsdestinedforeducationworkersandyoungpeople,i.e.studentsaged14‐15,theageatwhichtheychoosetheirsecondaryeducationcourse.Atthesametime,NewOpportunitieskitsweredistributed24toschools.TheContributionoftheEU’sStructuralFundstotheNewOpportunitiesInitiativeThe steps already taken in the implementation of the New Opportunities Initiative have benefitedgreatlyfromstructuralfundsupport,inparticularthatoftheEuropeanSocialFund(ESF)inthescopeofthe CSF III, which required a strategic reorientation of the planned investment in the field ofemploymentandtrainingpoliciesinlinewiththestrategiesandtargetsdefinedintheframeworkofthisInitiative.This strategic guideline was heavily stressed in the National Strategic Reference Framework. ThequalificationofPortuguesemenandwomenisacentralpriority,expressedbytheincreaseoffinancingdirectedforthispurpose.Forthisreason,theESFrepresentsaround37%ofthesetofStructuralFundsfromwhichmainlandPortugalwillbenefit,increasingby10percentagepointsitspositionrelativetoCSFIII.Thiscorrespondstoanamountabove6000millionEuros,70%ofwhichareallocatedtotheimplementationoftheNewOpportunitiesInitiative.Driver9.ProximityCommunityServicesNetworkTheProximityCommunityServicesNetworkisformedbyasetofprojects,responsesandsocialandhealthfacilities,whoseaimistoensurethecontinuityoftheprovisionofcare(healthandsocial)topeoplewhoareinasituationofdependencyforvariousreasons,insuchawayastopromotetheiroverallrecovery(viacontinuousrehabilitation,readaptationandreintegration),givingspecialattentiontosocialexclusion.Inmostcases,itsworkisdevelopedusingacooperationmodelbetweentheStateandCivilSocietyandtargets particularly the following intervention areas: i) childhood and youth; ii) the disabled; iii) theelderly;iv)familyandcommunity;v)drugaddicts;vi)peopleinfectedwithHIV/AIDSandtheirfamilies;vii)otherinterventionareas(mentalhealth,integratedsocialresponses).Thepledgeintheexpansionandupgradingoftheproximityservicesnetwork,intermsofnumberofresponses,qualityandequityinterritorialdistribution,isnotonlyanimportantinstrumenttofosterconciliation between the professional activity and the personal and family life and equal genderopportunities,thereductionofabsenteeism,butitwillalsocontributetogeneratingnumerousnewjobs in the tertiary sector. Hence, the Government proposes to use the "Extension of the SocialFacilities Network Programme" 25 and the "Support Programme for Investment in Social Facilities"to: 26 (i) increase the installed capacity of crèches by 2009 – 31,161 places (to reach the Barcelonacommitment:33%);(ii)improvesocialresponsesfortheelderly,creating19,000newplacesby2009;(iii) provide 4,600 places in integrated continued care network facilities by 2008 and; (iv) add 1,85025GovernmentOrderno.426/2006of2MayandOrderno.10516/2006of11May.26GovernmentOrderno.869/2006of29August.78

placesinsocialresponsestothedisabledby2009.ThetotalinvestmentplannedinthescopeofthePARESProgrammeby2009is450millionEurosandthecreationofaround15,000newworkposts.In the 3 stages of PARES, 618 facilities were approved, corresponding to 1,049 social responses and38,470 places. The total investment in these facilities is 422.5 million Euros, of which 210.7 millionEuroscomefrompublicfinancing.Withthesenewresponses,theGovernmentplanstocreatearound10,300newworkposts.Asregardscrèchesinparticular,around18,650placesin418crèchesandatotal 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 healthfacilities,butalsoondevelopingproximitynetworkswhich,byidentifyingthecharacteristicproblemsandspecificitieswithinacertainterritory,developsadjustedinterventionstrategies.Inthiscontext,theCLDS – Local Social Development Contracts (Government Order no. 396/2007 of 2 April) areintroduced.TheirterritoriesarepreviouslyselectedaccordingtotheexistingneedsandtherespectivemunicipalitiesinvitedtodevelopaprojecttogetherwithacoordinatingNGO,whichisorganisedfromtheLocalSocialNetworksthroughinterventionpartnershipsatstrategicpoints:familyandcommunity;employmentandtrainingandaccessibilityandinformation.At the level of social minimums, a number of alterations were made in the legislation on the RSI –SocialInsertionIncomeduetothealterationsconferredbyLawno.45/2005of29August,aswellastheinterventionstrategyitself,strengtheningtheinsertioncomponentofthebeneficiaries,intermsofbothsocialandprofessionalintegration.TheinterventionlogicoftheRSIisbasedonthemonitoringoffamilies by partners from the Local Insertion Nuclei and the IPSS with specific protocols for thispurpose, pledging in taking full advantage of community resources in supporting the so‐calledsituationsofextremeneed.In2006,106,167householdsand286.837beneficiarieswerecoveredand49,394 integration agreements were signed, while in 2007, 117,740 households and 341,149beneficiarieswerecoveredand68,173integrationagreementssigned,.Relativeto2008(August),thismeasure covered around 341,149 beneficiaries and 128,915 families, and 73,693 integrationagreementsweresigned.Alsointheareaofsocialprotectionforthemostneedy,theSolidaritySupplementfortheElderly(CSI)wascreatedbyDecree‐Lawno.232/2005of29December.Itrepresentsaspecialbenefitforcombatingthepovertyoftheelderlyandispartofthesubsystemofsolidarityaimedatpensionersover65yearsof age, assuming the character of a supplement to the pre‐existing income. Its value is defined byreference to a threshold that is defined each year and its attribution varies in accordance with theconcrete situation of the pensioner who requests it. The Solidarity Supplement for the Elderly wasintroducedprogressivelyforthreeyears,i.e.itwasestablishedthattheageforrecognisingtherighttothesolidaritysupplementfortheelderlywouldbe80yearsin2006,70andabovein2007,and65andabovein2008.Asattheendofthefirstquarterof2008,70,400elderlypersons(themajorityofwhomwerewomen)benefitedfromthismeasure.Expressedinfigures, 27 thegradualimplementationofthemeasurecovered18,275beneficiariesin2006,ofwhich74%werewomen(onlytheelderlyaged80andabove).In2007,thenumberofbeneficiariesincreasedtoaround55,771(theelderlyaged70andabove) and in 2008, persons aged 65 years and above were included in the measure.In September2008,themeasurecoveredabout125.727beneficiaries.Between2006and2007,avariationoftheaveragepaymentwasregisteredbetween75and79Euros,havingagrowingtrendinlightofthenewreferencethreshold.TheNationalNetworkofIntegratedContinuedCare 28 (RNCCI),createdbyDecree‐Lawno.101/2006of6June,withinthescopeoftheactivityoftheMinistriesofHealthandofLabourandSocialSolidarity,isbasedontwofundamentalpillars,theNationalHealthServiceandtheSocialProtectionSystem,andstrivestocovertheallofmainlandPortugal.ItisbasedontheProximityCommunityServicesinorder27 2006,2007,beginningof200828 www.rncci.min-saude.pt. Pilot study until July 2007 when it started covering the entire territory of mainland Portugal.2974 for women and 72 for men.30Government Order no. 376/2008 of 23 May.31Government Orders 1087-A/2007 of 5 September and no. 189/2008 of 19 February.79

torespondtoitsprimarygoalofprovidingintegratedcontinuedcaretopeoplewho,irrespectiveoftheirage,areinasituationofdependency,seekingtoensurecontinuityofoutpatienttreatmentsafterhospital discharge. This decentralised intervention model fosters effective dynamics of regional andlocalpartnershipsbetweenpublicandprivatesectorbodies(non‐profitandprofit).Itisinnovativeinthatitisanintegratedandarticulatedmodelofhealthandsocialsecuritywithapreventative,recoveryandpalliativecharacter.SincethestartoftheNationalNetworkofIntegratedContinuedCare,20,332userswerereferencedand14,239attended.Duringthefirsthalfof2008,anincreaseof183%wasregisteredincomparisontoApril2007,characterisedbytheincreaseinthenumberofplacescreatedinresponsetoresidentialcareofaround2,539,whileitisplannedtomake4,600placesavailablebytheendof2008.The RNCCI model defines four types of residential care, while the occupancy rate in convalescenceunitsis92%,inmediumandshorttermstayunits97%andinpalliativecareunits83%.TheprofileoftheusersoftheNationalNetworkforIntegratedContinuedCareisasfollows:(a)themajorityofthemarewomen(58%);(b)theiraverageageis73; 29 (c)themajorityofuserswhoareolderthan80arewomen(57%)incomparisontomen(20%);and18%oftheuserslivedalone.Weshouldhighlightthedevelopmentandimplementationoforganisationalmeasures,namely:⎯ Theimplementationoftheonlineregistrationandmonitoringsystemofthenetworkatthenationallevel.⎯ ThegrowthofthepolicyofequalitywithmonitoringvisitsstartedbytheLocalCoordinationTeams,whichperformed80visits.Atthesametime,parametersfororganisationalauditsbyexternalauditorsandqualityindicatorswithemphasisonresultsweredefined.⎯ The identification of 12 referential units with training provided in the workplace to 38professionals in liaison with similar units in Catalonia; visits by guardians to the referentialunits 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 theidentificationofopportunitiesforimprovementintheshort‐termforeachunit.InternshipinCataloniabyrepresentativesofthe5regionalstructuresofRNCCI.⎯ Thecreationofasingleinstrumentforbio‐psycho‐socialassessments(IAB)andtheprovisionoftrainingstoallnewRNCCIworkersinatotalof215hoursoftraining.⎯ The strengthening and development of other professional skills in 15 trainings that covered361traineesinatotalof383hours.Thirteentrainingswerealsocarriedoutwhichincluded476participantsduringatotalof156hours.Thetotalityofthecoordinating,referentialandservice instances of RNCCI were covered, including all professional profiles and the entiregeographicalareaonwhichRNCCIisimplemented.⎯ ThedrawingupofaguidelinemedicinerecordforRNCCI,madeavailableatthesite,abouttheproblemsrelatedtomedicinesfortheelderly.⎯ The creation of the "Modelar Programme" ‐ a public investment programme for the"modelling" 30 offacilitieswithsupportforthecreationofnewplaces.⎯ NewGovernmentOrdersestablishingthepricesofRNCCIresponses. 31 .⎯ ThepublicationofNormativeOrderno.34/2007ontheco‐participationofbeneficiariesintheNationalNetworkofIntegratedContinuedCare.⎯ ThepublicationofOrderno.28941/2007of20DecemberwhichsetsuptheWorkingGroupfor putting the objectives mentioned in the National Programme for Palliative Care intopractice.⎯ ThepublicationofOrderno.1408/2008of11JanuarywhichidentifiedtheUnitswhichformpartoftheNationalNetworkofIntegratedContinuedCare.We should point out that a study on the Assessment of the Satisfaction of Hospitalised Users wascarried out this year in cooperation with the Higher Institute of Work and Business Sciences. Itsconclusionswereasfollows:(i)96.6%ofthoseinterviewedaffirmedthatthecareprovidedattheunitwasgood(71.4%)orverygood(25.2%);(ii)80%ofthoseinterviewedconsiderthattheyhavegottenbettersincetheyarrivedattheunit;(iii)98%ofthoseinterviewedaffirmthattheywouldrecommendtheunitinwhichtheycurrentlyreside.Amongtheuserswhohadalreadybeenreleased,45%consideredthecareprovidedverygoodand80

47%considereditgood,around96%oftheuserssaidthattheywouldrecommendtheunitinwhichtheywerehospitalised,and90%oftheusersconsiderthattheirstaytherehasimprovedtheirhealth.81

ANNEXES1

2|INDEX 1.MeasuresGrid(SEPARATEFILE)2.LinkstoconnectedProgrammesandrelevantinformation..................................33.StudyofimpactindicatorsofTechnologicalPlan................................................104.RoleoftheNationalStrategicReferenceFramework(NSRF)inthePortugueseNationalReformProgramme(NRP).........................................................................185.TheRuralDevelopmentandFisheriesProgrammesandthePortugueseNationalReformProgramme(NRP2008‐2010)......................................................................22

|LINKSTOCONNECTEDPROGRAMMESANDRELEVANTINFORMATIONRELEVANTSWEBSITES:• LisbonStrategy–www.estrategiadelisboa.pt• TechnologicalPlan–www.planotecnologico.pt• EducationTechnologicalPlan–www.escola.gov.pt• ElectronicDiáriodaRepública–www.dre.pt• State’sElectronicCertificationSystem–www.scee.gov.pt• e‐InitiativesandeSchoolinitiative‐http://www.eescola.net/• NewOpportunitiesInitiative–www.novasoportunidades.gov.pt• CompanyPortal–www.portaldaempresa.pt• CitizenPortal–www.portaldocidadao.pt• CompanyinanHour–www.empresanahora.pt• BrandinanHour• https://www.portaldaempresa.pt/CVE/Services/MarcaNaHora/elaborarPedido.aspx• Electronicdeclarations–www.e‐financas.gov.pt• OnlineAutomobile‐http://www.automovelonline.mj.pt/• ReadyHouse‐http://www.casapronta.pt/CasaPronta/• NewonlineCompanyRegisterServices• http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MJ/Comunicacao/Outros_Documentos/20070710_MJ_Doc_Registo_Comercial_Online.htm• CivilRegisterSimplificationprocedures‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MJ/Comunicacao/Outros_Documentos/20070629_MJ_Doc_Registo_Civil.htm• OnlineCompanyregisterandpermanentcertificate‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MJ/Comunicacao/Outros_Documentos/20061220_MJ_Doc_Registo_Online.htm• SimplifiedBusinessInformationandotherSimplificationmeasures‐http://www.mj.gov.pt/site_IES/site/home.htm• NationalReadingPlan(Read+)–www.planonacionaldeleitura.gov.pt• DirectSocialSecurity‐https://www.seg‐social.pt/consultas/ssdirecta/• NewBorderControlSystems–RAPID‐http://www.rapid.sef.pt/• Netemmployment–www.netemprego.gov.pt• HospitalMedicationProgramme‐http://www.portugal.gov.pt/NR/rdonlyres/7D32F26D‐7D5E‐4EE9‐AC9B‐1D0928B070B0/0/Programa_Medicamento_Hospitalar.pdf• SustainabilityReportofSNSFinancing‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MS/Comunicacao/Programas_e_Dossiers/20070622_MS_Doss_Financiamento_SNS.htm• SocialCharter‐http://www.dgeep.mtss.gov.pt/estudos/cartasocial.phpMODERNISATIONOFTHEPUBLICADMINISTRATION"Payingattherighttime"Programmehttp://www.min‐financas.pt/inf_geral/default_PPTH.asp• EvaluationSystemofServices/EvaluationFrameworksandResponsibilisation(SIADAP1/QUAR)www.quar.gov.pt• SIMPLEXProgramme2008‐http://www.simplex.pt/2008programa/index.html• SIMPLEX:Balance2007‐http://www.simplex.pt/downloads/2007BalancoSimplex.pdf• ReformofContractualTies,CareersandRemunerationinthePublicAdministration• http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MF/Comunicacao/Programas_e_Dossiers/20070316_MFAP_Doss_Regimes_AP.htm3

• OnlineLandRegister:www.predialonline.mj.pt• CITIUS‐http://citius.tribunaisnet.mj.pt• MobilityinthePublicAdminsitration• http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MF/Comunicacao/Programas_e_Dossiers/20070115_MEF_Doss_Mobilidade.htm• SharedServicesinthePublicAdministration• http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MF/Comunicacao/Outros_Documentos/20061214_MEF_Doc_Servicos_Partilhados.htm• RestructuringProgrammeoftheState’sCentralAdministration–OrganicLaws• http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MF/Comunicacao/Programas_e_Dossiers/20060330_MEAI_Prog_Prace.htm• PrinciplesofGoodGovernanceofCompaniesintheState’sBusinessSectorhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MF/Comunicacao/Outros_Documentos/20070328_MEF_Doc_Governo_SEE.htmR&DANDINNOVATION• FINICIAProgramme‐http://www.iapmei.pt/iapmei‐art‐02.php?id=234&temaid=9• FINICRESCEProgramme‐http://www.iapmei.pt/iapmei‐mstplindex.php?msid=6• InovarPlatform‐http://www.mineconomia.pt/innerPage.aspx?idCat=17&idMasterCat=15&idLang=1&idContent=64&idLayout=1• INOFIN‐http://www.mineconomia.pt/innerPage.aspx?idCat=16&idMasterCat=15&idLang=1&idContent=62&idLayout=1• InnovationScoring‐http://www.innovationscoring.pt/• CohitecInitiative‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MEI/Comunicacao/Intervencoes/20070621_MEI_Int_SEAII_Cohitec.htm• InovJovemProgramme‐http://www.inovjovem.gov.pt/• InovContactProgrammes‐http://www.networkcontacto.com/• InovVascodaGamaProgramme‐http://www.networkcontacto.com/pt/ns0/tb276/s0/hi590/tb.aspx• TaxIncentiveSystemforBusinessResearchandDevelopment‐http://sifide.adi.pt/• InovCapital–SuccessfulPartnershipsforInnovation‐http://www.inovcapital.pt/• ConnectingPortugalProgramme‐http://www.ligarportugal.pt/• CMUPortugal‐http://www.cmuportugal.org/• MITPortugal‐http://www.mitportugal.org/• UTAustinPortugal‐http://www.utaustinportugal.org/• PledgewithScience‐http://www.mctes.pt/archive/doc/MCTES_compromisso_com_a_ciencia.pdf;http://www.fct.mctes.pt/ciencia2007/• BDPhDsinCompanies‐http://www.adi.pt/BDE.htm• ScientificEmployment‐http://www.degraucientifico.pt/PresentationLayer/adi_home_00.aspx• ConnectingPortugalProgramme‐http://www.ligarportugal.pt/• InformationSociety,ICTandNanotechnology‐http://www.umic.pt/• NetworkofInternetSpaces‐http://www.umic.pt/index.php?option=com_content&task=view&id=18&Itemid=37• AccessProgramme‐http://www.umic.pt/index.php?option=com_content&task=view&id=10&Itemid=37• DigitalCitiesandRegions‐http://www.umic.pt/index.php?option=com_content&task=view&id=17&Itemid=12• CommunityNetworks‐http://www.umic.pt/index.php?option=com_content&task=view&id=28&Itemid=1874

• NEOTEC–NewTechnologicallyBasedCompanies‐http://www.umic.pt/index.php?option=com_content&task=view&id=2956&Itemid=397• E‐Science‐http://www.umic.pt/index.php?option=com_content&task=view&id=29&Itemid=187• InformationSocietyReportsandStatistics‐http://www.umic.pt/index.php?option=com_content&task=category&sectionid=17&id=95&Itemid=171• INLIberianInternationalNanotechnologyLaboratory‐http://www.umic.pt/index.php?option=com_content&task=view&id=2795&Itemid=212ENERGY,ENVIRONMENTANDLANDUSEPLANNINGNationalStrategyforEnergy‐http://www.dre.pt/pdf1sdip/2005/10/204B00/61686176.PDF• NewtargetsfortheEnergySector‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MEI/Comunicacao/Outros_Documentos/20070126_MEI_Doc_Metas_Energia.htm• NationalDamProgramme‐http://www.inag.pt/index.php?option=com_content&view=article&id=59:%20Programa%20Nacional%20de%20Barragens%20com%20Elevado%20Potencial%20Hidroel%C3%A9ctrico• NationalPlanfortheAttributionofCO2EmissionLicences‐http://www.portugal.gov.pt/NR/rdonlyres/3F26D0DB‐C8A7‐485A‐8D4A‐0DB6CBE4C300/0/PNALE2.pdf• PortugueseCarbonFund‐http://www.dre.pt/pdf1sdip/2006/03/060A00/22092210.PDF• NationalActionPlanforEnvironmentandHealth2007‐2013‐http://www.maotdr.gov.pt/CmsPage.aspx?PageIndex=1&ID=55• PolíticadeCidades,PolisXXI‐http://www.dgotdu.pt/pc/documentos/POLISXXIapresentacao.pdf• StrategicPlanforSolidUrbanWaste2007‐2016‐http://www.portugal.gov.pt/NR/rdonlyres/858B51E5‐9E93‐4816‐97C7‐58BB005B367D/0/PERSU_2.pdf• StrategicPlanforwatersupplyandsewerage‐http://www.maotdr.gov.pt/Admin/Files/Documents/PEAASAR.pdf• LogisticsPortugalPlan‐http://www.moptc.pt/tempfiles/20060721113606moptc.pdf• Stratgiesforthemaritime‐portsector‐http://www.portugal.gov.pt/NR/rdonlyres/5A7FF2BF‐4283‐43A3‐8DA6‐7541411D1DCE/0/Estrategia_Sector_Maritimo_Porturario.pdf• PENT:NationalStrategicPlanforTourism‐http://www.turismodeportugal.pt/Português/turismodeportugal/planoestrategiconacionaldoturismo/Anexos/PENT%20VER%20INGLES.pdf• NationalStrategyfortheSea‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MDN/Comunicacao/Programas_e_Dossiers/20061005_MDN_Prog_Estrategia_Mar.htm• RuralDevelopmentProgramme(ProDeR):http://www.proder.pt• NationalStrategicPlanofRuralDevelopment:http://www.gpp.pt/drural• EuropeanAgriculturalFundforRuralDevelopment(FEADER):http://www.gpp.pt/drural• NationalRuralNetwork:http://www.gpp.pt/drural• OperationalProgrammefortheFishingSector(PROMAR):http://www.dgpa.min‐agricultura.pt• EuropeanFishingFund(FEP):http://www.dgpa.min‐agricultura.ptMINISTRIES5

• 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,LandUsePlanningandRegionalDevelopmentwww.maotdr.gov.pt• MinistryofForeignAffairshttp://www.mne.gov.pt/mne/pt/• MinistryofLabourandSocialSolidarityhttp://www.mtss.gov.pt/• MinisterofthePresidencyhttp://www.mp.gov.pt/• GovernmentPortalhttp://www.portugal.gov.pt/Portal/PT• MinistryoftheEconomywww.min‐economia.pt• MinistryofEducationhttp://www.min‐edu.pt/OTHERPUBLICENTITIES• LisbonStrategywww.estrategiadelisboa.pt• TechnologicalPlan–www.planotecnologico.pt• UMIC–www.umic.pt• ScienceandTechnologyFoundation‐http://www.fct.mctes.pt/• DirectorateGeneralofEnergyandGeology‐http://www.dgge.pt/• CompetitionAuthority‐http://www.autoridadedaconcorrencia.pt/• AICEP–GlobalCapital‐http://www.capitalglobal.pt/• SupportInstituteforSmallandMediumEnterprises‐http://www.iapmei.pt/• ADI–InnovationAgency‐http://www.adi.pt/• AgencyforAdministrativeModernisation(AMA)–www.ama.pt• NationalAgencyforQualifications(ANQ)–www.anq.gov.pt• VineandWineInstitute(IVV):http://ivv.min‐agricultura.pt• NationalForestryAuthority:http://www.dgrf.min‐agricultura.pt/portalQUALIFICATIONANDREFORMOFVOCATIONALTRAININGNationalQualificationsCataloguehttp://www.catalogo.anq.gov.ptDespachonº1356/2008,DR93,SérieII,de2008‐05‐14–approvestheinitialversionoftheNationalQualificationsCatalogue.http://www.anq.gov.pt?cr=9376• LegalSystemoftheNationalQualificationsSystemandstructuresthatregulateitsoperationDecreto‐Leinº396/2007,DR251,SérieI,de2007‐12‐31http://www.anq.gov.pt?cr=8934• Vocationaltrainingreformmeasures,agreedbythemajorityofthesocialpartnerswithseatsonthePermanentCouncilforSocialCoordinationResoluçãodoConselhodeMinistrosnº173/2007,DR214,SérieI,de2007‐11‐07http://www.anq.gov.pt?cr=8768• CreationoftheNationalVocationalTrainingCounciltosubstitutetheNationalAdvisoryCouncilforVocationalTrainingDecreto‐Leinº39/2006,DR36,SérieI‐A,de2006‐02‐20http://www.anq.gov.pt?cr=8938• ReformofVocationalTraining‐6

http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Programas_e_Dossiers/20061023_MTSS_Doss_Reforma_Formacao_Profissional.htm• LaunchoftheTechnologicalPlanforEducation–http://www.portugal.gov.pt/NR/rdonlyres/C25B2D33‐16F0‐4EC1‐BA84‐87048F76D64B/0/Plano_Tecnologico_Educacao_DR.pdfhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Programas_e_Dossiers/20070723_ME_Prog_PTecnologico_Educacao.htm• ProgrammefortheModernisationofSecondarySchoolshttp://www.gepe.min‐edu.pt/np4/?newsId=7&fileName=Moderniz_Tecnologica.pdf• e‐schools:ProgrammeforAccesstoComputersandBroadbandhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MOPTC/Comunicacao/Programas_e_Dossiers/20070605_MOPTC_Doss_ProgramasE.htm• ExpansionofProfissionalizingEducationhttp://www.portugal.gov.pt/NR/rdonlyres/37661B34‐7D5B‐471E‐9AF5‐8A485EE64084/0/Expansao_Ensino_Profissionalizante.pdf• Boostingthepracticalandexperimentalcomponentinsecondaryschools‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Outros_Documentos/20070515_ME_Com_Curricula_Secundario.htm• Reportontheevolutionofeducation2006/2007/IGE‐http://www.portugal.gov.pt/NR/rdonlyres/4263380C‐D55E‐4E9C‐98FB‐8E7EF3E0077A/0/Rel_Org_Ano_Lectivo_2006_2007.pdf• Positiveresultsinthefightagainstlowachievementanddroppingoutofschoolhttp://www.gepe.min‐edu.pt/np4/?newsId=271&fileName=TXsret.pdfhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Outros_Documentos/20070108_ME_Doc_Estatisticas_Escolares.htm• ReformoftheTeachingCareerinBasicandSecondaryEducationhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Programas_e_Dossiers/20070713_ME_Doss_Reg_ECD.htm• SupportforSecondaryEducationintheFightagainstEarlySchoolLeaving2007/08‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Outros_Documentos/20070903_ME_Doc_Medidas_2007_08.htm• ContractsfortheDevelopmentofSchoolsinDifficultSocialMilieus‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Outros_Documentos/20070312_ME_Doc_Escolas_Meio_Dificil.htm• Recognitionofcompetenciesatsecondaryschoollevelhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Outros_Documentos/20061116_ME_Doc_Competencias_Secundario.htm• AdjustingHigherEducationfortheBolognaProcess–http://www.mctes.pt/archive/doc/BolonhaII_2008_04_30.pdfhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MCTES/Comunicacao/Outros_Documentos/20070513_MCTES_Doc_Bolonha.htm• NewEvaluationSystemforHigherEducation–http://www.mctes.pt/archive/doc/l_2007_038.pdfhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MCTES/Comunicacao/Outros_Documentos/20070323_MCTES_Doc_Regime_Avaliacao_EnsSup.htm• CreationofHigherEducationEvaluationandAccreditationAgencyhttp://www.mctes.pt/?idc=31&idi=285&idt=22• GeneralReformofLegalsystemofHigherEducationInstitutionshttp://www.mctes.pt/docs/ficheiros/MCTES_5_Maio_2007___Evora.pdf• SystemofLoansforHigherEducationStudents‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MCTES/Comunicacao/Programas_e_Dossiers/20070907_MCTES_Doss_Emprestimos_EstudantesEns_Sup.htm7

• NationalReadingPlan‐http://www.planonacionaldeleitura.gov.pt/• Outcomeofthe1stYearoftheNationalReadingPlanhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/ME/Comunicacao/Outros_Documentos/20070530_ME_Doc_PNLeitura.htmWORKINGRELATIONSLawthatchangestheLabourCodehttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Outros_Documentos/20060320_MTSS_Doc_Altera_Codigo_Trabalho.htmhttp://www.mtss.gov.pt/tpl_intro_destaque.asp?283• WhitePaperonLabourRelationshttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Publicacoes/20070627_MTSS_Pub_Livro_Branco_Rel_Laborais.htm• AgreementontheFixingoftheGuaranteedMinimumWagehttp://www.portugal.gov.pt/Portal/PT/Primeiro_Ministro/Documentos/20061205_PM_Doc_Salario_Minimo.htm• LabourMediationSystemhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MJ/Comunicacao/Outros_Documentos/20060505_MJ_Doc_Mediacao_Laboral.htm• ReformofActiveEmploymentPolicieshttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Outros_Documentos/20070713_MTSS_Doc_Politicas_Emprego.htm• ProgrammeforthePreventionandEradicationoftheExploitationofChildLabour‐www.peti.gov.ptSOCIALCOHESION/EQUALOPPORTUNITIES/PROXIMITYSERVICESNETWORK• AidfortheFamilyandBirthhttp://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Programas_e_Dossiers/20070723_MTSS_Prog_Natalidade.htm• ReportontheMonitoringofthePilotExperimentsoftheNationalNetworkofIntegratedContinuedCare‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MS/Comunicacao/Outros_Documentos/20070824_MS_Doc_Rel_Experiencias_RNCCI.htm• FirstphaseoftheapplicationtothePARES‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Outros_Documentos/20061109_MTSS_Doc_Candidaturas_PARES.htm• PresentationofLocalSocialDevelopmentContracts‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Outros_Documentos/20070410_MTSS_Doc_CLDS.htm• NationalStrategyfortheInclusionofBeneficiariesoftheSocialIntegrationBenefit‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Outros_Documentos/20070327_MTSS_Doc_Insercao_RSI.htm• NationalActionPlanforInclusion(PNAI)‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Programas_e_Dossiers/20061023_MTSS_Prog_PNAI.htm• NetworkofSocialReintegrationEducationalCentres‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MJ/Comunicacao/Outros_Documentos/20070413_MJ_Doc_Centros_Educativos_Reinsercao.htm8

9• NewOpportunitiesCentreforthementallyhandicapped‐http://www.portugal.gov.pt/Portal/PT/Governos/Governos_Constitucionais/GC17/Ministerios/MTSS/Comunicacao/Notas_de_Imprensa/20060927_MTSS_Com_Novas_Oportunidades.htm

|STUDYOFTHEIMPACTINDICATORSOFTHETECHNOLOGICALPLANSUMMARYIt is 3 years since the launch of the Technological Plan (PT) and some quantifiedinformationshouldthereforebeprovidedonitsimplementationanditseffectsasadriverofsocialandeconomicchangesinourcountry.Atatimewhenthemajorityofthe planned measures have already been implemented or are in a relativelyadvancedstageofimplementation,anewphaseofreportingshouldbeadoptedonthe progress achieved so far and the signs of what impacts the PT will make inPortugal;itwillonlybepossibletomeasuretheseimpactsinthemedium/longterm.Tothisend,togetherwiththeadditionalmotivationresultingfromthediscussionsthat took place in the meetings of the PT Advisory Council, two PortugueseacademicswereaskedtoconductastudythatidentifiedanddefinedimpactchainsandindicatorsbyestablishingRelationsbetweentheAreasofApplicationofthePTand also forecast the identification and respective quantification of the executionindicatorsandresultsthatdemonstratethepathfollowedandthesignsofthePTfutureimpacts.BRIEFSUMMARYA study was conducted by two eminent Portuguese academics ‐ João Caraça andVítor Corado Simões in order to identify impact chains and define a set ofappropriate indicators to gauge the economic results and impacts of theTechnologicalPlan(PT).ItshouldbenotedattheoutsetthatwhenwespeakoftheimpactsofthePT,duetotheirverynature,wearereferringtoaspectsthatcanonlybemeasuredeffectivelyin the medium/long term; however, this does not prevent the immediateidentificationofcertainindicatorsofexecutionandresultsthatcanactassignificantsigns(sensors)forthelaterevaluationoftheeconomicimpactofthePT.With this line of reasoning, it is important however to distinguish between threekindsofindicatorsconsideredinthestudy:(1) ExecutionindicatorsrelatedtotheimplementationofthePTmeasures;(2) Resultsindicators,theaimofwhichistoidentifytheresponsesofeconomicagentsinthedifferentapplicationareasofthePT;and(3) Impact indicators, expressed in absolute or relative monetary terms andaimed at measuring the economic value generated as a result of theimplementationofthePT.TheconclusionsofthefirstphaseofthestudywerepresentedatthePTAdvisoryCouncil on 23rd November 2007; they began with the relationship between the10

three pillars of the PT (Knowledge, Technology and Innovation) and the so‐called“KnowledgeTriangle”andmadeananalysisandreclassificationofthePTmeasuresin accordance with five criteria: Scope of interactions, Relevance, Time Horizon,IncidenceandAreaofApplication.ThisledtotheorganisationofthePTmeasuresinto7analysisdimensions(followingfigure): Network Society, Qualification of Human Resources, S&T Infrastructure,Financing System, Conditions of Economic Activity, Entrepreneurship and BusinessCapacity.Figure1:InitialperspectiveoftheRelationsbetweentheApplicationAreasofthePTThis figure opens the path to a new distinction between the various indicatorsidentified,namelybetweenintermediateindicators(definedasthosethatdonotasarulehaveanymonetaryexpression,andwhichtransmitresultsassociatedtotheAreas of Application upstream of Conditions of Economic Activity and BusinessCapacity) and Impact Indicators (characterised as those aimed at expressing theconsequences or alterations in the economic fabric of a specific set of policymeasures,alsodistinguishedbetweenthoseofthefirstlevelthatareclosertotheresults and those of the second level that have a monetary expression and whichbestexpresstheconsequencesofthePTintermsofeconomicchange).TheconclusionsofthesecondphaseoftheworkwerepresentedatthemeetingoftheACon15July2008.Theaimofthisphasewastobuildonthepreviousphasebyidentifying impact chains. A methodological procedure was adopted for thepresentation of a proposal of result and impact indicators which involved theanalysis of the affects of each measure on the analysis dimension of which it waspart, as well as on the remaining dimensions/areas of application identified; the“Clustering” of measures according to the potential impacts observed; theconstructionofaframeworkofinteractionsbetweenthesevenanalysisdimensions;11

theidentificationofthemostrelevantconnections;aproposalofabatteryofresultindicatorssoastocapturethemostrelevantconnections;and,finally,aproposalofimpactindicators.Thefirstimpressiondrawnfromobservingtheframeworkofinteractionsafterthemeasureswereorganisedintoclustersisthateverythingisrelatedwitheverything.However, there is a significant variability and it is pertinent to underline that 12interactions represent almost one third of the interactions observed between thevarious Areas of Application. These selected interactions therefore permit thedefinition of a structure of the “strongest” relations between the Areas ofApplication;thisstructureconstitutestheframeworkofthecentralimpactchainsofthePT(followingfigure).Figure2:DiagramofInteractionsbetweentheAreasofApplicationofthePTOnobservingthisfigure,themainaspectthatstandsoutisthecentralpositioningoftheConditionsofEconomicActivityinthedeterminantimpactchains.Indeed,sevenof the twelve selected interactions involve the Conditions of Economic Activity,makingthisarealikea“turntable”thatreceivesinfluencesfromalltheotherAreasupstream and then distributes them to the S&T infrastructures, Entrepreneurshipand,aboveall,BusinessCapacity.Accordingtotheauthorsofthestudy,inordertofullyunderstandandevaluatetheinfluenceandtheimpactsofthevariousMeasures,itisnecessarytoobservehowthePTworksinthelongtermbecausethemaindynamicsofbusinessinnovationandchangeinPortuguesesocietyemergefromtheseinteractions.Inotherwords,itwas12

necessary to think in terms of the foreseen execution of the PT and of the set ofinteractionstriggeredbyitandwhich,inturn,willcreateaneweconomicandsocialsituation in a ten year frame. The following figure presents the new diagram thatenablestheintegratedeffectofthePTinthelongtermtobeunderstood.Figure3:DiagramofinteractionsinthelongtermTheconclusionstakenfromanin‐depthanalysisofthisfigureareasfollows:1. ThereisadilutionoftheimportanceoftheNetworkSocietyandFinancingSystemAreasofApplication;2. Theroleoftheinteractivetriangleemergesverystrongly,thethreeverticesofwhicharetheQualificationofHumanResources,S&TInfrastructuresandtheConditionsoftheEconomicActivity;3. Thepledgeincertainlinesofbusinessleadstoanaddeddemandforteachingand vocational training activities which can result in virtuous circles ofboostingcompetences;4. Inthelongterm,wewillobtainastructuringtriangle,theverticesofwhichare the same as the Knowledge Triangle, where the “Education” vertexcorrespondstotheQualificationofHumanResources,the“Research”vertexis expressed in the S&T Infrastructure and the “Innovation” vertex istransmittedintheConditionsoftheEconomicActivity;5. Articulation between the three defining Areas of Application of theKnowledgeTriangleandthethreepillarsofthePT,wheretheQualification/13

S&T Infrastructure side can be conceputalised as Knowledge and reflectingthe interactions between these two dimensions, the S&T Infrastructure/Economy side can be expressed as Technology and theQualification/Economy side can be understood to express the Innovationdimension.Thisstudyfinishedbypresentingalistof32resultindicators(ANNEX)and9impactindicators,someofwhichcomeupagainstsignificantshiftsintimeor,inothercases,the non‐existence of the actual indicator which the authors stress should beobtainedinthenearfutureduetoitsimportance.Withregardtheimpactindicators,thestudyindicatesthatthefollowingshouldbemonitored:• Relation between the total amount negotiated in the State’s ElectronicPurchasesProgrammeandtheGDP,expressedasapercentage;• RelationbetweentheamountoftransactionsmadeviaElectronicTradeandtheGDP,expressedasapercentage• Earningsofscientificandtechnologicalservicesorganisationsresultingfromservicesrenderedtocompanies,expressedasapercentageofturnover• Proxy:OwnearningsofStateLaboratories–publicbudgetaryappropriationsfor R&D as a % of the total Revenue of the Technological Balance ofPayments,expressedasapercentageofGDP• Productivity of work, measured using the ratio between the GVA and theactivepopulation• GVA of High and Medium/High Technology Industries and of knowledgeintensiveservicesasapercentageofGDP• ExportofHighandMedium/HighTechnologyproductsasapercentageofthetotalexportsofgoods• Export of knowledge intensive services as a percentage of total serviceexports• GVA generated by new technology based and/or knowledge intensivecompaniessetupinthelastthreeyears,asapercentageofGDP14

ANNEX–ResultsIndicators15

RESULTSINDICATORS(ExistingandProxyIndicators)NETWORKSOCIETY• Broadbandpenetrationrate,fixedandmobile• Percentageofpublicservicesavailableonline• PercentageofregularInternetusersamongindividualsinthe16to74yearagegroup• Percentageofregularemployedinternetusers• Percentageofindividualsin16to74yearagegroupwhouseelectronictrade• CompanieswithbroadbandinternetaspercentageoftotalnumberofcompaniesQUALIFICATIONOFHUMANRESOURCES• Levelofearlyschoolleaving• Percentageofpopulationbetween20and24yearsoldwithatleastsecondaryschooling• PercentageofhigherEducationgraduatesinthe25to64populationProxy:PopulationresidentinPortugal(15‐64years)withHighereducation• PercentageofstudentsenrolledinScienceandTechnologyAreasinrelationtototalstudentsenrolledinHigherEducation• PhDsinScienceandTechnologyperthousandofthepopulationbetween25and64years• (*)participationinlifelongtrainingofthe25‐64yearagegroupSCIENCEANDTECHNOLOGYINFRASTRUCTURE• Scientificproductionreferencedinternationallypermillioninhabitants• EuropeanscientificproductionwithPortugueseparticipationexpressedasapercentageoftotalEuropeanscientificproductionProxy:percentageofco‐authorednationalscientificproduction• (*)TotalpersonnelinR&D(ETI)perthousandofactivepopulation• (*)Researchers(ETI)perthousandofactivepopulationFINANCINGSYSTEM• InvestmentinriskcapitalasapercentageofGDP• (*)PublicexpenditureonR&DasapercentageofGDP• (*)CompanyexpenditureonR&DasapercentageofGDPCONDITIONSOFTHEECONOMICACTIVITY16

• ForeigndirectinvestmentinPortugalasapercentageofGDP• (*)EPOpatentsregisteredpermillioninhabitants• Communitybrandsregisteredpermillioninhabitants• Communitydesignspermillioninhabitants• WeightofrenewableenergyproductioninthegrossproductionplusimportbalanceENTREPRENEURSHIP• NewcompaniesinHighandMedium/Hightechnologyand/orknowledgeintensivesectoraspercentageoftotalcompanystartupsinlastthreeyearsProxy(*)StartupofcompaniesinHighandMedium/hightechnologysectorsaspercentageoftotalcompanystartups• RateofEntrepreneurialactivityBUSINESSCAPACITY• EmploymentinHighandMedium/Hightechnologyindustriesinrelationtototalemployment• EmploymentinKnowledgeIntensiveindustriesinrelationtototalemployment• SMEsthatdeclaretheyhaveinnovatedinproductsorprocessesasapercentageofGDPObservation(*)indicatesthatnorecentfiguresi.e.post2005,areavailablefortheindicatorinquestion17

|THE ROLE OF THE NATIONAL STRATEGIC REFERENCE FRAMEWORK(NSRF)INTHEPORTUGUESENATIONALREFORMPROGRAMME(NRP)ThedefinitionofthepriorityareasofthisnewcycleoftheLisbonStrategyreflectsthe strong convergence of its implementation and the NSRF 2007/2013, as thecentralfinancinginstrumentforalargeproportionofthemeasuresincludedinthisPlan.TheexecutionoftheLisbonStrategy(macro,microandemploymentcomponents),notablyinthisNewCycle2008‐2010,iscoherentwiththecohesionpolicy,ensuringgrowth that strengthens social and territorial cohesion through sustainabledevelopment measures, boosting the social dimension, the valorisation of thedevelopment of an intelligent territory (area 6.), respecting diversity, empoweringendogenous resources and contributing to the availability of infrastructures thatgeneratewellbeinganddevelopment,namelyfromtheperspectiveofconcludingorimproving the national infrastructure networks in various fields and the link tostrategicEuropeanand/ortransnationalnetworkse.g.Europeantransportnetworks.Indeed,thestructuralfundsandthecohesionfundhaveprovidedanimportantleverforthepursuitoftheLisbonAgendabothinthelastcycleandinthisNewCycle,inparticularintheconvergenceregions(North,Centre,andAlentejo,Azores)thankstothegreaterdimensionofthesefundsintherespectivedevelopment,butalsointhecompetitiveness and employment regions (Lisbon, Madeira, Algarve) where theLisbon Agenda encounters fertile terrain even though the size of the funding issignificantlysmaller.ButitisnotedthatthePNRcontainsasetofobjectives,measuresandactionsofalegislativeandregulatorynatureinvariousfields,aswellasincentivesandsupportmeasures 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 andinterventiontypologies.ItisalsonotedthatthetimereferenceframeworksofPNRandofNSRF,2008/2010and2007/2013respectively,donottotallycoincide.However,throughoutthenextcycletherewillbeakeyinfluencebetweenthetwoprocesseswhichrequirescarefularticulation between the respective coordination structures, foreseen in thegovernancemodeloftheNSRF,namelybymeansoftheparticipationoftheNSRFObservatoryintheproductionofannualreportsontheimplementationofthePNEand also the appraisal of these reports in the framework of the MinisterialCoordinationCommittee,aswellasinthemonitoringmodelofthePNR,withtheparticipationoftheNSRFObservatoryintherespectivefocalpoints.ThefollowingfigureillustratesthecoherentandconsistentassociationbetweenthepriorityareasoftheNewCycleofthePNRandthestrategicprioritiesoftheNSRF,18

which determine the definition of the three thematic operational agendas of theNSRF – Human Potential, the Economy’s Competitiveness Factors and theValorisation of the Territory – and then the conception of the OperationalProgrammes(OP)witheachoneofthemarticulatingmoredirectlyorintenselywithsomeoftheagendasandstrategicprioritiesoftheNSRF.Inthiscontext,theThematicOPs‐HumanPotential,theEconomy’sCompetitivenessFactors and the Valorisation of the Territory – were clearly oriented in line withthese three agendas and the strategic priorities of the NSRF most intenselyassociatedtothem‐qualificationofthePortugueseandsocialcohesioninthefirstcase, sustained growth and efficiency of governance in the second and thequalification of cities and territories in the last case. The Regional OPs of theContinent are essentially related to the strategic priorities linked to theCompetitiveness Factors Agenda and the Valorisation of the Territory Agenda andmore tenuously linked with the Human Potential Agenda, in this case particularlyfrom the perspective of fostering social cohesion; the boundaries between theintervention of these Regional POs and the Thematic POs that clearly respond toeachoftheseagendasarewelldefined.Inshort,thePOiswellarticulatedwiththepriorityareasofthePNR2008‐2010inline with the respective intensity of the relation of each of these areas with thestrategicprioritiesoftheNSRFtowhichtheseProgrammesrespond.19

In this context, in accordance with article 9 of the regulation that lays down thegeneralrulesgoverningtheERDF,theESFandtheCohesionFundforthe2007‐2013period,theagendadefinedfortheLisbonStrategymustbepursuedbycomplyingwiththeminimumtargetsoffixedexpenses(earmarking):60%oftheOperationalProgrammesframedintheConvergenceObjective(includingtheonerelatedtotheTransitory/Phasing Out System) and 75% of the set of Operational Programmesframed in the Regional Competitiveness and Employment Objective (including theonerelatedtotheTransitory/PhasinginSystem).IntheNSRF,theindicativetargetforeseen for the period it is in force exceeds these minimums imposed by thecommunityregulationforearmarking–83%intheconvergenceregionsand81%inthecompetitivenessandemploymentobjectiveregions–andthedataacquiredonthe foreseen investments in the applications approved up to August this yearindicatesthatthesetargetswillbeexceeded(seechapterIII).AstheNSRFassumesakeyroleinthefundingofpublicpolicieswithinthePNR2008‐2010,itisalsoobviouslyvitalthattherespectiveaidfromthestructuralfundsandthecohesionfundisconcentratedintheactionsandinvestmentsthatproducetheresults and impacts sought after through implementing the Lisbon Strategy inPortuguesesociety.Tothisend,theNSRFpledgesinconcentratinginterventionsand20

esourcesinalimitedrangeofOperationalProgrammes,intheincreasedselectivityand focalisation of these investments, in more intensive strategic and operationalmanagement and monitoring and in the ongoing evaluation of the respectiveimplementation that ensures the efficient and effective pursuit of the definedpriorities and targets and in the coherent articulation of the various conception,programming and financing instruments (including EFARD and FEF) and/or theexecutionofpublicpolicies,formthekeyguidingprinciplesforitsimplementationandtheyarethereforeextremelyrelevantinboostingthecapacityofthisnewcycleoftheLisbonStrategytoproduceresults.21

|THE RURAL DEVELOPMENT AND FISHERIES PROGRAMMES AND THEPORTUGUESENATIONALREFORMPROGRAMME(NRP)THERURALDEVELOPMENTPROGRAMMEANDTHENRP2008‐2010ArticulationbetweentheoperationalprogrammesoftheNSRF(ERDF)andPRODER(EAFRD)hasbeenassuredwiththedefinitionoftherespectivefieldsofinterventionandthefixingofthemodeltomonitortheirexecution.The key objective of the EU rural development policy is to find solutions for thespecific challenges facing rural areas and to fully develop the potential of theseregions.ThemeasurestakeninthisareathereforecontributetomeetingthegoalsdefinedbythePNR2008‐2010whichareequallyimportanttobothruralandurbanareas.ThestrategicobjectivesoftheNationalStrategicRuralDevelopmentPlanareto:1. Increasethecompetitivenessoftheagriculturalandforestrysector,developingknowledge and improving human potential, fostering innovation, restructuringand developing physical potential and improving the quality of agriculturalproductionandproducts;2. Promote the Sustainability of Rural Spaces and Natural Resources,protectingenvironmental values and landscapes in agricultural and forestry areas of theNature Network 2000 and others, protecting water resources and the soil,contributingtoreducingclimatechangeforthecontinuedandsustaineduseofagriculturallandindisadvantagedareas;3. Revitaliseruralareaseconomicallyandsocially,diversifyingtheruraleconomy,improvingthequalityoflifeinruralareasanddevelopingcompetencesinruralareas.The Plan’s objectives that are transversal to other programmes and nationalstrategyplansareto:1. Boost social and territorial cohesion, intervening in rural areas, fostering theappropriateuseofendogenousresourcesandstimulatingtheexistingdynamics;2. Promotetheeffectivenessoftheinterventionofpublicandprivateagentsandofassociationsinthesectorialandterritorialmanagement,encouraginganewoperational philosophy and simplified models of action that lead to moreeffective intervention by entities and agents working in the field of ruraldevelopment.The priorities of the National Strategic Rural Development Plan (2007‐2013)describedabovearecoherentwiththesixpriorityareasofthePNR–NewCycle22

2008‐2010,despitethefactthetimereferenceframeworksaredifferent,aswecanseebellow:THENATIONALPLANFORFISHERIESANDTHENRP2008‐2010ThestrategydefinedtothefisherysectorisarticulatedwiththePortugueseNationalReformProgramme2008‐2010,andisorientatedbyprinciplesthatlinkseconomicgrowth, employment and social cohesion, the natural heritage and environmentpreservation.At the same time, projects under the Lisbon Strategy (NRP) are promoted andencouraged,assuringthesustainabilityofthisareatothefuturegenerations.23

New Measures of the National Reform Programme /New Cycle 2008-2010

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesQuality of public finances and the modernisation of Public AdministrationQUALITY OF PUBLIC FINANCESSpecification ofpublic companyindebtedness limitsDuring each financial year, maximum limits will be established for public company debt, taking into accountinvestment plan proposals, and the actual debt and financing capability with a view to improved accuracy infinancial management, particularly with respect to optimising investment and financing decisions.In progress withsome companiesOptimisation of investment/financingdecisions and debt controlLaunch ofrestructuringprogrammes fortransportationcompaniesWith a view to restructuring finances for transportation sector public companies in the medium to long term,opportunities to improve internal efficiency will be identified in relation to the State (particularly with respectto public service contracting) and in management of current debt, opportunities which will be converted intomanagement contracts to be signed between the State as shareholder and the respective administrations.In preparation,having beeninitiated by meansof a REFER studyEstablishment of management contractsbased on internal efficiency plans,public service contracts based on thestudy about the relationship with theState.“Timely Payment”ProgrammeProgramme seeking a structural reduction in the payment periods to suppliers by public entities. Includingmeasures such as monitoring and publication of average payment periods to suppliers; the establishment ofobjectives for payment periods to suppliers and the creation of incentives associated with the degree ofcompliance with the objectives; implementation of improved operations for speeding up payment processes tosuppliers; the creation of debt replacement mechanisms for suppliers of medium and long term financialloans, in the specific case of autonomous regions and municipalities.In progress (comesinto force inFebruary 2008)Programme targeting a structuralreduction in payment periods forsuppliers to public entities.Publication of the List ofState Creditors, anMFAP responsibility, islinked to this measure.2

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesUse of information asa lever to combatfraud and fiscal andtax evasionAn integrated information system will be implemented within the Tax Department to support tax inspectionfunctions, from planning and control, through execution of procedures to increase the efficiency of taxinspections, directed to control risk factors and facilitate detection of fraud through the use of computerprograms.In preparationDevelopment of theProgrammes BudgetAs part of the work of the Budgeting Committee for Programmes and the OECD Budget Review, theprinciples of multi-annual review and results evaluation, and the development of new budgeting programmeswill be incorporated into the budgeting process, giving rise to three pilot programmes (in the areas ofCooperation, Continuous Health Care and Social Action in Higher Education) that the Government willpresent in the State Budget Report for 2009. The commitment to a management by objectives model willbenefit the budget planning and control capability, providing the basis for monitoring and evaluating serviceand budget programme performance.In preparationRestructuringfinancialmanagementprocesses in thepublic sectorTaking into account the best practices in this domain, the redefinition of financial processes and systems mustbe founded on three fundamental principles: definition of a multi-annual framework for expenses, processtransparency and management autonomy, and the acceptance of responsibility for results.In preparationIncreasing transparency (compilation ofexisting legislation and processsimplification); Increased flexibilityand responsibility in budgetingprogramme management.Reinforcement of public accountcontrols at the macro level.Introduction ofeconomic andanalyticalaccountability, basedon RIGOREsoftware, inintegrated servicesWith a view to increasing control over expenses, the development of support information for managementdecision making and strengthening clarity and transparency in the management of public money and thefinancial relationships with the State, introducing the provision of accounts using POCP is established as atarget, based on RIGORE software, for 50 integrated services forming part of State Self-Administration by2010.In preparation3

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesShared Serviceimplementation inthe domain ofaccounting andfinancialmanagement andhuman resourcesIn respect to the shared service system within the domain of accounting and financial management, a target toimplement it in 50 State organisations by 2010 has been established. With regard to human resourcesmanagement, a target has been set to process the salaries of 60 thousand staff by means of shared services.In progressIt is planned that by 2010 over 50Central Administration organisationswill be using POCP and that thesalaries of 60 thousand employees willbe managed using Shared Services.Consolidation of theNational PublicProcurement Systemand the NewManagement Modelfor the State VehicleFleetWithin the domain of the National System for Public Procurement, a target has been set to obtain savings of10 to 15% of relevant costs (150 million Euros during 2009-2010 period).Within the domain of the State’s Vehicle Fleet, a target has been set to obtain savings of 40 million Euros inthe 2009-2010 period.In progressProgressiveimplementation ofthe principle ofonerosity in the useof propertyThe evaluation of Public Administration performance will be consolidated, as well as planning capabilitiesand human resource mobility. Finally, during the new cycle, there will be a commitment to increasequalifications and vocational training for employees in public functionsIn preparationImproving building occupation ratios,increased service mobility,identification of buildings to beincluded for streamlining, encouragingconservation and restoration.Increase ofqualifications andtrainingThe strengthening of qualifications of managers and staff will be driven by the prospective evaluation andpreparation of skill directories and the development of appropriate coaching programmes, the coaching ofmanagers and senior staff groups, implementation of mobility policies through development of professionalretraining programmes, development of e-learning and work groups, decentralisation of training, by means ofpartnerships between INA and local institutions, and alignment with the New Opportunities Initiative.In progress4

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesState Vehicle FleetIntegrated and centralised management of the State Government Fleet, in order to eliminate redundantexpenses and waste resulting from ad-hoc management of a fleet of approximately 29,000 vehicles, which isdiverse, heterogeneous and aging (average age 11 years)In progress (thenew legalframework for theGovernmentVehicle Fleet waspublished in Aug08)Renewing the Fleet in 4 years (at a rateof 25% a year), paying attention toecological and environmental criteria.Cost economies of the order of €40million (2009-2010)In progress forimplementation of thenew PVE managementmodelSimplification and Improvement of Support for Citizens and CompaniesAs part of the approval by the European Council in March 2007 for the Action Programme for the Reductionof Administrative Charges in the European Union, in 2008 the government approved a National Commitmentto Reduce Administrative Charges for Companies, seeking to replicate, in the national plan, the objectivedefined by the EU. In 2009, it will progress the evaluation process to reduce administrative charges forcompanies by the application of simplification measures already implemented.2010 Target: Evaluation of 50company/AP interaction processes2012 Target: 25% reduction of theEAs in the mapped processesReductioncompany chargesofIn progressThe first Municipal Simplex Programme launched in 2008 will be evaluated in 2009, and broadened toincorporate more municipalities, including new simplification measures which do not necessitatecollaboration between municipalities or between municipalities and central administration.2010 Target: Involvement of a total of50 municipalitiesMunicipal Simplex.In progressSecond generationcitizen shops andOne Stop ShopsAs part of public services modernisation, the investment in improved quality and proximity of services totheir users will be continued, specifically by an increase in the range of public services made available as partof the one-stop-shop system (through both physical and web channels) and by means of an expansionprogramme for the Second Generation Citizen Shops.In progress2010 Target: 40 new 2G Shops2010 Target To implement the multiservicesDesk, 60 transactional serviceswith a total of 10 entities2010 Target: To rationalise the publicservice distribution model,geographically and financially, .Multi-channelsupport forcompaniesDevelopment of the same multi-channel support strategy will be continued for companies. Specific supportfor companies will also comprise the voice channel and in particular, continuous improvement of the webchannel (Company Website).In progress5

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesThis catalogue which includes licences, authorisations and administrative arrangements, and provides accessto relevant information in each case, specifically, applicable legislation and the relevant authority andcontacts, will be improved with the objective of including all licences and authorisations existing inPortuguese legal system, and it will be necessary to collect information to complete the catalogue.Development of a one-stop shop as part of the Services Directive – introduced into the licence catalogue –with electronic procedures which provide remote electronic access to the authorisation procedures necessaryfor implementing activities in Portugal. The services to be tested include the setting up of companies,applications to higher education and changes of address.2010 Target: Assignment of 80% ofexisting licences to the catalogue2010 Target: Increase in theavailability of transactional servicesOn-line licencecatalogueIn progressThe Senior Citizen Desk will be an integrated desk which will provide all services and information related toretirement, free time, health and other issues of importance to elderly citizens such as transportation, socialsupport, leisure and services, such as making appointments for ambulances to transport patients, schedulingand requesting home support, municipal services for seniors (payments, activity scheduling), public servicesof general interest (telephone, electricity); an overriding consideration is that the service must also beprovided in accordance with the logic of providing close proximity services, i.e. in addition to the CitizenShops, locations close to community centres, next to local councils or even railway stations, are places wherethis new service could be sited.Senior DeskIn preparation6

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesIntegrated services provision project based on the promotion of communications between organisations anddepartments. The certificates to be eliminated will be identified during 2008, and implementation of acertificates catalogue is also planned (e.g. procedures, legal information, costs and contracts). This crossboundaryproject will link together central and local administrations, bringing together in the first phase,almost all organisations from seven ministries and six municipal councils.2010 Target: Elimination andsimplification of various existingcertificatesElimination ofcertificates for publicservicesIn progressExpansion of theCitizen CardHealthe-agendaIn support of and following on from these and other dematerialisation initiatives concerning relationshipswith public administration services, utilising strong authentication, continuing the expansion of the “CitizenCard” project to all residents in Portugal and abroad is planned.Development of an electronic platform for National Health Service appointments.In progressIn progress –launching of the 1stphase on15/08/20082010 Target: To achieve a total of1,000,000 cards issuedResults/Impacts: a) Reduction ofabsenteeism at consultations; b)Integrated consultation record c)reduction of waiting times d) Centralmonitoring of perceived quality7

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesTransparencyWebsiteCreation of a website where citizen can select any information about NHS services.In progress –Transparencywebsite pilotlaunched in07/2008. Finalversion launched byDec 2008Results/Impacts a) To publicallyprovide information to the populationabout NHS hospital performance; b) Togenerate public confidence about NHShospitals c) To reduce the informationasymmetry between the Administrationand citizens: d) To stimulateappropriate use of health servicesthrough better management of theindividual expectations of patientsabout the results of the care provided(pedagogy); e) To compare theperformance of suppliers (to identifybest practices); f) To disseminate andcontribute to the implementation of therights established in the “Charter of theright of access to health care forNational Health Service users”.Medicalprescriptions forsufferers of chronicillnessesDevelopment of an electronic platform for prescription requests for sufferers of chronic or long durationillnesses on the NHS, saving patients the need to attend Health Centres.In development tobe launched withthe 2nd phase of thee-AgendaResults/Impacts a) Speeding up theprocess for renewing prescription bythe chronically ill; b) Convenience andease of applications by citizens; c)Central monitoring of perceived qualityDevelopment ofShared Services inHealthDevelopment of a shared services platform for health institutions in Portugal, prioritising the areas ofAccounting, Financial Management, Human Resources Management and Procurement and Logistics,specifying a strategy of improving system efficiency.In progressTo generate savings of 95 million Euroat the level of NHS institutions, as aconsequence of the respectivemembership of the Shared ServicesPlatform through SUCH8

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesSupport fordevelopmentexperiences andcreation of an“Electronic ClinicProcess”Support for the creation of ECP in NHS institutions.In progressResults/Impacts a) Greater efficiencyand effectiveness of clinicalintervention; b) Sharing of informationamongst professionals; c) Overall viewof the user by the Health System.Technological Plan for EducationSchoolProjectSimplexTo develop an integrated electronic platform to support school management. The objective is to increase theefficiency of management and communication between educational community agents and to improve accessto school information.In preparationSchool CardTo increase usage of electronic student cards within the educational community, to increase teachingmanagement efficiency and safety in schools. This project includes plans for functionality such as accesscontrol, attendance records, process query and electronic purses with charging outside school, facilitating areal reduction in the need for cash.In preparationEscol@seguraTo equip all schools with an alarm system and video surveillance, with a view to increasing equipmentsecurity, discouraging break-ins, thefts and robberies of schools. The electronic alarm and video surveillancesystems will protect the safety of investments in schools, whilst simultaneously ensuring that the privacy ofmembers of the education community is guaranteed.In preparationMinistry ofEducationInstitutional WebsiteTo develop a privileged communication channel between citizens and the Ministry of Education (ME),providing information relevant to the national and international education sectors and concentrating on theinstitutional contents of ME services, combating diffusion, overlaps, redundancy and gaps in content.In preparationJustice Technology Plan (the Ministry of Justice as part of its sector programmes for modernisation with increasing use of IT will introduce significant changes in three domains: Land Registry, Civil Registry andJudicial Process Dematerialisation .9

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesOnline LandRegistryTo encourage most Land Registry interactions to be implemented electronically.To provide an online certificate from the Land Registry, very similar to the "online permanent certificate”from the Companies Registration Office.“Special Registry Operations” deskIn preparationFrom 1 January 2009 it will be possibleto electronically implement most LandRegistry acts. In addition, via thewww.predialonline.mj.pt, website,chambers of commerce and industry,notaries and solicitors will be able tosubmit applications to the registry, payfees and overcome weaknesses in theregistration process.In addition, an online certificate will bemade available by the Land Registry,very similar to the "online PermanentCertificate" from the CompaniesRegistration Office. From 1 January2009, anyone may access informationat the Land Registry via the Internetwhich will be permanently updated andwill have certificate value, through thewebsite www.predialonline.mj.pt. Thiselectronic certificate is also accessibleusing only one code, which may be sentto any public or private entity by theinterested party, so dispensing with theneed to send a paper certificate.During the first quarter of 2009, the“Registry Special Operations" desk willstart functioning. This desk consists ofspecial and personalised support forthose users who require it due to thevolume and complexity of the registryapplications and property operationswhich they need to implement.New online acts viathe Civil RegistryEnabling the on-line implementation of Civil Registry servicesIn preparationBy the end of 2008, it will be possibleto implement the first Civil Registryonline services, and by 2009 it will bebroadened to enable civil registrationacts for more situations.10

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesCITIUS and thedematerialisation ofjudicial processesDematerialisation of judicial processesIn progressIn 2008 several incentives weredeveloped to encourage representatives(lawyers and solicitors) to carry outtransactions electronically. Also, since1 September 2008 there has been areduction of 25 to 50% in theprocedural costs paid by parties whoserepresentatives use the CITIUS systemto deliver procedural documents. Useof these electronic means to deliverprocedural documents via CITIUS –Document Delivery and CITIUS –Injunctions, which dispense with theneed to send paper copies, have beenvery significant and the increase inadvising and training theseprofessionals will continue in 2009. Forexample, the percentage of injunctionsserved through CITIUS–Injunctions is95%, and the percentage of proceduraldocuments and documents deliveredvia CITIUS-Documents Delivery is10%.Also, during 2008 the followinginitiatives will be implemented as partof the CITIUS project fordematerialisation of judicial processes,i) new ways of implementing electronicattachments as part of an enforcementprocedure/legal debt collection , ii) newInternet websites to facilitate access toinformation about courts andalternative means of resolvinglitigation, iii) Expansion of thecomputing work tool for publicprosecutors CITIUS-MP (penal) to allDIAPs, iv) new electronic searches andqueries via CITIUS to facilitatecriminal investigations, v) newelectronic links to bodies whichcollaborate in criminal investigations,and, vi) between 2008 and 2009, newwireless-links in courts to facilitate11

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Noteseasier access and use of CITIUSapplications.From 5 January 2009 it will beobligatory for public prosecutors andthe Public Prosecutors Office toimplement procedural acts in processesof a civil nature exclusively using theCITIUS application. This measure willmake it unnecessary to print thousandsof documents without relevance to thejudgement, and it will significantlyreduce the circulation of paperdocuments in the courts.Also during 2009 new electronic formsof communication between lawyers,courts and some public entities will bemade available, and new computerapplication functionality provided incourt which, as part of enforcementprocedures, will facilitate and simplifythe procedural flow of these types ofprocesses, particularly in relation to thereduction of payment periods. Alsoduring 2009 a public list of executionsfrustrated by the non-existence ofpledged goods will be provided on theInternet in order to avoid legal actionswith poor probability of success and thedevelopment or specific fulfilment ofcontracts.12

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesCITIUS– InjunctionsCITIUS–Injunctions is a tool whichenables the delivery, or payment andtransfer, completely electronically ofthe Injunction procedure [1], availablefrom 5 March 2008.The “dematerialisation of injunctions”has enabled:a) the delivery of injunctionselectronically, via the Internet, athttp://citius.tribunaisnet.mj.pt, inelectronic form or computer file;CITIUS - InjunctionsTools enabling the delivery, payment and transfer in a completely electronic form of Injunction procedures[1]In progressb) electronic payment of injunctionfees, at cash machine or via homebanking;c) electronic transfer of injunctionsthrough the National Injunctions desk;d) electronic delivery of injunctions tothe court in case of opposition;e) delivery of advice by e-mail insupport of the procedure as required byinjunctions;f) formation of an electronicenforcement order based on theinjunction, which enables thepresentation of an enforcement actionbased on this electronic title.The completely dematerialisedinjunction procedure is simpler becauseit enables electronic delivery andpayment of injunctions, without anytravelling. It also makes unnecessary:combining paper injunctions withenforcement requirements; anddelivering paper-based certificates forVAT recovery.It is quicker because the automated[1] An injunction is a.judgement whichenables a creditor tocollect a debt, in a speedyand simplified manner,by means of anenforcement order,without the need to takedeclaratory action incourt. The enforcementorder is an essentialdocument for the legalcollection of the debtthrough the courts, bymeans of an enforcementprocedure which makesthe respective attachmentvisible.13

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notesprocedures enable speedier transfer(electronic change order, electronicdelivery for printing and enveloping,etc)It is cheaper because the legal fee forelectronic delivery of injunctions isdiscounted by 50%.The dematerialisation of the procedureand electronic communication with theuser dispenses with hundreds ofthousands of journeys by judicialsecretaries and the associated costs.From 5 March 2000 over 219,000injunctions have already been receivedelectronically via CITIUS, representingover 95% of the injunctions received.IMPROVEMENT OF LEGAL PROCEDURES14

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesProgramme forimproved legislation(conclusion andconsolidation ofplanned measures)• Interoperability between DIGESTO legal databases (system for processing and analysing legal information)and the databases for processing legal information belonging to the State.• specification of a technological model for electronic reconstitution (substantial consolidation) of legal texts.• Implementation and consolidation of free search procedures to be developed with the community, skills toencourage the effective participation of citizens and companies.• Development of a practical guide for the preparation of standard government documents.In progressEvaluation of theimpact ofGovernmentStandard Acts• review of the SIMPLEX test model making use of prior evaluation of the administrative costs of all thediplomas subject to the approval of the Council of Ministers, adjusting them to the “standard cost model”methodology.• launching a practical guide for prior evaluation of administrative costs of Standards Acts from theGovernment, to be used by the Ministries responsible for the preparation of legal initiatives.• preparation and presentation of an annual report by the government containing the results of the evaluationof the impact of Standard Acts using the new SIMPLEX test model.• adoption of a national commitment to reduce administrative charges by 25% imposed by legal rules andnational regulations covering company life-cycle events. In progressTransposition ofcommunity directivesto the internal legalframework• monitoring by the Presidency of the Council of Ministers and by the Ministry of Foreign Affairs of thetimely transposition of directives, by means of the automatic electronic alerts systems for monthly updatingof procedures for transposition, and implementation of routine inter-ministerial meetings.• combating “gold plating” (creation of administrative charges through national legislation in addition to thoseestablished by community directives) and “double-banking” (reconciling the directives to be transferred withexisting national legislation on the subject).• control of the transposition procedure for simplified European legislation within the framework of the2005/2009 simplification programme, the accelerated actions (“fast tracks”) initiated in 2007, and the ActionProgramme for the Reduction of Administrative Charges within the European Union. In progress15

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesFavourable business environment, particularly for SMEsStimulation of structural investmentSupport Programmefor Projects ofPotential NationalInterest withStrategic Importance(PIN+)This programme consists of an Identification and Follow-Up System for Projects of Potential NationalInterest with Strategic Importance (PIN+), the classification mechanism for which was instituted by Decree-Law 285/07 of 17 August. Once this classification is obtained, the government, in strict cooperation with therelevant territorial municipalities, is committed to ensuring quick transfer of the authorisation procedures.In progressThis objective was developed to speedup procedures and urgent resolution ofrelevant costs incurred for the processof obtaining the necessary licenses toimplement investments. By 2010, allinvestment projects which obtain thePIN+ statute will be monitored toensure that the overall timescale fordecisions is as short as possible.Customer/supplier'sprogrammeInternationalisationThe implementation of actions with a view to improving the positioning of Portuguese companies withsuppliers of raw materials, intermediate products, components, services or other solutions by multinationalcompanies located in Portugal.In progressThis measure is expected to contributeto the improvement of commercialtrade, resulting in a reduction inimports, as a consequence of nationalprovision. The objective is to have 100companies in this programme at the endof this year, increasing to 150 in 2009and 175 in 2010.ExportersProgrammeClubThis Programme involves the development of an Exporters Club, providing close and preferential contactwith Aicep customers.In preparationBy creating the Exporters Club therelationship between companies and theagency will be closer and moreeffective, also creating conditions toincrease the process ofinternationalisation of our customers.The objectives are 50 companies in2008, 100 in 2009 and 150 in 2010.16

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesBusinessempowermentThe objective of this programme is to stimulate business empowerment actions and consists of a trainingprogramme on how to approach international markets, with the objective of overcoming SME weaknesses intrade and international business management.In progressTo transfer practical and strategicinformation to companies, about waysof entering and operating in overseasmarkets, facilitating internationalbusiness success. Targets are SMEswith their own products and services,which are seeking to initiateinternational strategies, marketdiversification or sales consolidation ininternational markets. The objectivesare to implement 40 actions in 2008, 42in 2009 and 45 in 2010, and it is alsoexpected that the number of companiesinvolved in these initiatives will growto 800 in the current year, 1050 in 2009and 1350 in 2010.MarketPortugalPlaceCreation of a technological platform for showcasing Portuguese bids from SMEs with the objective ofproviding them with improved visibility and to provide a support tool for implementing commercialoperations in international markets.In preparationTechnological platform for SMEs withthe objective of increasing their degreeof recognition and facilitating businessactivities with international customers.The objectives for the coming years are250 companies in 2008, 400 in 2009and 550 in 2010.InoVasco da GamaThis programme aims to provide overseas training sessions, targeted at young businessmen and technical stafffrom Portuguese companies who are taking part in or who are seeking to finalise an internationalisationstrategy for their company, or for a company with which they are connected.In preparationAnnual implementation of 150 trainingperiodsPre-subscription to theprogramme was started inFebruary 2008, bycompletion of an onlineapplication form on thewww.networkcontacto.com website.Internationalresources networkThe objective of this measure is to develop and encourage an International Network which brings togetherPortuguese scattered around the world with a view to increasing the internationalisation of the Portugueseeconomy as well as increasing the reputation of Portugal, so contributing to an improved perception of ourcountry overseas.Programme INOFIN – To facilitate access to financing for entrepreneurs and SMEsIn preparationThe International Resource Networkshould have around 1,000 users in2008, 1,500 in 2009 and 2,000 in 2010.17

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesProgrammeFINICIAThis programme aims to provide specialised financial instruments in support of company formation, such as:- Pre-seed Capital solutions targeted at concept testing phases- Seed Capital Solutions targeted at the formation of knowledge-based companies;- Venture Capital and Mutual Guarantee Capital Solutions directed at the initial growth stage of start-ups;- Venture Micro Capital and Microcredit subject Solutions, directed at young female entrepreneurs, social,with regional focus, associated with new clusterisation processes.In progress i) No. of projects evaluated - 600ii) No. of projects approved - 75%iii) Average No. of positions createdwithin approved projects - 2iv) Total investments - € 45 Mv) Credit financing (supported byMutual Guarantee) and Venture Capital€20 millionResults constrained bythe availability ofresources.ProgrammeFINCRESCEProgrammeFINTRANSThis programme aims to provide solutions to optimise the financing conditions for companies pursuinginnovative growth strategies, through Venture Capital and Mutual Guarantee Solutions targeted at growinginnovators and/or SMEs.This programme aims to provide Venture Capital and Bearer Credit targeted at supporting operations ofbusiness amalgamations, mergers and acquisitions, Management Buy-Outs (MBOs) and Management Buy-Ins (MBIs).In progressBeing implementedi) 2,500 SMEs acknowledged as havingSME Leader status;ii) Convening of an annual SME leaderConventioniii) SME Leaders involved in thebenchmarking process – 1,200iv) Implementation of investmentprojects by SME Leaders with resort toCredit and Venture Capital instrumentsas part of specific financing solutions tobe developed – 500.i) Involvement of financial partners andspecialised bodies - 10ii) No. of companies identified inseeking solutions for transmission - 40iii) No. of transmission operationsrealised - 10Results constrained bythe availability ofresources.Promoting Entrepreneurship18

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesEntrepreneurshipProgramme andEvaluation ofEconomic KnowledgeThis programme aims to foster an entrepreneurial culture, stimulating the formation of new companies by thetransfer of technology, consolidation and growth of international start-ups.Planned actions:- Promotion of links between schools, universities and companies;- Stimulation of focal points within universities to identify research programmes with business potential;- Development of technology management mechanisms which efficiently relate to technological research andcommercialisation;- Intellectual property management;In preparation Being defined- Development of a methodology to develop EBT from intellectual property;- Identification of key areas based on R&D centres of excellenceSupport for femaleentrepreneurshipThis measure incorporates an integrated support system for female entrepreneurs which includes training,consultation on the preparation of business plans and a prize of start-up support. It also incorporatesentrepreneurial network support for activities developed for women.In preparationSupport for qualifiedfemaleentrepreneurshipThis support translates into an allowance of 10% of eligible expense for candidate projects for NSFR R&Dincentives submitted by female entrepreneurs with its own budget provision.In preparationSupport for culturalentrepreneurismIncorporates the development of a post-graduation in management specially directed at cultural and creativesector agents with reference to the qualifications of the corresponding managers after business managementtraining, as well as awarding prizes for innovative and sustainable projects of acknowledged merit in thecultural domain.In preparationPromotion of good practices/ Recognition of SME Excellence19

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notes“Skills and incentivesfor SMEs for theadoption of growthstrategies”ProgrammeThis programme incorporates: - SME Academy; - To evaluate leading SMEs for innovative and internationalgrowth; - Dissemination of competitive diagnostic solutions and identification of good practices(benchmarking); - Greater use of Scoring tools, particularly for innovation (Innovation scoring); - Facilitateaccess to information relevant to SME businesses.In progress1,000 companies with training on SkillsAnalysis, Competitively Diagnostics,Innovation Scoring. Introduction of anSME Academy as intermediarybetween knowledge developmentcentres and SMEs for skills transfersand the reinforcement of differentcapabilities.SME MeritRecognition – Showby ExampleIncorporate a system linked to business excellence and merit recognition: SME Leader, SME Excellence, andEuropean Enterprise Awards.In preparation Being specifiedStrengthen Competitiveness in TourismKnowledge Platformfor DestinationManagementDevelopment of an interface (knowledge, technical support and cooperative platforms) in support of theimplementation and management of tourism destinations and products, and to provide appropriate tools tomonitor efficiency indicators for dimensions critical to business viability and competitiveness.In preparationElectronic registration platform forlicensed companies and enterprisesoperating in the Tourism sector, inoperation by 2010.StimulationTourismDevelopmentPointsofFocalRequalification ofestablished TourismDestinationsDematerialisation ofrelationshipprocesses withbusinessesSpecification of the development concept for new tourism focal points, corresponding infrastructure andprivate investment priorities, as well as a market entry matrix. Configuration of incentive systems applicableto public and private projects which implement the planned concept.Competitive evaluation of established destinations and specification of requalification programmes, takinginto account competitive repositioning, supported in accordance with the priority for infrastructural andprivate investment, as well as a new market entry matrix. Configuration of incentive systems applicable topublic and private destination requalification projects.Complete dematerialisation of the licensing processes, and support for skills investment for Tourism inPortugal IP and reduction of the corresponding costs for companies.In progressIn progressIn progressLaunch of public and private initiativeprojects necessary for the competitivedevelopment of new tourism centres, atthe proposition level, for prioritymarkets.Launch of projects with public andprivate initiative necessary for thecompetitive development of newtourism centres, at the propositionlevel, for priority markets.Dematerialisation of the majority ofprocedures underpinning licensing andinvestment support processes by theend of 2010.20

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesPORTUGESTProgramme:Promotion of thecultural andeconomic value of thePortugueseA project directed at disseminating the language, the value of the human capital, heritage preservation,intellectual property protection, co-production and stimulus for creative industrialists, targeting the creation ofa market for goods and services in the cultural and creative sectors of the PLP. The project will consist of: thecreation of a technical and information platform to stimulate remote training and the development ofappropriate methods/support/equipment for training; Agreement with computer sector companies (Microsoft);development of a multi-discipline team to outline the project; establishment of a network of agents andinstitutions from several countries involved.In preparationCultural tourismknowledge networkDevelopment of a technological platform to disseminate knowledge based on the European Network forVillage Tourism. The Network involves an international public-private partnership (Portugal, Italy, Romania,Poland, Finland, Belgium, Greece and Slovenia) and develops the concept of imaginary tourism. TheNetwork collects authentic characteristics from each community through stories, legends, myths, traditionsand ancestral knowledge.In preparationPROMAR – FISHERIES Operative ProgrammePROMAR –European FisheriesFundIn compliance with the common fisheries policy, revised in 2002, which incorporates the main principles ofthe European Council of Gothenburg and the Lisbon Strategy, and the National Strategic Plan for Fisheries,which define the intervention policy for the period 2007-2013, it constitutes the national framework of theFISHERIES Operative Programme, giving a particular relevance to the need to ensure the sustainableexploitation of resources, in a way to maintain the capability for self-generation of ecosystems and toencourage biodiversity, with the objective of guaranteeing the future of the fisheries sector and the well-beingof the populations which depend on this activity. For this purpose, it advises on the preservation of resourcesand environmental quality with the limitations of the biological and ecological order and the economic andsocial needs, backing knowledge, training and scientific research as the supporting pillars for economicgrowth and the creation of employment. The guarantee of multi-annual financing co-financed by theEuropean Union, centred on priorities, should enable the sustainable development of the sector.In progressGuarantee of the necessary selectivityin the choice of the best investmentprojects as part of the FisheriesOperative Programme (PROMAR).The analysis and selection of projects isbased on, whenever appropriate, apoints system, based on objectivecriteria, with a minimum score set. Thefinal scoring results from application ofa formula in which up to three variablesapply (technical, economic andfinancial strategy).Simplification of the rules applying forsupport relative to the formercommunity framework, dispensing withthe economic-financial analysis andstrategic analysis for applicants for21

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notessmaller levels of investment, and insuch cases a number of documentsshould be submitted by the sponsorsand the time for analysis by the publicadministration is reducedAssessment andevaluation of humanresources (EuropeanFund for Fisheries)With respect to the assessment and evaluation of human resources, the main orientation of the nationalStrategic Plan is a commitment to continuous training and establishment of support mechanisms for the entryof young professionals, the increase in training by alternation, the strengthening of support mechanisms fortraining based on technological platforms and computer tools and the strengthening of dual certification.In progressMarket Stimulation, Development of the Internal Market and RegulationImplementation ofServices DirectiveBy the end of 2009, the methods of executing Services Directive will be completely implemented. As part ofthe work to transpose the Services Directive, similar to the simplification task for access procedures andservices activities, a one-stop shop is planned using electronic procedures, providing remote and electronicaccess to the authorisation procedures necessary for the establishment or provision of services in Portugal. In preparationImplementation ofthe intellectualproperty DirectiveGradual andcontrolledliberalisation ofpostal servicesTransposition of the directive relating to the modes for acquiring intellectual property will equip the countrywith substantial procedural legal instruments for the fight against forgery practiced in society. The new lawputs Portugal on par with States which better protect intellectual property, providing a more attractiveenvironment for capturing national and overseas investments in knowledge-related sectors, and in informationand creative industries. An improvement in legal activity is anticipated, and of the other services involved inthe fight to protect IP, by improving the training of agents. It is considered t be beneficial to place copyrightlaws and related rights on-line in English, as well as making complementary legislation available. In progressTransposition of Directive 2008/6/CE on the total liberalisation of postal services by 31/12/2010. In preparationComplete marketliberalisation by31/12/2010.22

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesReview of theregulatoryframework for theconstruction sectorRedrafting of Decree-Law 12/2004 of 9 January – legal framework on concessions for licences for theexercise of construction activities;Regulation of real-estate marketing activities and the management and administration of condominiums;Development of a legal framework for carrying out property evaluation activities..In progressMore R&D and Improved Research SystemsMore R&DStrengthening thesupport programmefor contracting newdoctorates for thenational scientificand technologicalsystem.Strengthening theaward of ResearchIntegration Grants(in renowned R&Dcentres) for studentsin the initial years ofhigher education.Development of newC&T SubjectNetworksDevelopment of newR&D ConsortiaBringing on-streamnew AssociatedLaboratories andstrengthening theoperating conditionsfor AssociatedProgrammes which target incentives for scientific and technological employment by agreeing Programme-Contracts with public and private institutions which carry out important scientific activities, for theprofessional incorporation of science and technological doctorates as part of the institutional fabric.The objective is to create conditions to stimulate scientific activities and the development of students in acritical, creative and autonomous manner through their integration in R&D project teams.Targeting the integration of capabilities, advanced training, the presentation and dissemination andinternational cooperation, specifically in support of international partners by the C&T and Higher Education.Programme targeting the development of new R&D consortia, including support mechanisms for training inPost-Graduate Colleges in Portugal, seeking to strengthen post-graduate activities in Portugal in aninternational context, to support the reforms in progress in higher education in Portugal and modernisation ofnational scientific and technological systems.Bringing on-stream new Associated Laboratories and strengthening the operating conditions for AssociatedLaboratoriesIn progressIn progressIn progressIn progressIn progressAt least another 500 new contractsby2010.To support about 5,000 researchintegration grants.Establishing new subject networks,using competitive selection processes.Establishing new R&D consortia, usingcompetitive selection processes.Establishing new Associatedlaboratories using competitive selectionprocesses.23

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NoteslaboratoriesMobilisationProgramme for StatelaboratoriesGuest ProfessorProgramme forresearch andattracting R&Dgroups to PortugueseInstitutions,Launch of the Mobilisation Programme for State Laboratories including the creation of consortia and R&Dnuclei, and networks aiming at modernising national scientific and technological systems, with the specificobjective of ensuring reform of State Laboratories, through closer cooperation with Associated Laboratories,Higher Education Institutions, and R&D institutions and centres, and other public and private entities,particularly within companies.Implementation of the Guest Professor Programme for research and attracting R&D groups to PortugueseInstitutions, aiming at attracting senior International researchers to Portugal and supporting Higher Educationinstitutions in their internationalisation efforts and in the establishment of partnerships with other entities.In preparationIn progressParticularly seeking support forestablishing the four planned consortia:BIOPOLIS, FISICA-N, RISCOS andOCEANO.Up to 50 Guest ProfessorsCompletion ofconstruction of theInternational IberianLaboratory forNanotechnology(INL)Programme for new“Partnerships for theFuture”Completion of the construction of the International Iberian Laboratory for Nanotechnology (INL) in Braga, aspart of the international tender for which the 1 st phase has already been launched, beginning the internationalrecruitment of researchers and scientific activities and broadening the participation of other countries in thelaboratory. In progressStrengthening the new “Partnerships for the Future” Programme, particularly through existing partnershipswith MIT (MIT-Portugal Programme), University of Carnegie Mellon (Programme CMU-Portugal), theUniversity of Texas in Austin (Programme UTAustin-Portugal), and Fraunhofer Gesellschaft, and includinglaunching a new partnership with Harvard Medical School and an international MBA (Lisbon-MBA), as partof the collaboration with the Sloan School of Management of MIT.In progressStrengthening existing partnerships,Launching another partnership with theHarvard Medical School and initiatingan International MBA Programme(Lisbon-MBA), as part of thecollaboration with Sloan School ofManagement of MIT and theFraunhofer Institute in Porto.Strengthening the Strengthening the impact of the Ciência Viva Agency for the promotion of scientific culture and technology, In progress At least another 4 Ciência Viva Centresimpact of the Science including launch of the Science Exhibition Initiative implemented in Portugal and broadening the Ciênciaby 2010.Live Agency for the Viva Centres network, with the construction of at least another four centres planned for 2008-2010.promotion ofscientific culture andtechnologyPortugueseStarting in the second quarter of 2008 until the end of the first quarter of 2009. In progress -Presidency of theEuropean EUREKAinitiative24

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesReview of Scientificsponsorship LawStrengthening theInternet SpacesNetworkCreation of a newplatform to providemedical content andcontinuing supportfor the establishmentof the newFraunhofer Institutein Portugal.Strengtheningvocational training inICTStrengthening theOnline ScientificLibrary (b-On)InitiatingCommunityNetworks operationsStrengthening the Internet Spaces Network providing free public access to computers and the Internet usingbroadband, continuing the policies of Digital Inclusion by means of support programme for the participationof citizens with special needs in the information society.Creation of a new platform to make medical content available, and continuing support for the establishmentof the new Fraunhofer Institute in Portugal for the development of applications, services and contentpromoting digital inclusion.Strengthening vocational training in ICT, stimulating the expansion of Technological Specialisation Coursesand organising national programmes for ICT Academies at higher education institutions in partnership withcompanies with internationally recognised skills certification mechanisms.Strengthening the Online Scientific Library (b-On) incorporating the International Indexing System forScientific and Technical Publications (Web of Knowledge) and promoting the availability of scientificinformation via Open Access, specifically publications, archives and scientific depositories.Initiating Community Networks operations, in the wake of the construction projects in 4 areas where there aremarket difficulties in installing New generation Networks (Vale do Minho, Vale do Lima, Terra QuenteTransmontana, Distrito de Évora), and also the development and use of optical fibre networks constructed aspart of the Digital Cities and Regions projects.To be implementedIn progressIn progressIn progressIn progressIn progressNew legal statute to be drafted andapproved.Platform to providemedical contentCreation of a new platform to make medical content available, and continuing support for the establishmentof the new Fraunhofer Institute in Portugal for the development of applications, services and content topromote digital inclusion. In progressImproving NationalInfrastructure forDistributedComputing (GRID)Improved System for ResearchStrengthening the National Infrastructure for Distributed Computing (GRID) specifically through theNational Initiative (GRID), participation in the IBERGRID Network and international cooperation at theEuropean Union level with CERN and other international partnerships. In progress25

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesDynamic Programmefor CollectiveEfficiencyThis programme supports dynamic company developers of Collective Efficiency Strategies, such asInnovation and Competiveness Centres, Clusters, and Strategic Intelligence Network in Research Centres.In progressStimulation of clustering movementsaround strategic projects or in sectorsrelevant to the economy – no. ofgroupings (clusters, centres or networkswith stimulation activities):12; Supportfor economic groupings and support totheir collective efficiency strategies –no. of groupings/ collective efficiencyprojects being monitored – 20; Launchand management of a strategicintelligence network for research –degree of implementation of thenetwork – no. of network nodes 50-70% o the established groupings.I&DT ValleyResearch ValleyMeasure framed within NSFR, with a view to providing simplified support for the acquisition of R&DTservices by SMEs from SCT entities in response to the specific issues and needs of companies, in the sense ofincreasing their competitively resulting in improvement in products, processes and services (transfer ofknowledge of a scientific and technological nature which is new to the company).Measure framed within NSFR, with a view to providing simplified support for the acquisition of consultingservices and research support by SMEs and duly qualified entities in response to the specific issues and needsof the company, in the sense of increasing their competitiveness resulting in improvement in products,processes and services (transfer of knowledge of a scientific and technological nature which is new to thecompany)R&D and Innovation (in Tourism Agenda, Rural Areas, Health sector, etc.)Stimulation ofResearch andDevelopmentimpacting TourismStimulationInnovationTourismofinTo prepare an Agenda containing R&D priorities with direct application to tourism development, with a viewto identifying the most significant international trends in relation to opportunities/needs for R&D in Tourismand getting agreement to a agenda detailing the priorities, between SCT and the more advanced tourismactivity sectors, in order to create a Tourism Centre of Excellence, with a view to (i) establishing therelationship between the SCT and all the agents which form part of the Tourism value-chain, (ii) to stimulatedevelopment of the Tourism R&D agenda and (iii) to develop international cooperation, particularly for theEureka Tourism initiative.Stimulation of (i) dissemination and awareness activities directed at entrepreneurs and executives about theimportance of innovation in Tourism, (ii) incentive actions for qualified entrepreneurships with Universitiesand Higher Institutions and (iii) stimulation of regional grants for opportunity for entrepreneurs and venturecapital investors, with a view to stimulating development of sector business innovation projects, as well asdeveloping the Innovation in Tourism Prize.In progressIn progressIn preparationIn preparationLaunch of 10 R&D projects impactingTourism by the end of 2010.Development of 20 publication actions/year (period 2009 / 2010) which sustainthe launch of 15 Innovation projects inTourism by the end of 2010.26

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesExcellence inTourism TrainingDevelopment of theHospitalityManagementInstitute andAdvanced Researchand Training Centresfor TourismThe programme incorporates (i) international certification for the provision of training by Hotel managementand Tourism Colleges, involving certification of the courses taught, review of curricula, training andqualification of trainers and access to a programme of international placements targeted at young trainees, (ii)up-grading of the provision of training by Hotel Management and Training Colleges and adjustment of therespective curricula, and (iii) extension and resizing of the Hotel Management and Tourism College network,with regard to centres for knowledge and good practices in the sector, supporting the territorial developmentof tourism activities and their new centres of tourism development.Development of the Hospitality Management Institute and Advanced Research and Training Centres forTourism, for post-graduate training, targeted at executives, and boosting research in matters of a strategicnature related with business and/or professional exercise of tourism activities.Health cluster Structuring and development of a national pharmaceutical industry and health products cluster, with thefollowing main objectives: to increase the participation of national companies in the market through newproducts, processes and services; that companies benefit from opportunities to develop innovative products,where the architecture and ambition of the partnerships could be realised in several forms, particularlythrough partnerships with other companies – national or overseas – research centres, and for the increase inhighly qualified scientific and technological employment; that such projects are innovators, in a way thatguarantees a broadening and deepening of the technological base and an increase in market competitiveness –national and international – for the companies which produce them.In progressIn progressIn progress(i) Certification will be implementedprogressively and phased in at all HotelManagement and Tourism Colleges(currently 16), with the initialimplementation planned at the regionalAlgarve college, starting in the2008/2009 education year; (ii)strengthening training onTechnological Specialisation Coursesin the areas of hotel management,catering and Tourism, aimed at middleand senior staff, allied to theoreticaland practical training componentswithin the context and practice of theprofession (applied colleges) (iii)balanced coverage of the provision oftraining in tourist destination areas,increasing by more than 1,000 studentsin relation to installed capacity –opening new college installations inLisbon, Porto and Santa Maria da Feiraby 2009, and opening new collegefacilities in Setúbal and Portimão, by2010."Hospitality Management Institute"formally constituted in August 2008;Centre for Research and AdvancedTraining with the first post-graduatetraining courses during the 2008/2009school year.27

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesNational RuralNetworkThe objective of the network is to strengthen the exchange between all the players in rural territories, givingpreference to good practices and know-how coherently with community objectives and with the nationalStrategic Plan for Rural Development (PENDR). The development of the Network is formally planned inArticle 68 of Regulation (CE) 1698/05. The Rural Network (RR), defined in the current programme isconsistent with the decision of Portugal under the terms of the 2 nd paragraph of item 3 of Article 66 ofRegulation (EC) 1698/2005, constituting a preferred instrument in the implementation of the ruraldevelopment policy.In the final phase ofapproval by theEuropeanCommission, withthe start ofactivities plannedfor the end of 2008Objectives /Indicators/targets (by2010):1.Transfer to ruraldevelopment agentsinvolved in thedevelopment of ruralregions/ No. of Actionsimplemented / 362.Practical incentives forcooperation betweenagents / No. of Actionsimplemented / 63.Adapting thedevelopment strategy andpolicies to the needs andpotential of ruraldevelopment / No. ofStudies/AnalysesProduced / 84. Providing informationrelevant to the agentsinvolved in thedevelopment of ruralregions / No. of newitems of content input tothe Rural networkwebsite / 156Stimulation of LivingLabsStimulation of Living Labs in the context of the European Network for Living Labs developed since 2006 andtaking into account the requirement to respond to the need to rebalance research support policies, which act tothe supply side, with policies which act on the demand side.Today Portugal has 6 Living Labs, and it is expected that more may enter the European Network inNovember. Also in preparation is the launch of the LL-Portugal national network for Living labs with theobjective of disseminating open research practices and consolidating research management methodologies.In progress28

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesMaritime TrafficControl System(VTS-Vessel trafficsystem) - Extendingthe VTS system tothe AutonomousRegions of the Azoresand MadeiraAs part of the Continental VTS System implementation project, island VTS projects were analysed, with aview to equipping the Autonomous Regions of the Madeira and the Azores with a coastal VTS system.Creativity and Language and Portuguese CultureInternationalpromotion of thePortuguese languagewith regard theLanguage of CPLP,evaluating thestrategic significanceof this overseasPortuguese policyobjective1. Promotion of the Portuguese language, within the scope of the EU, as a language with eight cultural voices,simultaneously with the promotion of Portuguese culture and the cultures of Portuguese languages.2. Projecting Portuguese language across CPLP country borders and in the regions of internationalorganisations where Portuguese is the working language.3. Promotion of the Portuguese language and culture in specific geographic areas, in correlation with thesocio-political interests of the country, specifically the Atlantic-Axis (USA, Canada, countries belonging tothe Organisation of Iberian-American States and Maghreb countries) and in Asia (India/China).In preparationIn progressA review of existing studies for theextension of the VTS System from theContinent to the Autonomous Regionsis planned beginning in 2008, and by2009, they will be developed with aview to launching a tender procedurefor installation of the VTS System inMadeira and the Azores.Extending the provision of face-to-faceteaching, in strategic geographic areas:EU, PALOP and East Timor and theAmerican and Asiatic Continents.b) Expansion of the provision ofdistance learning of Portuguese cultureand language, particularly throughPortuguese courses for foreigners andcontent targeted at advancedPortuguese learners.c) Increase in the provision of trainingfor Second Language and ForeignLanguage Portuguese teachers – InitialTraining and Continuous Trainingusing face-to-face, distance and mixedtechniques.d) Stimulation of the presence of thePortuguese language in multipleinternational organisations wherePortuguese is the official workinglanguage, through the provision oftraining in the area oftranslation/interpretation – Initial andContinuous Training, the availability ofreference and audiovisual materialsand participation in associations whichpromote multilingualism.e) Development of research aboutPortuguese and the different areas ofPortuguese history, society and culture,and providing teaching materials viathe Internet - particularly researchmaterials. - for Portuguese language29

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notesand culture training for other CPLPmembers.f) capturing new audiences with thepromotion of higher educationinstitutions as cultural platforms.1. With the intention of promoting adynamic and high quality image ofPortuguese culture overseas, and givingpriority to the establishment ofpartnerships with other entities, thecultural programming of the networkwill facilitate implementation ofmultiple activities with a view topublicising and promoting Portuguesehistory, heritage and culture, withspecial emphasis on contemporary art.Also promoting the mobility ofPortuguese artists and creativeindividuals and the internationalisationof their work.Promoting themobility ofartists/inventors andnational heritage,specifically throughprogrammes andactions whichpromote theinternationalisationof Portuguese artists/creative individualsand activities whichpublicise the historicculture andcontemporary art ofthe Portuguese1. Management and financing of the cultural programme implemented by the Diplomatic Network, ICConsular and Cultural Centres across the world.2. Support for third-party activities aiming to improve the internationalisation of Portuguese culture.3. Publication of Portuguese language authors and/or works about cultures expressed in Portuguese. In progress2. The support programme forinternationalisation (from the CamõesInstitute) seeks to respond to twoaspects of diverse but complementarynature: i) to improve the quality of theresponse by the institution and ii)framing its relationship withprofessional artistic resources – theprincipal targets of the programme.The objective of the SupportProgramme for internationalisation is toseek to respond to the growing numberof projects developed in theprofessional arena which currentlyrepresent a platform for:The international circulation ofPortuguese arts;30

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notesincreased mobility of artists andprojects;a creative dialogue which is today on aglobal scale;The establishment of artistic networksand partnerships promoted by variousEuropean programmes.PORTUGESTProgrammeBased on post-graduation in Management and Entrepreneurship targeted at cultural agents, seeking toevaluate human capital and stimulating creative industries, the project consists of real-time or subsequentpresentation of course modules at PLP Study Centres which seek to be associated. For this, the developmentof a technical and computing platform is required to encourage distance learning (including simultaneousPortuguese interpretation of seminars provided by guest professors) and to develop the appropriate trainingresources/support/equipment; agreements with computing sector companies (Microsoft); creation of a multidisciplineteam to prepare the project; establishment of the network with agents and institutions from thevarious companies involved. In preparation3. Through this support programme forpublication in foreign languages and/orpromoting the presence of thesepublications, or the authors themselvesat International Book Fairs.As part of the Programme, to provideexposure of those authors within“third“ countries, occasionally face-toface,in association with the launch ofworks at international Book Fairs.Portal Lingu@ePortal Lingu@e – Forum for discussion about multilingualism, in partnership with the European Parliament/Offices in Portugal and the Luso-American Foundation, whose discussion panels cover the followingsubjects: Language and Politics; Language and Economics; Language and Culture; Language and Education. In preparationStudy of theEconomic Value ofthe PortugueseLanguageStudy of the Economic Value of the Portuguese Language, in cooperation with the ISCTE, which seeks todetermine the direct economic value of the Portuguese language (current and potential) in the contemporarycontext of globalisation, specifically in economic and business activities in teaching, cultural andcommunication domains which involve the use of Portuguese. In preparation31

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesINOVARTProgrammeCinema andAudiovisualInvestment Fund(FICA)INOVART programme supports the training of young people with specific qualifications in arts and culturethrough placements in institutions of international standing in the arts and culture sector. In progressIn operation since 2007, it represents another source of financing for cinematographic and audiovisualproduction in Portugal, which foremost amongst various objectives it extols, are contributing to theintegrated development of the audiovisual sector, giving priority to actions directed at strengthening thesustainability of cinematographic and audiovisual activities, strengthening creative and competitive capabilityof independent small and medium companies (SMEs) in the sector and improving international marketpenetration of works produced or co-produced by these SMEs, so increasing the growing value of the sectorand the business opportunities. In progressINSerralves –Creative IndustryincubatorINSerralves – Creative Industry incubator: The project aims to finance the activities of a group of companies(76 companies submitted projects from which 8 were approved) and to assess the impact of these creativeindustries on regional economies. In progressCultural tourismknowledge networkCultural tourism knowledge network. The project aims to develop a technological platform to disseminateknowledge based on the European Network for Rural Tourism. The Network involves an international publicprivatepartnership (Portugal, Italy, Romania, Poland, Finland, Belgium, Greece and Slovenia) and developsthe concept of imaginary tourism. The Network collects authentic characteristics from each communitythrough stories, legends, myths, traditions and ancestral knowledge. In progressNew Model forMuseumsNew Model for Museums: To replicate the Portimão museum model for museums in the Portuguese MuseumNetwork within the country; by 2008 to initiate a process with one museum. The model consists of increasingmuseum collection with the various entities of the region, attaching the display heritage material available intheir areas for public actions of a cultural nature, to the educational side and the stimulation of creativity. In progressCOMBATING CLIMATE CHANGE, COMMITMENT TO RENEWABLE ENERGY AND ENERGY EFFICIENCY32

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesDevelopment of RSUORGANICRECOVERY UNITSAs part of the strategy for diverting biodegradable waste for burial, targeted at reinforcing the country withAnother 7 units to beIn progress Four units under constructionorganic recovery units constructed by 2010Development ofenergy recovery unitsfor ETAR and CDRSludge.Targeting the resolution of problems concerning the final destination of sludge and waste generated by multi-Municipal systems with the construction of 2 Energy Recovery Centres.In progressIn combination the 2centres represent amaximum installedcapacity of 58.8 MW ofelectricity and aninvestment of €280 MPromotion of EnergyEfficiencyTo implement a publicity campaign for a Management System for Intensive Energy Consumers withconstruction and property companies and associations, and Municipal Councils; to implement the NationalAction Plan for Energy Efficiency and the Management System for Intensive Energy Consumers.In progressNational Action Plan for EnergyEfficiency (PNAEE) – to achieve by2015, an improvement in energyefficiency equivalent to 10% of endenergy consumption, relative to theefficiency of the end use of energy andenergy services. To Implement theManagement System for IntensiveEnergy Consumers – which involvesthe implementation of obligatoryenergy audits for installations withenergy consumption equal or greaterthan 1,000 tep/year. Operators areobliged to prepare EnergyConsumption Rationalisation Plans(PREn), establishing energy targets,which after approval are called EnergyConsumption RationalisationAgreements (ARCE).33

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesBenefitting fromWind Energy andother RenewableEnergy SourcesTo raise the installed capacity for the conversion of wind energy to 5,100 MW; to increase the use ofhydraulic power by exploiting other renewable energy sources: biomass, biological, waves, hydro andphotovoltaic. To take measures conducive to clarifying and speeding up administrative licensing mechanisms.In progressWind Energy: Development of anindustrial cluster, with a totalinvestment of €1,700 M. Creation ofaround 1,500 jobs and theestablishment of a €35M fund forresearch in the area of renewableenergy; Forestry Biomass: Aninvestment estimated at approximately€225 M and the creation of around 700jobs; Bio fuels: Creation of industrialunits with an estimated investment of€100 M; Hydro: Authorised Sites for922 MW of large new HydroelectricPlants, with a planned investment inexcess of €1,000 M; Wave Energy:Development of a pilot area withoperating potential up to 250 MW forthe technological development of pilotprojectsusing new technologies, andthe preparation of regulatory legislationfor the respective authorisations(licences and concessions);Photovoltaic: Moura Plant with aplanned production of 56 GWh/year,creation of a photovoltaic modulemanufacturer, creation ofapproximately 100 jobs and theinstallation of a research laboratory.Serpa Plant, with a planned productionin excess of 18 GWh/year; Microgeneration. To simplify the legallicensing framework, replacing theexisting one with a simple registrationregime, subject to inspection withregard to technical compliance. Microproduction Registration System created(SRM).34

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesReconversion of theNational RefinerySector: PortoRefinery and SinesRefinery.Porto Refinery: To equip the refinery with new heavy crude conversion units, by association with thermalcracking and hydro cracking units to provide higher environmental quality diesel.Sines Refinery: To increase diesel production capacity, by the conversion of heavy vacuum gasoil and heavyvisbreaking gasoil readjusting the production profile to market needs.In preparationPorto Refinery: Two new principal andthree auxiliary units will beconstructed; three existing unitsreconfigured and one new storage unit.Sines Refinery: Four principal andthree auxiliary units will beconstructed, three existing unitsreconfigured, one new sulphur tabletmaking unit and construction of a newstorage silo by the end of 2010.MIBEL–Development of themeasures necessaryfor its operationDevelopment of an Integrated Electricity market for the Iberian Mainland, through the development of aCouncil of Regulators ; Cancellation of Energy Acquisition Contracts (CAE); launch and acknowledgementof OMIP/OMIClear as an integral part of the market management body for forward transactionsIn progressHospital WasteProcessingConstruction and operation of an Integrated Centre for Energy Recovery, recycling and processing ofHospital Industrial and Animal Waste, with the objective of reducing environmental impact, maximisingelectrical efficiency and generating carbon credits.In preparation* begin operations of the IntegratedPlant* Expected impact in the followingyears: - on price, as a result ofeconomies of scale, generating receiptsby the production of energy and areduction in the export of industrialwaste for incineration; - on theenvironment (generation of carboncredits; production of “green energy”;industrial symbiosis with Eco-Parkgenerating national efficiency and lessenvironmental impact)Reduction ofgreenhouse effectgasesContinuing the implementation of the National Programme for Climate Change (PNAC) and the NationalPlan for Emission Licences (PNALE),In progressINCREASED POSITIVE MOBILITY THROUGH QUALIFICATIONS; FOR EMPLOYMENT AND SOCIAL COHESIONEquality in access to educational opportunities35

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesNationalRequalificationProgramme for theSchool Network forthe 1 st Cycle of BasicPre-School educationSupport Programmeto extend the Pre-School EducationnetworkGeneralisation ofaccess to activities toenrich thecurriculumExtension to schoolsocial workPositivediscrimination forschools in difficultenvironmentsSpecial educationalneedsTo promote the reorganisation of the school network through a programme in conjunction with localauthorities. Requalification and modernisation of the 1st cycle and of pre-school population involves theconstruction of new teaching centres, by extension and repurposing of existing buildings. In addition to theconstruction work, for extension and repurposing the buildings, it also incorporates the external surroundingsof the perimeters of the establishments and also, investment in school furniture and fittings, teachingmaterials and computer equipment.This programme, the responsibility of the Ministries of Education and of Labour and Social Security, isespecially targeted at councils which show a ratio of pre-school education coverage lower than the nationalaverage. The objective of this measure is to guarantee that there is sufficient provision of pre-school trainingby the whole education network, which also suffer constraints, particularly on the periphery of the large urbancentres.To reinforce the approach previously adopted, specifically by means of a financial contribution by theMinistry of Education, in accordance with the awarding of the variable amounts as a function of the activitiesof curricular enrichment provided for students. In relation to English, to make a widening of the provision ofEnglish to pupils in the 1st and 2 nd years of education obligatory, as well as increasing the weekly duration ofEnglish teaching in the 3 rd and 4 th years of school to 135 minutes.To change the access conditions for Social School Work, seeking to increase transparency and simplify theprocess through use of family allowance scales. This change, although maintaining the nature of the support,raises the size of contributions above inflation, changing to encompass secondary school students, underconditions identical to those who attend obligatory schooling.To promote the reinsertion of pupils in schools through the definition of diversified set of measurements andactions in schools situated in difficult environments.To create a network of reference schools targeted at blind and deaf students, as well as units specialised indisorders such as of autism and multi-deficiency.Quality of learning and educational resultsIn progressIn preparationIn progressIn progressIn progressIn progressDuring the 2008/09 school year, 50new education centres have alreadybegun operating, and modification orconstruction of 600 educational centresis planned.To guarantee 100% coverage ofchildren of five years of age throughoutthe whole country. This plans for thedevelopment of 760 new classrooms inthe metropolitan areas of Lisbon andPorto.To guarantee access to curriculumenrichment activities for all 1 st Cyclepupils.During the 2008/2009 school year,encompassing 700 thousand pupils.This positive discriminationprogramme currently incorporates 36schools and groupings, and is forecastto increase to 100 groupings.137 autism units; 220 multi-deficiencyunits; 1,500 trained teachers and 760assistants with educational experiencein training; another 31% of trainers andinterpreters in Portuguese signlanguage.Financing – 407 millionEuros supported byNSFR (70% of the totalinvestment), with theremainder theresponsibility ofmunicipalities.Investment of 25 millionEuros (OE)Continuous Trainingand Action PlanProgrammeThe plan to improve the quality of learning and educational results refers to the continuation of the ActionPlan for Mathematics, the National Plan for Reading, and the Continuous Training Programmes for teachersof the 1 st cycle in Mathematics, Portuguese, Experimental Instruction of Sciences and ICT.In progress36

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesOrganisation and operation of schoolsAutonomy andschool managementApplication of the new autonomous regime, administration and school management, with the objective ofproviding a framework which facilitates reinforcement of leadership and the promotion of their opening to theexterior and qualified participation of other partners, as well as deepening their skills and autonomy.In progressDuring the 2008/2009 school year, newmanagement bodies were elected, andthe internal regulations approved by allgroupings.DecentralisationSkills transfer to the municipalities, in pursuit of a more local and more efficient management model for theuse of education resources, sharing responsibilities and a bigger participation with the local population andfamilies.In progress90 protocols have already been signedbetween the Ministry of Education andlocal authorities for the transfer ofskills in relation to non-teaching staffmatters, and activities to enrich thecurriculum and management of theschool populationEvaluation of teacherperformanceThe new regime of evaluating teachers’ personal behaviour is a fundamental tool for improving educationalresults and the quality of learning, as the main objective is to perfect practices, differentiation on merit and amore rigorous management of career progression.In progressModernisation of teaching establishments / Technological Plan for EducationModernisationProgramme forSecondary SchoolsThe objectives of this programme are to restore and modernise buildings, to open schools to the communityand to create efficient and effective building alongside the modernisation operation.In progressThe restoration of 26 secondary schoolswas begun during the 2008/09 schoolyear, added to the 4 alreadymodernised. The second phase of theprogramme will run during the 2009/10school year, with the implementation ofprojects in over 74 schools, withplanned activities in 330 schools by2015.The overall investmentplanned is €940 million,with a peak investment of€193 million in 2010.60% of the investmentswill be guaranteed bycommunity financing(NSFR), state and localauthority budgets.37

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesHigh Speed InternetThe objective is to guarantee high Internet access speeds for all computers. To implement this objective, localarea networks will be developed so that all classrooms can have broadband Internet access.In progressIt is planned to increase bandwidth inall schools so that it exceeds 48 Mb.Technological KitTo guarantee that school equipment is the most technologically modern, the Government launched sixinternational tenders for the purchase of 310,000 computers, 9,000 interactive boards and 2,500 videoprojectors.The objective is to improve the ratio of pupils to computers with broadband Internet connections.In progressChange from a ratio of 16 pupils percomputer in 2005, to 5 students percomputer already during this year, andto 2 students per computer in 2010,guaranteeing one video projector perclass room and an interactive board forevery 3 class rooms.ICT AcademiesThe development of technological company training centres, with the objective of improving skills and theemployability of students is a measure which enables improving students' curricula to incorporate skillsassociated with industry training and certification. This project, called ICT Academies, creates an importantconnection with the private sector, with the participation of 7 reference companies. An agreement has alreadybeen signed for the creation of the first 30 ICT Academies in schools, providing training in technologies,equipment and applications for students, pupils, non-pupils and for the whole education community.In progressICT PlacementsThe ICT Placements Project, which promotes training in real work environments for students on professionalICT courses in national and international reference technological companies, mobilised the interest of 30economic and knowledge companies.In progressDuring the 2008/2009 school year, 300placements were provided, in Portugaland overseas, for the best students oncourses in the ICT area. The objectiveof this project is to widen theprogramme to include more companies,promoting more placements.38

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notese.escola ande.escolinhaLaunch of the e.escolinha programme providing access to "Magalhães” computers for 1 st cycle pupils, free orat a reduced price; recent extension of the e.escola programme to 2 rd and 3 rd cycle students for the acquisitionof a laptop computer with broadband Internet access under advantageous conditions.In progressThe objective of this measure is toencompass 500 thousand pupils in the1 st cycle (free for 1 st cycle pupils insocial school work and reduced pricesfor the other pupils) and 380 thousandpupils in the 3 rd cycle.HigherEducationReinforcement of theHigher Educationbudget, competitionbasedPromotion of thedevelopment ofhigher educationinstitution consortia.Reinforcement of the Higher Education budget, competition basedTo promote the development of university institution consortia, specifically with the participation of scientificinstitutions, and the creation of polytechnic institution consortia with regional coverage, reorganising theirtraining provision.In progressIn preparation-Establishing new Consortia usingcompetitive selection processes.Strengthening theinternationalisationof higher educationSupport for thetransition to the newfounding regime forpublic institutionswhich have requireditStrengthening thequality of highereducationGuaranteeing the development of processes in progress for the internationalisation of higher education,particularly with regard to the international partnerships already initiated.Support for the transition to the new foundational regime for public institutions which have required it, in thecontext of the Legal Regime for Higher Education Institutes (RJIES).Strengthening the quality of higher education, particularly through the action of the new National Agency forEvaluation and Accreditation.In progressIn progressIn progressCommencement of operations of thenew National Agency for Evaluationand Accreditation.39

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesReinforcement of theentrance andattendanceconditions for highereducationReinforcement of the entrance and attendance conditions for higher education: Review of the student-workerstatus, part-time student regime, access to the attendance of single disciplines, review of special accessregimes, review of the regulation of social work grants, extension of the system of loans with mutualguarantees launched at the end of 2007, guaranteeing their consolidation in Portuguese society, extension ofmerit grants, complementing the social work grant for Erasmus students, regime of curriculum andprofessional placing.In progressNew legal acts being produced andapproved.Extension of theprovision ofSpecialisedTechnology Courses(CET)Development andimprovement of thenew system formonitoringemployment demandin PortugalExtension of the provision of Specialised Technology Courses (CET) in higher education institutions,focusing on Polytechnic Institutions.Development and improvement of the new system for monitoring employment demand in Portugal. Launchedin September 2007, through analysis of courses and institutions in employment centres offices. The obligationexpressed in the legal framework for Higher Education Institutions will also be strengthened by highereducation institutions publishing information about the employment of their recently qualified graduates.In progressIn progressSupport for the continuation of newCETs.Programme of newuniversity residences Launch of a programme of new university residences. Being implementedReview of legalregimes for distancehigher education andartistic highereducationReview of legal regimes for distance higher education and artistic higher education, in the light of improvedinternational practices, after international evaluation and public auditions.Being implemented New acts to be approved in 2009.Reform of higher education and its relationship with the labour market40

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesContinuation of thereform of highereducationStimulate YouthMobilityNew Opportunities InitiativeNew OpportunitiesInitiative StructuringMeasuresThere will be continued support for the implementation by the higher-education authorities as to thelegislative reform carried out over recent years, aimed specifically at concluding the adaptation of theuniversity and higher education certification system into the Bologna Process (currently 90% accomplished),with a view to guaranteeing Portuguese qualification in the European area, promoting equal higher educationaccess opportunities, improving attendance and completion of higher-education courses, attracting a newgroups, all done through a logical lifelong learning process which improves school social activity. It is furtherintended to decisively stimulate international mobility of students and teachers alike. In progressThe overall objective is to gather the knowledge of different cultural identities, promoting the mobility ofyoung people between regions and countries. For this purpose, the International Work Camps (IWC) willcontinue to be implemented and be supported by various entities, with support from the Portuguese YouthInstitute (PYI) and the Agency for the Youth in Action Programme, functioning as exchange programs foryouths from various different countries. International volunteer groups will be another way of promoting thismobility programme, as well continuing the effective relationship of offering youth-based tourism via theMovijovem cooperative. Target audience: Young persons between 12 and 30 years of age (18 - 30 in theIWC)In progressContinue to develop instruments and processes whilst taking into account the structural layout of relevant andcertified offers, providing the means to achieve the desired results for the New Opportunities Initiative.In preparationExternal Evaluationof the NewOpportunitiesInitiativeReform of Vocational TrainingStructure a relevantand certified offerTo evaluate the proposal’s policies, the implementation’s structure and the procedures utilised in itssubstantiation, as well as the quality of the obtained results and the degree of satisfaction and, lastly, toproduce or improve system monitoring tools that will allow evaluation of procedures and results to beachieved on a permanent basis.The structuring of this offer intends to: (i) increase training relevance for the competitiveness, modernisationand innovation capacities of companies, (ii) increase access to training, specifically on the part of activeworkers; (iii) enhance individual qualifications at school and professional levels.In progress Evaluation Report in 2009.In progress1st version of the National Catalogue ofQualifications, launching thefoundation for the new qualificationsproduction model based oncompetencies, taking into accountEuropean orientations in terms of theEuropean Qualifications Framework(EQF) and the European Credit systemfor Vocational Education and Training(ECVET).Application of the dual certificationprincipal.Expansion and consolidation of the41

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesPromote TrainingQualityNationalQualification SystemWith the objective of improving the quality of training and the results obtained, with the intention ofpromoting an accreditation and quality system through an effective network of active professionals, as well ashaving the technical and pedagogical capacity of training entities and the persons thus trained themselves.Create and implement the National Qualifications System in unison with the European QualificationsFramework, thus assuming the objectives already affirmed in the New Opportunities Initiative, promoting theinstruments necessary for its effective execution and organisation, in unison with financial instruments,namely by the National Strategic Reference Framework (NSRF).In preparationIn preparationRecognition, Validation andCertification of Competences (RVCC)mechanism.- Reform of the accreditation andquality system, in the sense ofaccreditation obtained from thePortuguese Quality System, promotingthe association between the seal ofquality and the certification process ofthe training entities. The certificationwill be clarified and simplified andaccompanied by the constitution of agroup of external auditors administeredby the General Directorate forEmployment and Labour Relations(DGERT).- Capacitate and rationalise the operatornetwork via the creation of centres ofexcellence that operate at heightenedefficiency in the identification andresponse to company and worker needsand also act as pivots in theimprovement of general qualitystandards.- Qualification of the Trainersthemselves via the creation of efficientmechanisms of constant adaptation andimprovement towards new referencesand necessities, being the responsibilityof the National Trainer QualificationCentre (CNQF).Publish the decrees that regulate theNational Qualifications Framework, theindividual competency register modeland its registration process, vocationaltraining certification, and theorientation needed for qualification andfor employment.Access to theProfessionsRegulation SystemThe basic objective of the Access to Professions Regulation System is to create access regulations in whichproof of professional capacities for the practicing of certain professions is obligatory.In preparationPublish the decree-law project thatregulates the Access to ProfessionsRegulation System.42

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesProfessional Advanced Training and Management (POPH)Training-actionprogrammeInnovation andmanagement trainingPublicadministrationtrainingPromote modernisation, organisational innovation and management of micro, small and medium-sizecompanies and other entities, via training programs.Group of formative responses introduced into business strategies that are aimed at maximising capacities andcreating professional enhancement conditions for company employees and/or for other entities.Formative responses that are aimed at improving opportunities for the creation of professional enhancementconditions for Public Administration employees.Promote the creation of jobs, thereby preventing and fighting against unemploymentTarget 2010: NO. of companies andother entities that successfullyformulate strategic development plans= 12550.Target 2010: NO. of employees thathave completed training programs =97100Target 2010: NO. of employees thathave completed training programs =54,800SpecificentrepreneurshipbackingPromote the creation of jobs and business ventures, namely those that encounter the greatest socioprofessionalinsertion difficulties, specifically for youths, the unemployed and those persons in disadvantagedsocial situations. Promote the transition from an inactive to an active life, namely through vocational trainingprograms that are aimed at creating conditions for the promotion of employability for youths looking for theirfirst job.In progressTarget 2010: NO. of jobs created =11,600; Target 2010: NO. of traineesintegrated into jobs after completion oftraineeship = 35,000.Plan for theIntegration ofImmigrantsUNIVA Immigrant Network: Network of 27 UNIVA units, aimed at immigrants (25 Associations + 2National Immigrant Support Centres (CNAI):In progress26 UNIVA units in operation; 13,192people attended to (Jan to Aug);Results likely up until 2010: 18,000people attended to per year; + 50%placement (in jobs or training)Recognition of Qualifications: The creation of Advice Bureaus for the recognition of qualifications. In progress Six Universities with Advice Bureausfor immigrant students; 424 higherlevelequivalence/recognitionqualification grants obtained inCountries not belonging to the EU.Financial support fromthe IEFP.Cooperation with theDirector General forHigher Education(DGHE) and theUniversities; the openingof a Bureau in NationalSupport Centres isexpected; the existence ofa specific Decree forforeign doctors.43

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesInterventionPrograms for theUnemployedUnemployed young persons (23-30 years of age): Programme that considers three types of approach inrelation to employability profiles: (1) orientation for education/training pathways within the NewOpportunities Initiative framework; (2) orientation for the RVCC system and/or vocational trainingtrajectories; (3) orientation for integration into vocational training programs or for supporting integration intothe jobs market, with help from others or of the employee’s on accord.In progressTarget 2010 (accumulated)physical: 140,000 persons;financial: 255,000,000 €Unemployed (31-54 years of age): Programme aimed at job market integration and/or guidance foroccupational activities, vocational training activities or professional orientation interventions.In progressTarget 2010 (accumulated)physical: 305,000 persons;financial: 430,000,000 €Unemployed Adults (55+ years of age)In progressTarget 2010 (accumulated)physical: 101,000 personsfinancial: 100,000,000 €PROMOTE A BALANCE BETWEEN FLEXIBILITY AND SAFETY IN THE WORKPLACE, AS WELL AS AN IMPROVEMENT IN WORKING CONDITIONSNational Strategy forOccupational Healthand Safety, 2008-2012Instrument for the reinforcement of employee health and safety standards, sharing the central objective ofsignificantly reducing accidents sustained at work and also that of professional illnesses, taking nationalfigures as its first point of reference, seeking out structures so as to be able to better and more effectivelycomply with the law on the part of micro, small and medium-size businesses; those that make up theoverwhelming majority of our business community.In progressEncourage companyadaptability for thereconciliation ofprofessional activitywithin personal andfamily life.Amendments to the Labour Code in respect to promoting the maintenance of working hour duration limits,with an increase in flexibility through collective bargaining within collective work contracts, or by internalcompany decisions which concentrate on the possible introduction of “time banks”. Alterations in the labourcode in respect to promoting reconciliation between professional activity and personal and family life, namelythrough parenting consent and the reinforcement of measures offered for aiding parenthood and givingassistance to parents and children alike.In progressRegulated and appropriated by thePortuguese business community via itsincorporation into businessmanagement.44

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesCreation ofemployment policiesspecific to certainareas of activityRequired integration into specific laws: (i) policy for working at home; (ii) naval and highway transport workpolicies.In progressThe Right toVocational trainingAmendments to the Labour Code, promoting the implementation for the ‘right to training’, via: (i)clarification of the student work statute; (ii) adaptation of the "training clause", establishing the mandatorycharacter of admitting entry for youths of up to 18 years of age, not having completed basic school education,being thereby subjected to enrolling in the educational training system; and (iii) reinforcing the right tocontinuous vocational training and the adaptation to mechanisms for its successful accomplishment, such as,for example – comparing the frequency of RVCC processes to continuous training; allowing the accumulationof annual minimum training programs on the part of companies; allowing for these arrangements, relative totraining, to be adapted for collective recruitment and so that the issuing of training certificates becomesmandatory.In progressRegulated and appropriated by thePortuguese business community via itsincorporation into businessmanagement.Promote collectivebusiness activityCollective Work Conventions: 1 – Alteration of the current legal framework in relation to the law and that ofthe IRCC and individual work contracts, defining that the work contract regulatory legal standards can bedisregarded by the IRCC, when: (i) they result in the contrary; (ii) are more favourable to workers, when theyrespect the following topics: a) personality, equality and non-discrimination rights; b) parenting protection; c)child labour; d) workers with reduced capacity workload, having chronic disability or illness; e) studentworkers; f) obligation on the part of the employer to supply information; g) limits to the duration of normaldaily and weekly work periods; h) minimum duration of free time, including the minimum duration of annualholidays; i) maximum working time periods for night workers; j) types of performance bonuses and wageguarantees; k) the area of health, cleanliness and safety; l) accidents at work and professional illnesses; m)transference between companies or establishments; n) the rights of the elected work representatives. 2 –Alteration of the outmoded and out-of-date collective work convention policies.In progressArbitration Mechanism for Collective Work Conventions: The creation of a necessary arbitration mechanism,actionable at the request of one of the parties, for guaranteeing the future of the collective work conventions.In progress45

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesCessation of workcontractSimplify and reduce the time span of individual dismissal procedures which are currently in force, withoutreducing any legal protection given to workers: Redefine the list of work contract cessation modalities withinthe current legal framework, in respect of covering the following list of modalities: (i) expiry; (ii)cancellation; (iii) dismissal for reason attributable to the worker; (iv) collective dismissal; (v) dismissalbecause of discontinuation of the work position; (vi) dismissal because of inadaptability; (vii) the decision ofthe worker; (viii) rescission on the part of the worker.In progressStrengthenpedagogical,inspection andrepressioninstrumentsAlteration of the current legal framework so as to: (i) widen the scope of sanction applications; (ii) appealagainst sanctions; (iii) establish dissuasive mechanisms for the non-fulfilment of compensations, viarendering of guarantees; (iv) reinforce the framework of accessory sanctions; (v) simplify the administrativeprocess of administration offence procedures; (vi) reinforce the ACT examination frameworks; (vii) reinforcethe ACT personnel upper-level technical support and administrative framework.In progressAim: Examination framework: 400 in2009 with subsequent annualreinforcement in order to assure thepermanency of this value.Aim: Upper-level technical supportand/or administrative personnelframework: a minimum of 50 staff peryear up until 2010.Adaptation of thesocial protectionsystemAdoption of the following measures: (i) promotion of more efficient and balanced regulations as to the costsand salaries of different types of work (modulation of social security contributions and incentive for thecontracting of permanent staff); (ii) intervention in the independent workers social protection policy,approximating it to third-party workers / wage earners as much as possible (alteration based on contributionrates) and (iii) unification of independent worker protection schemes, with the existence of only one that has amaterial protection range that actually integrates the widened protection policy (family contributions,sickness, pregnancy, parenthood and adoption, professional illnesses, disability, old age and death).In progress46

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesAdaptation of activeCompany policiesAdoption of the following measures: (i) support the conversion of turning independent work into permanentcontracts (reduction of social security contribution payments); (ii) support the permanent contracting ofyoung people, supporting the conversion of independent work or contracts into permanent contracts,facilitating the transition to an active life (exemption from social security contributions, financial incentivesfor the contracting of youths, reinforcement of trainee programs, creating a specific measure for supportingdevelopment of business initiatives in active higher growth potential sectors; (iii) facilitate the unemployedemployedtransitional process, preventing and combating long-term unemployment (exemption from makingsocial security contributions, financial incentives for the contracting of DLD, support for the development ofbusiness initiatives at social level, spreading the creation of prime jobs, broadening of the micro-credit tool):(iv) support entry into the jobs market for persons older than 55 years of age (exemption and reduction ofpaid social security benefits and the creation of a senior voluntary programme); (v) support entry into the jobsmarket of underprivileged people (exemption from paying social security, supporting the development of“insertion jobs”); (vi) promote progressive approximation employment modalities (create the “social activitycontract" and the "job-insertion contract").In preparation and /or in progressFighting againstdependency and thesegmentation of workmarketsIn the sense of fighting against illegal dependency, thereby reducing legal dependency and improving socialprotection of independent workers, acknowledging that recourse to atypical forms of employment, necessaryfor company activity and the development of the economy, must not constitute a means of by-passing theLaw, hence proposing an alteration to the presumption of work contracts and therefore the creation of newand very serious violations of the law in relation to the dissimulation of work contracts in order to permit aneffective usage control of . Limit the admissibility of fixed-termcontracting; in the case of the opening of new establishments, those belonging to companies of less than 750employees, thereby reducing the duration of fixed-term contracts to 3 years, applying this limit to the groupof fixed-term or temporary contracts for the job position in question, or the providing of services for the samepurposes, signed between a worker and the same employer or employers, amongst which there exists a title orgroup associate relationship.In progressReinforcement of Social CohesionNational Strategy forSocial Protection andSocial Inclusion2008-2010The National Strategy of Social Protection and Inclusion identifies various inclusive policy promotioninitiatives that articulate the National Action Plan on Social Inclusion 2008-2010, the Strategy for Pensionsand the National Plan for Health Care and for Long-Term Care.In preparationThis strategy includes the followinginitiatives:- Minimum Guaranteed Monthly Salary- Social Insertion Income (SII)- Joint Old-age Supplement Payment- Family Support Policies47

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesReform of primaryhealth careDevelopment of organisational changes in the provision of primary health care at Quality and organisationalchange level, as well as hospital Governance and knowledge management in addition to Sustainability andDevelopment.In progressFamily Health Units (FHU) – unitinstalled into the health centre systemand bestowed with technical andfunctional autonomy, composed of amulti-professional team, establishedusing a lighter and more flexibleorganization model, aimed at providingproximity and quality health care toindividuals and families alike.Objectives: 150 FHU’s by the end of2008 and 250 FHU’s by the end of2009. The 142 FHU’s already inoperation give family medication toaround 200 thousand new users.Health Centre Groupings (ACES):within the scope of Primary HealthCare Reform, envisaging organisationalrestructuring via the formal constitutionof 74 ACES by the end of 2008. Directbenefits are gained from the role of thisnew structure in the efficientcoordination and management of‘ACES’ resources and theimplementation of best practices,specifically at medical governanceand management control levels.Objective: formal constitution of 74ACES up until the end of 2008, withoutprejudice to the implementation processextended out into 2009.48

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesPromotion of GenderEqualityIV National Plan for Equality: Citizenship and Gender (2007-2010); III National Plan against DomesticViolence (2007-2010); I National Plan against Human Trafficking (2007-2010)Within the scope of the POPH, making available a group of interventions that envisage the development of agovernance system that considers the scope of gender equality, the promotion of gender equality andintegrated prevention for victims of discrimination, done so via supporting the organisational change of henceincluded organisations, training, information disclosure activities and also by providing support to femalebusiness ventures.In progressTarget 2010:- NO. of people covered by projectspromoted by NGOs / non-profit makinginstitutions = 5443- NO. of persons involved in businessplans for equality = 907- NO. of companies formed by women= 1059- NO. of NGOs supported with projectspromoting gender equality = 83- NO. of persons who have concludedgender violence training activities =636PROMOTE AN INTELLIGENT COUNTRYCity PoliciesUrban Networks forCompetitiveness andInnovationThus aimed at supporting the affirmation of cities, where those of us who utilise knowledge networks,innovation and competitiveness at national or international levels, promote the strengthening of the cities’higher economic functions via the attainment of threshold and synergetic networks for the qualification oftechnological infrastructures and the development of innovative and competitive activity attraction factors,stimulating cooperation between Portuguese cities and scientific and higher-level education institutions, forthe shared valued estimation of shared resources, potential and knowledge, thereby valuing the differentiatingfactors, promoting the insertion of cities into international networks and affirming overall internationalimages, further optimising the potential of infrastructure and equipment from a network level perspective.In progressAffirmation of interurban cooperationpractices. Development (up until 2015)of around 40 city network StrategicPrograms. These Urban Networks willbe able to adopt a territorial or athematic character, with the interurbanStrategic Cooperation Programs havingan overall duration of 4 years, whichare, within the sequence of the openingof public tenders, part of the urbancommunity and other urban activitiesinitiative.In October 2008, the firstpublic tenders for UrbanNetwork StrategicPrograms forCompetitiveness andInnovation were therebyclosed.49

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesUrban regenerationpartnershipsThis measure sets out a structured and formal cooperation process between those entities proposing thepreparation and implementation of a common Action Programme for the regeneration of a specific areawithin a city. This is aimed at promoting social cohesion and inclusion, the integration and equality ofopportunities for the different communities within the city, stimulating socio-economic revitalisation ofdegraded urban areas, qualifying urban environment and other determinant factors in terms of the quality oflife of the population, reinforcing the attractiveness of cities via the preservation and giving of value to urbanareas of excellence, reinforcing participation by citizens and innovating new forms of urban governance viathe cooperation of various active urban entities.In progressStructuring of Local Partnerships forUrban Regeneration programs. Support(up until 2015) of around 65 urbanregeneration Action Programs. TheAction Programs last for 3 years andare, within the sequence of the openingof public tenders, part of the urbancommunity and other urban activitiesinitiative.Within the scope of thefirst public tender carriedout in 2008, 23Partnership ActionPrograms have alreadybeen selected for theUrban Regenerationprogramme.Innovative Actionsfor UrbanDevelopmentDestined for the support of pilot projects that are to be applied within Portuguese cities, thereby aimed atdeveloping or transferring solutions that still have not been tested over national territory or, having hadpositive results, lacked any sort of application on a broadened scale and therefore not having motivated anyform of replication. The privileged thematic areas are: the providing of local services; urban accessibility andmobility; safety, risk prevention and combat against crime; management of public areas and buildings;sustainable construction; the urban environment; creativity and entrepreneurship, with the giving of value toregional resources; and urban governance with the increased participation of citizens and financial entities.In progressTarget 2015: Support to 75 pilotprojects50

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesSINERGIC - LANDRegistration -National System forthe Exploration andManagement ofGeographicInformationThe intention, via a coordinated process, is the efficient and sustained promotion and execution, managementand exploration of registration data - the fundamental component of national geographic information,establishing database information for other types of data and for information structures that have localisationdata as a common reference. The existence of a registration process will act as transversal support to manytypes of databases and information structures, establishing itself as a key vector for the administrativemodernisation and streamlining of processes and procedures, as well as increasing the transparency ofdecisive public processes.Territorial Organisation: Information InfrastructuresIn preparationThe existence of land registration inPortugal, establishing itself as anindispensable tool for regional,environmental (particularly farmingand forestry), financial and public workprojects organisational policies. Thefirst three years over the carrying out ofthe project will consist of the gatheringof registration information in referenceto administrative subdivisions whereestablished Forest Intervention Zones(ZIFs) are encountered or are in theprocess of construction.National System ofTerritorialInformation (SNIT) /Town and CountryPlanning PortalThis project covers the on-line access of land planning tools, with the on-line availability of systemisedalphanumeric and graphical information regarding the land management system via the DGOTDU website,which includes the ability to consult the current land management tools, verify the state of play of therespective preparation, alteration and revision procedures, as well as provide collaborative platforms fortracking land management procedures.In progressDevelopment of the Land ManagementCollaborative Platform;dematerialisation of preparationprocesses, approval, registration andpublication of the General LabourInspectorate (GLI); improvement as toaccess of GLI information on the partof the citizen.Virtual mapsBased on the agreement between the Portuguese Geographical Institute and Microsoft who provide aerialimages of the entire country through the Virtual Earth platform, the central public administration benefitsfrom the free licensing of the Virtual Earth programming interface which offers an enormous potentialresource for the organisation, management and exploration of Geographical Information on the part ofAdministration, providing interaction between various Public Administration organisms in addition to therelationship with its own Citizens and also towards the development of highly innovative services.Re-qualification and Valorisation of Endogenous ResourcesIn progressThe incorporation of geographicinformation (GI) within the publicadministration (PA) – at central andregional level – whether by means ofvisualisation or by the integration of itssystems into specific functions. Thecreation of land homogeneousnessthrough the utilisation of GI. Reductionin duplications and redundanciesthrough the production of GI within thePA. Greater facility in the upgrading ofthe 1:10,000 map design produced bythe town municipalities and theirassociations. Growth of the GI servicesmarket.51

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesIntegrated RequalificationandValorisationOperations of theCoastal region -'Polis Littoral'The essential objectives of these interventions are to maximize environmental resources as a competitivefactor via the valorisation of economic activities connected to coastal area resources, being associated withthe preservation of natural resources; to protect and re-qualify the coastal area, taking into account that ofcoastal defence, the promotion and conservation of nature and biodiversity, the naturalisation and restructuringof lagoon regions and also the preservation of natural and landscape heritage; guard and defendthe public, goods and natural risk systems; promote public enjoyment of the coastline, supported by the requalificationof bathing regions and environmental and cultural heritage. Three areas have already beendefined for priority intervention: Litoral Norte, Ria de Aveiro and Ria Formosa.In progressPrevention of risks associated withcoastal activity. Creation ofinfrastructural conditions and theimplementation of management modelswhich provide value to littoralpotentialities.PROVERE –Programme for theEconomicValorisation ofEndogenousResourcesTool for stimulating economic agent initiatives, orientated at the improvement of regional competitiveness inlow density areas, aimed at giving greater economic value to endogenous resources.In progressExaminations carried out for thefinancing of preparatory actions, ofwhich 19 candidates out of 65 whereapproved.A public bid will belaunched, up until the endof 2008, for the formalacceptance of PROVEREPlans of Action, such asCollective EfficiencyStrategies that will startto be put in place fromthe first quarter of 2009.52

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesContinuation of theimplementation ofthe RuralDevelopmentProgramme(PRODER)Continuation of the implementation of the Rural Development Programme (PRODER) so as to substantiatethe National Strategic Rural Development Plan for the 2007/2013 Period.In progressContinuation of the implementation ofthe Rural Development Plan(PRODER) so as to substantiate theNational Strategic Rural DevelopmentPlan for the 2007/2013 Period,considering 6 measures and 15activities which are aimed at the"promotion of competitiveness"; 4measures and 19 activities aimed at"sustainable management of ruralareas"; 5 measures and 7 activitiesaimed at "stimulating rural areas"; 3measures and 4 activities aimed at the"promotion of the understanding andthe development of competencies”.Around 35% of the programmeactivities are currently in progress.Implementation ofthe National Strategyfor the SeaImplementation of the National Strategy for the Sea, encompassing the following Programmes:1. Planning and Organisation of Marine Space and Activities.2. Sea-specific network of Information and Knowledge.3. Surveillance, Safety and Defence of the Sea.4. Communication and Awareness of the Sea.5. International Cooperation for the Sea.In progressDigital infrastructure – BroadbandNew GenerationCommunityNetworksPromote the creation of Community Networks such as broadband public networks in underprivileged regionsor in areas where there is a lack of telecommunications infrastructure, namely where difficulties exist as to theintroduction of New Generation Networks, i.e., those which have to be necessarily technologically neutral.Provide identical access to all operators through tenders for their subsequent development. It is equallyintended to develop the utilisation of optical fibre networks already constructed within City and RegionalDigital projects.In progress53

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notese-ScienceinfrastructuresStrengthening and development of new e-Science infrastructures which are thereby accessible throughout theentire country, including a high performance network for investigation and education (RCTS), scientificdigital libraries, open access scientific data and information warehouses, the computational Grid and supercomputing,plus platforms for distance investigation work.In progressContinuation of thedevelopment ofInternet NetworkspaceDevelopment of “communitarian space”, based on the existing Internet Network, thereby creating, in apromotional manner, the connection between urban and rural communities with intramural and extramuralactivities, aimed at social interaction based on new technologies, the stimulating of the setting up ofassociations, electronic democracy and e-learning via use of the Internet.In progressCiência Viva CentresNetworkThe development of a network of Ciência Viva Centres as an infrastructure for the promotion of scientific andtechnological culture throughout the country in order to stimulate the interest of young people in taking upactivities and scientific and technical careers, as well as for the facilitation in the appropriation of newtechnology and understanding by the public.In progress54

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010NotesOffer of“Broadband” –Digital TerrestrialTelevisionThe launch of retail-based Naked DSL offers.DACA: The following results / impacts are to be carried out:• Digital transmission for Internet access, without monthly sign-up costs, on the part of the national generalpublic, thereby providing, at the minimum, television programme transmission services via the currentterrestrial analogue system;• Stimulation as to the development and understanding of the Information Technology Society via coverageand popularity of the terrestrial system;• Promotion of competition within the electronic communication sector, via the emergence of an alternativeplatform, for specific access to digital television;• More efficient utilisation of the radio-electric spectrum and liberation of the frequencies used by theanalogue system, ideally to be concluded by 2012, as advocated by various communitarian instances;• The creation of suitable conditions for the development of new services;• Potential stimulus of the Portuguese content, application and equipment industry;Still underpreparationSee 2005-2008 Measure:Development of theelectroniccommunications system,with particular emphasison the offer of"Broadband” digitalterrestrial television.School NetworkSchool parkrecuperationprogrammeThe Re-configuration of the network, through the perspective of the creation of school centres, assumes twodistinct types of intervention, based on the territorial and social contexts in which they may found.The programme foresees the interventions as being carried out in urban and rural zones alike. Focused on there-qualification / amplification or construction of one or more school centres in geographically central areasin relation to other basic schools from the 1° small dimensions cycle.The school park recuperation Programme is forecast for intervention within 600 schools by 2010.In progress55

MeasureDescriptionCurrentstatus: inpreparation/ in progressExpected results until2010Notes56

PNACE 2005-2008Results of Measures

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesCreation of thefigure of FinancialController at eachMinistryProcedures forimprovingcompliance withthe duty ofinformation interms of budgetmattersThe FC seeks toencourage the improvedmanagement of publicresources within thesector scope providingsupport to the sectorMinister of the area inwhich they are inserted,planning domains, budgetexecution, commitmentundertakings, renderingof accounts and reportedobligations.Amendment ofprocedures to improve thequality and timelyconsolidation ofinformation and reinforcebudget control.Application of noncompliancesanctions byway of legal provisionsintroduced into budgetlaws, the Law on LocalFinances and the Law forthe Financing of Self-Governing Regions.CompletedIn progressThe FC has fortified the budget consolidation strategy by rationalising public spending andsupporting the implementation of better management practices. The early alert system has beenused to notify the MEF of situations in which there are risks of non-compliance with budget goals.The FC has also monitored the undertaking of financial commitments.New measures inprogress which seekto improveinformation on theaccounts ofRegional and LocalAdministrations, inparticular thatrelating toindebtedness.2

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesPRACE: StateCentralAdministrationRestructuringProgrammePromote the assessmentof Ministries andrespective services andproceed with definition inalignment with neworganic correspondents.Seeks to contain primaryrunning costs, rationaliseand improve the qualityof services offeredCompleted407 laws relating to the new organic legislation were published corresponding to a 26.2%reduction in the macro-structures of Central Administration (directorate-generals and publicinstitutions) and a 24.9% reduction in micro-structures (service departments and divisions). Interms of management posts a 22.1% reduction was verified in upper management posts and a24.9% reduction in mid-level management posts.Revision of systemof employmentbonds, careers andremuneration ofPublicAdministrationemployeesReduction in complexityof the forms ofincorporating the legalrelationship of publicposts; introduction of aclear conceptualdistinction betweensituations in which a listof nominated posts and alist of posts based onemployment contracts forundetermined periodsshould be incorporated;reduction in thecomplexity of the type ofcareers and wage levels;creation of remunerationmechanisms associatedwith performance levelsand taking into accountthe budget capacity of theState; creation of arelationship between themechanisms of humanresources' managementand the needs of overallservices' management.CompletedLaw No.12-A/2008 of 27 February (new employment bond regimes, careers and remunerations inPublic Administration). Regulated via the creation of the Single Wage Table (Regulatory DecreeNo.14/2008 of 31 July) which is now based around 115 positions (instead of 22 tables and 522positions), plus the fusion of 1715 careers in 3 general regime careers (Decree-Law No.121/2008of 11 July).3

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesRevision ofemployeeassessment systemRevision ofemployeeassessment systemConception of aservice assessmentsystemReinforcement ofmanagement via goals,differentiation ofperformance andvalorisation of excellenceand meritReinforcement ofmanagement via goals,differentiation ofperformance andvalorisation of excellenceand meritAssessment of resultscompared with goalsstipulated reflecting thebudget allocation of theseservicesCompletedCompletedCompletedThe Assessment System (SIADAP) was revised by Law No.66-B/2007 of 28 December.The Assessment System (SIADAP) was revised by Law No.66-B/2007 of 28 December.The Assessment System was approved by Law No.66-B/2007 of 28 December.Convergence ofPublicAdministrationhealth subsystemsConvergence of PublicAdministration healthsubsystems via the fusionof several healthsubsystems and theconvergence of theremainder with ADSEgeneral rules.CompletedNew measure inprogress torationalise publichealth subsystemsin particular thatregarding financialrelations with theNational HealthService (SNS)Medication PolicyReduction of expensesincurred in coparticipationsandfighting fraud andwastage.in progressMeasures implemented in 2007: 6% reduction in the price of medications, 5% reduction inmaximum scale of co-participation and elimination of 10% enhancement of co-participation ingeneric medications. Estimated impact in 2007 of around €90m.Implementation of a newmedication invoicing verificationsystem from 2009 will improvesystem security enabling costsincurred in co-participations to bereduced (reduction estimated in5% a year).Convergence ofpublic employeesocial protectionregime with thegeneral regimeExtinction of 30 specialretirement regimes andconvergence of othersocial protection domains(sickness protection),envisaging the financialsustainability of theCompletedThe effects of the transposition of the Social Security General Regime reform principles occurredfrom January 2002. This measure contributed to the reduction of the risk of pension costprojections removing Portugal from the group of "high-risk" member-states benefitting the longtermsustainability of public finances.The obligation ofemployercontributionpayments shall beextended to servicesintegrated as of the2009 State Budget.4

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesPublic Employee SocialProtection Regime.Transposition of SocialSecurity General Regimereform principles.Reinforcement ofjustice system forprivate sectorpensions and thepromotion of activeagingApproximation of actualretirement age to legalage (65 years) via thepenalisation of earlyretirement, of the newclassification for earlyretirement age due tolong-term unemployment,reintroduction of bonusfor extension of workinglife beyond the legalretirement age andintroduction ofsustainability factor.Completed- Law No.53-B/2006 of 29 December which instituted the Social Support Index (IAS) replacingthe guaranteed minimum monthly income (RMMG) as a new fixing, calculation and revisionreferential for State support and established objective rules for the revision of the pensions ofvarious social protection regimes.- Basic Social Security System Law (Law No.4/2007 of 16 January) which redefined the socialprotection model and its financial format.- Judicial Regime for the Protection of Invalidity and Old Age Eventualities of the Social SecurityGeneral Regime (Decree-Law No.187/2007 of 10 May) which established a new social protectionregime for the invalidity and old age of beneficiaries of the social security general regime, seekingto implement more appropriate measures to tackle the risks of demographic aging, namely, via theamendment of the rules of calculating old age and invalidity pensions.- Revision of social security financing model (Decree-Law No.367/2007 of 2 November) whichestablished and develops the generic financing framework of the social security system.5

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesCreation of theCitizen CardThe Citizen Card shallintegrate the current IDcard and taxpayer cardshealth service user andsocial securityidentification into a singledocument and in thefuture also include theirvoting card. Thisinitiative also seeks tosimplify the data intakeprocess when issuingresidency permits andcreates a singleidentification documentfor resident foreigncitizens employingbiometric techniques andthe re-engineering ofcollection,personalisation, issuingand delivery procedures.In progress• Number of desks throughout all national territory issuing Citizen Cards: 312• 311,699 CC applications• 169,406 cards delivered to citizens* 100,875 with active licensed electronic signature (59.55%);Formalityelimination &simplificationprogrammeRegistry office and notarypublicacts; licensingprocedures; simplifiedtaxationregimes; unificationof initialenrolment declarations,modification andcessation ofprofessional activitiesfor tax andsocial security purposesIn progress51,000 registrations of new owners via the Automobile Online Service (between September 2007and August 2008);2,173 companies incorporated via the Company Online Service up to August 2008 (on average14.4 companies a day in August 2008)More than 874,190 permanent company registration certificates issued via the Internet;More than 1,286,400 online publications of company acts of lifeAround 93% of national brand applications were made via the Internet in August 2008 via “BrandOnline” (1,096 applications)More than 405,000 simplified business information (IES) forms sent in 2007 by companies to theState in a single issue and exclusively via electronic means.6

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesLegislate BetterProgrammeDefinition of ex-anteassessment models of theadministrative expensesof legislative initiativesand their adaptation to theprinciples of electronicadministrationIn progressHealth 24: 514 thousand contacts attended to;• Interoperability betweenDIGESTO judiciary databases(legal information processing andanalysis system) and the judiciaryinformation processing databasesof the State.• Definition of a technologicalmodel for electronicreconstitution (substantialconsolidation) of legislative texts.• Implementation andconsolidation of openconsultation procedures to bedeveloped with Society, capableof promoting the effectiveparticipation of both citizens andcompanies.• Preparation of a practical guideto draw up the normative acts ofGovernment.Application of theprinciple of theSole DeskApplication of theprinciple of the Sole Deskin projects such as:Company on time/Onthe-spotfirm; SingleAutomobile Document;New generation ofcitizen's advice bureaus inconjunction with thecitizen's web portal;Company Web Portal;National Health ServiceCustomer Care Centre;Electronic ComplaintsOn goingI lost myWaller Desk:In progressMultiservices'Desk: InprogressThird AgeDesk: Inprogress(conceptionphase)2ndGenerationBureaus: Inprogress443 sole desks:83 "Home Ready" desks;101 "on-the-spot firm" / Empresa na Hora desks;21 “Inheritance” and “Divorce with Sharing" desks;162 “Single Automobile Document" desks;36 “Instant Association" desks;32 “Citizen Birth" desks;8 “Instant Branch" desks.Single Automobile Document:More than 5,132,000 issued since October 2005.162 Customer Care Desks in August, 191 in December 2008.On-the-spot-firm (Empresa na Hora):More than 57,000 created since July 2005.101 Customer Care Desks in August, 117 in December 2008.Around 70% of companies created in Portugal between January and June 2008 were InstantCompanies.Average of 35 minutes to incorporate an Instant Company (average time in August 2008).Increase the number ofmultiservices desks to citizensand companiesHealth 24: Reduce unnecessarymedical urgency visits by at least25%Increase Homecare referrals to30% - self-help - with potentialmonitoring by Health 24according to guidance focusingon prevention and healthpromotion.7

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesCitizen Birth:Total of 67,000 registrations.32 hospitals in August, 61 in December 2008.More than 76% of all babies born in these hospitals were “born registered citizens”.Home Ready:More than 12,400 procedures carried out up to June 2008.85 Customer Care Desks in August, 150 in December 2008.Instant Association:Total of 781 Instant Associations incorporated.36 Customer Care Desks in August, 58 in December 2008.Company Web Portal. Enables access to more than 480 information services and 21dematerialised services available online,- Permanent Bilingual Certificate (application & consultation),- Online Company Incorporation,- Rendering of Accounts' Certificate,- Online Registration (includes 6 services),- Registration via Online Deposit (includes 8 services)- Catalogue of Permits (provides information on 505 licences and authorisations)!I Lost My Wallet! Desk- From September 2007 to August 2008 43,506 cards were issued- 8 cards available for applications to issue 2nd copy- 7 entities involved in AMA operations' administration- 2 Desks operational (Laranjeiras & Odivelas Bureaus)Multiservice Desks- From December 2007 to August 2008 28,083 processes were made available- 23 different processes available to citizens- 6 entities involved in AMA operations' administration- 1 Desk operational2nd Generation Citizens' Bureaus- 1 operational (Odivelas)8

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesDematerialisationProject for casesand proceedingsbefore the CourtsDematerialisation of legalproceedingsIn progressCITIUS-Judicial Magistrates:Since June 20071,361 judicial magistrates have application installed;1,271 (93%) judicial magistrates who sat in on the explanatory sessions;1,220 (90%) digital signature cards issued;912 (67%) portable computers distributed;119 training sessions held;More than 534,000 legal actions performed using the application.CITIUS-Delivery of Procedural BriefsSince 7 April 2008:More than 222,000 procedural briefs delivered;On average, more than 11,000 different users access the application a week;More than 6,000 users simultaneously working on the application;CITIUS-InjunctionsSince 5 March delivery and proceedings are entirely electronic for injunction proceedings:185,596 injunctions received via electronic means;95% of injunctions delivered via electronic means directly via the application itself;More than 246,000 notifications sent;More than 63,500 executive deeds obtained;On average, more than 183 different users per working day.9

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesCreation ofNational PublicAcquisitions'System &expansion ofelectronicacquisitions'projectCreation of anintegrateddematerialisedtechnical, economicand financialinformationadministrationsystem in themedication andhealth productsscopeSystem forassessingorganisationalperformanceCommonKnowledgeNetwork;Incorporation of theNational PublicAcquisitions Agency andMinisterial Acquisitions'Units - completed (seeDecree-Law 37/2007)Monitoring of the shelflifeof medication andmedical appliancesConception of anassessment system forPublic Administrationmanagers whichreinforces goal-orientatedmanagement, thedifferentiation ofperformance and thevalorisation of skill andmerit.Creation of aninformation web portal oninitiatives formodernising andinnovation in PublicAdministrationIn progressIn progressCompletedIn progressThe National Public Acquisitions' Programme already encompasses all ministries and it isestimated that savings may reach levels of 10% to 15% of actual spending.Finalisation of Prototype-Project and development of application systems including the ChemistWeb PortalLegislation corresponding to Public Administration Manager Assessment System published.Since July 2008 the Common Knowledge Network has comprised 140 initiatives from 57 differententities in Central, Regional and Local Public Administration, already available online via thenetwork web portal (www.rcc.gov.pt).Of the entities enrolled, 10 entities from Portuguese-speaking countries stand out: Brazil, CapeVerde and Angola.The National Public Acquisitions'Programme already encompassesall ministries and it is estimatedthat savings may reach levels of10% to 15% of actual spending.(150 million euros during the2009-2010 period). In relation tothe shared health services alreadycreated, it is predicted that inaccumulative long-term ratessavings may reach an amount ofaround 200 million euros.Making the different applicationsystems which comprise theIntegrated Information SystemoperationalThe Common KnowledgeNetwork will continue to invest inthe offer of an integrated flexibleinformation system capable ofcollecting all pertinentinformation relating to goodThe launch ofprocedures tocelebrate theFrameworkAgreement is inprogress10

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesInitiatives cover all the themes of the Common Knowledge Network and are distributed among thefollowing areas: Citizen Services (64); Administrative Modernisation (36);Information Technologies (4); Innovation in Administration (5); Electronic Administration (11);Sustainability (4); Quality (16).It is also worth highlighting that the Common Knowledge Network also offers a News & Events'Directory updated on a daily basis, providing information on what is going on or what is scheduledin the short and medium term.practices in Public Administrationwith great potential to be appliedand adapted by other Institutions.To do so, increasingly moredetailed and functionalinformation on practices will beintegrated into the Initiatives'Directory; attentive that mostrecent additions are applied andexperimented well as well as meetthe information needs in anincreasingly more personalisedmanner. In the sense offacilitating the exchange ofexperiences and promoting ideasharingin a more coherent andpractical manner which enablesthe joint creation of knowledge,the Common KnowledgeNetwork will soon be offeringmore collaborative angles, forexample:- collaboration spaces whichencourage the construction of truepractical communities, unitingprofessionals and experts fromthe widest range of areas toreflect and even resolve commonquestions;- the availability of virtual tools todynamise online events whichfacilitate the reflection anddiscussion of ideas in parallelwith actual live events;- create the possibility for citizensand companies to be able to maketheir contribution regarding theinitiatives of the CommonKnowledge Network.11

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesCreation of SharedServices' CentresTransfer of publicservices fromCentralAdministration todecentralisedRegionalAdministration andto localgovernmentsCreation ofElectronicCertificationSystem of KeyPublic StateInfrastructureElimination of multiplestructural repetitionswhich exist in providingsupport services to PublicAdministration (namelywithin the scope of theimplementation of theChartered PublicAccounting Plan - POCP,the management ofhuman resources andassets as well as theimplementation of a newunified Social Servicesmodel for all PublicAdministration).Increased proximity andsatisfaction of citizens'needs with improvedefficiency andeffectiveness in terms ofservice providedCreation of a commoncertifying agency of theState (ECCE) which shallissue licensed digitalcertificates for membersof the Government andPublic Administrationmanagers.In progressCompletedCompletedThe Shared Management of Public Administration Resources' Company (GeRAP), NationalPublic Acquisitions' Agency and Shared Services in Acquisitions and Logistics, Human Resources& Financial Management Unit in the health service area, have been created.Decree-Law 144/2008 proceeded with the transfer of competencies to municipalities within thescope of education, namely relating to non-teaching personnel in primary education, the supply ofmeals and support for the extension of the pre-school education timetable, toactivities to enrich the curriculum of the 1st cycle of primary education, to management of schoolequipment and social actions in the 2nd and 3rd cycles of primary education.The Key Public Infrastructure - State Electronic Certification System (SCEE) was created byDecree-Law No.116-A/2006 of 16 June seeking to ensure the existence of an electroniccertification structure for electronic communications and transactions performed between Stateservices and institutions and between the State, companies and citizens. The State CommonCertifying Agency (ECCE) is already fully operational which issues licensed digital certificatesfor members of the Government and Public Administration managers as well as within the scopeof duly registered specific functions (tax procedures and processes). The cryptographic key of theState Central Certifying Agency (ECEE) was issued on 23 June 2006.Five certifying institutions have already been licensed by the SCEE (The State ElectronicCertification Agency, The State Common Certifying Agency, the Electronic Passport CertifyingAgency, the Citizen Card Certifying Agency and the Assembly of the Republic CertifyingAgency), and shortly the Judiciary Certifying Agency will also be integrated. Link:www.scee.gov.ptImplement the internationalinteroperability of the SCEE, withthe process of licensing andrecognition of the State ElectronicCertification Agency in progressin the most commonly usedoperating systems and Internetnavigators together with theWebtrust consortium. Also beprepared for SCEE enrolment inthe FESA (Forum of EuropeanSupervisory Authorities forElectronic Signatures).The provision ofshared services byGeRAP will betested in an initialphase at the MFAPand subsequentlyexpanded to allPublicAdministrationServices.12

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesElectronicPassportSupportprogramme forprojects ofPotential NationalInterest (PIN)Restructuring theventure capitalsystemCreation of thePortuguese ElectronicPassport incorporatingdata in a digital format(descriptive andbiometric) plus thecollection of data online;Simplified access toPEP's for special needs'citizensThis programme consistsof a Recognition &Monitoring System forProjects of PotentialNational Interest - PIN,created to overcomeadministrative blockagesto investments andproceed with the closemonitoring of theseprojects in order to ensuretheir swiftimplementation.Reorganising publicventure capitalinstruments.CompletedAround 600,000 electronic passports issued up to August 2008 or around 30,000 a month.Substantial increase in document security and corresponding increase in the effectiveness of thiscontrol.In progress Between January 2008 and now the number of PIN statute applications has totalled 17 of which 9projects have had their PIN statute recognised, 1 was refused and at the current time 7 projects areunder analysis.CompletedRepositioning of PME Investimentos S/A as refinancer to the Venture Capital sector and ofInovCapital S/A as the primary VC operator of the MEI.New legislation for the sector (Decree-Law No.375/2007 of 8 November).Measure to continue during the2008-2010 period. The aim forthis period is to monitor allprojects which come to obtain aPIN statute with a view tospeeding up procedures and theswift resolution of the contextualcosts of the same.13

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesImplementation ofmicro-credit andmicro venturecapital solutionsMIVE marketinitiativeprogramme ofbusiness worthmodified to –Project PME(Axis III) – ex-MIVEEncourage therevitalisation of thebusiness fabric promotingthe appearance of newmanagers and newcompanies in strategicareas with strong growthand great innovativepotentialNational levelsolutions:completedRegional/locallevelsolutions: inprogressCompletedUp to the end of August, 453 financing operations involving credit and venture capital wereapproved of which 390 have been implemented or are in their implementation phase (excludingthose approved which were discontinued due to dropout or caducity).During the period of Sept 2007 and Aug 2008, the FINICIA Programme has continued to beimplemented with the creation of a platform in the Azores plus the creation of municipal levelFunds registering the following results:(i) Credit supported by Mutual Guarantee in operations implemented or undergoingimplementation (excluding dropouts and caducity):The number of operations approved rose to 295 corresponding to an overall investment of €23.23million, credit in the amount of €13.63 million and a total amount of Mutual Guarantees of €9.19millionDuring the period of October 2007 and August 2008 the number of operations has been 177corresponding to an overall investment of €16.04 million, credit in the amount of €9.72 millionand a total amount of Mutual Guarantees of €6.57 million(ii) Financing in Venture Capital:95 venture capital operations have been approved, 72 of which between October 2007 and August2008.Of the 49 operations already implemented, 33 occurred between October 2007 and August 2008corresponding to overall investment estimated at €5.6 million and venture capital financing in theamount of €2.01 million(iii) Municipal Funds: 73 Municipal level Funds have been created of which 14 between October2007 and August 2008. The total value of Funds already created totals €21.53 million, of which€2.925 million are associated with Funds created since October 2007.Dynamisation of Bio-Entrepreneur Competition in a partnership with IAPMEI/APBio; Holding ofEmpreenda´07 - Ideas & Financing Fair and BioEmpreenda'08; Dynamisation of Ideas and MeansExchange via articulation with FINICIA platforms; dynamisation of a "coaching" pilotprogrammefor business initiatives of an innovative emergent nature; dynamisation of a pilotprogrammeto incubate innovative business ideas during the start-up phase; reinforcement of skillsof entrepreneurial facilitator agents - holding of a mission of 15 delegates (GAPI - IndustrialProperty Support Offices and OTIC – Technology & Knowledge Transfer Workshops) toLausanne to take part in WS on technology transfer; Dynamisation of Scientific PartnershipCompetition for Innovation; Organisation of WS in Lisbon on good international practices on thetopic of technology transfer; Dynamisation of training course in entrepreneurism for teachers, incollaboration with Berkeley University, INTEL and ISCTE; Support granted for the formatting ofprojects for implementation in business, based around the period in reference, the facilitation ofaccess to consulting in order to prepare 175 business plans. The rate of growth in 2007 (lastcomplete year) was 308% compared with 2005 (150% in comparison with 2006) This resulted inthe creation of 46 new companies with innovative characteristics, of which around half have atechnology basis.With continuitywithin the scope oftheEntrepreneurismProgramme &EconomicValorisation ofKnowledge (seeNew Measures filefor PNR 2008-2010)14

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesInovJovemProgrammeOperationalisationof AGIRREProgrammeIntroduction ofentrepreneurialteaching insecondary schoolsThis initiative supportsthe enrolment of youngadults into PME withhigher educationqualifications in criticalareas for innovation andbusiness development,dynamising innovationstrategies and thereinforcement ofcompetitiveness incompanies.Identify and support therestructuring processes ofcompanies facingpressing crisis situations,lack of economic andfinancial viability,ensuring employmentsustainability andcoordinating the actionsof the State in therestructuring process andcompany feasibility(creating the IntegratedIntervention Council forBusiness Restructuring -AGiiRE).The MEI via IAPMEIdynamised a programmedesignated as “Innovation2007” - an initiative ofEurope scope whichinvolved 25 EM - incollaboration withDGIDC/ME aimed atteenagers in secondaryschool education.In progressUntil May 2008 1149 candidatures had been approved, the equivalent of 4,674 young adultscovered of which 4,439 young adults have already been integrated. Total incentive of over 75million euros. More than two-thirds of those who complete their apprenticeship period manage tofind a job. Small and medium-size companies recognise the importance of the programme via theimprovement in their management and innovation capacities.In progress Within the scope of AGiiRE actions during 2007, a total of 6,270 contacts were registered.Intervention processes were carried out (arranging of creditors) in 255 companies involving12,500 work posts. Also, 2 processes were approved within the scope of the Integrated System ofIncentives for Business Modernisation & Revitalisation (SIRME) and 91 within the scope of Outof-CourtReconciliation Procedures (PEC)Completed“Innovation 2007" Results:- 4 regional workshops held;- Involvement of 40 secondary schools.Participation of Portuguese teenagers in the international "best idea of the year" competitionresulting in 1st and 3rd places in the overall competition.Lines of action to continue duringthe 2008-2010 period under theresponsibility of the IEFP(POPH). Intensification of theINOV-JOVEM programme alongthe line of VocationalApprenticeships - goal: 5,000apprenticeships/yearMeasure to continue during the2009-2010 period. During thisperiod the followingresults/impacts are set as goals:.Companies Contacted - 1300. PEC Agreements - 250. Work Posts Recovered - 12,500Resolution of theCouncil ofMinistersNo.63/2008 of 7April15

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesBusiness Partners'ProgrammeContra entries ofpublic acquisitions.Support cooperationdynamics promotingcluster logics.Orientation for contraentries of publicacquisitions to integratenational companies inconsortiums andinternational valuechains. Facilitate theincrease of technologicalincorporation andinnovationCompletedIn progressHolding sector meetings and cluster reinforcement activities. Operationalisation and schedulingmodel defined envisaging activities to be developed within the domains of the identification ofstrategic target areas and implement the respective Road-Mapping, the selection and support forcooperation dynamics around strategic target areas and the creation of a "Cluster FacilitationNetwork".Monitoring of existing programmes has been carried out and also future programmes of lightweapons of the armed forces as well as new light armoured vehicles. The following activities arealso in progress:- The EH101 helicopter programme from Agusta-Westland has been reformulated which includesa major project which involves universities and technology companies in Maia.- A major event was held at OGMA where many national companies were able to see at closehand component parts available for awarding pursuant to the EADS-CASA programme.- Continuation of the dynamisation of the aeronautics industry based around contra entryprogrammes with EADS-CASA, Agusta-Westland, Northrop-Grumman and Lockheed-Martinwhich will enable a strategic plan to be drawn up to define contra entry projects in this domain.With continuitywithin the scope ofthe CollectiveEfficiencyDynamicsProgramme (seeNew Measures filefor PNR 2008-2010)Re-launch ofDynamoProgrammeSpecific support forinvestment projectsinvolving the creation ofcompanies or theirexpansion in transactionalgoods and servicesproduction activities ofhigh added value, dulysupported by clear marketstrategies with a view totheir positioning ininternational markets.CompletedThe results obtained were the following:DYNAMO TENDER AT NEW PRIMEImplementation of the Dynamo Programme achieved particular importance with the reorientationof the PRIME Programme in which a specific thematic phase was enrolled for candidaturesexclusively destined for investment projects in companies classifiable within the Dynamo strategy.This specific tender for the sector came to set out improved access and financing conditions forprojects in line with the Dynamo strategy.Measures covered and respective donations totalled €32 million, divided up as follows: SIME€12.5m; SIPIE €5m; SIME I&DT €7m; SIME Int. €4m; DEMTEC €3.5m.99 candidatures were received, divide up as follows: SIME -26; SIPIE- 29; SIME I&DT -1; SIMEInt. – 41; DEMTEC – 2. FASHION & MARKETS INTELLIGENCE CENTRE: Underdevelopment within the scope of Axis VI - PME+ Project: conception, implementation andmaintenance of a Competitive Intelligence System with a view to the Production of StrategicInformation to be made available to all relevant players in the sector. This system integrated into aplatform which in the future will over other sectors/ clusters/ rows, shall enable:16

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notes• Perceive and monitor the joint classification of markets, technologies and players withinnational and international scenarios; • Monitor and influence those outside international fashiontrends as well as produce information on lifestyle and fashion trends which may be used bycompanies to develop competitive products;• Identify opportunities and constraints on a continual basis to increase the competitiveness ofnational industry; This system will also be a fundamental tool in the support for player andinstrument dynamics included within the scope of the programme proposed for the clusterisationof the economy and/or for the Competitiveness & Technology Centres.CeNTI— NANOTECHNOLOGY, FUNCTIONAL & INTELLIGENT TECHNICALMATERIALS' CENTRE:CeNTI was formalised with the participation of CITEVE — Technology Centre for ClothingTextile Industries of Portugal, of CTIC — Technology Centre for Leather Industries, of UMinho,UPorto and UAveiro.The CeNTI candidature for incentives within the scope of PRIME was approved corresponding toan investment volume of around €5m.SOFTWARE DEVELOPMENT CENTRES FOR THE FASHION SEGMENT:2 Software Development Centres have been created within the scope of the partnership whichinvolves IAPMEI, Microsoft, UMinho, UAveiro, UBI, Forino and RECET — Association ofTechnology Centres of Portugal, aimed at the fashion segment. The first, aimed at Textiles,Clothing and Leather, promoted by CITEVE and CTICouro, the second aimed at Footwearpromoted by CFCP — Technology Centre for Footwear of Portugal and INESC PortoTRAINING OF UPPER MANAGEMENT SPECIALISTS IN NEW MATERIALS FORTEXTILES, CLOTHING & FOOTWEAR:The TVC Formar project has been defined seeking to develop two advanced training courses inNanotechnology and Advanced Materials, one aimed at unemployed personnel on leave and theother aimed at active ITVC employees.INSERTION OF QUALIFIED YOUNG ADULTS IN COMPANIES:The actions associated with this topic have been carried out via specific approaches, implementedin integration with horizontal initiatives such as Inov-Contacto and Inov-Jovem.PROMOTION ABROAD OF PORTUGUESE FASHION: The promotion abroad of Portuguesefashion has been essentially carried out under PRIME projects in public-private sector partnershipsbetween ICEP Portugal and the Fashion Segment Associations, based on the participation ofgroups of companies in the most important international tenders and supplementary actions inorder to afford national brands greater visibility.FASHION WEEK: The Fashion Week was held which brought together a number of events of thePortuguese Fashion Catwalk Shows, Portugal Fashion, Showroom Brand Up, MODtissimo,Lisbon Fashion Catwalks and Showroom, scheduled in a systematic manner in order to17

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notespotentialise greater impact and visibility on national and international markets via thereinforcement of common communication and promotion actions and the adoption of a singleimage which acted as an "umbrella".Reinforcement ofthe Tourism clusterDevelopment of thefollowing actions:- Portuguese TourismSatellite Account- Geographic InformationSystem- Contractualization ofForeign TouristPromotion- InternationalCooperation- Pro-Tourism Project- Development of 5 pilotprojects in theconstruction ofdifferential andcompetitive touristproducts- "Good Practices" AwardCompletedThe Portuguese Tourism Satellite Account and the geographic information system are operational.Contractualization of Foreign Tourist Promotion: an assessment of the Promotioncontractualization model has been carried out, the necessary changes envisaged and the new modelimplemented.International Cooperation: The Programme is now operating normally.Pro-Tourism Project: integrated into the Portugal IP Tourism Web Portal.Development of 5 pilot projects in the construction of differential and competitive tourist products:Developed within the classification of a geographical matrix of priorities set out for TouristDestinations and New Development Centres."Good Practices" Award: now operating as normal.Newcompetitivenessreinforcementactions for tourismare scheduled (seeNew Measures filefor PNR 2008-2010)18

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesInternationalisation Programme- Creation of a proximitynetwork in Spain offeringthe joint services ofAICEP and IAPMEI.- InovContactoProgramme- "Portugal Brand"Project -Widening of exporterbase via investment inimportant segmentsCreation ofAicep/IapmeiNetwork:completedInov ContactoProgramme:in progress"PortugalBrand"Project:completedWidening ofexporter basevia investmentin importantsegments:completedCreation of Aicep/Iapmei Network: process completedInov Contacto Programme: 3rd edition held specifically focused on the technology segment.Goals have been exceeded by around 15% compared with that initially predicted which hasenabled the integration of 578 apprentices.INOV – ART Programme: Support for training of young adults with specific qualifications inthe areas of arts and culture via apprenticeships at institutions of repute within the internationalcontext of the sector of arts and culture"Portugal Brand" Project a number of promotional actions have been held in several foreignmarkets (Germany, Angola, etc).Widening of exporter base via investment in important segments: several initiatives heldenvisaging the increase in the number of export companies.Internationalisation in Healthcare: Compared with the status of the situation in 2007, plus:IPATIMUPInvestigation ProjectContract: 'Approaching basal-like breast carcinomas to target therapy. A project combining thereinforcement of logistic facilities with translational research'Main Investigator: Dr. Fernando SchmittInovContacto Programme: It wasdecided by Resolution of theCouncil of Ministers No.53/2008to reinforce this initiative with aview to expanding cover both interms of apprentices andcompanies. In this respect, InovContacto should hold an average550 apprenticeships a year overthe next 3 years.In the healthcare area the resultsobtained from thecontractualization of PortugueseI&D by multinational drugcompanies is encouraging andhad no precedent in the past.New actionsenvisaging theinternationalisationof the Portugueseeconomy arescheduled (see NewMeasures file forPNR 2008-2010).Gulbenkian Institute of Science:Investigation ProjectContract: 'Characterization of bone marrow niches that impede or favour leukaemia engraftmentand expansion'Main Investigator: Dr. Sergio Dias19

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesWithin the scope of the promotion of scientific employment, support for the insertion of around720 new PhD's has already been contractualized with national scientific and technologyinstitutions following tenders for programme contracts initiated in 2006 and 2008 by theFoundation for Science & Technology, with the aim of supporting the contracting of at least 1,000PhD holding investigators until 2009.Stimulate thecreation ofqualified C&Temployment:stimulate theconditions for thedevelopment ofI&D in companies,partnerships withinvestigativeinstitutions(national andmultinationals) andenable thefeasibility of newtechnology basecompaniesStimulate the creation ofqualified C&Temployment: promote thecontracting of PhD’s atinstitutions of thescientific and technologysystem, stimulate theconditions for thedevelopment of I&D incompanies, partnershipswith investigativeinstitutions (national andmultinationals) andenable the feasibility ofnew technology basecompaniesIn progressThe programme to support the insertion of PhD and Master's Degree holders into companies fromADI reached a total of 354 PhD and Master's degree holders supported in two hundred differentcompanies.Advertising of the Scientific Employment Grant for companies exceeded more than a thousandapplications;In 2008 a new programme reinforcing scientific and technological investigation was launched bythe Foundation for Science & Technology with a view to supporting invited investigativeAcademics at Portuguese universities.To the end of 2007 116 projects had been approved within the scope of the NEOTEC Programmeand 61 technology based companies incorporated in the areas of biotechnology, electronics,automation and robotics, among others, with it worth mentioning that the enterprising teamsinvolved around 145 PhD holders, 94 Master's degree holders and 138 teaching degrees and that74% of these business projects concern the world market. As they concentrate on activities of hightechnology intensity developing and producing in the vast majority of cases "means of production"for other sectors, the importance of these technology based companies is multiplied by theirdiffuser effect on innovation for the entrepreneurial fabric. Also associated with higher educationteaching the Intel/Berkeley Programme at ISCTE stands out, and within the continual training oftrainers, a training referential is being developed which includes the dimensions ofentrepreneurism).Measures continuing up to 201020

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesStimulate andmonitor theincorporation ofI&D in investmentsand projects ofpublic interestStimulate and monitor theincorporation of I&D ininvestments and projectsof public interestIn progressThe new Code of Public Contracts approved by Decree-Law No.18/2008 of 29 January specifiesthat in the case of contracts with values equal to or higher than €25,000,000, ContractSpecifications must specify the obligation to draw up one or a number of investigation anddevelopment projects directly associated with the provisions which comprise the object of therespective contract to be implemented within national territory, of an amount corresponding to atleast 1% or in certain cases 0.5% of the contract price, pursuant to terms to be specified in theContract Specifications (Pursuant to the terms of Item No.7 of Art.42.). In order to ensure theconvergence of the investigation projects proposed in a projected national strategy of advancingknowledge within the wide area which the contracts refer to, a monitoring and inspectioncommission has been created, taking into account the coordination, monitoring, auditing andinspection of the execution of the investigation and development projects proposes by theContractor.Measures continuing up to 2010Reinforce theconditions ofindependence andtransparency ofinternationalscientificevaluationThe evaluation both ofprojects and investigationunits is carried out byinternational panelscomprised of top-levelscientists from therespective specialityareas. The internationalevaluation of highereducation in Portugal andits institutions involves inthe process organisationsof recognised experienceand good standing such asthe Organisation forEconomic Cooperation &Development (OECD),the European Associationfor Quality Assurance inHigher Education(ENQA) and theEuropean UniversityAssociation (EUA).In progressThe process of reforming higher education implemented in 2006-2008 was preceded byindependent evaluation processes which involved organisations of recognised experience and goodstanding such as the Organisation for Economic Cooperation & Development (OECD), theEuropean Association for Quality Assurance in Higher Education (ENQA) and the EuropeanUniversity Association (EUA), taking into account respectively (i) the overall evaluation of thehigher education system, (ii) the evaluation of the quality guarantee system of higher educationand licensing practices, and (iii) a voluntary institutional assessment programme. In Novemberand December 2006 respectively, the results of the evaluation of the quality guarantee system ofhigher education and licensing practices carried out by ENQA were disclosed and the overallevaluation of the higher education system, carried out by the OECD. The voluntary institutionalassessment programme by way of the EUA has developed throughout the 2006-2008 period in analready very wide range of higher education institutions.A new exercise in the international assessment of all I&D units registered at the FCT has beenlaunched and is in its final phase (2007-2008). The assessment has already involved the works of21 evaluation panels, including evaluation visits to investigation units, comprised of more than200 foreign investigators who have assessed more than 330 investigation units located at variouspoints around the country.Measures continuing up to 201021

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesClarify themissions of StateLabs and enter intoPublic ServiceContracts withAssociated LabsApproval of the Reformof State Labs; Entry intoservice of new associatedlabsIn progressFive State labs have been made extinct or integrated into other institutions; 2 have been created(National Energy & Geology Lab, National Biological Resources Lab); the Institute of ForensicMedicine has been granted status as a State Lab; it was decided to incorporate the innovativemodel of the I&D consortium with the character of a private non-profit entity articulating StateLabs, Associated Labs, companies and other national or foreign entities, beginning with theincorporation of 4 consortiums (BIOPLIS for biology and biotechnology, Fisica-N for nuclearphysics, high energies and distributed computing, RISCOS for the prevention and mitigation ofnatural and environmental risks, OCEANO for oceanography); the International Centre forVolcanology was created in the Azores.Measures continuing up to 2010Promote thematicScience &TechnologynetworksThis measure has beenpresent in thedevelopment of newinternational partnershipsin science and technologyand higher education withinstitutions ofinternational repute suchas is the case of MIT,Carnegie MellonUniversity, University ofTexas in Austin,Fraunhofer Society andothers. Thematicnetworks underpreparation within thescope of thesepartnerships at themoment include thefollowing areas: (i)Energy Systems, (ii)Transport Systems, (iii)Engineering ofConception & AdvancedProduction Systems, (iv)Bioengineering Systems,In progressWithin the scope of the MIT-Portugal Programme (www.mitportugal.org) launched in September2006 with a focus on Engineering Systems in the areas of Energy, Transport, Conception,Production and Bioengineering, several joint levels of collaboration with MIT have been set upand launched in an new way in Portugal. Portuguese teachers and investigators and from MIThave identified more than 30 investigation and development priority areas with a special emphasison the complex processes associated with the engineering of conception and industrial productionsystems, sustainable energy systems, bio-engineering systems and transport systems. Within thiscontext, projects of interest to the Portuguese economic fabric have been launched, with thissynergy further valorised by the industrial affiliation programme particularly within theautomobile and energy sectors;The CMU-Portugal Programme (www.cmuportugal.org) launched in October 2006 within the areaof information technology and communications also began the various post-grad programmes inSeptember 2007 conducive to a dual level between Portuguese institutions and the CMU. Thepartnership with the University of Carnegie Mellon also includes the development of investigationactivities in several aspect of information technology and communications, with a number ofinitiatives with Portugal Telecom, Nokia-Siemens and Novabase within the scope of the IndustrialPartners Programme having been particularly activated over the last year, which also includessome of the leading small and medium-size national technology based companies;Within the scope of the UTAustin-Portugal Programme (www.utaustinportugal.org) launched inMarch 2007, the main areas of the programme include: i) digital content, multimedia productionand distribution; ii) advanced computing; iii) maths and iv) commercialisation of science andtechnology, including the conception and implementation of new science and technology-basedbusiness projects The first tender for investigation projects in the areas identified was launched upMeasures continuing up to 201022

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notes(v) TIC’s, (vi) Contentand Digital Media and(vii) Commercialisationof Technology.to October 2008.It was decided to set up the first Fraunhofer Institute in Europe outside of Germany in Portugal,the first of its kind in Europe, to be installed at the Engineering Faculty of the University of Porto.Its director was selected and nominated and activities began in June 2008 with the perspective ofrecruiting a competitive and international base of around 30 senior-level investigators during thefirst phase. This Institute shall work in the Information Technology and Communications' areawith emphasis on Ambient Assisted Living, with the perspective also of setting up I&Dconsortiums and cooperation projects involving Portuguese institutions and Fraunhofer instituteson four topics: i) logistics; ii) biotechnology; iii) advanced production systems with application inthe automobile industry; and iv) nanotechnologies.Systematicreinforcement ofconditions forscientificinvestigation ofHigher Educationteachers andstudentsWithin the scope of theCommitment to Scienceinitiative (Apr 2006),amongst other measuresthe Government decidedto increase the number ofPhD and Post-PhD(already underimplementation) grantsby 60%, create aprogramme of invitedacademics with aprevision of totalling 50in 2009, create a PhDprogramme in clinicalinvestigation associatedwith the stages of themedical career with theaim of involving 300 PhDfinishers by 2009 andcreate integration ininvestigation grants (atrecognised I&D centres)for Master's and teachingdegree students (alreadyunder implementation inIn progressThe total number of advanced graduation grants being executed directly by the Foundation forScience & Technology has come to increase in recent years, reaching 6,250 grants in 2007, ofwhich around 4,900 are PhD grants and 1,350 post-PhD grants. Within this scope, the number ofnew grants allocated a years has seen a very expressive increase, rising by 77% in PhD grants and41% in post-PhD grants in the last two years.Within the scope of the promotion of scientific employment, support for the insertion of around720 new PhD's has already been contractualized with institutions of the national scientific andtechnology system, following on from tenders for programme contracts launched in 2006 and2008 by the Foundation for Science & Technology with the aim of supporting the contracting of atleast 1000 PhD level investigators by 2009.In 2008 two new reinforcement programmes for scientific and technological investigation havealready been launched by the Foundation for Science & Technology, envisaging: (i) support forthe integration of 5,000 students in investigation (at recognised I&D centres) from the initial yearsof higher education, and (ii) support for academics invited to carry out investigation at Portugueseuniversities.The Foundation for Science & Technology is currently financing around 4,940 I&D projects in allscientific areas, which corresponds to an increase of more than 800 new projects compared to2005. It is worth noting that in the last tender for projects launched by the Foundation for Science& Technology projects applied for financing in the amount of more than 600 million euros,corresponding to an increase in excess of 25% in the number of projects and 100% in terms offinance requested compared with the previous tender.Measures continuing up to 201023

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notes2006/07).Since the launch of the Commitment to Science in March 2006, four new Associate Labs havebeen created in the areas of Biotechnology (1), Energy & Transport (1) and Nanotechnology (2).Around 1,100 new projects to reinforce experimental teaching in science in primary and secondarylevel education and for Scientific & Technological Culture dynamisation actions have beenapproved and are being implemented by the Live Science Agency in the last year whichcorresponds to around 14 million Euros in public finance between 2007 and 2008.Make experimentalpractice inscientific andtechnical subjectsobligatory inPrimary &Secondary LevelEducation, andreinforce the LiveScience AgencyLaunch Live Scienceproject tenders for theexperimental teaching ofscience in primary andsecondary level educationand the dynamisation ofscientific andtechnological culture.In progressThe Live Science Network of centres has been extended and currently comprises a total of 16centres, 6 new centres of which have been inaugurated since 2005 representing an investment ofaround 8.3 million Euros. At least another 5 more new centres are scheduled to be added in 2008-09.The implementation during the last year within the scope of the Live Science Programme duringholiday periods of 856 secondary school level education student apprenticeships at around 70investigation and higher education institutions including for the first time the exchange of morethan 60 students between Portugal and Spain. This programme has already covered more than5,800 secondary school level students since 1997.Measures continuing up to 2010The mobilisation of thousands of Portuguese students during the summer in holiday activities suchas Astronomy, Biology, Geology, Engineering and visits to lighthouses, having involved in the lastyear around 136 institutions which ensured more than 2,300 advertising actions across the entirecountry. Around 17,000 Portuguese students enrolled online in these actions though the totalnumber of participants is far higher since lots of the activities do not require pre-enrolment.24

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesReplace the TaxIncentives Systemfor I&D Businesses(SIFIDE)Levy at least 20%of the value of thecontra entries ofmajor publicacquisitions in I&Dprojects andinnovation, and atleast 1% in budgetallocations fromthe LPMReplacement of theSIFIDE - System of TaxIncentives in BusinessInvestigation &Development.Reinforcement of theactivity of Investigation& Development (I&D) inDefence of internationalcooperative scope;Reinforcement of theactivity of Investigation& Development (I&D) inDefence of nationalscope; Reinforcement ofnational participation ininternational cooperativeprogrammes for thedevelopment andproduction of weaponsand defence equipment:CompletedIn progressThe replacement from 2006 of the SIFIDE – replacement from 2006 of the SIFIDE - System ofTax Incentives in Business Investigation & Development, revealed and a 50% increase in thenumber of candidatures compared with the same period of the last year in which it had been inforce.In a specific programme which involves Lockheed-Martin negotiated in 2008, 20% of the amountavailable for contra entries for I&D and innovation projects was included. In this sense the aimwas to integrate a project being developed by PIEP/University of Minho with the potential offuture ties with industry aimed at the development of high technology composite materials andtransversal use throughout the entire industry. In August 2008 the EH101 Helicopter Programmewas renegotiated in which 250m euro project is inserted for the creation of a technology centrewhere universities/companies shall acquire the capacity to conceive aeronautical components.Measures continuing up to 2010Measures continuing up to 2010Promote supportprogrammes forinvestigation inconsortiums andthe placement ofMaster's and PhDholders incompanies, andarticulate thecentres forvalorising I&Dresults as anetworkPromote supportprogrammes forinvestigation inconsortiums and theplacement of Master's andPhD holders incompanies, and articulatethe centres for valorisingI&D results as a networkIn progressOf the measures implemented to promote a new impulse in innovation the following stand out,which have enabled since 2005 the intervention of the Innovation Agency in more than 700 newcompanies:• Support for eight Excellence Networks involving dozens of companies and investigationinstitutions;• Completion of the Valorisation Centre Network which now covers all public universities andmost Polytechnic Institutes;• Creation of 190 I&D nuclei in companies;• Support for the contracting of PhD and Master's degree holders by companies which reached atotal of 354 PhD and Master's Degree holders in two hundred different companies;• Promotion of the Scientific Job Grant among companies which exceeded more than one thousandapplications;• Re-launch of support for Investigation in Consortiums,• Major success in support for the creation of new technology based companies.Measures continuing up to 201025

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesSupport anddynamise theparticipation ofcompanies andnational I&Dcentres intransnationalprojectsEnsure broadbandconnections in allschools across thecountry;promote theopening up of theschoolenvironment;facilitate the use ofcomputers at homeby studentsDuplicate thenetwork of InternetSpacesImplement theRCTS trunk(Science,Technology &Society Network)and extend itsconnections tointernationalnetworks (Geant2);Create a nationalAP securitynetwork anddevelop acomputing securitypolicyPromote the participationof companies and I&Dcentres in internationalknowledge networks tolaunch strategicpartnerships withinstitutions ofinternational excellenceBroadband connections inall schools across thecountry; promote theopening up of the schoolenvironment; facilitatethe use of computers athome by studentsDuplicate the network offree public access spacesto broadband Internetwith support fromspecialised personnelImplement the RCTStrunk and extend itsconnections tointernational networks(Geant2); Create anational AP securitynetwork and develop acomputing security policyIn progressIn progressIn progressIn progressIn partnerships with MIT, Carnegie Mellon University and the University of Texas Austin morethan four dozen companies are involved, most of the Associated Labs of the country and severalinvestigation centres of a high number of university institutions and in particular all publicuniversities. Measures continuing up to 2010Broadband connections in all public primary and secondary level education schools werecompleted in January 2006.Integration of ICT into educational activities and the training of ICT teachers was promoted.The acquisition of computers by students has been facilitated via IRS tax deductions from 1December 2005 to 31 December 2008.The acquisition of computers by primary and secondary level students and teachers has beenfacilitated by e-school and e-pre-school programmes. Measures continuing up to 2010The Internet Network Spaces was organised with the 1st Meet of Internet Network Spaces held inNovember 2006. this network has grown substantially including 1,170 Internet spaces of severaltypes: municipal public equipment in public libraries, social welfare institutions, Digital Inclusion Measures continuing up to 2010Centres, in Cities and Digital Regions, in Employment and Training Centres, in culture, recreationand sports centres, in computing clubs, in Live Science Centres.The bandwidth of international connections to scientific institutions of higher education has beenincrease by more than 8 times by the RCTS between July 2005 and July 2008 when it beganoperating at 10Gbps, and higher education was integrated into a single Virtual Campus with 5,000wireless access points. In 2006, the Lisbon-Braga connection increased to 10Gbps with theacquisition by FCCN of fibre optic cables, extended in 2007 to Porto-Viana do Castelo-Valenca,to the connection to Galiza, and in 2008 to Lisbon-Setubal-Evora-Portalegre-Fronteira do Caia, tocomplete a circular connecting ring of 10Gbps to the Geant2 European network via Spain.Within the scope of the RCTS a network and computer security (CERT.PT) response team hasbeen operational since September 2002, specifically those caused by viruses, Spyware and otherforms of intrusion. Until July 2007 this was the only computing security incident response team inPortugal which was internationally licensed, at which time another internationally licensed teambegan operations, namely at the Engineering Faculty of the University of Porto.Measures continuing up to 201026

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesServices with recourse to Citizen Card:- At this time 7 services are already available via the Citizen Web Portal, 3 of which areintegrated in the Web Portal (Teenager Card Applications, Online Certificate Applications andOnline Change-of-Address).Modernise PublicAdministrationwith thegeneralised use ofICT and create thepublic offer ofcitizenship InternetStimulateprofessionaltraining at all I&Dlevels in ICTAdoption of electronicgovernment systems;Simplified access;promoting cost-reduction;ensuringfree and no-cost access topublic services and thoseof public interest madeavailable on the InternetTraining in basic ICTskills, ICT technologyspecialisation courses,polytechnic anduniversity ICT trainingcourses, advanced ICTMaster's and PhD leveltrainingin progressServices withrecourse toCitizen Card:in progressServices ofthe Citizen'sWeb Portaland CompanyWeb Portal:in progressIn progressServices of the Citizen Web Portal:- Online Change-of-Address on Citizen Card will be available shortly, which will be added toaddress changes at the other 12 participating entities- Between May (beginning of new online services) and July 1,446 applications for online changeof-addresseswere received- During the 1st six months of 2008 97,273 online certificates were requested, at an average of16,500 a month- The Online Certificate customer care centre responded to 22,156 requests forinformation/complaints during the first six months- The customer care centre of the Citizen Web Portal and Citizen's Shop attended to an average of11,500 contacts a month- The Citizen Web Portal provides information and forms for more than 900 PublicAdministration services covering more than 150 entities- The number of users registered during the first half of the year rose to 342,767 of which 217,991subscribe to the newsletter.- The average number of visits is 3,500,000.Services of the Company Web Portal:- 21 integrated trans-activity services- Providing a range of information and forms for more than 500 Public Administration services- The average number of visits totals 1,100,000'Preparation of various forms available via the Internet; payment of licences, in particular forhunting and fishing is now possible via ATM machines; Sport Fishing license, Began on 1January 2007, operated (it is applied for and obtained) via the ATM network; a balanced measurewithin the scope of the simplification of Administration taking on an innovative character whetherfor the target public or Administration itself which incurred no additional costs with the newlicenses for this kind of fishing; the measure enables greater speed and quality of the serviceprovided, recognised by users themselves and it is possible to issue a license on the spot 24h/dayThe Technology Specialisation Courses (CET) provide non-higher education post-secondary leveltraining to level 4 and course conclusion with a pass grade is awarded a Technology SpecialisationDiploma (DET) which affords access to a Certificate of Vocational Aptitude issued within thescope of the National System of Vocational Certification. In 2006 there was a far-reachingreorganisation of the CET's relating to access, training structure, the possibility of allocating aDET subject to the assessment of skills acquired and conditions of entry to higher education forthose awarded diplomas. In August 2008 91 CET's were registered offered at higher educationinstitutions in ICT areas and created during the 2007-2008 period (35% of the total CET's in allareas), in 30 locations, involving 31 institutions with 71 courses being offered by polytechnics andBy the end of the year, newservices will be launched via thedematerialisation of forms.Licences: 'Began on 1 January2007, around 220 thousandlicenses were issued in the 1styear (2007) of which approx. 200thousand via ATM machinesMeasures continuing up to 201027

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notes21 by universities, 83% by public sector education and 17% by private sector and cooperativeeducation. These courses were distributed among the following topics: 17 in the Development ofMultimedia Products; 17 in Network & Computing System Installation & Maintenance; 8 inAutomation, Robotics and Industrial Control; 9 in Computing Applications in Management; 7 inInformation System Technology and Programming; 6 in Geographic Information Systems; 4 inSoftware Development & Systems Administration; 3 in Industrial Maintenance (Electronics &Automation); 3 in Mechatronics’ Technology; 2 in Electronics & Naval Automation; 2 in WebsiteConstruction & Administration; 2 in Electronic Systems & Computers; 2 in Telecommunications& Networks; 1 in each of the following areas: Automation and Industrial Instrumentation,Automation and Industrial Maintenance, Development of Information Systems, Electronics &Telecommunications, Network Management & Computing Systems, Computing, Local ComputerNetwork Project & Installation, Database Specialist Technician, Topography and GeographicInformation Systems. ICT courses offered at CET's have witnessed substantial expansion inrecent years given that in 2005 there were 32 CET's in 11 locations, 16 higher educationinstitutions and 8 themes.The number of PhD grants allocated by the Foundation for Science & Technology (FCT) hasprogressively risen reaching an increase of 77% compared to 2005 in 2007.28

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesCreate andpromote the use ofnew services andcontent via theInternetAvailability via the Webof informative,educational and culturalcontent of public interestDigital Libraries-Development ofdigitalisation and digitalediting actions -Development of advancedservices in digitalstorage.Development of advancedinteroperation, searchand content accessservices. Incrementingregistration, storage andcontent managementinfrastructure consistingof a set of cinema roomsconnected to a centralsystem via whichcinematographic works tobe viewed will beavailable in a digitalformat, enabling cinemato be taken to those leastprivileged from a culturalpoint of view, allowingany room in anygeographic location tojoin the same.Digitalisation andavailability of culturalcontent: Promote thedigitalisation andavailability, specificallyvia the Internet, ofcontent relating to mobilecultural heritage anddocument collections(specifically image banksand bibliographiccollections, archives, andIn progressDigital Libraries: 21,000 documents have already been digitalised, of which 9,563 documentsare already published online. 276 Master's degree theses and dissertations amongst others havealready been digitalised and are freely accessible online with their entire content and 2,536 withpartial content (registered via the Dited service). Within the domain of Old Portuguese Volumes,200 works have been totally digitalised and around 40,000 cover pages are also already available.The digitalisation of around 50 encyclopaedias and Portuguese dictionaries of the 19th Centuryhas already been completed, and is being organised for online availability. 280 thousand images ofPortuguese newspapers from the 19th Century have been digitalised and the respective processingand creation of consultation copies is in progress.Digitalisation of the photographic documentation of Retaulos de Evora has been completed,Consultation was carried out for the conception and development of an application to put theimage bank online and the technology platform is in the development phase.Cine Network consists of a set of cinema rooms connected to a central system via whichcinematographic works to be viewed will be available in a digital format, enabling cinema to betaken to those least privileged from a cultural point of view, allowing any room in any geographiclocation to join the same.In 2007: Digitalisation of the content of - No. of films – 10No. of cinema rooms - 4Availability of the website of the National Forestry Authority (AFN) and the MADRP,relevant technical information on forestry resources for sector agents with the aim of continuallyimproving the basic information required in decision-makingAvailability of the website of the Planning & Policy Council (GPP), relevant technicalinformation on agri-food sectors with the aim of providing economic agents with the basicinformation required in decision-making - Sector Diagnostics & IndicatorsAlentejo Culture Network: Online availability of "in memory" database on immaterial culturalheritage as well as communications produced within the context of the International Colloquium"O Canto a Vozes".Electronic promoting of Cultural Heritage: The database on medium and large-size culturalequipment from the northern region as well as existing cultural associations has been completed.Information System and technology infrastructure at IPPAR: Creation of the IGESPAR I/PInformation System for the production of content relating to archaeological properties and sites aswell as the respective digitalisation, georeferencing and disclosure on the Internet; acquisition ofcomputing equipment according to needs relating to the development of the new software.Creation of knowledge network at Public Libraries: General free public access to broadbandInternet at public libraries via the supply at each library of two computers and an Internetconnection in a WiFi environment; availability of content and services for citizens and library29

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notesmusic) to thoseassociated, within thecontext of theoptimisation of resourcesand the encouragement ofinnovation, withattractive user-friendlyproducts available to thepublic.Digital Cinema Network:Create a network ofcinema rooms with digitalcinema ("D-Cinema")distribution andexhibition technology.Virtual Workshop/Territorio ArtesProgramme:management andavailability ofinformation, onlinespectacle, atelier andexpo hiring platform,contractualization ofpriority channels ofinvestment between theMinistry of Culture (MC)and Municipalities.professionals via a web portal.Virtual Workshop/ Territorio Artes Programme: the Virtual Workshop (www.territorioartes.pt)is operational with three aspects: management and availability of information, online spectacle,atelier and expo hiring platform, contractualization of priority channels of investment between theMinistry of Culture (MC) and Municipalities.30

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesCreate a Forum forthe InformationSocietyUrban networksfor competitivenessand innovationCreation of a forum withthe participation ofcompanies, investigationinstitutions, highereducation institutions,public authorities andnon-governmentalorganisations as well asindividuals interested inactivities within the areaof the informationsociety, informationtechnologies andcommunications.Cooperation betweenneighbouring towns andcities, 15 regionalnetwork structuringprogrammes; 10 thematicnetworks to valoriseheritage and commonresourcesCompleted The Forum for the Information Society was created in March 2006. Measures continuing up to 2010In progressThis measure was included in the Regional Operational Programmes 2007-2013. In 2007 5 UrbanNetwork Preparatory Actions for Competitiveness & Innovation were launched. In October 2008,the first tender for the candidature of Strategic Programmes in town/city networks ends. TheseStrategic Programmes implement a strategy of cooperation and are the initiative of themunicipalities involved and other urban players taking part in the Network.See "Policy of Towns & Cities", Measures 2008-2010 See "Policy of Towns & Cities", Measures 2008-2010Partnerships forurban renovationCreation of newinstruments; Renovationof 20,000 apartments inparticular in themetropolitan areas ofLisbon and PortoIn progressThis Measure is reflected in:a) Incentive measures for Urban Renovation: creation of the Extraordinary Support Regime forUrban Renovation (EC 2008 Law); new Judiciary Regime of Urban Renovation (underpreparation).b) Integration in Regional PO's of policy document "Partnerships for Urban Regeneration". Withinthe scope of the first tender which was completed in 2008, 23 Action Programmes have alreadybeen selected prepared by Local Partnerships for Urban Regeneration. The second tender for theseAction Programmes is in progress (for urban centre structuring) and a tender for "isolatedoperations" in small centres.See "Policy of Towns & Cities", Measures 2008-2010 See "Policy of Towns & Cities", Measures 2008-201031

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesNew solutions forcity quality andfunctionalitySimplification andefficiency ofterritorial orderinginstrumentsDigital cities &regionsImplementation ofa high-speedrailway networkInnovative solutions inresponse to city problemsand urban demandsProgramme involvingamendments tolegislations,simplification,rationalisation andcoordination ofprocedures and technicaltraining.Fast access instruments toinformation and online -GETCID projectconsultation systemSupport for projectswhich promote a vision ofterritory based on the useof ICT, networkorganisation andknowledge.A competitive andsustainable publictransport system will bedeveloped between themajor national urbancentres and the IberianPeninsula, integrated intoa trans-Europeaninteroperable network.REFER/RAVE isresponsible for executingthis which shall beimplemented between2006 and 2015, and theinvolvement of projectdesigners, civil workscompanies and suppliersIn progressIn progressIn progressIn progressIn 2008 the first tender for Innovative Actions for Urban Development launched within the scopeof the Territory Valorisation PO was completed and 29 candidatures were presented. The selectionprocess of candidatures to be financed in progress.See "Policy of Towns & Cities", Measures 2008-2010 See "Policy of Towns & Cities", Measures 2008-2010Revision of territorial management instruments, bearing in mind their simplification, effectivenessand transparency. Amendment of REN Legal System. Start-up of SNIT.See SNIT/Territorial Ordering & Urbanism Web Portal, Measure 2008-2010The Digital Cities & Regions projects total 33 projects including 287 of the country's 308municipalities and covering 95% of national territory with a total investment of more than 200mEuros.April 2008 - Signing of the service provision contract with Calatrava Architects for the extensionand adaptation of the Oriente station to receive High Speed trainsApril 2008 – Resolution of the Council of Ministers (RCM) No.71/2008 - Government confirmsthe preliminary approval of the location of the Third Crossing of the Tagus River in the Chelas-Barreiro corridor, integrating the Valencias railway (high speed and conventional) and roadnetwork2 June 2008 - Launch of PPP Tender for the project concession, construction, financing,maintenance and availability of railway infrastructure of the Poceirao-Caia stretchSee SNIT/Territorial Ordering & Urbanism Web Portal,Measure 2008-2010Awarding of: PPP1 (Poceirao-Caia), PPP2 (Lisbon-Poceirao), PPP3 (Lisbon-Pombal), PPP4 (Pombal-Porto), PPP6 (signalling and communications) andRolling StockExecution of works start-up32

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesConstruction ofnew Lisbon airportof rolling stockequipment.Implementation of thisproject will enablePortugal to join theTrans-European HighSpeed Railway Networkin which interoperabilitythroughout the entireEuropean communityspace is assured. Thismobility shall bringimportant benefits in timesaving and costreductions in themovement of people andgoods between Portugal,Spain and other countriesin Europe.Construction of a newairport to replace thecurrent Portela Airportwhose capacity limit willbe reached within a 10-year timeline, andcommercial openingscheduled for 2017In progressDecision on final location, taken following Strategic Environmental Assessment Procedures of thelocations of Ota and Campo de Tiro de Alcochete (RCM 85/2008 of 8 May); Preventative soil usemeasures within the zone of influence of the new airport published (Decree No.19-2008 of 1 July);Conclusion of financial analysis of venture, 1st draft of Concession Contract and definition ofregulatory model (items currently under revision in the light of the new location and time taken).Conception of Urban Master Plan for New Lisbon Airport (NAL) in the CTA zone. Majorconsultants already selected (for Planning and Airport Conception, Finance and Legal). Tender forprivatisation of the ANA and Construction of the New Airport based on the Urban Master Plancurrently under development should be launched at the end of the first half of 2009. Developmentof the Statement of Environmental Impact (EIA) for NAL from the 2nd quarter of 2009Conclusion in 2010 (1st half) oftender to select the private sectorinvestor for privatisation of theANA and construction of theNAL within the zone of Campode Tiro de Alcochete (CTA).Signing of the ConcessionContract. Start of transfer ofmilitary installation from theCTA to free-up land plots.Continuation of theInitiative until 201733

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesDevelopment of theNational LogisticSystemReform ofautomobile taxationwithinternationalisationof theenvironmental,social andinfrastructure costsThe Portuguese LogisticalPlan is an integratedsystem that incorporates aplanned and regulatedstructure, in addition tothe enforcement of astrategical network oflogistical platforms (12logistical platforms and 2air freight centres) locatedin close relation to themain consumer /production centres and themain borders, dulyconnected to transportinfrastructures.Reform of theimplemented automobiletaxation process, it beingessentially characterisedby its integration into thenew tax systemcomponent for carbondioxide emissions, astaxable income.In progressIn progressPublication of the Decree-Law n° 152/2008, of 5 th August, that approves the Legal Framework ofthe National Logistics Platform Network.Preparation (in progress) of the “Logistical Portugal” sectorial plan.Start of the infra-structural ‘Castanheira do Ribatejo’ logistical platform building works.Start of the Poceirão logistical platform AIA Process.As of July 2007, the environmental component started to represent, on average, around 30% ofthe Vehicle Taxation system, with the other 70% belonging to the engine capacity component.However, aimed at complying with the Kyoto agreement; as of the 1 st January 2008, theenvironmental component started to represent 60% of taxation, with the other 40% therebybelonging to the engine capacity component. As a consequence, consumers started to opt for lesspolluting forms of transport, i.e.; those that have less CO2 emissions and have less cubiccapacity, which thus determined a loss in revenue of around 16% in relation to that budgeted.Continuation of the development ofthe National Logistic System,thereby highlighting:Opening of the first Castanheira doRibatejo industrial platform.Opening of the first Poceirãoindustrial platform.Conclusion as to the Leixões, Aveiroand Figueira da Foz platforminfrastructure work.Implementing the measures set out inthe OE 2009, aimed at reducing thenegative impact of the reform interms of taxation revenues andproviding continuity for theprogressive reduction of carbondioxide emissions.-It is relevant topoint out thatPortugal wasconsidered by theinternationalcommunity as oneof the mostprogressivecountries at carbondioxide reductionlevels within theautomobile sector,thereby becoming,inclusively, a “studycase”.34

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesEnergy EfficiencyPromotionCreate an energycertification and qualityguarantee system for theinternal air of buildings;Carry out disclosurecampaigns in unison withconstruction and housingcompanies and TownCouncils; Review theindustry's ManagementRegulations of EnergyConsumption (MREC) –in the wider sense ofpreparation of theNational EnergyEfficiency Action Plan(NEEAP); ImplementVoluntary Agreementswithin certain activesectors; Qualify andexpand public goodstransport by utilising alabour-saving process;Promote more efficienttypes of vehicles.In progress Created the National Energy Certification and Internal Air Quality of Buildings System (SCE) –(Decree-Law n° 78/2006).Publishing of the Regulations on Energy Acclimatisation Systems in Buildings (RSECE), aimedat improving energy efficiency in buildings and reducing the consumption of electricity and CO2emissions (Decree-Law n° 79/2006).Publishing of the Regulations on the Thermal Behaviour Characteristics of Buildings (RCCTE),establishing the rules to be observed in the project-planning of all residential buildings andservice buildings, those that do not have centralised acclimatisation systems (Decree-Lawn°80/2006).Published works: the Minister Council Resolution n° 80/2008, 20.05 – National Plan for EnergyEfficiency; Decree- Law n° 78/2008 – Intensive Energy Consumption Management System andadditional Regulations; and Decree-Law n° 108/2007 -12.04, that establishes the tariffs of highenergy efficiency lighting, and the Government Order n° 54/2008, which defines applicationranges and also n° 63/2008, that defines the value of the tariffs.National Plan of Action for EnergyEfficiency (PNAEE) – to achieve, by2005, an improved level of energyefficiency at 10% of the finalelectricity consumption, relative tothe final efficiency utilisation ofenergy and electrical services.Implementation of the IntensiveEnergy Consumption ManagementSystem that establishes the carryingout of obligatory-nature energyaudits, regarding installations withenergy consumption of equal to orgreater than 1000 tep/year, overperiods of six years and eight years,and installations with energyconsumption of equal to or greaterthan 500 tep/year, but less than 1000tep/year. Operators are obliged intopreparation of Energy ConsumptionRationalisation Plans (PREn),establishing the goals relative toelectrical and carbonic intensity aswell as to the specific consumptionof energy which, after approval, willbe designated as EnergyConsumption RationalisationAgreements (ARCE).Utilisation of windenergy and otherrenewable forms ofenergyIncrease the installedconversion capacity ofwind energy to 5100 MW;intensify the usage ofhydric potential andexplore the usage of otherrenewable forms ofenergy – biomass-basedenergy, bio-gas, wavebasedenergy, hydric,photovoltaic. Takemeasures conducive to theclarification andIn progressWind Energy (eolic energy): Launching of a bid that is aimed at increasing the installed capacityin Portugal of up to 5100 MW by the end of 2012. The 1st phase of the bid allocated 1200 MVAof connected power. The 2nd phase assigned 600 MVA of power. In 2008, the 3 rd phase waslaunched, to further assign 200 MVA.Forest Biomass: A bid was launched for the allocation of electrical production capacity at a totallevel of 100 MVA by 2010, bound for 15 forest biomass thermal centres. 21 MW have alreadybeen awarded (4 production units), predicting the further adjudication of 8 more units by the endof 2008.Biofuels: Transposed the Ministerial Order n° 2003/30/CE, of 8 th May, (Decree-Law n° 62/2006and n° 66/2006) and generated financial incentives for the production of biofuels via theexemption of VAT on products aimed at substituting conventional transport-based biofuels. AWind Energy (eolic energy): creationof an industrial cluster, with a totalinvestment of 1700 M €, creation ofaround 1500 job posts and theconstitution of a 35 M € fund forinnovations within renewable energyareas;Forest Biomass: an estimatedinvestment of around 225 M € andthe creation of around 700 jobpositions;Biofuels: Creation of industrial unitswith an estimated investment of 10035

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesUtilisation oflandfill biogas forthe production ofhydrogen batteriesfacilitation ofadministrative licensingmeasures.Improve the energyefficiency of the systemsthat utilise biogas thusgenerated from sanitarylandfill.In progresstarget of 10% biofuel incorporation into traditional road fuels was established in 2007, up until2010, at the same time as promoting national farming tiers based on biofuels. This was publishedin the Government Order n° 1554-A/2007 that defines the maximum levels of VAT exemptionfor the years 2008, 2009 and 2010.Hydric power: Strengthen the capacity of existing hydroelectric infrastructures so as to reach5575 MW of installed capacity in 2010, and also to reach, to the order of 70% of the utilisationof national hydric potential.Production of Electricity via Biogas: An established goal of 100 MW of installed potential aswell as a special rate for the production of electricity via biogas obtained through anaerobicdigestion.Wave Energy: Published in the Decree-Law n° 5/2008, which establishes the legal frameworkfor the utilisation of public maritime domain goods for the production of electrical energy viawave power.Photovoltaic: Granted the licence for the ‘Central de Moura’ establishment, having an installedpotential of 46.4 MW and a future production level of 56 GWh/year, including a globalinvestment of 250 M €. Includes the creation of a photovoltaic modules factory, the creation ofaround 100 job positions and the installation of a research laboratory; Awarded the licence forthe foundation of the 'Central de Serpa', with an installed potential of 11 MW and productionpredicted at being greater than 18 GWh/year, with an investment of 62 M €.Micro-generation: Promote the installation of 50,000 systems by 2010, with stimulus to installsolar-generated hot water in buildings. Published in the Decree-Law n° 363/2007, of 2 ndNovember, that establishes the applicable legal framework for the production of electricity bymeans of micro-generation units.Tenders for the allocation of national electrical network reception points for thermo-electricaland forest biomass centres.Algar and Amarsul projects:Civil Construction of the implemented Power-generator Centre; equipment in progress.Resulima Project:In progress. It is hoped that, in accordance with the latest information from AGNI (August2008), a definitive power usage solution will be fully established (with the integration ofhydrogen batteries) in April 2009.M €;Hydric: Authorised Reception Pointsfor 922 MW of new largeHydroelectric Centres, with anestimated investment greater than1000 M €;Wave Energy: Creation of a pilotzone with operating potential of up to250 MW for the technologicaldevelopment of new technologypilot-programs and the preparation ofthe regulatory legislation of therespective required authorizations(licences and concessions; ‘Centralde Moura’, a predicted productionoutput of 56 GWh/year, the creationof a photovoltaic modules factory,the creation of around 100 jobpositions and the installation of aresearch laboratory. ‘Central deSerpa’, a predicted output productiongreater than 18 GWh/year;Micro-generation: Simplify the legalframework of the licensing process,substituting the existing system for asimple registration framework,subject to technical complianceinspection. Creation of the Microproductionregistration system(SRM).It is hoped this will have a positiveimpact and a subsequent reduction onthe charges to be paid by Municipalinvestors in respect to the treatmentof solid urban residues, as well as inthe reduction of Greenhouse EffectGases (GEG) and contribution to theincrease of the Portuguese quota inrelation to power production throughrenewable/alternative sources.36

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesExecution of theStrategic Plan forWater Supply andWaste Water(PEAASAR II)Preparation andimplementation of theStrategic Plan for WaterSupply and Waste Water2007-2013 (PEAASARII).In progressWithin the scope of the Thematic Operational Programme of Territorial Enhancement (POVT) /National Strategical Reference Framework (NSRF) with the 1° tender for candidates for thepreparation and implementation of the Strategic Plan for Water Supply and Waste Water 2007-2013 (PEAASAR II),Recovery,Valuation andElimination ofDangerousIndustrial Waste(CIRVER)Installation of Recovery,Valuation and Eliminationof Dangerous IndustrialWaste Centres (CIRVER).In progressTwo CIRVER centres were completed and licensed in 2008, with anticipated entering into fullservice during the year 2008 itself, with 200 workers involved in the construction of theCIRVER centre and a subsequent (probable) creation of new local job positions.Development in the local tertiary sector as a subsequent response to an increase in the demandfor goods and services.Reduction in the social and economicdifferences between the differentnational regions, especially betweenthe Chamusca Council and the mostdeveloped regional and nationalareas.Creation of qualified jobs, therebyattracting the working population viathis high level of qualification;Diversification of local economicactivities, currently registering abasic level of involvement; Sectorialand regional modernisation in thedomain of environmental type supplyand service activities to companiesand private entities.Creation of around 105 directlyrelated job positions; Creation of atleast 160 indirectly related jobpositions.Reduction as to the dependency onregional employment in the farmingsector via the type of directly andindirectly related job positions thuscreated.Creation of local expertise.Maintenance of local demographicemployees or workers.Increase in local productive systemsby contraposition to the excessiveconcentration of investment andemployment in the coastal region.The capture of new investments forthe council.37

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesExtension of thePortuguesecontinentalplatform, inaddition to morethan 200 nauticalmiles (proposal)Extension of Portuguesenational jurisdiction andsovereignty rights overexisting resources in thecontiguous marine depths(an increase of around30%)In progressHydrographical exploratory studies were carried out in the Continental Portuguese region andaround the Madeira Archipelago, with around 95% of the same survey being carried out aroundthe Azores archipelago region. Exploratory seismic surveys are being conducted around theBanco de Galiza, SW of Madeira region and also around the SE region of the AzoresArchipelagos. This collection of data, whose coverage area surpasses 1.2 million squarekilometres, allows formal documentation to be prepared which thereby constitutes an extensionto the Portuguese Continental Platform proposal; documentation that will be delivered to theCommission of the Continental Platform Exterior Limit (COPLA), created under the sphere ofthe United Nations Convention on the Law of the Sea (UNCLOS), for May 2009. Twohydrographical complementary verification surveys will also go ahead, those specifically relativeto the definition of the entire 2500 metre bathymetric extension and additional areas of saturationin already selected areas, with complementary magnetism and gravimetric surveys also beingcarried out simultaneously.Implementation ofa new “seagovernance” modelCreation of a permanentstructure for topicsrelating to the sea;Maximise the utilisationof shipping routes.In progressAfter the adoption of the National Maritime Strategy (ENM) in November 2006 (RCM163/2006), the CIAM - Inter-ministerial Commission for Maritime Affairs (RCM 40/2007) wasthus created, with the objective of coordinating, accompanying and evaluating theimplementation of the ENM, thereby guaranteeing its union with other strategies, planning toolsand programs of markedly transversal scope.CIAM created a network of focal points for each permanent member, with the objective of, incollaboration with the Portuguese Task Group for Sea Affairs, preparing specific plans of actionthat are outlined in the National Maritime Strategy, as well as other points that are alsoconsidered relevant.38

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesDevelopment of theelectroniccommunicationssystem, withparticular emphasison the offer of"Broadband”digital terrestrialtelevision.Development of theelectroniccommunications system,with particular emphasison the offer of"Broadband” digitalterrestrial television.In progress(continuousmeasure –marketregulation)*.TheGovernmentOrder n°s207-A/2008 of25th February,207-B/2008 of26th February,the MinisterialOrder n°5266-B/2008of 26th ofFebruary, theMinisterialOrder n° 95-A/2008 of25th February,the Resolutionof the Councilof Ministersn° 12/2008 of22nd January,created thenecessaryframework forthe launchingof the publictender for theallocation offrequencyutilisationrights for thedigitalterrestrialtelevisionIncrease in the distribution of broadband services.Increase in competition within the broadband market.Reduction in the price of broadband access services.Increase in the services available in conjunction with broadband access services (triple-play).Increase in the speed of broadband services.Increase in the coverage of broadband access networks.Increase in the distribution of mobile broadband services.Growth of IP-TV.The launch of retail-based Naked DSL offers.SOURCES: ICP-ANACOM: Analysis of broadband access markets, quarterly Internet serviceaccess statistics, international comparison of broadband prices.DACA: Both of the tender procedures are currently within the analysis phase for each of theinterested parties whilst the tender Evaluation Reports are thus prepared. In the case of the AMultiplexer – the bidder is Portugal Telecom, whereas bidding for Multiplexers B to F arePortugal Telecom and AirPlus.Allocation of the enabling usage rights will shortly follow conclusion of the legal procedureprocesses.This process thereby gives form to the objectives enunciated in the Programme of the XVIIConstitutional Government, namely, equal access to digital television transmissions by anygroup of citizens, independent of their social or territorial status.Increase in the distribution ofbroadband services; Increase in thecompetition within the broadbandmarket; Reduction in the price ofbroadband access services; Increasein the services available inconjunction with broadband accessservices (triple-play).Increase in the speed of broadbandservices; Increase in the coverage ofbroadband access networks.Increase in the distribution of mobilebroadband services; Growth of IP-TV.The launch of retail-based NakedDSL offers.DACA: The following results /impacts are thus to be carried out:• Digital transmission for Internetaccess, without monthly sign-upcosts, on the part of the nationalgeneral public, thereby providing, atthe minimum, television programtransmission services via the currentterrestrial analogue system;• Stimulation as to the developmentand understanding of the InformationTechnology Society via coverage andpopularity of the terrestrial system;• Promotion of competition withinthe electronic communication sector,via the emergence of an alternativeplatform, for specific access todigital television;• More efficient utilisation of theradio-electric spectrum and liberationof the frequencies use by theanalogue system, ideally to beconcluded by 2012, as advocated by39

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notesbroadcastingservice, thecompany ICP-ANACOM, bydeliberationon 30thJanuary,therebyapproving thepublic tenderRegulation forthe allocationof the usagerights tofrequencies atnational levelfor theproviding of adigitalterrestrialtelevisionbroadcastingservice, towhichMultiplexer Awill beassociated.Simultaneously, it waspublishedthrough theGovernmentOrder n° 207-A/2008 of25th February,various communitarian instances;• The creation of suitable conditionsfor the development of new services;• Potential stimulus of the Portuguesecontent, application and equipmentindustry;40

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notesapproval ofthe publictenderRegulation forthe allocationof usage rightsto frequenciesat national andsegmentallevel for theterrestrialdigitaltelevisionbroadcastingservice and forthe licensingof thedistributionoperator, withthe objectivesof:a) theallocation offive frequencyusage rights,reserved forthe terrestrialdigitaltelevisionbroadcastingservice withinthe NationalFrequencyAllocationPlan (QNAF),correspondingto twonationalcoveragelevels, towhichmultiplexers B41

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notesand C will beassociated,and to threecontinentalterritorypartialcoveragelevels, towhichmultiplexersD, E and Fwill beassociated,and in callcases, havingthe SingleFrequencyNetwork(SFN) as theirbase, withinthe ranges offrequenciesidentified inthe annex ofthe B to FMuxesRegulationsTender.b) Licensingof thedistributionoperatorresponsiblefor televisionactivity, thusconsisting ofthe selectionandaggregation ofaccessservices thatare eitherconditional or42

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notesnonconditionalsubscriberprograms, aswell asprovidingpublicavailabilityvia theaforementioned terrestrialdigitaltelevisionbroadcastingservice.The fivefrequencyutilisationrights and theoperatordistributionlicence areallocated to asingle entity.The deliverydeadline forcandidatureentries forboth tenders,terminated at16:00 hourson 23rd April2008.43

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesRevision of theregulatoryframework for thecommunicationssectorRevision of the regulatoryframework for thecommunications sectorDRE:Analysis ofproposals forrevision fromthe EuropeanCommissionin progressCompletedDRE: Proposals for revision of the regulatory framework were submitted by the EuropeanCommission under the Portuguese Presidency, and their analysis was carried through to theSlovenian Presidency and, currently, the French Presidency.DRE: Proposals for revision areexpected to be adopted in 2009,so as to come into force in 2010or 2011.Transposition ofCommunityDirectives inrelation to theInternal EnergyMarket (Electricityand Natural Gas)Preparing nationallegislation establishingthe legal framework forthe internal energymarket.Published:- DL 29/2006, of 15 February, which transposed the principles of Directive 2003/54/EC – IEMand establishes the general bases for the organisation and functioning of the National ElectricalSystem (NES); DL 172/2006, of 23 August, which completes the transposition of the Directiveand develops the general principles of the organisation and functioning of the NES.- DL 30/2006, of 15 February, which transposed the principles of Directive 2003/55/EC – NaturalGas and establishes the general bases for the organisation and functioning of the Natural GasSystem (NGS); DL 140/2006, of 26 July, which completes the transposition and establishes thegeneral principles of the NGS.Corporaterestructuring of theenergy sector(through thecreation ofconditions for theestablishment ofintegrated gas andelectricityoperators)Restructuring the threemain businesses in thesector, in fulfilment ofResolution of the Councilof Ministers (RCM) no.169/2005, of 24 October,in such a way that there ismore than one relevantintegrated operator in theelectricity and natural gassectors.CompletedAn agreement was reached for the shareholder structure of Galp Energia enabling disposal, infavour of REN, of regulated assets for the reception, storage and transport of natural gas.Resolution of the Council of Ministers no. 85/2006 of 30 June was published, which authorisesREN to incorporate new companies, whose aim is to ensure the implementation of concessions forthe public transport service of natural gas under high pressure, of underground storage of naturalgas and the reception, storage and regasification of liquid natural gas, under the scope of theNational Natural Gas System.44

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesDrawing-up ofBasic Laws(Electrical Sector;Petroleum Sector;Natural GasSector)Setting up the nationallegal framework - BasicLaws for the electricity,natural gas and petroleumsectors.CompletedLegal framework of the sector:Three Decree-laws were approved (29, 30 and 31, of 15 February 2006), which establish thelegislative framework for the electricity, natural gas and petroleum sectors, defining, for eachsector, a coherent legal framework, aligning the principal strategic energy objectives of RCM no.169/2005 with the Community legislation.MIBEL–Development ofnecessary measuresfor its functioningCreation of IntegratedElectrical Energy Marketin the Iberian Peninsula,through the creation of aRegulatory Council;Termination of PowerPurchase Agreements(PPA); launching andrecognition ofOMIP/OMIClear as anintegral part of the marketmanagement body forfixed-term transactions.In progressThe Santiago Agreement was published by the Portuguese Parliament, creating the conditions forthe formal start of the Iberian Electricity Market.DL 240/2004 of 27 December published, which defined the conditions for the termination ofPower Purchase Agreements (PPA) and the creation of compensatory measures with regard to theposition of each of these contracts, amended by DL 199/2007 of 18 May.Approval of Government Order no. 643/2006 of 26 June, which amends Government Order no.139/2005 of 3 February (electrical energy marketers and external agents), to consider theperformance of the marketer of last resort under the scope of MIBEL and make the recognition ofSpanish producers, marketers and other agents automatic, who will no longer be considered asexternal agents. DGGE Ministerial Order no. 780/2007 of 16 January published, which approvesthe schedule for eligible auctions in 2007. Government Order no. 782/2007 of 19 July published,which recognises the management body for both daily and intra-daily MIBEL markets, under theterms of Art. 56 of D.L. no. 172/2006 of 23/08 and establishes the special rules for energypurchasing within the scope of international agreements signed by marketers of last resort,provided for in Art. 51 of Decree-law no. 264/2007 of 24/07 published by MEI (Ministry ofEconomy and Innovation), altering DL nos. 204/2004 (Art. 14 and 15) and 172/2006 (Art. 55 and70), stipulating a set of measures aimed at the implementation of a new stage in the applicationand furthering of MIBEL. Ministerial Order no. 27332/2007, 04/12, ERSE, approves the jointrules for contracting interlink capacity. Government Order no. 57/2008, 11/01 (MEI), defines therules applicable to the sale of electrical energy under the Virtual Electrical Energy ProductionCapacity Auctions format. Ministerial Order no. 2838/2008, 05/02 (MEI), concerningauthorisation to participate in the Virtual Electrical Energy Production Capacity auctions forsellers who operate within the scope of MIBEL. Between Jun/Sept 2007, the first virtual capacityauctions were held, on the Portuguese side, organised by REN Trading. The 3 rd and 4 th auctionswith REN Trading and EDP Gestão Produção Energia, SA. have already been held in the 1 stquarter of 2008.Measure to be carried through tothe 2008-2010 period.45

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesBring the timetablefor theliberalisation of theNatural GasMarket forward tobe completed by2008Bring forward thetimetable for theliberalisation of the GasMarket as provided for bythe derogation previouslygranted to natural gas,advancing the deadlinefor domestic consumersby two years and thedeadline for industry byone year. Preparing thelegislative framework setout in D.L. no. 30/2006 of15 Feb.CompletedDL 140/2006 26 July, published, which sets out the general principles for the organisation andfunctioning of NNGS, approved by DL 30/2006 of 15 Feb. and which completes the transpositionof European Parliament and Council Directive 2003/55/EC of 26 June 2003.The following Government Orders were published: 1. Government Order no. 929/2006, of 7September, which approves the draft licence to freely sell natural gas; 2. Government Orders nos.930/2006 of 7 September, and 1295/2006 of 22 November, which approve the draft licence to sellNG as last resort sales company; 3. Government Order no. 1296/2006 of 22 November, whichdefines the requirements for local public service NG distribution licences through the operation oflocal grids, respective transmission and operation rules.The following RCMs were published: 105/2006, 106/2006, 107/2006, 108/2006 and 109/2006, of23 August.Improvement ofthe Port regulationsystemThe aim is to improve theregulation of the portsystem, so as to enableand foster competitivepractices that benefitexternal commerce. Itwill have as associatedmeasures the drawing upof the framework law forthe concession of portfacilities for public andprivate use, therestructuring of docklabour, the flexibilisationof Customs practice in theuse of Portuguese Portsand the encouragement ofnew information andcommunicationtechnologies in the ports.In progressThe Sole Port Window is already working and will be in full operation in all main ports by the endof 2008.Continuing development of workto improve regulation of the portsystem, specifically through theentry into force of the Law onPorts and its implementation-46

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesContractualisationof public transportservicesContractualisation ofpublic transport servicethrough the signing ofPublic Service ProvisionContracts, preceded bytenders, aimed atregulating in a transparentmanner payment for theprovision of publicservice required frompublic and privateoperators. It is thusexpected to achieve theeconomic balance of theoperation of publictransport services,enabling thestrengthening of theirquality and making themdemand-orientated.In progressGeneral approval of the legislative proposal that approves the legal system of the Lisbon andOporto Metropolitan Transport Authorities in July 2008Conclusion of the revision of theregime that establishes the legalframework for the contracting ofpublic passenger transportservices, taking into account thepattern established by EuropeanParliament and CouncilRegulation (EC) no. 1370/2007 of23 October 2007, with regard topublic road and rail passengerservices.In the metropolitan areas, thisnew regime should take intoaccount the creation of theMetropolitan TransportAuthorities. The new contractingregime also involves the revisionof the Vehicle TransportRegulations (VTR), in force since1948.-47

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesImplementation ofa technologicalplatform for theconstruction sectorThis measure includes:- the creation of atechnological supportbase for on-line publictenders- dematerialisation oflinks to be carried outwith the public servicesinvolved in licensingprocedures- enabling consultation,by consumers, of theproperty identity card,resulting from theredefinition andsimplification of thecontent of the TechnicalDescription of theBuilding (FTH)- links to the EuropeanConstruction Platform, tohelp in the raising offunds available in theNSRFIn progress-Definition of the structuring phase and of the terms of reference of the Portuguese ConstructionTechnological Platform (PTPC) integrated in the European Construction Technological Platform.This was presented on 11 February last, at Batalha Monastery, by the Minister for Public Works,Transport and Communications and by the Secretary of State for Science, Technology and HigherEducation.-Presentation, in December 2007, of the legislative proposal for the creation of the PropertyIdentity Card (BII).-Development of a strategy forimplementing the PTPC, toensure the participation of thecompanies in the sector.- Conclude the connections withdatabases from other ministriesand the exchange of information(social security, finance, justice)in order to have a simplifiedprocess to request the activityprocedures.- Complete the implementationof the integrated system ofmanagement of InCI, in order toreceive and analyse theinformation received.48

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesRevision of theregulatoryframework of theconstruction andreal estate sectorThis measure includes:- Register of real estateagents and the creation ofan insurance for structuraldamage to property- Regulation ofcondominiumadministration activity- Revision of the legalregime for construction- Centre for Mediationand ArbitrationIn progress- To start the reformulation process of the legal framework of construction and real estate sector,in order to have a regulation in the chain-value of the sector. There have been identified theactions needed to implement the regulatory rules, as well as the changes needed to stimulate thedevelopment of the sector and the simplifications of procedures, reinforcing the monitorizationand fiscalization of the activities and the protection of consumer rights.- It was made the analysis of the legislation of the construction activity in Europe, and it has beendesigned a plan with the following activities:a) Reformulation of Decree-Law 12/2004 of 9 January – Legal framework for the granting ofconstruction licences;b) Reformulation of the DLaw 211/2004, 20th January, that regulate the real estate activityc) Creation of the legal framework to real estate promotion activity;d) Regulation of property development and condominium administration and managementactivities;c) Creation of a legal framework for property evaluators.- It was started the procedures to create and implement the Centre for Mediation and Arbitration,and the documentation is under preparation to officially incorporate the Association that willcreate and manage the Centre, which will later be decentralised with the opening of regionaloffices.- In preparation the legal framework of real estate ID Card- In preparation the Electronic Book for constructions, following the Legal Regime forUrbanization and Construction (Law 60/2007, 16th December), that with involve part of theinformation about the specifications of the construction that is in the FHT.Approval of the legal frameworkof construction and real estatesector, that will involves the:Reformulation of Decree-Law12/2004 of 9 January – Legalframework for the granting ofconstruction licences;b) Reformulation of the DLaw211/2004, 20th January, thatregulate the real estate activityc) Creation of the legalframework to real estatepromotion activity;d) Regulation of propertydevelopment and condominiumadministration and managementactivities;c) Creation of a legalframework for propertyevaluators.- Implementation of the Centrefor Mediation and Arbitration- Approval of the legalframework of real estate ID Card- Approval of the ElectronicBook for construction49

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesGradual controlledliberalisation ofpostal services **The concession contractof CTT with the Statewas agreed, to reflect EUregulations concerningliberalisation.In progress.DRE:Directive2008/6/ECthat totallyliberalises thepostal marketfrom 31December2010 has beenadoptedA) Publication on 27/02/2008 of Directive 2008/6/EC, which alters Directive 97/67/EC,anticipating the total liberalisation of the market by 31/12/2010.B) Publication in 2007 of a study made by Accenture for ICP-ANACOM on the development ofcompetition in the Portuguese postal market***.C) In July 2008 new Agreements for universal postal prices and quality of service were signedbetween CTT and ICP-ANACOM, in force from 2008 to 2010.DRE: A Common Position on the Postal Directive was obtained under the Portuguese Presidency.Transposition of Directive2008/6/EC for the totalliberalisation of postal services by31/12/2010 (includingspecifically: setting of date fortotal liberalisation in Portugal andfor universal service obligationsfrom that date; assessment of itsnet costs and funding regime;postal operator statute; conditionsof access to the public postalnetwork; protection of theinterests of citizens andconsumers).* The most recentdevelopmentsshould be noted:- Launch of publicconsultation on theregulatory approachto the new accessnetworks;- Issuing of draftdecision on theanalysis of thebroadband accessmarket;- Implementation ofNaked DSL;- Decision onlimitation ofnumber of rights forusage offrequenciesreserved forbroadband accessvia radio (BWA) inthe frequencybandwidths 3400-3800 MHz and onthe respectiveprocedure forallocation.** Note: Thisreference to theconcession contractwith CTT could berelative to thetransposition in2003, via DL116/2003, ofDirective2002/39/EC thatamends Directive97/67/EC withregard to theopening up to50

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesConclusion oftransposition ofCommunityDirectives relatingto the Action Planfor FinancialServicesActing onincompletesegments of themarket through thereinforcement ofthe capacity forintervention by theGuarantee Fundfor CreditSecuritization, theVenture CapitalTransposition ofDirectives:- Prospectus Directive:Transposed;- Market Abuse Directive(total 4 Directives):Transposed;- Pension FundsDirective: Transposed;- Distance Marketing ofFinancial ServicesDirective: Transposed;- Financial ConglomerateDirective: Transposed.Mobilising public funds(FSCR, FCGM andFGTC) and inducing theirrelationship with thefinancial system for theallocation of savings toSME investment.In progressCompletedProspectus, Market Abuse (total 4 Directives), Pension Funds, Distance Marketing of FinancialServices and Financial Conglomerate Directives transposed.Completion of the 1st operation of credit securitization supported by FGTC and the application ofresources freed up in new credits to SMEs.Energising the Mutual Counter-Guarantee Fund and the Syndication Fund through the FINICIAProgramme (small scale operations in their start-up phase).competition of theCommunity postalservices, given thatPNACE 2005/2008refers (on page 31)to this DL.Alternatively, itcould be in relationto the alteration ofthe concessioncontract associatedwith DL 112/2006,which introducedalterations to theconcession Bases(without, however,altering the phasesof liberalisation).The transposition ofDirectives onmoney launderingand terrorismfinancing is inprogress.51

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesSyndication Fundand the MutualCounter-GuaranteeFundRationalisation andbroadening of thepre-school network(including earlyhealth interventionprogrammes)Programme ofSensitisation to theEnglish Languagein primaryeducationMonitoringProgramme formathematicsteachers (of the 1stcycle of compulsoryeducation)Programme ofexperimentalteaching of scienceand sensitisation tothe use of ICT inprimary andsecondary schoolsGuaranteeing that 100%of 5-year old childrenattend pre-schooleducation in 2009, aimingat a coverage of 90% ofchildren between the agesof 3 and 5 by 2010.Generalising the teachingof English from the 1stcycle of compulsoryeducation, covering allstudents in this cycle by2009Monitoring Programmefor mathematics teachers(of the 1st cycle ofcompulsory education)Sensitisation to the use ofICT in primary andsecondary schoolsIn progressIn progressIn progressIn progressAcademic Year 2007/08 – pre-school attendance: 92% of children aged 5 and 77% of childrenbetween 3 and 5;Academic Year 2007/08 – English offered to 98.5% of students in school Years 3 and 4 and to51.2% of Years 1 and 2 students (for these two years of schooling, English is compulsory from theAcademic Year 2008/09);Continuing training and monitoring of 6000 teachers in 2006/2007. Teacher training is beingcarried out with the support of tutors from Universities and Teacher Training Colleges and isdelivered in-service in primary schools.Launching of continuous training programmes for teachers of the 1st cycle of compulsoryeducation in areas of experimental science teaching (in 2006/2007); reinforcement of interventionby the Live Science Agency in primary and secondary schools to strengthen the experimentalteaching of science and twinning with scientific institutions (2007). Programme of Sensitisation toExperimental Science Teaching in Primary Education52

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesNationalPortugueseLanguage ReadingSchemeLaunch of NationalReading Scheme;Continuing trainingprogramme in PortugueseLanguage, aimed atteachers in primaryeducation; Interventionby Ministry of Culture,fundamentally in publiclibraries and other nonconventionalreadingplaces, seeking to reachstudents and the generalpublic.Launching of nationalprogramme for assessingprimary and secondaryschoolsIn progressThe “National Network for the Promotion of Reading” project aims, through a technologicalplatform, to disseminate, specifically, guidance techniques and instruments, reading suggestions,good practice in reading incentives and also wishes to mobilise institutions and reading mediators,activating qualitatively and technically superior mechanisms of articulation between the variousagents who work in the field of promoting reading.Consolidation of the DGLB site(General Direction of the Bookand Libraries) with the portal ofthe Public Library Network.Primary andsecondary schoolsassessmentprogrammeNew OpportunitiesInitiativeMaking Year 12 theminimum training frameof reference for all youngpeople, investing, in thecase of young people, inthe strengthening ofvocational training withdouble certification and,in the case of adults, inthe expansion of theprovision of Educationand Training Courses andon the broadening of theRVCC System.In progressIn progress397 schools/groupings – 24 in the pilot phase; 100 in 2006/07 and 273 in 2007/08 – have alreadybeen assessed as part of the process of external evaluation of schools. In 2008/09, 291schools/groupings will be evaluated.Young people:Primary education (2007): about 44,129 young people enrolled in double certification courses,increase in vacancies in Education and Training Courses (CEF) through the existence of 2,090courses (800 more than in the previous academic year).Secondary education (2007): 120,764 young people enrolled in double certification courses.Adults:Since the start, the Initiative has reached about 516,000 adults, 161,683 of whom have finishedtheir school certification.Between 2007 and August 2008, 447,774 applicants enrolled in New Opportunities Centres, ofwhom 92,351 obtained a school certificate. Of these, 4,021 people obtained a secondary levelcertificate.More than 500 protocols and cooperation agreements have been signed with the aim of mobilisingemployers and workers (about 600,000 people) for the qualification effort.2008 saw the broadening of the RVCC processes to secondary and professional skill levels.In 2007, the professional RVCC was tested in 16 professional job profiles in 43 IEFP Centres ofProfessional Training, and it is estimated that from 2008, this programme will be progressivelyextended to all professional job profiles contained in the National Qualifications Catalogue andoperating as a nationwide network of Centres.Strong expansion of the network of New Opportunities Centres (NOC), with about 457 Centres,considerably surpassing the target set for 2008 (157 more than expected).Existence of double certification training provision for adults outside working hours in mostNOCs.Vocational Education/Trainingat secondary level (doublecertification):- no. of young people enrolledin 2010: 145,000- no. of young people coveredfrom the start of the initiative upto 2010: 650,000Vocational Education/Trainingat primary level (doublecertification):- no. of young people enrolledin 2010: 27,500- no. of young people coveredfrom the start of the initiative upto 2010: 112,500Broadening of ProfessionalTraining to public secondaryschools: Total of newprofessional courses created fromthe start of the initiative up to2010: 450'Recognition, Evaluation andCertification of Competences53

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesScheme”:- no. of adults awardedcompulsory schoolingcertification in 2010: 75,000- no. of adults awardedsecondary school certification in2010: 125,000- Total no. of adults awardedcertificates from the start of theinitiative to the end of 2010:650,000Adult Education & TrainingCourses- no. of adults awardedcompulsory schoolingcertification in: 42,000- no. of adults awardedsecondary school certification in2010: 65,000- Total no. of adults awardedcertificates from the start of theinitiative to the end of 2010:650,500No. of New Opportunities Centresin 2010: 50054

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesFormalisation ofthe BolognaProcess and reformof higher educationImplementing theBologna Process andreform of highereducationIn progressAfter the presentation of the integral regulations at the beginning of 2006, which envisaged theadaptation of higher education in Portugal to the Bologna process, covering initial training coursesthat offered places to students in the academic year 2007-2008, about 90% were organised inaccordance with the principles of the Bologna Process (public and private higher education).The opening up of higher education to new publics, through the new regime of access to over 23-year olds, meant an increase in the number of adults entering higher education to about 10,850 inthe academic year 2006-07, further increasing to 11,775 in the academic year 2007-08, comparedwith about a mere 900 adults who began their higher education studies in the academic year 2005-06.In the context of attracting new publics to higher education institutes, too, there has been aparticularly relevant increase in the number of Technological Specialisation Courses (CETs)operating in higher education institutions, as well as the total number of new students on thesecourses, which has reached a total of more than 4,800 new students admitted in 2007 (whereas itwas little more than 1,000 in 2005), for a total of about 150 courses delivered in higher educationinstitutes.The implementation of the higher education student loans system with mutual guarantee shouldalso be noted, secured by the State, formalised in September 2007, which complements theeducation welfare scheme for students in higher education, and the broadening in scope of theawarding of non-returnable study grants to students enrolled on technological specialisationcourses and masters degrees, promoting new conditions for access to, and attendance at, highereducation on the part of all students.The loans system launched by the Government at the end of 2007 covered more than 3,100students at the end of the first academic year (2007-2008), and has surpassed all initialexpectations. At the same time, it has been recognised internationally, namely by assessors whoanalysed the Portuguese education system for OCDE in 2006/07, as innovative and suitable for theneed to strengthen higher education in Portugal and in Europe.During 2007-2008 the reform of higher education was continued, based on the implementation ofa set of central reform measures resulting from the recommendations of OCDE and ENQA,following evaluation studies carried out by these international institutes in 2006, specifically:• The new Legal Regime for Institutions of Higher Education (RJIES).Measures will continue until 201055

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps Notes• The new Legal Regime for the Evaluation of Higher Education (RJAES).• The creation of the Higher Education Evaluation and Accreditation Agency.• The new Regulations for Change of Course, Transfer and Re-entry into Higher EducationRegimes.• The new legal regime for the recognition of foreign higher degrees.• The implementation of a monitoring mechanism for progress in the formalisation of the BolognaProcess.• The simplification and de-bureaucratisation of procedures and flexibility in access to highertraining.In particular, note the implementation of the new Legal Regime for Institutions of HigherEducation (RJIES) for higher education institutes, which has been successfully effected andaccording to expectations, namely that all processes of preparation and approval of new statutesare in their closing stages, and the new schemes of governance in all institutions will follow.Reinforcement ofeducation systemand LifelongLearning (LLL)Reinforcement ofeducation system andLifelong Learning (LLL)In progressAmendment to the Basic Education System Law and the Basic Higher Education Funding Law, toadapt them to the needs imposed by the “Bologna Process”; See New Opportunities InitiativePromote ICT skillstraining andcertificationIncrease ICTqualifications. Increasethe no. of people withBasic Skills Certificates;creation of a ICT SkillsCertification System,expanded to higher levelsthan the Basic SkillsCertificatesIn progressMore than 636,000 basic skills certificates in ICT have been awarded, about two thirds of themsince the beginning of 2005. The majority of around 800 ICT Basic Skills Certificate awardcentres operate in Higher Education Institutes, Primary and Secondary Schools, Live ScienceCentres, Internet Spaces and Centres for the Dissemination of Information Technology.Measures will continue until 201056

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesAction Programmefor unemployedyoung peopleunder 23Action Programmefor unemployedpeople with higherlevel qualificationsTo improve the level ofcompetence/qualificationof young people andincrease theiremployability,guaranteeing allunemployed youngpeople without Year 12completion certificate aresponse within 3 monthsof registering asunemployed, aiming atputting them on a path toeducation or training, andfor young people with aYear 12 completioncertificate offering thememployment incentivesTo facilitate the transitionto active life and improvethe integration of youngpeople into the job marketand bring their skillscloser to the needs ofcompanies, guaranteeingto all a response betweenOctober and December ofeach year, emphasisingimmediate employment,work placements, atraining course or supportin the creation of theirown job.In progressIn progressBetween 2005 and 2007 about 134,000 individuals were supported, corresponding to aninvestment in the region of 413 million Euros. In the final quarter of 2007, all young people weresummoned who had no defined PPE (Personal Career Plan) nor had been referred elsewhere, tofind a more suitable situation.Between 2005 and 2007 76,000 qualified people were supported, an investment in the region of190 million Euros2010 aim: physical: 135,000people; funding: 422,000,000€2010 aim: physical: 108,000people; funding: 237,000,000€57

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesActive agingAction ProgrammeParticipation ofwomen in activelifeTo increase the rate ofemployment amongstolder workers, through anarticulated set ofmeasures aimed atdiscouraging earlydeparture from the jobmarket, enhancing andpromoting the know-howof older workers andpreventing and fightingagainst theirunemployment.To increase the rate ofemployment of womenfrom 61.7% in 2004 to63% in 2008.This measure includes:- Financial support foractive employmentmeasures that integratethe general, specific andterritory-basedProgrammes forprofessions noticeable forgender discrimination;- Re-analyse the contentof collective agreementsfrom a gender point ofview; improve familysupport servicesIn progressIn progressOf special note: (i) amendments resulting from the legislative proposal on the reform of LabourLegislation, like, for example, up to 3 years’ exemption and/or 50% reduction in employer’scontributions to social security for hiring without time limit workers of 55 years old or more; (ii)legal regime of protection in invalidity and old age (Decree-Law no. 187/2007 of 10 May), withthe introduction of the sustainability factor, an alteration to the rules concerning retirement ageflexibility, allowance mechanisms for pensioners remaining on the job market and the accelerationof the transition process to a new formula characterised by the strengthening of the contributivityprinciple; and (iii) measures arising from the implementation of the Basic Social Security Law,namely pension bonuses to those who remain active beyond the age of 65 and until the age of 70and the possibility of accumulating invalidity and old age pensions with wages.Of note is the Support for Female Entrepreneurialism (POEFDS) aimed at supporting the creationof support networks for women entrepreneurs and training adapted to the creation andconsolidation of micro-companies and SMEs, with an emphasis on access to self-employment.This measure focuses on the approval of training/advisory actions, aiming to create, develop orconsolidate micro-companies and SMEs managed by women. Up until 2007 (November) around142 projects were approved, corresponding to an investment in the order of 9,889,484€. At thesame time, about 3,728 women underwent training actions and about 1,050 were given advice. Itshould also be noted that about 387 women were effectively helped to set up a company.58

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesInclusive MarketAction ProgrammeProfessionaltraining andemploymentprogramme fordisabled peopleAction Programmefor unemployedimmigrantsTo favour the integrationof members of the publicwith special difficultiesand at risk and/or in asituation of exclusion,calling up and adjustingmeasures such asoccupationalprogrammes, insertioncompanies andmicrocredit andpromoting their specifictraining, through theprovision and adaptationof double certificatetraining opportunities.To favour the publicintegration of disabledpeople, through thereinforcement ofemployment and trainingmeasures that aim at theprofessional rehabilitationof disabled people.To favour the integrationof immigrants fightingsocial and employmentdiscrimination, aiming tocreate better conditionsfor professional (re)insertion, promotingtraining in basiccitizenship andPortuguese languageskills and perfecting themechanisms forrecognising, evaluatingand certificating skills ofimmigrants andpromoting theirprofessional placement.In progressIn progressIn progress47,800 people and 118.3 million Euros (2005-2007).36,900 people and 191.4 million Euros (2005-2007).Action Plan for the Integration of Disabled or Incapacitated People (2006-2009).23,500 people and 13.5 million Euros (2005-2007).Immigrant Integration PlanAction Programme for theinclusion of all in the labourmarket - Inclusive EmploymentMarket (IEFP) - 2008-2010target: physical: 153,000 peopleand funding: 396,000,000€Action Programme for theinclusion of all in the labourmarket - disabled people (IEFP) -2008-2010 target: physical 46,000people and funding:216,000,000€.Action Programme for theinclusion of all in the labourmarket - unemployed immigrants(IEFP) - 2008-2010 target:physical 38,500 people andfunding: 38,000,000€.59

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesAction Programmefor employersModernisation andreinforcementProgramme forPublicEmploymentServiceRapid,PersonalisedIntervention UnitsRe-training andconversion for newprofessional areasStrengthen therelationship between thePublic EmploymentService and companies,through theencouragement of a newworking methodologybetween the PES andemployers, with a view toproactive management ofa client portfolio.In the framework of thisProgramme emphasis hasbeen given to adiversification of serviceprovision channels,reformulating theirmodel, and aiming, in thisway, to respond to thegrowing level of demandand autonomy of currentand potential users.The development ofpreventative or remedialactions for companies andworkers involved inrestructuring processes,through the application ofvarious employmentpolicy instruments and/orsocial protection.Action Programme forthe unemployed withhigher levelqualifications; Advisory-Training Programmes;Consolidation of EURESnetwork, in supportinstruments forgeographic mobility.In progressIn progressIn progressIn progressAction Programme with Employment Bodies (IEFP) - In 2007 about 17,600 visits were made tocompanies.Introduction of working instruments: (a) the IEFP NET Emprego project that incorporates varioussegments, namely: electronic kiosks, multichannel contact centre, SMD services, electronicapplications service, among others; (b) the Information and Management System in the field ofEmployment (SIGAE); e (c) the Action Programme for Employers.At the beginning of June 2008, the portal made available 6,082 jobs corresponding to 4,643 offersof work, amongst 95,332 available applicants.In 2007 and until April 2008, 6 interventions in 4 companies were registered, involving a total of1,577 workers. In the period from 2005 until April 2008, 24 RPNIs were recorded in a total of 21companies, involving 5,925 workers.ContinueContinueContinueAction Programme for the unemployed with higher level qualifications: From 2005 to 2007,76,000 qualified people were supported and an investment was made of around 190 million Euros.Advisory-Training Programmes (2007): 14,259 SMEs supported by advisory actions; 5,853 SMEssupported in Training actions. Continue60

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesReform of labourrelationsAutomation of theguaranteedminimum incomeIGT (General LabourInspectorate)Programme againstundeclared andillegal employmentRe-assess the labourCode and stimulate workcontracting, aiming atpromoting social dialogueand collective negotiationso as to re-energise thecollective bargainingsystem.Substitution of theNational Minimum Wageas the reference forupdating and calculatingMinimum Pensions by anew Social SupportIndex, and theestablishment of newrules for updatingpensions, which cease todepend on a politicaldecision and move tobeing automatically setaccording to theeconomic climate, underterms to be established byact of law.Inspection services actionconcerning undeclaredemployment is essentiallyfocused on bringingundeclared workercontracting into line withthe law with regard to:a) Reporting on theemployment contract ofworkersb) Declarations to SocialSecurityc) Requirements forhiring foreignersd) Making inductionmedical examinationse) Payment of legalwagesIn progressCompletedIn progressTripartite Agreement for a new Regulatory System for Labour Relations, Employment Policiesand Social Protection in Portugal, signed between the Government and Social Partners (exceptCGTP-IN) on 25 June 2008.Implementation of the new Basic Social Security Law, (Law no. 4/2007 of 16 January) which,amongst various amendments, introduces the following: the sustainability factor, the new formulafor calculating pensions; new updating mechanisms for pensions; reinforcement of incentives foractive aging; the convergence of special social protection regimes and the reinforcement ofmechanisms to prevent fraud and fiscal evasion, contributing to an improvement in the financialsituation of the social security systems and benefiting the long-term sustainability of the publicpurse.Implementation of Law no. 53-B/2006 of 29 December, which set out the Social Support Index(IAS).In 2007, a global amount of 4,421,622€ was established in favour of Social Security and12,032,380€ was established in salaries owed to 8,177 workers, largely pertaining to undeclaredemployment. As for bringing the hiring of workers into line with the law, 47,900 companies wereinspected between 2005 and 2007, and the employment situation of 11,495 workers was settled, ofwhich: 7,950 had an illegal fixed term contract, 1,840 had an illegal temporary contract, 402 had asham contract and 1,303 were undeclared workers. The total amount of fines and penalties appliedamounted to 13,480,560 Euros.Continue (see new measures)CompletedContinue61

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesNationalPrevention ActionPlanRevision of theprotection againstunemploymentregimeTo improve workingconditions, particularly interms of health, hygieneand safety at work andsubstantially reducingworkplace accident ratesand occupationalsickness, through a globalpolicy of prevention ofprofessional risk andfighting accidents.▪ Alteration of theUnemploymentProtection Regime▪ Implementation ofSocial Security Direct;▪ Dematerialisation ofCertificates of TemporaryIncapacityIn progressCompletedIn 2007 the following were developed, amongst others: i) Reinforcement of the implementation ofprevention services in companies – by the end of 2007 there were 72 authorised bodies, of which17 were authorised to provide services in the field of Safety, Hygiene and Health at Work, 50 inthe field of Safety and Hygiene at Work and 5 in the field of Health at Work; ii) Development ofthe National Education Programme for Health and Safety at Work (PNESST), in collaborationwith the Professional Education and Training System - 165 short term actions, involving 5,300students and 960 teachers; 3 actions and 2 training courses (25 hours each), for teachers andeducators – 36 participants; 3 awareness actions for non-teaching personnel, with 32 participantsand 9 guided study visits to model companies/bodies; iii) Development of projects in health andSafety at Work, directed at companies, targeted sectors or audiences, sectors with the greatestaccident rates - 40 seminars, 56 street actions, 7 awareness actions, 4 workshops, 6 open days and1 competition; iv) Human resources training, accreditation of courses and development ofprofessional work placements for Health and Safety at Work personnel – by December 2007:accreditation of 313 higher grade HSW personnel courses (level V) and 158 other HSW personnelcourses (level III); accreditation of 46 courses and recognition of 137. There were also 12,439certificates of professional aptitude for advanced technicians awarded, 2,732 certificates fortechnicians, and 282 HSW technician and 250 HSW advanced technician professional aptitudecertificates were renewed.Implementation of the Unemployment Protection RegimeImplementation of Social Security Direct: To date, about 40 services are available to beneficiariesand taxpayers. Performance indicators (May 2008) - no. of users: 535,146; no. of updates to theSocial Security database: 1 539 388; total no. of visits: 4 55 693.Continue (see new measures)62

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesAnnual Plans toFight Tax Fraudand Tax EvasionAnnual Plans to CombatTax Fraud and TaxEvasion which set out aconsiderable increase ineffort to control taxpayersand beneficiaries,focusing on new controldynamics, particularly byevaluating “RiskIndicators”, creating thefigure of “TaxpayerManager” and crossreferencinginternalSocial Security data withother governmentdatabases.In progressIn 2007, the National Plan to Combat Tax Fraud and Tax Evasion led to the recovery of 642.8million Euros, higher than the initial target (577 million Euros)ContinueCreate a proximitycommunity servicenetworkLaunch of PARES (theEnlargement Programmefor the Social AmenitiesNetwork); PAIES(Support Programme forInvestment in SocialAmenities); CLDS(Social DevelopmentLocal Contracts); PCHI(Housing ComfortProgramme for theElderly); RNCCI(National IntegratedContinuing CareNetwork)In progressDuring the 3 phases of PARES, 618 amenities were approved, amounting to 1,049 socialresponses and 38,470 places. These amenities meant a total investment of 422.5 million Euros, ofwhich 210.7 million was public funding. The government anticipates that these new amenities willcreate about 10,300 new jobs. Particularly as far as nursery schools are concerned, some 18,650places were approved, corresponding to 418 nursery schools, and a total investment of 154 millioneuros, of which 82.7 was public funding (provisional figures).Social Development Local Contracts: up to April 2008, 19 CLDS were signed, covering 22municipalities.National Integrated Continuing Care Network (RNCCI): From April 2007 up to the end of the 1 stsemester of 2008, 18,258 beneficiaries were identified for this network, of whom 12,845 receivedcare within the network. Since the start of RNCCI, 20,332 beneficiaries were identified and 14,239received care.Continuation. About 10,000available places; 37% of thepopulation over 65 covered by thenetwork’s provision identified asin need of Continuing Care.Enlargement Programme for theSocial Amenities Network(PARES);Social Development LocalContracts (CLDS)Housing Comfort Programme forthe Elderly (PCHI)National Integrated ContinuingCare Network (RNCCI)63

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesPORTMOS –Integration of theport system in theSea HighwaysUnder the scope of theEuropean Sea Highways,the development isenvisaged of theoperational architecturefor the logistic andtransport system with aview to the fullintegration of portterminals, logisticplatforms, transportsystems and traffic lanes,aiming at substantiallyincreasing flexibility andagility of logistic andtransport chainsCompletedSubmission of final report by the end of September 2008, containing the full research and workcarried out during the project, as well as the results of pilot schemes for the adaptation model ofthe national Sea Port System to the Sea Highways.-64

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesSea trafficmonitoring systemalong the Atlanticcoast (VTS-VesselTraffic System)The main generalobjectives are to improvesafety and security andsea traffic management,as well as to protect themarine environment inthe national coastal area.It comprises radardetection,AIS (automaticidentification system),and automatic directionfindingsubsystems, aVHF communicationssystem, a meteorologicalsubsystem, a National SeaTraffic Database and amicrowave datatransmission network(data from sensors andvoice). It includes a maincontrol centre in Paço deArcos, a secondarycontrol centre in the portarea of Portimão(Ferragudo), eight remotesensing coastalsurveillance sites andVTS port systems inAveiro, Viana do Castelo,Figueira da Foz, Portimãoand Faro (also comprisingthe abovementioneddetection subsystems).Completed System partially under operation since January 2008, and in full operation since July 2008Completed measure.It is envisaged that the VTSsystem will be extended to theAutonomous Regions of Azoresand Madeira (see new measure)-65

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesBudgeting byprogrammeModernising budgetingprocedures so as to ensurebetter monitoring,evaluation and qualitycontrol through theimplementation of a longtermview of publicexpenditure allocation,numerical budgetingrules, and performanceassessment. The nationalbudget for 2009 willinclude three pilotprogrammes.In progressThe Working Group for the Pilot Phase of Budgeting by Programme was set up to coordinate theimplementation of the three pilot programmes included in the draft national budget for 2009,particularly those pilots in the fields of Portuguese Cooperation, the National IntegratedContinuing Care Network and Ancillary Work in Higher Education.The TechnicalCommittee set up inMarch 2007 willpresentrecommendationsfor national budgetstructuring modelsand theirapplicationmethodology, withlong-termbudgetary rules andobjectives. Thecurrent instrumentsestablished throughSIADAP(Integrated Systemfor PublicAdministrationEvaluation) (e.g.QUAR –Evaluation andAccountabilityFramework), toevaluate theperformance ofmanagers andworkers, will beimportant catalystsfor this reform.Improving thegovernance modelof the StateCorporate SectorCreating the conditionsfor improving theefficiency andeffectiveness of the StateCorporate Sector,establishing distinctlevels for managementguidelines, adapting thecorporate organisationalstructure to the higheststandards and reinforcingIn progressThe Legal System of the State Corporate Sector and the Public Manager Charter were reviewed,good state corporate governance principles were defined and the Corporate, Partnership andConcession Sector Monitoring Office was created within the Directorate-General of Treasury andFinance.Implementation ofgood governancepractices andassignment ofstrategic guidelineswith a specialemphasis onsystematicmonitoring offinancialperformance are66

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesRAPIDfinancial controlmechanisms and thespecial duty ofinformation of publiccompanies.RAPID - Via Verde atborders for holders ofelectronic passports andoptical reading.The 21 st CenturyPolice/Precinct Station isproof of the advantages ofusing new technologies inthe day-to-day work ofPolice Officers, as well asin the most suitableinfrastructure model forthe set-up of SecurityForcesThe IntegratedSurveillance, Commandand Control System(SIVICC), to be assignedto GNR (through theirCoastal Patrol Unit) isaimed at combatingillegal immigration,terrorism, drug traffickingand smuggling, and atproviding support in caseof environmentaldisasters and systematicinformation gathering onsea traffic. It will have afixed and a mobilecomponent that will usesensors, infrared camerasand radar along the coast,affording night vision andtracking of a wide rangeof vessels. It will liaisewith the VTS system.CompletedOperational at Lisbon, Faro, Oporto and Funchal airports, and is a crucial element for increasingefficiency and speed in passenger control. Over 40,000 monthly movements using this system inPortuguese airports.still in progress.21 st CenturyPolice/PrecinctStationIntegratedSurveillance,Command andControl System(SIVICC)CompletedIn progress.Thesupervisingcommittee forthis procedureis at theanalysis andevaluation ofproposalsstage. Theprocedure isexpected to becompleted bythe end of thecurrent year.Model architectural and engineering designs were drawn up which will inspire the new police andprecinct stations of the futuren/aSet-up of technologicallyadvanced and operationallyoptimised police and precinctstations.Increased effectiveness incombating illegal immigration,terrorism, drug trafficking andsmuggling.67

MeasureDescriptionCurrentStatus: inprogress/CompletedLast year’s results Next Steps NotesDigital CivilProtectionInformation systemmanaged by ANPC (CivilProtection Authority) andcreated within theframework of theNational Plan for ForestFire Defence. It providesa permanent performanceevaluation model for thenational fire-fighting setup.Completed.Its short-termdevelopmentwill beconductedaccording tonewfunctions/requirementsandtechnologicaladvances.Quicker first response, in particular by aerial fire-fighting support, real time analysis of meansinvolved/available, improved effectiveness and efficiency of emergency and relief operations.Gradual increase in effectiveness,better planning management.68