Divided political powers
The regional government, the executive body, is based in Ponta Delgada, on the island of São Miguel (the largest island, with 75% of the economy and 54% of the population). It is headed by an elected president (in fact, he is the number one of the party that wins the most votes in the legislative elections), accompanied by nine secretaries, each with a field of study: finance, public administration, labour, social affairs, tourism, transport, etc. The government is headed by a president who is elected by the people. These secretaries have offices in São Miguel, Faial and Terceira. The regional assembly, which holds the legislative power, is held in Horta, on the island of Faial. It is composed of 57 deputies elected every four years, in proportion to the population of each island. The Supreme Court, the highest chamber of the judiciary, is located in Angra do Heroísmo on the island of Terceira. In addition, a minister of the Portuguese Republic is responsible for representing the mainland's interests in the archipelago and advising it of the wishes of the Azores. He resides in Angra do Heroísmo, on the island of Terceira.
A well-functioning system
The dispersion of political authorities ensures a rather effective balance; the important thing is to satisfy the small vanities of each, sometimes legitimate, and especially to give the impression that no part of the archipelago is left out. As far as the functioning of these institutions is concerned, the regional government is accountable to the Regional Assembly, which elects five deputies to the Lisbon Parliament. The archipelago is autonomous with regard to the economy, for example, but education, health, the army, the police or justice are under the national government in Lisbon. Locally, each island is divided into several concelhos, or districts; there are six on São Miguel, for example, and only one on a smaller island like Corvo. The political parties in the Azores are the same as the Portuguese national parties, with slightly different local sensibilities. José Manuel Bolieiro, the current president of the autonomous region of the Azores, is a member of the PSD.
A fragile economy
Refocused on agriculture and fishing - and increasingly on tourism - the Azorean economy is striving for harmonious development that respects the sumptuous natural environment, which remains the islands' main source of wealth. The government, either directly or via Lisbon, and European subsidies, distribute a large part of the inhabitants' income, and while the Azores are generally not poor, luxury is rarely to be found. The Azores, like Madeira, are considered outermost regions, a term legally enshrined in the Treaty of Amsterdam and which covers specific geographical, climatic and socio-economic features within the European Union. Funds are released jointly by the Portuguese State and the European Union, and are aimed at improving infrastructure, promoting job-creating productive sectors and developing human resources.
Subsidies well present..
For the 2007-2013 period, Portugal received 21.5 billion euros from the European Union for its regional aid and development policy. The Azores received around 960 million euros for the entire period. In July 2014, the European Commission signed a new partnership agreement with Portugal for the period 2014-2020, again with the aim of supporting its outermost regions. 21.46 billion euros are thus granted to the country as part of the "mobilization of EU structural and investment funds". Additional funds will be earmarked for rural development, the maritime sector and fisheries. A notable change in the way funds are managed is that local governments will now have to manage almost 40% of the funds, compared with 25% in the previous program. At the same time, to improve the archipelago's economic situation, concessions have been accepted by the national government: VAT is 5%, 10% or 18% depending on the sector (6%, 13% and 23% on the mainland). Private individuals and companies benefit from tax rebates; a free trade zone has been set up in Santa Maria..
... and an impressive success
With the European Commission looking on critically, then incredulously, even with irritation, Portugal's results are the envy of many Northern European political leaders, still mired in their policy of unbridled liberalism. In just over two years, Portugal has gone from being "Europe's bad pupil" to "top of the class". Investment to improve quality of life is massive. Road construction to open up inland areas, the creation or improvement of health centers, water supply and the development of a sewage network are among the basic necessities in certain regions of the archipelago. We have also built new airports - today, every island has one - and expanded others, always with a view to opening up the archipelago to the outside world. Efforts have also been devoted to education. The Azores now boast several universities, and schools and colleges are being built or extended all over the island. The University of the Azores is world-famous for its oceanography and fisheries department.
Sectors that pay off
Agriculture (especially livestock farming), fishing and the agri-food industries (dairy products, canned food, beverages, tobacco) are, unsurprisingly, the three sectors that account for the lion's share of the archipelago. Modernisation of facilities and improvement of quality are the two main priorities. However, the precarious balance of a rural economy which has always been small and where the profession of fisherman or farmer involved preserving a generous nature through a moderate rate of exploitation still needs to be safeguarded. Unfortunately, the seabed cares little about European quotas and the chain from the fisherman's boat to the consumer's table will have to find in its necessary modernisation a way of not destroying a complex interplay of local markets that today keeps small villages alive.
Tourism has the wind in its sails
Tourism development is one of the regional government's priorities. There's still no wild urbanization like around Funchal in Madeira - I hope it lasts! -But Ponta Delgada has changed a lot in recent years. A modern marina has been built, offering tourists restaurants and luxury boutiques, and numerous hotels have sprung up. Inland, so-called "rural tourism" structures are booming, and are particularly well suited to the archipelago's setting and atmosphere. To welcome more visitors, the number of inter-island flights has been increased, boat trips encouraged, and the government recently decided to open up its airlines to competition; low-cost connections now link the Azores to the mainland. Major real estate projects have also been launched to attract investors. But if the archipelago is too quick to progress, it could soon find itself facing an unavoidable tourism problem: while it is today a veritable paradise for travellers seeking authenticity and for hikers in search of wild, lush nature, could the desired increase in the influx of tourists not, in time, threaten the spirit of the Azores?
Current issues
The Azores suffer above all from a high level of economic dependence on the Portuguese mainland and the European Union. In the aftermath of the serious crisis they have experienced, this dependence remains intact. However, it seems difficult to envisage a more liberated economy in the immediate future: the island's position, low population and agricultural and maritime orientation mean that there is little room for rapid diversification. Nevertheless, the archipelago is capable of relative self-sufficiency thanks to the importance of these same sectors. Tourism, in full mutation, is the major challenge of the next few years. At present, the Azores are not yet overrun by mass tourism. But since March 2015, Azorean tourism has received quite a boost thanks to the opening up of air routes to competition. As early as April, Ponta Delgada airport recorded an increase in passenger numbers of over 33%. An upheaval that immediately called into question the possibility of sustainable ecological tourism. As a concrete manifestation of the growing concern of Azoreans about the policies pursued by the Azores government, a coalition led by the opposition PSD party won the regional elections held on October 25, 2020, putting an end to almost 30 years of PS governance in the Azores.
The importance of preserving nature
Nobody in the Azores wants the archipelago to ever resemble the Canaries, or even Madeira, whose tourism investment policy has been widely criticized. The aim is to preserve the archipelago's natural, untamed beauty, and attract affluent, nature-loving tourists. Calm and harmony: a credo that suits investors and local tourism professionals perfectly. At present, the aim is to limit the number of beds in the archipelago to 15,000 (compared with around 35,000 for Madeira). Another challenge is to attract winter tourists! At this time of year, there are hardly any visitors. It's possible that the weather isn't very summery, despite the rather mild temperatures, but it's also very likely that, in the midst of slightly gloomy days, quickly spent in the beautiful museums or in a small bistro, sudden brightenings make an appearance. Getting rid of this uneven tourism is one of the archipelago's tourism challenges.
