In the 1990s, the Portuguese economic policy was focused on the respect of the standards of the Economic and Monetary Union. Portugal has adopted the Euro since its advent in January 1999. The government has therefore relaxed its tax policy for the period 1999-2000.

The Portuguese economy is based on such traditional industries as textile, clothing, shoes, wood, wine, porcelain and glass. Services, particularly tourism, play an increasingly important role in the economy. Portugal has made enormous progress and raised its living standard to the level of its European partners.