Comment on In Portuguese factory, echoes of Europe's fight for jobs

In Portuguese factory, echoes of Europe's fight for jobs

VILA NOVA DE GAIA, Portugal (AP) — A rusting yellow production line dangles from the ceiling of the cavernous Valadares factory, the long racks of ceramic sinks and toilets whose manufacture once provided jobs for 1,500 people gathering dust in the dim light from high windows. [...] on the factory floor some 10 meters (30 feet) below the symbols of the broken past, some former employees are back at their jobs and fighting to rebuild their lives after the business was reopened by private investors. European Union leaders meeting for a two-day summit Thursday will try to put into motion a big investment program and find solutions to Greece's financial problems, which are casting a shadow of uncertainty. The Valadares recovery project showcases two actions that European governments are betting on to help the recovery: simplifying business rules and increasing confidence to encourage private investment. The factory's re-opening was facilitated by a Portuguese government program to hire the long-term unemployed and from the local council's decision to waive some taxes and cut red tape. The focus now is on innovation, quality and adapting swiftly to market trends, while expansion comes in careful baby steps. Political stability in Portugal, where no popular radical parties have emerged like Syriza in Greece and Podemos in Spain, has reassured investors, says Antonio Barroso, a London-based analyst with Teneo Intelligence, a political and business risk consulting firm.

 

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