Portugal's economic crisis: overheating without accelerating

Dooley, Neil (2018) Portugal's economic crisis: overheating without accelerating. In: Parker, Owen and Tsarouhas, Dimitris (eds.) Crisis in the Eurozone Periphery The Political Economies of Greece, Spain, Ireland and Portugal. Building a Sustainable Political Economy: SPERI Research & Policy . Palgrave Macmillan, London. ISBN 9783319697208 (Accepted)

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Abstract

In this chapter I shed some light on the ‘difficult story’ of Portugal’s economic crisis over three chronological sections. In section one I show that the story of Portugal’s difficulties begins with the fallout from its democratic revolution in 1974. The nascent Portuguese democracy sought to overcome the economic and political turmoil of the revolution (Maxwell 1995) by introducing a number of ‘structural reforms’, which were made, and legitimised with specific reference to joining the European Community (EC) by 1986. Section two shows how these structural reforms generated brand new patterns of economic growth during the 1990s. Yet behind this growth, the Portuguese economy had transformed into something quite fragile, into an economy driven by ‘debt led domestic demand’ growth (Lagoa et al. 2014). Section three explores how debt-led growth caused serious difficulties in the 2000s. I show that the stagnant growth during this period is a direct legacy of domestic and EU-driven reforms from the 1980s. I conclude by showing how this economic downturn ensured Portugal was particularly vulnerable in the context of the eurozone crisis.

Item Type: Book Section
Keywords: Portugal; Eurozone; Crisis; European Periphery; Europeanisation; Comparative Political Economy; European Union
Schools and Departments: School of Law, Politics and Sociology > Politics
Research Centres and Groups: Sussex European Institute
Subjects: J Political Science > JN Political institutions (Europe) > JN0030 European Union. European Community. European communities
J Political Science > JN Political institutions (Europe) > JN8423 Portugal
Depositing User: Neil Dooley
Date Deposited: 23 Jan 2018 12:21
Last Modified: 23 Jan 2018 12:21
URI: http://sro.sussex.ac.uk/id/eprint/73091

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