Nobel-winning economist urges Portugal to target court reform

Nobel economics laureate James Robinson said Portugal needs more ambition and a sharper reform strategy to reverse three decades of underperformance against the European average, arguing that faster courts should be the government’s top priority because they could unlock broader economic change.

In an interview with ECO, Robinson — a University of Chicago professor and co-author with economist Nuno Palma of a study presented on Thursday — said Portugal’s problem is not diagnosing its weaknesses but executing reforms. He proposed a 90-day target for judicial decisions as a measurable short-term goal that could show voters and businesses that “change is possible” and that public institutions can deliver.

He said Portugal has become too inward-looking despite having “talented, entrepreneurial and qualified” people, and questioned the country’s reliance on EU funds for more than 90% of public investment. That dependence, he argued, points to a dysfunctional balance at a time when Portugal should be building more capacity to invest with domestic resources.

Robinson also said business leaders he and Palma spoke to consistently identified the justice system as a central obstacle to growth, while labour reform appeared less urgent and more politically complex. He added that weak competition enforcement and insufficiently independent regulators help explain why parts of the economy remain inefficient.

Despite the criticism, Robinson said Portugal can still change course. He argued that if the country can deliver one visible reform quickly, it could build public trust and momentum for wider changes in areas such as education, health and productivity.

Originally published at Eco.pt