Portugal vs. Spain

Following its heyday as a global maritime power during the 15th and 16th centuries, Portugal lost much of its wealth and status with the destruction of Lisbon in a 1755 earthquake, occupation during the Napoleonic Wars, and the independence of Brazil, its wealthiest colony, in 1822. A 1910 revolution deposed the monarchy, and for most of the next six decades, repressive governments ran the country. In 1974, a left-wing military coup installed broad democratic reforms. The following year, Portugal granted independence to all of its African colonies. Portugal is a founding member of NATO and entered the EC (now the EU) in 1986.

Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World War I and II, but suffered through a devastating civil war (1936-39). A peaceful transition to democracy following the death of dictator Francisco FRANCO in 1975, and rapid economic modernization (Spain joined the EU in 1986) gave Spain a dynamic and rapidly growing economy, and made it a global champion of freedom and human rights. More recently, Spain has emerged from a severe economic recession that began in mid-2008, posting four straight years of GDP growth above the EU average. Unemployment has fallen, but remains high, especially among youth. Spain is the Eurozone's fourth largest economy. The country has faced increased domestic turmoil in recent years due to the independence movement in its restive Catalonia region.

Azores subject to severe earthquakes

volcanism: limited volcanic activity in the Azores Islands; Fayal or Faial (1,043 m) last erupted in 1958; most volcanoes have not erupted in centuries; historically active volcanoes include Agua de Pau, Furnas, Pico, Picos Volcanic System, San Jorge, Sete Cidades, and Terceira

periodic droughts, occasional flooding

volcanism: volcanic activity in the Canary Islands, located off Africa's northwest coast; Teide (3,715 m) has been deemed a Decade Volcano by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to its explosive history and close proximity to human populations; La Palma (2,426 m), which last erupted in 1971, is the most active of the Canary Islands volcanoes; Lanzarote is the only other historically active volcano

Portugal has become a diversified and increasingly service-based economy since joining the European Community - the EU's predecessor - in 1986. Over the following two decades, successive governments privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country joined the Economic and Monetary Union in 1999 and began circulating the euro on 1 January 2002 along with 11 other EU members.

The economy grew by more than the EU average for much of the 1990s, but the rate of growth slowed in 2001-08. After the global financial crisis in 2008, Portugal's economy contracted in 2009 and fell into recession from 2011 to 2013, as the government implemented spending cuts and tax increases to comply with conditions of an EU-IMF financial rescue package, signed in May 2011. Portugal successfully exited its EU-IMF program in May 2014, and its economic recovery gained traction in 2015 because of strong exports and a rebound in private consumption. GDP growth accelerated in 2016, and probably reached 2.5 % in 2017. Unemployment remained high, at 9.7% in 2017, but has improved steadily since peaking at 18% in 2013.

The center-left minority Socialist government has unwound some unpopular austerity measures while managing to remain within most EU fiscal targets. The budget deficit fell from 11.2% of GDP in 2010 to 1.8% in 2017, the country's lowest since democracy was restored in 1974, and surpassing the EU and IMF projections of 3%. Portugal exited the EU's excessive deficit procedure in mid-2017.

After a prolonged recession that began in 2008 in the wake of the global financial crisis, Spain marked the fourth full year of positive economic growth in 2017, with economic activity surpassing its pre-crisis peak, largely because of increased private consumption. The financial crisis of 2008 broke 16 consecutive years of economic growth for Spain, leading to an economic contraction that lasted until late 2013. In that year, the government successfully shored up its struggling banking sector - heavily exposed to the collapse of Spain's real estate boom - with the help of an EU-funded restructuring and recapitalization program.

Until 2014, contraction in bank lending, fiscal austerity, and high unemployment constrained domestic consumption and investment. The unemployment rate rose from a low of about 8% in 2007 to more than 26% in 2013, but labor reforms prompted a modest reduction to 16.4% in 2017. High unemployment strained Spain's public finances, as spending on social benefits increased while tax revenues fell. Spain's budget deficit peaked at 11.4% of GDP in 2010, but Spain gradually reduced the deficit to about 3.3% of GDP in 2017. Public debt has increased substantially - from 60.1% of GDP in 2010 to nearly 96.7% in 2017.

Strong export growth helped bring Spain's current account into surplus in 2013 for the first time since 1986 and sustain Spain's economic growth. Increasing labor productivity and an internal devaluation resulting from moderating labor costs and lower inflation have improved Spain's export competitiveness and generated foreign investor interest in the economy, restoring FDI flows.

In 2017, the Spanish Government's minority status constrained its ability to implement controversial labor, pension, health care, tax, and education reforms. The European Commission expects the government to meet its 2017 budget deficit target and anticipates that expected economic growth in 2018 will help the government meet its deficit target. Spain's borrowing costs are dramatically lower since their peak in mid-2012, and increased economic activity has generated a modest level of inflation, at 2% in 2017.

Portugal has a medium-sized telecom market with a strong mobile sector and a growing broadband customer base; mobile market dominated by one operator with room for competition; 3G infrastructure is universal, with investment directed towards provision of 90% LTE coverage in rural areas and 5G technologies; cable sector shifting to fiber, with access to 66% of population; developments in m-commerce; operator assessing installation of submarine cable between islands and mainland; importer of broadcasting equipment from EU (2021)

well-developed and one of the largest telecom markets in Europe, with average mobile penetration for Europe; regulator has championed competition; LTE is nearly universal with shifts of service to 5G; operator joined government smart cities project; fixed-line broadband is backed by investment in fiber infrastructure; fiber broadband accounts for most of all fixed-line broadband connections; Chinese company Huawei contributes investment to the telecom sector; increased connectivity through submarine cable connection to Brazil; importer of broadcasting equipment from Europe (2021)

a mixture of both publicly operated and privately owned TV and radio stations; overall, hundreds of TV channels are available including national, regional, local, public, and international channels; satellite and cable TV systems available; multiple national radio networks, a large number of regional radio networks, and a larger number of local radio stations; overall, hundreds of radio stations 

Portugal does not recognize Spanish sovereignty over the territory of Olivenza based on a difference of interpretation of the 1815 Congress of Vienna and the 1801 Treaty of Badajoz

in 2002, Gibraltar residents voted overwhelmingly by referendum to reject any "shared sovereignty" arrangement; the Government of Gibraltar insists on equal participation in talks between the UK and Spain; Spain disapproves of UK plans to grant Gibraltar greater autonomy; after voters in the UK chose to leave the EU in a June 2016 referendum, Spain again proposed shared sovereignty of Gibraltar; UK officials rejected Spain's joint sovereignty proposal; Morocco protests Spain's control over the coastal enclaves of Ceuta, Melilla, and the islands of Penon de Velez de la Gomera, Penon de Alhucemas, and Islas Chafarinas, and surrounding waters; both countries claim Isla Perejil (Leila Island); Morocco serves as the primary launching site of illegal migration into Spain from North Africa; Portugal does not recognize Spanish sovereignty over the territory of Olivenza based on a difference of interpretation of the 1815 Congress of Vienna and the 1801 Treaty of Badajoz