Minister for Foreign Affairs Paulo Portas has hailed the tripartite agreement for sweeping changes in Portuguese labour laws as a “historic accord” that will improve the country’s image abroad and strengthen Lisbon’s economic diplomacy drive.

Portas, speaking to journalists Wednesday only hours after the accord was inked by government, employers and some unions, said the Ministry for Foreign Affairs would send copies of the agreement immediately to all Portuguese embassies so they could publicise the development.

He said the accord, which was negotiated over months, would give “a great boost to Portugal’s image abroad and give a sign of confidence” to foreign investors at a time of financial and economic crisis.

The planned changes to labour laws, he added, would help make the economy, which is suffering a recession, gain in competitiveness and “not fall behind in globalisation”.

Acknowledging that Portugal would face a “very difficult” 2012, Portas forecast that the pact would open the way for “growth and job creation” next year.

He declined to comment on the possibility of the agreement sparking labour and social conflict.

The country’s main union confederation CGTP walked out of the negotiations in opposition to plans to ease layoff procedures, reduce unemployment benefits, increase working time, and prune overtime pay.