Into the 21st century

Stabilization and the European future

By the end of the 20th century, Portugal’s democracy had become solidified. With the military’s withdrawal from politics and several revisions of the constitution, Portugal adopted what could be called a semipresidential system, which limited the president’s powers by investing significant authority in the prime minister. Portugal developed a multiparty system in which two major parties (the Socialists and the Social Democrats) and several minor parties emerged. In 1995 Cavaco Silva left office, replaced by Socialist António Guterres; the following year, Soares was succeeded as president by Socialist Jorge Sampaio, the former mayor of Lisbon. In 1999 the government adopted the euro, the EU’s single currency—which fully replaced the escudo as Portugal’s sole currency in 2002—and also returned Macau, its last overseas territory, to Chinese rule. Sampaio was reelected in 2001, but in 2002 Guterres’s government was ousted by the Social Democrats, whose leader, José Manuel Durão Barroso, formed a centre-right coalition government and promised to reduce taxes and spending and privatize some public services. Economic problems beset the new government, which in 2005 lost power to the Socialists, whose leader, José Sócrates, became prime minister. In 2006 Cavaco Silva returned to politics with a successful run for the presidency, scoring a victory on the first ballot against a split Socialist ticket.

Perhaps a reflection of the tremendous progress made by Portugal in establishing a successful democracy and in fully integrating itself into Europe, a Portuguese, Durão Barroso, was named president of the European Commission in 2004. Nevertheless, Portugal continued to experience several troubling problems. Despite economic growth during the 1990s, high unemployment persisted. Also of concern to political leaders were continued poverty in rural and urban areas, a growing gap between rich and poor, and administrative and labour inefficiency. Moreover, too large a share of Portugal’s population over age 40 had little formal education, and Portugal remained among western Europe’s poorest countries.

The protection of Portugal’s historic heritage became a serious issue; Portugal’s economy was partly dependent on tourism, but its fragile environment was endangered by the impact of tourism, urban sprawl, and a failure to limit and control air, water, and soil pollution brought on by growth and development. The increasing depopulation of interior rural areas, the result in part of urbanization and rural-urban migration, was an issue of major concern. Rural and provincial areas of Portugal experienced the steady loss of population to urban areas such as Greater Porto, Coimbra, and Lisbon. This movement further hampered agriculture, which faced stiff competition from other EU countries, and limited the availability of educational, health, and social services in rural areas. As Portugal increasingly evolved into an urban society, political leaders attempted to achieve a balance between growth and development (modernization) and the need to protect consumers, the public interest, and the rare but vulnerable environment.

By the beginning of the 21st century, Portugal had benefited from substantial improvements in health, communications, transportation, welfare, and education. The new pluralist democracy provided citizens with historically unprecedented civil liberties. Nevertheless, the country’s empire had vanished, and Portugal was highly dependent on imports of energy, capital, and food. During the 1990s, as a partner in further European integration, Portugal was under great pressure to conform to rigorous EU standards, procedures, and rules. New layers of administration were established, and trade, travel, employment, and other barriers started to fall in 1993, when Portugal began preparing for full economic and monetary union with other EU members.

From 1988 through 2000, Portugal celebrated many historical feats. Notably, the government sponsored commemorations of Portuguese exploration, including the 500th anniversaries of Bartolomeu Dias’s 1488 voyage that rounded the Cape of Good Hope and the founding of Brazil by Pedro Álvares Cabral in 1500. In 1998 Lisbon hosted the World’s Fair (Expo ’98), which also marked the 500th anniversary of the arrival of Vasco da Gama in Asia following his discovery of an all-water route from Europe. As the celebrations ended and the 21st century began, many wondered how the new Portugal would conceive of its national tradition and what effect European integration would have on the country’s self-image and national identity.