Speech by the President of the Government - Communication

Presidência do Governo Regional

Full text of the speech delivered on Thursday by the President of the Regional Government, José Manuel Bolieiro, in Ponta Delgada, at the presentation of the magazine “100 Maiores Empresas dos Açores 2024” (100 Largest Companies in the Azores 2024):

“I understand, but I need a clear answer.

Right now, we have thousands of spam tickets, and legitimate requests are being affected.

Can you please explain exactly why the rule blocking Cyrillic characters didn’t work, and what you can do on your side to stop this?

We can’t leave this open-ended.

I need concrete actions, not general guidance.”

“Before such an illustrious audience, here I am again.

It is with pleasure and commitment that I accept the honourable invitation once again extended to me by Açormedia to attend the launch of the magazine “100 Maiores Empresas dos Açores” (100 Largest Companies in the Azores), published by Açormedia since 1985, in partnership with Informa D&B and Baker Tilly. It is a pleasure to be with you in this context and environment, always looking forward to the publication of the Azores business ranking.

I would like to congratulate the winners and praise all those who, motivated and proud of their achievements, are participating in this event.

This year, allow me to focus my speech on four key points.

Recognition. Perspective. Challenge.

Something new!

Let us begin with recognition.

The Azorean economy is now more solid, vibrant and confident, and this is mainly due to our companies.

We have grown consistently, with indicators showing resilience and the ability to overcome adversity.

Private consumption has been growing for 52 consecutive months and the Economic Activity Indicator for 50 months.

There is greater mobility among Azoreans between our nine islands, nine micro-markets, which were previously more separated, given the small size of our regional economy.

Since June 1, 2021, the "Azores Fare" has allowed Azoreans to make over 1.4 million inter-island trips for €60.

In tourism, we have broken all records for business revenue and the number of passengers arriving in the Region.

The productive economy, particularly in the agrifood sector, has grown significantly in terms of both quantity and quality.

Agricultural production exported outside the Region amounted to more than €431 million in 2024.

In fisheries, the volume of fish caught reached €40 million in 2024.

Exports abroad reached €160 million, a 39% increase compared to 2019.

We have never had so many people in employment: 121,500.

And we have never had so few unemployed: 3,982.

Tax revenue rose to 681 million in 2024, an increase of 26% compared to 2019.

In other words, even with the reduction in taxes, which now have a differential of less than 30% of national rates for corporate tax, VAT and income tax, the fact is that tax revenue has grown.

Our political belief is that with less tax burden, the economy becomes more dynamic.

Tax revenue grows, not due to high tax rates but due to a stronger economy and more wealth creation.

Our decision to ensure the maximum differential in national tax rates will mean that, by the end of 2026, Azorean taxpayers – businesses, consumers, workers and pensioners – will have kept an additional €1 billion in the economy.

This is a significant amount of money, and it did not take the form of a subsidy, but rather of taxpayers retaining their own wealth, the result of their labour and investment.

In 2025, the Region will exceed the €6 billion mark in Gross Domestic Product, something unthinkable just a few years ago.

The Azores' real GDP growth, which has been consistent in recent years and above the national average, brings us closer together.

Compared to the European Union average, the GDP per capita of the Azores rose from 65.1% in 2020 to 71.2% in 2023.

This development did not happen by chance. It is largely due to the Azorean workers, entrepreneurs, and the public policies promoting their success. 

You are the ones who build this progress.

Therefore, my first reference is one of recognition.

Let us move on to perspective.

Proactive entrepreneurs never delude themselves with past success. The past is the past, and the present is only proactive if it is dedicated to the future.

The perspective I propose for public strategy and business and economic action, naturally led by Azorean entrepreneurs, is that we continue to be active protagonists in this favourable economic environment.

We have sought to give more economy to the private economy.

We have already carried out privatisations and will continue to do so.

In 2026, we will continue to do so.

The sale of 85% of the share capital of SATA Azores Airlines is currently underway. Next will be the Handling business.

In the EDA group, plans are underway to divest SEGMA and Global Eda.

The golf courses will also be privatised.

In terms of public cash flow, 2026 will be an exceptional year. More than €600 million will be spent on closing the RRP and the last three years of Azores 2030.

The economy is growing, but it needs continuity, ambition and investment.

Any success achieved can only motivate us to do more and better.

Any slowdown should not be dramatised to the extent that it causes a loss of confidence, but rather attention should be drawn to understand and overcome it.

The gains achieved in recent times should strengthen the business fabric, stimulating innovation, modernisation, qualification and diversification.

However, they should also contribute to something essential: fair distribution of the wealth created.

On the part of the tax authorities, less fiscal greed and more strategy.

On the part of investors, less dependence on public subsidies.

On the part of workers, fair and motivating remuneration.

Everyone has a duty to adopt a holistic approach and attitude towards economic, social and environmental sustainability.

Despite constant and new increases in context costs, in an adverse international scenario, we must adapt.

A strong middle class is essential for strong domestic markets, more secure families and more competitive companies.

Better distribution of wealth does not diminish the economy; on the contrary, it strengthens it.

It increases purchasing power, fuels consumption, encourages investment and creates a virtuous circle that benefits the entire Azorean society.

This is the perspective I promote.

Consistency has added value, and stability confirms successful strategic directions.

Let us move on to the challenge.

The Azores are currently in an exceptional position to embrace the sectors of the new economy.

Our geostrategic position is increasingly valued in a world that looks to the Atlantic as a space for innovation, knowledge, and sustainability.

We have unique conditions to be a reference in emerging areas.

The real challenge will be investing more in the blue economy, marine biotechnology, ocean renewable energy, the green and circular economy, the digital transition and advanced technology-based services, including the aeronautics and space fields.

These will be the driving forces of the global economy in the coming years.

The Azores have everything it takes to be part of this breakthrough.

This leap forward is possible if we strengthen the link between businesses and the University of the Azores.

These new economies require different knowledge, scientific innovation, applied research, and talent.

This partnership is the key to transforming potential into added value, positioning the Azores among the regions leading change, rather than simply following it.

The Region has the conditions to harness the potential of this future.

Finally, let us move on to the news.

At this very moment, a technical meeting is being held with business associations and the Regional Secretary for Finance to work on new financial resources.

The RRP, in its initial structure, did not include direct support for business investment.

It was limited to the capitalisation of companies.

Following the RRP review and simplification procedure completed on October 31 last year, the door was opened to the creation of new investment incentive instruments.

The Financial Instrument for Innovation and Competitiveness is a measure to support competitiveness and business modernisation.

This measure includes a specific allocation for the Region amounting to €40 million, managed by Banco Português de Fomento (investment bank).

The Government of the Azores will ensure increases in co-financing rates, which may reach 70% of the investment amount.

With this decision, we reiterate our commitment to creating better conditions for investment, innovation and prosperity, strengthening the Azorean economic fabric and projecting the Azores into the future.

I conclude with a summary of this speech, which leaves you with a well-deserved recognition, a convergent perspective, and a challenge that motivates our ambition for more strategic work and a new development that will make other financial resources available.  

The future of the Azores cannot wait; we must all work together to achieve it.

I know that with confidence, we can all have more hope.

Thank you very much!