Portugal’s Growth Stalled by Institutional Confidence Gap, Study Finds

A recent study by Nobel laureate James A. Robinson and economist Nuno Palma argues that Portugal’s economy is held back not by tax policy or incentives but by a lack of confidence in its institutions. The authors point to the slow and unpredictable justice system – with case durations about 1,000 days longer than the EU average – as a key deterrent to investment and entrepreneurship. They propose measurable reforms, such as guaranteeing a 90‑day response time for court decisions, to restore trust among investors and business owners. The study, supported by interviews with entrepreneurs, also notes that Portugal’s per‑capita judicial budget and number of judges are comparable to other European countries, yet procedural delays remain severe. Critics have dismissed the 90‑day target, but the authors stress that reliable, timely institutions are essential for sustainable growth.