PUBLIC SERVICE: Having the worst of both worlds.

«Portugal has long relied on low wages and EU membership to drive its economic growth, but its output per capita is still only about half that of more efficient European countries. Competition from Eastern Europe and Asia is increasing; meanwhile, the rate at which the country is catching up with the wealthier European economies has slowed down. A study of seven economic sectors shows that an inefficient labor force, regulations that stifle competition, and the stultifying effects of a large informal economy keep Portugal an economic backwater, at a disadvantage both to countries with cheaper labor and to those with higher productivity.»

[from Making Portugal competitive, The McKinsey Quarterly, 2004 Number 3]