Why is Portugal an Important part of the European Union

Portugal and the USA

The Portuguese Government rejected US financial assistance initially through Caeiro da Mata as its Minister for Foreign Affairs. These were when ideological and political principles clashed with the new realities. The decision to decline the offer at the foreign policy level was a compromise between the desire to keep the main pillars of Oliveira Salazar’s diplomacy and the desire to attend the Paris Conference.
Although the Portuguese Government wanted to maintain economic independence, it depended heavily on foreign supplies. Although it was unhappy with the financial consequences of cooperating, Portugal was forced to build closer relationships with its major trading partners. External dependence placed strict limits on self-sufficiency.
A year later, the Portuguese Government had to reconsider its original decision to stop receiving US financial assistance under the Marshall Plan. This was contrary to its foreign policy principles. It was reluctantly involved in the economic cooperation process, which would, in turn, tend to establish itself within Western Europe.
This opened the door for greater internationalization of the Portuguese economy. The national financial and foreign exchange situation significantly deteriorated in 1948. This was the first such time in many years. Despite the optimism and a lot of willingness to try, there were no real solutions. This was due to the tendency to underestimate the impact and size of the 1947 international trade crisis and its effects on Portugal.
Oliveira Salazar, who had avoided US funding to the extent that his negotiation capacity would permit, finally suggested accepting Marshall Plan aid in July 1948. Because the Portuguese authorities could not combat the impending financial and trade crises that afflicted the country, there was no other option. The dilemma of US aid or economic collapse presented a choice for the Prime Minister. He showed the flexibility necessary to make one of the most critical changes in Portuguese foreign policies during the Estado Novo [Salazar–Caetano] regime. Although some were skeptical about international economic cooperation, ideological and political factors prevailed. However, pragmatic economic and financial factors won the day.

The Marshal Plan and Portugal

The Marshall Plan’s participation by Portugal significantly impacted the organization of an orderly process of economic development. The Plan was, in fact, the catalyst and opportunity for the creation of an economic program post-war that covered the core aspects of government economic policies and supported its activities until the First Development Plan (1953-1958). Also, Portugal’s participation in the Marshall Plan allowed it to develop new approaches to economic policy through economic planning. These plans influenced the subsequent development plans that would guide Portuguese economic activity up to the end of the Estado Novo.
The Marshall Plan provided financial assistance totaling around 90 million US Dollars (over two-and-a-half-billion escudos). It involved many of Portugal’s economic operators and the state. This amount is small, especially when compared to other beneficiary countries. However, it was crucial at the time to manage and overcome multidimensional crises that afflicted the Portuguese economy. The European Recovery Program helped Portugal to reduce its balance of payments deficit. It also enabled the supply of essential goods to help alleviate and minimize the effects of the crisis on the economy and society.

Important studies

Foreign experts, especially Americans, also studied essential aspects of Portugal’s economy. Participation in various Marshall Plan programs by Portugal also helped to plant seeds. This allowed for increased contact and awareness of international realities. It also opened Portugal up to foreign specialists in an unusual way.
This helped to make the Estado Novo more open. A process that is difficult to reverse. The Marshall Plan also helped Portugal to become more open to internationalization and openness to the outside. Portugal thus began its “European adventure” by participating in the Marshall Plan.

World War and Portugal’s participation

The Marshall Plan’s participation by Portugal was an integral part of a period of transition. It provided a bridge between the Second World War and cooperation and self-sufficiency and between the highly agricultural Portugal and the more industrial Portugal that took over the country’s rural dimensions.
Portugal’s inclusion in the Marshall Plan (the European Payments Union) provided several benefits, some greater than others. It created a technical elite, gained more excellent knowledge of international trade, and actively participated in it. They also received training on using the global monetary and financial tools created in this post-war period.
Portugal was reluctantly included in the international system of trade and payments. This actively participated in the European economic cooperation process, which led to its integration into EFTA and accession to EEC almost 40 years later.
The largely unwelcome ‘European reconciliation’ was not a quick fix. It required sustained effort to reconcile the conflict between the actual situation and the political convictions, principles, and convictions being fought for. Some people wanted to continue this struggle, but it failed. Although the Portuguese authorities’ conduct was inconsistent and naturally encapsulated divergent opinions and positions, it was marked by ambiguity.

Economic Processes

Accepting a limited, pragmatic, flexible, and adaptable international economic cooperation process that could work within the current circumstances could bring about functional changes. This was essentially a way to reconcile an Atlantic or European option, from which it had never wanted to be excluded, with an African option of unity, which it didn’t want to abandon and probably couldn’t.
The march of time eventually saw Portugal accept the establishment of an economic union for Europe. After the post-war reconstruction was completed, an international cycle of growth and modernization began.
Portugal was part of this moment and benefited from the international momentum and the transitional changes at the national level based on the changes in the production fabric and the “modernizing” changes that the economic policies sought to absorb. This growth cycle also included structural changes, despite strong social and political resistance that ultimately hurt the speed and extent of modernizing changes.

EFTA and Portugal

Both those directly involved in the matter and researchers who have researched the topic unanimously accept that Portugal was able to join the signatory nations of the Stockholm Convention by an act of luck. While the Portuguese authorities were determined to join the European Free Trade Association (EFTA), they also warned against the possibility of being ‘left on the sidelines.
The Ambassador’s influence in this area must be highlighted. Jose Correia de Oliveira was also Deputy Minister to the Prime Minister from 1961 to 1965 and Minister of Economy between 1965 and 1968. He also held other positions during this time.
EFTA membership was attractive because the free-trade agreement was based on the same principles and policies that underpin Portugal’s external cooperation policy. Portugal could avoid being excluded from the European integration process by joining EFTA. These commitments were solely commercial and economic.
The political system and the regime were not questioned (as with the EEC). Problems involving the existence or demise of African colonies were less apparent due to the total customs autonomy applicable in relations with third-country countries. The acceptance of Annex G. protected the relative underdevelopment in the Portuguese industry, Which allowed Portugal to eliminate tariffs more slowly than other members. In Portugal’s case, it could be extended for 20 years, twice as long as the other member states. This Annex specifically authorized Portugal to increase customs barriers to protect new industries.

OEEC and Portugal

Objectively, Portugal’s membership in EFTA resulted from its initial participation in the OEEC. Moreover, the fact that Portugal was becoming more dependent on Europe in terms of commercial terms did not cause significant reservations. This was especially true since Portugal’s overseas policy, even under its new architecture of institutionalization of the Portuguese Economic Area, was subject to change at any moment and was constantly on the brink of collapse as unexpected economic and political problems became more severe.
The Portuguese authorities seemed to have everything in order when they applied for membership in the Common Market. The Scandinavian nations followed this. There was some hesitation at this point. These carefully considered risks were significant.
Europe was again in danger of being isolated. The Prime Minister requested that negotiations be opened between Portugal, the Community, and Ambassador Calvet de Magalhaes, which was sent on 18 May 1962 to the President EEC. This letter, signed by Calvet de Magalhaes, outlined the conditions of the Portuguese Government’s desire to establish a common market with the Common Market.
Oliveira Salazar did not make any reservations or claims and adopted a vague formula. This allowed him to avoid major decisions at the time because of the UK’s and Commonwealth’s problems joining the EEC. These issues were bound to suggest possible solutions that could be applied in the Portuguese overseas territories.

International Relations with other States

Fortunately, for the Portuguese leaders, in the end, President de Gaulle made a famous declaration on 13 January 1963 that he had vetoed the United Kingdom’s membership in the Community. As a result, negotiations with other member countries of the EFTA were naturally suspended.
This ‘problem’ didn’t arise again for almost a decade, with the parties involved being completely different when the UK applied to join the European Communities in 1970. Portugal realized that it couldn’t remain silent. It started negotiations that led to the signing of the EEC-Portugal Free-Trade Agreement (ECSC-Portugal) on trade in iron products and steel products.
The decision was essentially related to an assessment of the commercial constraints. This is contrary to the positions of large sectors of the regime’s political elite. They also warned of the dangers of “political infected” and the possibility of weakening the “overseas commitment.” Marcello Caetano’s Portuguese Government took a positive stand on the “European way” and committed to relying more on a European approach based on an institutional but still actual link to the EEC.
Rui Teixeira Guerra, the chair of the European Economic Integration Committee, argued that negotiations must be held to eliminate any chance of future accession.

Complication in Politics

The political situation in Portugal was becoming more complicated. The Government was now weaker due to internal discord. It couldn’t find and even less put into practice solutions to some of the most pressing political and social problems. These included the insoluble colonial conflict, collapsing economies, double-digit inflation, the Government’s decision to temporarily suspend the foreign currency market because of difficulties related to the parity with the escudo, student protests, and finally, the ‘captains movement,’ which ended a 40-year-old regime.
The Revolution’s last government of the Estado Novo was finally overthrown on 25 April 1974. Negotiations began with the independence movements from Portugal’s African colonies. The revolution — the recasting of a country after 40 years of dictatorship — opened up the floodgates for months of significant instability. Provisional governments arrived and left; each faction fought for power and contested the other; decolonization was complete, and efforts were made to democratize the country and defend fundamental freedoms. This required the creation of a new Constitution.
A Constitution framed the political situation, and there was relative calm on the social front. The Government’s priorities were to consolidate democracy, strengthen national reconciliation, and solve the severe economic problems left behind by the Revolution. These included the effects of decolonization and the loss of traditional markets. They also had to address the global crisis that the Portuguese, who were focusing on their problems, barely noticed.

In Conclusion

The new political leaders had to revitalize and modernize the Portuguese economy. They provided structures and instilled such dynamism that it could follow the example of Western democracies. The government set Portugal as its target for accession to the European Communities. There were many meetings, and the President of EEC visited Portugal.
The Portuguese Parliament authorized the Portuguese Government to submit a request for Portugal’s accession to the European Communities on 29 November 1976. The Portuguese authorities began an effective diplomatic campaign to gain support from the Heads of Government of the Member States of the Community for Portugal’s accession. Portugal applied for membership in the EEC. Although the process was complex and slow, it was also complicated and affected by many events over several years, including some setbacks.
The Fontainebleau Summit concluded with the announcement that Portugal would be joining the European Community as a member on January 1, 1986. Slowly, the country’s dossiers for accession were closed, and the Portuguese authorities developed institutional relations with the Community. Officials and leaders from the EEC visited Portugal more often until a constatd’accord was signed. This officially closed the negotiations and ratified Portugal’s date of accession as set at the Fontainebleau Summit. The ceremony of the official signing of the Treaty of Accession was held in the beautiful surroundings of the Cloisters of Jeronimos Monastery on 12 June 1985.
This long-running process, which started in 1986, is still ongoing and significantly impacts how we live, the organization of our productive fabric, and our economic operators operate. It also affects how wealth is distributed and our collective future as citizens of Portugal and Europe.