What road should Portugal take ?

One of the main causes to Portugal difficult situation : Unitary Labour Costs

Unitary labour costs of Portugal raised too much on the last two decades, what had lead to a loss of competitiveness year after year. This raise was caused by the continuous wages rise.

The fiscal depreciation policy included on the agreement with Troika is an action to short-term.

In the middle and long term, Portugal should try to follow the German example of an economy based on innovation ( one of the countries where more patents have origin ).
The continual innovation would permit a controlled wages rise, without a total repercussion of this raise on the unitary labour costs. ( they would increase by the wages side but by the capital side they would decrease ).

Portugal must follow this way to a better future for present and future generations!!