Source: MAPS IN MINUTES™ © RH Publications (1997)

A west European country on the Atlantic west coast of the Iberian peninsula, flanked by Spain on the north and east. The Atlantic archipelago of the Azores and Madeira are also part of Portugal.

Physical

Half of the country lies on the edge of the high and ancient Iberian plateau, in a region of rugged hills, lakes, and deep gorges. Much of the region is covered with forests, and from it flow three great rivers—the Douro, Tagus, and Guadiana—which water the flat coastal plain, where vineyards, cereals, and citrus fruits flourish.

Economy

One of the poorest countries in Western Europe, Portugal has a mixed economy with a large agricultural sector; fishing is also important. Principal crops include grain, potatoes, fruit, and grapes for wine production; livestock are also kept. Copper forms the country’s most important mineral resource, although there are also deposits of several other metallic ores, including zinc and tungsten. Industries include textiles and clothing, wood, cork (of which Portugal is the world’s leading producer), paper, chemicals, vehicle assembly and components, base metals, food products, shipbuilding, and tourism. Exports include cars and vehicle parts, agricultural products, food, wine, refined petroleum, chemical products, wood, and cork.

History

Portugal was settled by Celtic tribes from c.500 bc, and during Roman domination was known as ‘Lusitania’. Periods of Gothic and Moorish control followed the collapse of the Western Roman empire, and Portugal struggled to develop a distinct identity until the papacy recognized the kingship of Alfonso I in 1179. In 1249 the Portuguese completed the reconquest of their country from the Moors. Then, after a series of unsuccessful wars against Castile, peace was at last concluded in 1411, and under the ruling house of Avis (1385–1580) the vast overseas Portuguese empire took shape. On the expiry of the Avis dynasty, Philip II of Spain became king by force. The Spanish union lasted until 1640, when the native House of Braganza was swept to power by a nationalist revolt. During the relatively peaceful and prosperous 18th century, close links were established with England. In the wake of the disastrous Lisbon earthquake (1755) the dynamic minister Pombal exercised the powers of an enlightened despot. During the Napoleonic Wars the Prince Regent John (King John VI from 1816), together with the Braganza royal family, fled to Brazil. Here he met demands for political and economic freedom, Brazil emerging peacefully as an independent empire in 1822. Through most of the rest of the 19th century there was considerable political instability until 1910, when a republic was established. In 1926 there was a military coup which was followed in 1932 by the establishment of Salazar as Prime Minister, Minister of Finance, and virtual dictator (1932–68), strongly supported by the Roman Catholic Church. Portugal supported the Allies in World War I and in World War II remained theoretically neutral while allowing the Allies naval and air bases. Goa, Diu, and Damao were lost to India in the 1960s, but Macao in South China was retained. Salazar’s autocratic policies were continued by Marcello Caetano until a military coup in 1974. Increasingly bitter guerrilla warfare had developed in Portuguese Africa, especially in Angola and Mozambique. These gained independence in 1975, although both experienced civil war, while the state of Guinea-Bissau was created in 1974. After two years of political instability at home, a more stable democracy began to emerge following the election of Antonio Eanes as President in 1976. Moderate coalition governments both left and right of centre have alternated, all struggling with severe economic problems. President Mario Soares was elected in 1986, having been Prime Minister since 1983. He was re-elected President in 1991, with Anibal Cavaço Silva of the Social Democrat Party as Prime Minister. Portugal joined the European Community in 1986. In the general election of 1995, the Socialist Party under António Guterres won power. He resigned in 2001 and, after elections in 2002, José Manuel Barroso of the Social Democrat Party became Prime Minister. Portugal adopted the euro as its currency in 2002. Barroso was succeeded in 2004 by Pedro Santana Lopes, who lost the 2005 election to the Socialist Party under José Sócrates. Despite increasing economic difficulties following the Credit Crunch, the Socialists were re-elected as a minority government in 2009. However, Portugal’s public debt—already large (see eurozone crisis)—expanded rapidly as the government tried to stimulate the economy; and in 2010 the global financial markets lost confidence in its sustainability and Portugal’s credit rating was downgraded. The government introduced tax rises and spending cuts, but these were not sufficient to satisfy the markets. A proposed second round in 2011 was defeated in Parliament and Sócrates resigned. While awaiting elections his caretaker government negotiated a bailout package with the EU and IMF. The elections resulted in a centre-right coalition under Pedro Passos Coelho, which aimed to fulfil or even exceed the spending cuts and other structural reforms demanded by the bailout terms. These policies and the resulting increased unemployment led to popular protests in 2012. Thereafter the position improved slowly, with Portugal again able to borrow on the global financial markets in 2013. In the October 2015 election, Passos Coelho won the most seats but lost his overall majority. He was soon defeated in parliament by a leftist coalition led by the Socialists, which then formed an anti-austerity government, with António Costa as Prime Minister.