There are some persons defending the eventual decision of the Portuguese exit from the Euro System.
Only an insane person without a real idea about what would happen to Portugal on the moment it leaves the Euro System can even suggest that hypotheses. It is just try to use the old recipe of devaluating the currency to artificially increase the country competitiveness level. But what they aren’t telling to the public about this old recipe is that the only thing it does is to occult the incompetence of the privet managers and governments. The currency devaluation never, in the past, had change the structural problems of national competitiveness on the Global Market, as can be proved by the actually situation.
The traditional Portuguese enterpriser man loves the currency devaluation because the currency devaluation will just create an illusion of a competitiveness increase, but that occurs only on the short term because of the national dependency on imported energy and raw materials to be used also on the commodities production. So after the first impact the competitiveness increase will be annulated by the rise of the production costs, obligating a new currency devaluation to recover the competitiveness level, with the consequent raise of our national inflation and resulting on the reduction of our internal consume, all that because the managers and governments did not have the capability to make what they should make.
They should work for a real competitiveness rise, by investing in new technologies and more specialized human resources. Only doing that it is possible to increase our exportations while we still having a strong currency protecting us, to a certain level, from the energy and raw materials cost fluctuations. What we have to do is to resolve our economical and political structural problems and that is not achieved by conjectural policies.
If Portugal leaves the Euro System, the cost of the the automatic aggravation of our external public debt, evaluated in Euros, and the increase of the importations costs would put us on the bankruptcy.
But if we forgot this reality, and for this debate purpose we focus only on the currency devaluation policy effects, the continuum search of competitiveness through the currency devaluating would lead us to a point where the currency would not worth the price paid for the paper used to print it, as it did happen in several countries.
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