Portugal's recent pro-business reforms are improving the country's investment potential, according to a survey conducted by Ernst & Young (EY). The EY 2013 Portuguese Attractiveness Survey, which contacted 200 business leaders, shows that nearly 60% see reforms introduced by the government as having a positive impact on the country's investment attractiveness.

Out of the string of reforms introduced since Pedro Passos Coelho's right-wing government came to power in 2011, the new labour law is the most popular, with 73% of EY's respondents seeing it as a move in the right direction. Investors are also positive about the country's economic outlook in the medium to long term. According to the EY survey, 58% of them anticipate that Portuguese economy will improve over the next three years and 95% of those based in the country expect to remain in Portugal over the next 10 years.

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Apart from the labour law, according to EY pollsters, the tax burden reduction has been identified as a key area in improving the country's business landscape. To that end, at the beginning of 2014, the Portuguese government introduced a tax reform which aims at simplifying the country's tax regime and decreases the corporate income tax from 25% to 23%.

Foreign investment inflows confirm investors' growing optimism towards Portugal, according to data from greenfield investment monitor fDi Markets. The country recorded 45 new greenfield projects in 2013, a 73% increase on 2012, but still some way down on its pre-crisis average of 66 projects a year.

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