This area remains an important challenge in Portugal, as also mentioned in the 2015 country-specific recommendations. Taking further action is all the more important, with high unemployment, according to the latest Eurobarometer, being considered the main concern to the people of Portugal. But we also need reforms that encourage firms to invest. Investment raises both supply tomorrow and demand today.
Such reforms include measures that further improve the business environment. However, investment could also be helped by addressing the corporate debt overhang. For instance, increasing the efficiency of debt restructuring tools could disburden still viable companies and thereby facilitate their investment plans.